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Category: Media Agencies

  • What spells success for Indian sports leagues?

    What spells success for Indian sports leagues?

    MUMBAI: The sports industry in emerging markets is changing rapidly today. Amongst the various changes that is impacting sports and its allied businesses, is the emergence of sports leagues.

     

    According to a white paper released in collaboration between GroupM ESP and IIM –Ahmedabad, the success of the league is dependent on factors such as the sport and its fan base, the performance of the national team for the sport, design of the league, initiatives to build the fan experience, relationship of the league with relevant sports associations and the involvement of celebrities in the league.

     

    By studying what worked and what didn’t, the report brings to light best practices in the formation and running of sports leagues in a manner that will make them successful.

     

    Sports – The game is changing

     

    Over the past 10 years, the sports firmament has changed fundamentally. There has been an increase in the marketing of sports as well as a rise in the use of sports marketing purposes.

     

    Research indicates that there has been a sharp increase in the governmental support to sports as it is believed to increase societal and economic welfare of the country as well as promote the nation on the global front.

     

    Increased economic activity has also contributed to the growth of sports and its following. Today, sports serves two purposes: One, to be a platform to create marketing opportunities for brands and secondly, to actually create value for sports fans.

     

    These twin purposes go hand in hand, and serve the business and industry as well as the sports fans. For brands and advertisers, it is a win-win situation, in so much as when they pay to sponsor or promote a sport; the sporting event offers them a platform to reach their audience.

     

    As per an industry study report, sports industry in both mature and emerging economies has been growing at a rate faster than the GDP. As of 2011, the size of the industry was estimated at $620 million, growing at a rate of 6 per cent. While the sports economy has always been strong in North America and Europe; in the recent past, it is experiencing a major push in emerging markets.

     

    The report further states that all the BRIC nations have shown impressive growth in sports (India – 17 per cent, China – 20 per cent, Brazil – 7 per cent and Russia – 53 per cent).The growth of sporting events in emerging markets has been accompanied with the rise of several sports leagues.

     

    Professional sports leagues like the Major League Baseball (MLB), National Basketball Association (NBA), National Football League (NFL), English Premier League (EPL) etc have achieved great success in North America (US and Canada) and Europe.

     

    The report states that these leagues have gained worldwide popularity and fan following and in turn has inspired the setting up of similar sport leagues in emerging countries such as India, South Africa, and Sri Lanka.

     

    With a number of new sports leagues being formed in the recent past, the report highlights interesting set of differences.  Some of these leagues are in infancy, a few others are already defunct, and there are a few which seem to have attained some degree of maturity.

     

    As per an industry study, it is estimated that in India, the proportion of spending by average household on education and recreation will rise from 5 per cent in 2005 to 9 per cent in 2025. This, coupled with the rise in middle-class segment (from 4 per cent to 41 per cent from 2005 to 2025) will present a huge opportunity for business of sports to cater to recreational needs of such a large population.

     

    Interest in sports has increased with economic, educational and social advancement of the society. These trends underlie the development and popularity of sports leagues. A brief overview of the various leagues operating within sports in India was analysed as follows:

     

    Hockey – Federation rivalry stymies the initial leagues

     

    There have been several attempts to set up Hockey Leagues in India. The first such attempt was with The Premier Hockey League which started in 2005, but folded up by 2008. Then came the World Series Hockey in 2012. These leagues have been able to attract fans as they presented a more exciting format of the game through minor modification of the rules. However, they failed to sustain interest in the game. Reason: existence of two rival national hockey federations which were involved in disputes. This impacted the participation of players in the leagues.

     

    The country currently has Hockey India, a national federation, which has started the Hockey India League (HIL) that has run two seasons and has performed better than the two earlier avatars.

     

    Cricket – Success after a false start

     

    The professional league trend in cricket began with the launch of the Indian Cricket League (ICL), which was started by Zee Group, a television broadcast company. The BCCI in its wisdom did not endorse ICL and banned players contracted with BCCI from playing in ICL matches. It also exerted pressure on the International Cricket Council, the international cricket federation to stop other national federations from supporting ICL.  With this concerted denial of support, ICL folded up in 2008, three years after it opened shop.

     

    BCCI then launched Indian Premier League (IPL) in 2008, which forever changed the face of professional leagues in the country. IPL has attracted the best of the international players from across the globe.

