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Category: Media and Advertising

  • Indian advertising market leads BRIC with 11% growth rate in 2015: Carat

    Indian advertising market leads BRIC with 11% growth rate in 2015: Carat

    MUMBAI: The Indian advertising market is all set to witness a double digit growth rate of 11 per cent in 2015, which is the highest growth rate amongst the BRIC markets. The growth boost came from the ICC Cricket World Cup, which was held earlier in the year. Moreover, in 2016, India is poised to see a growth rate of 12 per cent, according to the Carat Ad Spend Report of September 2015.

    The year 2015 looks buoyant for the Indian advertising market as optimism continues to flood the market with growth prospects remaining high in the country, propelled by the election of a pro-business government in 2014 and the revival in investment.

    Of the other BRIC countries, while the advertising market in both Brazil and China is expected to see a growth rate of six per cent each in 2015, Russia will be an aberration as the economy has been affected by the sharp drop in oil prices and Western sanctions following the annexation of Crimea last year. The Russian advertising market has been severely affected with advertising revenues decreased by 16 per cent in 1H 2015. Carat predicts the total is market forecast to decrease by 14 per cent in 2015, a revision down from the decrease of 7.1 per cent previously forecast in the March 2015 report.

    DIGITAL AND MOBILE FORECAST

    From a regional perspective, Carat confirms on-going positive momentum in 2015 for most regions although volatility occurs in some individual markets, with Western Europe at 2.6 per cent, 4.2 per cent in North America, 4.1 per cent in Asia Pacific and 12.7 per cent in Latin America.

    Despite a slight decline in growth forecasts due to China’s economic downturn, Asia Pacific remains strong in 2015 with an above global spend rate of 4.1 per cent, driven by high-performing India at 11 per cent and growing Australia at 2.4 per cent. 

    The report predicted continued optimism through positive global and regional outlook and solid growth in Digital and Mobile. Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, global advertising spend will grow by four per cent in 2015 to $529 billion, a slight decline from the 4.6 per cent predicted in March 2015. Moreover, in 2016 it is predicted to grow by 4.7 per cent, accounting for an additional $25 billion in spend as per Carat’s latest global advertising expenditure report. 

    Fuelled by the rise of Mobile and Online Video spending trends, the report reconfirms the continued solid growth for Digital media, evident through the upsurge in the predicted share of advertising spend in 2015 of 24.3 per cent and 26.5 per cent in 2016. For 10 of the markets analysed, including the UK, Ireland, Canada and Australia, Digital is now the principle media used based on spend, with the US market predicted to join this list in 2018 when digital advertising spend is forecast to overtake TV advertising by more than $4 billion.

    DIGITAL

    By media, Digital with 15.7 per cent growth in 2015, continues to be the only channel warranting double digital growth and is predicted slightly lower at 14.3 per cent in 2016. This is driven by the high demand for Mobile and Online Video advertising especially across social media, with 51.2 per cent and 22 per cent year-on-year growth expected this year.

    TELEVISION

    Programmatic buying is also experiencing rapid growth at a rate of 20 per cent each year. TV remains both dominant and resilient with a steady 42 per cent market share of global advertising spends in 2015 and is predicted to grow by more than three per cent in 2016, as the upcoming Olympic Games and US elections are expected to drive considerable viewership.

    Thirty eight out of the 59 markets analysed, report TV still as their leading medium, with 17 out of these 37 markets showing that more than 50 per cent of their advertising spend is still placed on TV, including Italy, China and Brazil. 

     

    ONLINE VIDEO

    Online Video is forecast to grow at a rate of 22 per cent this year and a forecast of 19 per cent in 2016, as previously predicted in the March 2015 report. With cross-device measurement tools becoming more robust, and access to premium content increasingly available, greater investments from TV budgets are being allocated into Digital, moving from a ‘channel-first’ mind set to an ‘audience-first’ focused approach. Brands are starting to understand the reach and potential of moving their investment to Online Video as the lines between linear broadcasts and digital increasingly blur. Growth in Online Video will also be fuelled by the rise of programmatic video and more efficient/scalable video production via media partners.