     

    Kabaddi – The Indian contact sport that has touched the heart of millions

     

    The Pro Kabaddi League (PKL) was started in 2014 with eight teams from different cities. The league is supported by the national and international Kabaddi federations. The teams follow the system of salary caps and its owners are personages from the industry, movies, and sports business. The first season of PKL enjoyed unprecedented viewership and fan following. Another league – The World Kabaddi League which began at around the same time as PKL could not duplicate the success of the latter, even though it had a number of film stars as owners of teams in their league.

     

    Badminton – Shuttling towards increased popularity

     

    Badminton started becoming increasingly popular in India and attracted huge following with the emergence of some world-class players. The Indian Badminton League (IBL) is managed commercially by a sports management firm and has the backing and support of the Badminton Association of India. It started the competitive games in 2013, and was fairly popular as it was able to attract some foreign players, including the world’s number one. It failed though to get some of the best Chinese players. Indian Badminton League has recently been facing issues related to scheduling due to other international tournaments.

     

    Findings

    • Fan acceptability of Leagues – Rather than financial viability, fan acceptability seems to be a better measure of predicting future success of leagues.  To sports leagues and businesses, sportsmen and others who are investing their time, effort and money in sports leagues, this is an important parameter to track and follow-up with concerted action to improve the chances of success.
    • Choice of Sports – The choice of sports can impact the success of a league. Higher the fan base of a sport, the more the fan base of the leagues in that sport. Also, better the performance of the national team, in a particular sport, the higher is the acceptability of the league in that sport. Managers, sports persons and sponsors investing in a league will benefit from analysing the two factors mentioned above, even as they analyse the probable future of the sporting league. Starting a league for a sport that has a large fan following and a national team that is performing at par may be a way to ensure its early survival and growth.
    • Design of the League – The design of the league, more specifically the salary structure can impact the success of the league. Salary caps tend to distribute talent across teams, and lead to more intense competition which has a positive effect on the success.
    • Team Location – Regional teams can help in building team character. Thus, regional team locations enable association with fans of that particular region resulting in a captive fan base, while providing a competitive spark with respect to other regional teams.
    • Game Format and Scheduling – Fans respond positively to minor changes in the game format, but are alienated by major changes. The timing and scheduling of games can impact the success of the league.
    • Fan Experience – The more the social media initiatives by the league, the more the fan acceptability.  Improve the TV viewing experience through engaging broadcast and improve fan acceptability. Employ greater in-stadia engagement for higher fan acceptability of the league.
    • Players – When top regional players, famous foreign players and world class sportsmen participate in the league games, what happens is a cascading of their respective following into the league following. So each of these people are stakeholders in enhancing fan engagement and acceptance.
    • League – Federation Leadership -The relationship between the league and the federation can impact the success of the league. Starting a league in harmony and full cooperation with the federation that controls the game is almost a hygiene factor for the success of the league.
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    Celebrity involvement

     

    Celebrity involvement is a key factor in increasing acceptability and marketability of the league. Stars in the game and stars outside the game are a good combination for league success.

     

  • Havas Media Group India catapults to RECMA top 5 ranking

    Havas Media Group India catapults to RECMA top 5 ranking

    MUMBAI: Havas Media Group India has catapulted to the top five media agencies in India in RECMA’s India Qualitative Evaluation, June 2015.

     

    It has observed an upward growth from 11th rank to number fifth rank and emerged with a ‘Very good’ profile, the first agency to score with this profile.

     

    Havas Media Group India & South Asia CEO Anita Nayyar said, “We are delighted with this recognition of hard work, commitment and dedication to understand and strategically develop clients businesses. We have clear focus on ideas, digital and integrated nonlinear marketing. Always talking to the connected Indian and using data as building blocks to chart creative solutions across media has proven effective. It is the first time RECMA has given “Very Good” as a profile qualifier. At the group we are strong believers in speed which is of utmost essence and have done a lot of catching up in the industry inspite of being one of the youngest agencies. More over the stability in senior management team has always helped us stay focused on our objective.”

     

    Havas Media Group India managing director Mohit Joshi added, “This is the effort of the whole team working together to best serve our clients coupled with the aggressive approach towards new business. We would like to thank our clients for allowing us the opportunity to be co-partners in growing their brands through the years. You will see us building on this platform and going further up the ranks.”

  • Northpoint Centre of Learning & Dentsu Aegis launch OOH Advertising programme

    Northpoint Centre of Learning & Dentsu Aegis launch OOH Advertising programme

    MUMBAI: Given the technological metamorphosis that out-of-home (OOH) is currently witnessing, it has emerged as one of the fastest growing segments in the Marketing Communications industry.

     

    For the young job seeking community, the sector has opened up lucrative career opportunities. Consequently, with much room to maneuver for ambitious youngsters, Dentsu Aegis Network and Northpoint have announced the launch of the ‘Post Graduate Program in Out Of Home Advertising (The PGP-OOHA) programme. 

     

    The PGP-OOHA programme is being conducted by Northpoint Centre of Learning, a Management Resource Development Centre, located in Khandala, in collaboration with the leading out-of-home agencies – Posterscope India and Milestone Brandcom.

     

    Designed to develop future managers, the course is a six-month fast-track post graduate career programme.  It is designed to give a thorough working knowledge of OOH advertising and communications including retail, rural and experiential and how they are all inter-related. 

     

    The course comprises modules, research projects and workshops followed by an internship with Posterscope and Milestone Brandcom.

     

    A strong emphasis will be laid on student performance evaluation through projects and practical assignments and research done by the students. While the entire semester will provide a comprehensive perspective of OOH advertising and communications, the latter part will be project-based with hands-on production and execution experiences.

     

    Northpoint Centre of Learning chairman Prem Mehta said, “The launch of this program is another step in keeping with Northpoint’s mission to prepare young graduates for careers in specialised areas of business.  Once again, Northpoint has tied up with the leaders in the OOH industry to ensure relevance of training content, training by industry professionals and substantial field and on-job internships to prepare job-ready managers.”

     

    Dentsu Aegis Network chairman and CEO South Asia and Posterscope and psLive – Asia Pacific chairman Ashish Bhasin stated, “Today, Dentsu Aegis Network is amongst the fastest growing communications groups in India and understand the need of trained talent that the industry currently needs. Therefore, we are committed to developing professional talent for the industry as a partner on this programme.”

     

    Dentsu Aegis Network will consider all successful candidates for final placement.

     

    Milestone Brandcom MD and CEO Nabendu Bhattacharyya opined, “Our objective is to create and attract talent to the OOH Industry where no such formal program existed prior to this, we believe this OOH program will benefit many new entrants as well as the existing trade practitioners in this dynamic Industry. Our, overall objective is to bring in fresh minds into the OOH Communications business for the exponential growth of the Industry. As a Leading OOH Group, “OOH Program” is our contribution to the Industry.”

     

    Posterscope Asia Pacific regional director and Posterscope Group India managing director Haresh Nayak added, “Posterscope has always prided itself in being innovators, be it in terms of team construct, offerings, services or thought leadership for the last 7 years. This initiative is an extension of that belief, of ‘innovating the way brands are built’ and talented people are the nucleus of innovation. This platform will attract and nurture these talents who will be the future minds and leaders in the Out of Home space.”

  • Carat India rated number one on vitality scores: RECMA

    Carat India rated number one on vitality scores: RECMA

    MUMBAI: After a flurry of account wins over the last 12 months including brands like General Motors, Microsoft, Sony, Nokia, MasterCard, British Airways, JSW Steel & Cement, Popees and Ruosh to name a few, Carat has also shown the maximum growth on the Qualitative Ranking of RECMA moving from the number 11 spot in August 2013 to number four in the latest report, making it the fastest growing media agency in India.

     

    To top it all, on Vitality scores of the research, Carat has jumped to the number one position with a perfect score of 10.

     

    Dentsu Aegis Network chairman and CEO South Asia Ashish Bhasin said, “This is an absolutely fantastic achievement by Carat to become the fastest growing agency in India. From being a one-in-a-crowd agency in the market, in a short time, they are at the top-end of the table. As the lead media agency of the Denstu Aegis Network, Carat continues to make its mark in the Industry and will very soon be amongst the top three on all parameters.”

     

    Carat India managing director Kartik Iyer opined, “This is a great testimony for the fantastic work the teams have put over the past few years to strengthen the Carat brand in India. This is also a result of the key investments made by group in great people and processes which have delivered outstanding solutions to our clients.”