    MOBILE

    Mobile is experiencing the greatest spend growth across all media. The opportunities
    to re-target consumers closer to purchase activity is a big driver. Carat forecasts growth in Mobile spend at 51.2 per cent in 2015, up from the previous prediction of 49.7 per cent in the March 2015 report and a predicted 44.5 per cent in 2016 up from the previous prediction in March 2015 of 41.9 per cent. In the US, Mobile ads targeted to both smartphones and tablets are predicted to capture up to 40 per cent of online display spend by 2019, currently accounting for 24 per cent of digital budgets.

    SOCIAL MEDIA

    Mobile and Online Video are also the key factors for Social Media advertising spend growth. Social Media advertising spend is rising, and moving to mobile and in-app placements. Both Twitter and Facebook report that over 70 per cent of their advertising revenue now comes from mobile, and the vast majority of this is now likely to be in-app rather than through the mobile web.

    NEWSPAPERS

    The age old Newspaper continue to capture the third highest share of total advertising spend, being the second most popular media type in India, and the third most popular for nine of the 13 top spending markets, including the US, Japan and UK. However, the market as a whole continues to fight against a difficult structural trend of spend shifting to digital platforms. As a result, traditional Print spend has been declining every year since 2008. Newspaper share of total advertising spend has been falling by over a percentage point each year, from 23 per cent in 2008 to a predicted 13 per cent in 2015 and 12 per cent in 2016.

    MAGAZINE, CINEMA, RADIO, OOH

    Despite the ongoing decline in Print spend, Carat’s forecasts confirm year-on-year growth for all other media with updated predictions for 2015 highlighting year-on-year growth in Cinema at 4.7 per cent, Radio at 1.3 per cent and Outdoor at 3.4 per cent, with the latter two slightly revised down from March 2015 figures.

    Magazines are forecast to decline by two per cent in 2015 and by 1.9 per cent in 2016. Magazine share of spend is forecast at 6.9 per cent in 2015 and 6.5 per cent in 2016.

    Dentsu Aegis Network CEO Jerry Buhlmann said, “Carat’s latest advertising spend forecast shows optimism balanced with realism during a year of increased volatility in major markets such as Russia and China. Noticeably, the landscape is becoming increasingly complex as previously grouped markets, such as the BRIC economies are now operating differently and economic situations can quickly change markets at pace. Our teams are well positioned to navigate our clients through this multi-faceted marketplace and successfully assimilate new market opportunities at speed.”

    “Digital media continues to achieve outstanding growth as the effectiveness of this medium and results achieved, especially with the millennials, warrants the upsurge in spend levels. As digital rapidly evolves into a more established asset and programmatic and search bring stronger performance and efficiency, we continue to add value to our clients by delivering innovative solutions that are different and better,” he added.

    Carat Global chief strategy officer Sanjay Nazerali said, “The media landscape is more complex and multi-faceted than ever before. The diversity of media, market volatility and the rising impact of geographical events are all influencing advertising spend. For global clients, this means a greater need to be aware of such evolving scenarios, to be agile and able to move spend where it can deliver the greatest return.”

  • Singapore Airlines appoints Zenithoptimedia as global AOR

    Singapore Airlines appoints Zenithoptimedia as global AOR

    MUMBAI: Singapore Airlines has appointed ZenithOptimedia Group as agency of record (AOR) to manage its global media communications business both offline and online.
     
     
    The contract will take effect from 1 October, 2015 and will see ZenithOptimedia Group continue Singapore Airlines’ media strategy of balancing traditional with new digital forms advertising.
     
     
    The business will be led centrally from Singapore where there will be a contemporary agency team delivering a data led strategy across communication planning and performance marketing.  The central team will work closely with ZenithOptimedia’s network to support Singapore Airlines’ local markets.
     