  • RECMA names Vizeum as ‘World’s Fastest Growing Media Network’

    RECMA names Vizeum as ‘World’s Fastest Growing Media Network’

    MUMBAI: RECMA has named Vizeum as the world’s fastest growing media network in its ‘Overall Activity Billings 2014’ report published this week.  Across the 16 global agencies assessed by RECMA, Vizeum increased activity billings year-on-year by +29.1 per cent, 9 per cent more than the second ranked agency.

     

    Vizeum managing director Indian subcontinent S Yesudas said, “It is indeed a matter of pride for all of us that Vizeum has achieved this great recognition in such a short span.  This belongs to our passionate and committed team and the ever-supportive clients. Vizeum was launched in India towards the end of 2009.  We have already been able to carve out an interesting niche for ourselves within five years. We are on the path to achieving excellence in everything we do.”

     

    The top 5 growth rates of ‘Overall Activity’ Billings 2014 are:

    1-     Vizeum + 29.1 per cent

    2-     BPN + 20 per cent

    3-     Arena + 12.3 per cent

    4-     MediaCom + 11.5 per cent

    5-     Dentsu media + 11.1 per cent

     

    In absolute volume, Vizeum increased its OA Billings by + $m 2183 (the 3rd highest growth).

     

    Launched in 2003, the network has now grown to 65 offices in 45 markets.   The agency was founded by Thomas Le Thierry in France, who was later appointed the agency’s global president in 2013.

     

    The network manages global clients from seven global hubs in London, Los Angeles, New York, Paris, Singapore, Tokyo and Wiesbaden. Key wins for the network in 2014 included ABinBEV (Europe), Burger King (Europe) and Shiseido (Global).  Vizeum also expanded its relationships with Sonos, Ikea and BMW in new markets.

     

    Key wins in India during 2014/15 include: BMW, Jet Airways, HDFC, Hindware, Allied Blenders and Distillers, Saint-Gobain, Jet Privilege and Viacom 18 Media.

     

    Thierry said, “We have achieved this impressive growth through our single-minded focus on making innovation in media create value for clients.  We have built a consistent network which now has real momentum.  This growth helps us to keep the agility required in the fast moving environment. It’s the only way we can credibly remain on the edge of the industry doing best in class work for our clients.”

  • Mindshare is the number 1 media agency in India: RECMA ratings

    Mindshare is the number 1 media agency in India: RECMA ratings

    MUMBAI: Mindshare has emerged as the number one media agency in India as per RECMA’s latest qualitative assessment for all leading media agencies in India.

     

    Mindshare has scored high on the parameters of client profile, momentum, competitive pitches and resources to emerge as the leading agency in India. Besides its expertise in core traditional media, Mindshare is a full- fledged media solutions agency with expertise across digital, mobile media, data and analytics, branded content and programming. Talents across these verticals are embedded in the network and work closely with core client teams.

     

    Mindshare chairman, emerging markets Ashutosh Srivastava said. “I’m pleased to see this endorsement from RECMA for the agency’s position in India. Mindshare continues to be at the leading edge there – in harnessing data to power more creativity and innovative use of media platforms for marketers, and bringing to life its proposition of adaptive marketing.”

     

    Mindshare Asia Pacific COO Gowthaman Ragothaman added, “I am particularly satisfied with the recognition on structure and vitality. We continuously re-engineer our teams in line with the changing demands from our clients as well as the media and marketing landscape. Our suite of services now reflects a full-fledged marketing communications company.”

     

    Mindshare South Asia CEO Prasanth Kumar stated, “This is a win for each and every member of the Mindshare team. Mindshare has always been the leader in innovation, and we believe it is extremely vital for us to prepare ourselves and our clients for a relevant tomorrow.”

     

    “With our adaptive marketing philosophy, we have ensured our clients have the competitive advantage, and their communication is superlative. We are grateful for their belief in us, to deliver on our common goals of brand building. We are proud of the fact that our clients continue to work with us on initiatives that are continuously pushing the boundaries of media investment and communication, as we successfully redefine the media industry in India,” added Kumar.

     

    The RECMA country qualitative evaluations offer an extensive and up-to-date assessment of the media agencies based on a set of 18 key performance indicators segmented into two main categories: 

    ·       Compitches and Momentum = Vitality

    ·       Structure and Client Profile = Structure

  • IPC appoints Dentsu as marketing agency in Japan

    IPC appoints Dentsu as marketing agency in Japan

    MUMBAI: The International Paralympic Committee (IPC) has appointed Dentsu Inc as its exclusive marketing agency in Japan for the 2015–2020 period.

     

    As such, Dentsu has acquired the exclusive rights to sell IPC partnership packages as well as IPC sponsorship packages for ten of the sports over which the IPC has jurisdiction (IPC sports) to Japanese companies.

     

    The ten IPC sports are: Athletics, Swimming, Powerlifting, Shooting, Alpine Skiing, Snowboard, Ice Sledge Hockey, Cross-Country Skiing, Biathlon and Wheelchair Dance Sport.

     

    In addition to these package sales, Dentsu will provide support for the IPC’s promotional activities in Japan as well as for communications between the IPC and its Japanese sponsors.

     

    Moreover, Dentsu will work together with the IPC to enhance the IPC’s marketing programs with the aim of furthering the spread of Paralympic competitions worldwide.

     

    Founded in 1989 and based in Bonn, Germany, the International Paralympic Committee aims to develop sports opportunities for all people with an impairment.

  • GroupM acquires Netherlands’ Greenhouse Group B.V

    GroupM acquires Netherlands’ Greenhouse Group B.V

    MUMBAI: GroupM, the global media investment management group of WPP, has acquired Greenhouse Group in The Netherlands.

    Greenhouse Group provides digital media and marketing services through its four operating companies: Blue Mango Interactive and Fresh Fruit Digital (online marketing agencies), We Are Blossom (social media), and Source Republic (SEO and content marketing).  

    Greenhouse Group was founded in 2007 and employs more than 150 people. Unaudited revenue for the year ended 31 December, 2014 was EUR 10.1 million, with gross assets of EUR 14.1 million as at the same date.  

    The acquisition will further enhance GroupM’s data-driven digital marketing capabilities. Greenhouse Group will operate as a stand-alone business within GroupM and will continue to be led by CEO Marion Koopman and CFO Frank Sanders.

    This investment continues WPP’s strategy of developing its services in fast-growing and important markets and sectors and strengthening its digital capabilities. WPP’s digital revenues were $6.9 billion in 2014, representing 36 per cent of the Group’s total revenues of $19 billion. WPP has set a target of 40-45 per cent of revenue to be derived from digital in the next five years.  

    WPP companies (including associates) in The Netherlands generate revenues of around $300 million.

  • WPP ups stake in TAM analysis software company TechEdge to 49%

    WPP ups stake in TAM analysis software company TechEdge to 49%

    MUMBAI: WPP has increased its stake from 20 per cent to 49 per cent in TechEdge, a supplier of software that enables the analysis of TV audience measurement (TAM) data.

     

    TechEdge licenses a range of software products to broadcasters and media companies, enabling users to analyse, interpret and action respondent level TAM data. For example, broadcasters can review TV audience patterns, whilst media companies use TechEdge’s products to optimise advertising allocation by channel and time of day.

     

    TechEdge was founded in Denmark in 2000 by Andreas Velter (CEO) and Henrik Sahlholt (CTO). MEC, which is a part of WPP’s Data Investment Management division GroupM, invested in the company in 2001.

     

    TechEdge’s unaudited net sales for the year ended 31 December, 2014 were approximately $13.6 million, with gross assets at the same date of approximately $6.3 million.

     

    This investment continues WPP’s strategy of developing its services in fast-growing and important markets and sectors and strengthening its capabilities in digital media. WPP’s digital revenues were $6.9 billion in 2014, representing 36 per cent of the Group’s total revenues of $19 billion. WPP has set a target of 40-45 per cent of revenue to be derived from digital in the next five years.

  • GroupM acquires Chemistry Media in New Zealand

    GroupM acquires Chemistry Media in New Zealand

    MUMBAI: WPP’s wholly owned operating company GroupM has acquired New Zealand based media agency Chemistry Media Ltd.

    Chemistry Media is a media planning and buying agency with operations in Auckland and Wellington. Key clients include Bank of New Zealand, Fonterra, Nestlé, and Restaurant Brands.

    Since 2010, Chemistry has been affiliated with the MediaCom network, and currently trades under the name MediaCom. Following the acquisition, Chemistry will continue to trade as MediaCom. 

    This acquisition marks a further step towards WPP’s declared goal of developing its networks in fast-growth markets and sectors. In the Australia-New Zealand region, WPP companies (including associates) generated revenues of $1.2 billion in 2014, and employ 4,000 people.