     
    “We are absolutely delighted to be able to expand our relationship with Singapore Airlines. They are a leading global brand and we are really excited at the prospect of taking our partnership to the next level in supporting their marketing and communications,” said ZenithOptimedia CEO Gareth Mulryan.
     
     
    This business extends the partnership from the search-only assignment that was won two years ago under the Performics brand, a division within ZenithOptimedia Group.
  • Indian brands eye 25% increase in mobile marketing spends

    Indian brands eye 25% increase in mobile marketing spends

    MUMBAI: In this ever changing and developing world, which is led by technological advancements, brands need to constantly re-examine their strategies and explore the full extent of the tools at their disposal. In a scenario like this, the key to the mobile marketing industry’s success is for brands to take a focused and consumer-centric approach.

     

    What’s more, according to a research called “State of the industry – mobile marketing in India” conducted by WARC in conjunction with Mobile Marketing Association (MMA), around 75 per cent of Indian marketers are looking to raise their mobile marketing spends to 25 per cent from this year from 10 per cent or less from the previous years. What’s more, the number might even hit 50 per cent in the next five years.

     

    According to WARC Asia Pacific MD Edward Pank, the study indicated that Hindustan Unilever was the most innovative mobile brand in the country followed closely by Flipkart, Samsung, Amazon and Paytm while Telecom and Retail ead the way in terms of innovation and location based marketing.

     

    The annual MMA Forum India 2015, which was held in Gurgaon recently, was themed ‘Acquiring, Reaching and Engaging the Right Consumers through Mobile.’ The forum saw speakers from brands, agencies and technology companies, dissecting successful and innovative brand campaigns over the previous year to highlight the importance and effectiveness of mobile within the marketing mix.

     

    “Capability-building and innovation are key to the success of the mobile marketing industry. In light of the rapid evolution of technology, it’s important for brands to take a focused and consumer-centric approach to mobile,” said MMA Asia Pacific managing director Rohit Dadwal.

     

    The MMA Forum India 2015 kicked off with a keynote session by Unilever regional vice president – media Rahul Weld, who discussed Unilever’s innovative approach to marketing and its success in reaching out to the targeted customer through effective strategies.

     

    Talking about the importance of “seizing the moment” when reaching out to the consumer, Google India industry director – e-commerce, retail, online classifieds and technology Nitin Bawankule said, “The most effective way to reach out to the consumer is to target them in time of their need. Every consumer looks for solutions on their mobile devices and strategic advertising are key to catching the consumer at this moment.”

     

    Media specialist and writer Vanita Kohli-Khandekar and Vserv co-founder & CEO Dippak Khurana brought to light the various aspects of mobile commerce, advertising and data that can help shrink the intent-purchase gap. 

     

    Talking about the need to share data to leverage its power to reach, engage and acquire the consumer, Khurana said that publishers with significant “consumer attention” will try to move to commerce and that while consumers in India have regularly demonstrated their appetite to pay through mobile, marketers have been shy of sharing data that could help them buy through mobile platforms, significantly limiting their success.

     

    Madhouse Inc founder & CEO Joshua Maa discussed the similarities and the difference between different Asian markets with a focus on India and China during his session – “No two markets are the same yet they are not different.” He covered aspects and opportunities where India could learn from China and vice versa.

     

    Group M CEO CVL Srinivas moderated a panel discussion with Pepsico India vice president – beverages category Vipul Prakash, ZEEL chief business officer Sunil Buch and OLX India CEO Amarjit Singh Batra, where they shared insights on becoming “mobile capable” and how media owners, brands and agencies can come together to build mobile insight and capability to achieve the desired level of maturity.

     

    Yahoo Asia Pacific senior director marketing Nitin Mathur unveiled the various aspects of Flurry, the mobile-analytics company acquired by Yahoo, and discussed its potential to influence the consumer by tracking their behaviour on apps and building personalised and relevant communication thereby highlighting the need for more such tools in the space.

     

    Opera Mediaworks Asia managing director Vikas Gulati illustrated the effectiveness of mobile devices in connecting brands and consumers by discussing the success of AskMeBazaar.com’s campaign with Askme India group CMO Manav Sethi and Findit Malaysia that was executed by Opera MediaWorks. Gulati discussed at length, the power that mobile empowers brands with, to control consumer behaviour as they are most intimate and used media device.

     

    As part of the MMA forum 2015, Madhouse – South Asia COO Milind Pathak introduced the winners of Madlabs, a platform introduced by Madhouse to showcase the innovative mobile communications and solutions in the startup ecosystem and espoused the effective use of mobile to reach out the targeted consumer.

     

    The MMA Forum was followed by the MMA’s mobile excellence awards program – SMARTIES India 2015 where the winners from 15 categories and five Industry awards were announced.

     

    Over 330 delegates and 34 industry leaders representing the mobile marketing ecosystem in the country came together for the day-long event to discuss and deliberate over the future of the industry.

  • Razorfish India names Dinesh Swamy as senior creative director

    Razorfish India names Dinesh Swamy as senior creative director

    MUMBAI: Razorfish India has appointed Dinesh Swamy as senior creative director, based out of Mumbai.

     

    Speaking on the appointment, Razorfish CEO Charulata Ravi Kumar said, “With his credentials already preceding him, what struck me most about Dinesh was his childlike curiosity and energy that evidently add interesting dimensions to his creative ideas. His passion for photography and dancing tell me that he sees beyond the obvious and uses the insight for a story worth swinging to.”

     

    Razorfish India COO Gaurav Pathak added, “Dinesh is not only an excellent creative talent but also brings with him the strategic bent of mind that makes his work stand out with an innovative relevance that aligns perfectly with our philosophy at Razorfish.”

     

    Swamy said, “Razorfish has always inspired me and been on my list; it’s a great opportunity to breathe pure Digital. Razorfish has the passion to blend idea and technology to create innovative solutions. I want to take it ahead and showcase great case studies along with the team and be part of taking it to its next level of creative excellence that transforms business.”

     

    Swamy’s portfolio spans strategic innovations and integrated solutions across CRM, Social Media and Online Integrated campaigns for multiple clients. He has previously worked with companies like Flip Media Corp, Tribal DDB India and Digital Law & Kenneth. Most recently he was with BBDO Proximity as digital creative leader.

  • M&C Saatchi trains eyes on Asia; names Ben Welsh as creative chairman

    M&C Saatchi trains eyes on Asia; names Ben Welsh as creative chairman

    MUMBAI: With its eyes trained on the rapidly growing Asian market, M&C Saatchi has named Ben Welsh as the agency’s creative chairman of Asia. Welsh was formerly at M&C Saatchi Sydney as executive creative director.

     

    Welsh’s appointment marks a change in emphasis for the network. Asia as a region has changed dramatically in recent years – China took over as the largest economy from the US in 2014, India has the fastest growing advertising industry in the world and Japan is the second most innovative country in the world. The addition of Welsh demonstrates the network’s spotlight on Asia.

     

    Welsh’s focus will be pitching for both international and national brands in each region, attracting creative talent and developing the creative output of the five agencies the network runs there.

     

    Welsh has helped to establish M&C Saatchi Sydney as the leading creative shop in Australia – and has led the agency to its biggest trophy-haul yet at Cannes this year, consolidating its position as the country’s number one creative agency. M&C Saatchi Australia came home with a coveted Titanium Lion, one of only five up for grabs, to cap off a 10-Lion haul.

     

    M&C Saatchi CEO worldwide Moray MacLennan said, “This appointment underlines our commitment to the core of our business – the creative product. Ben is the best combination of strategic thinker and creative leader. Add in his boundless energy and Asia will be hugely strengthened. He is also an excellent brand ambassador for M&C Saatchi having worked for us for the last 18 years.”

     

    Welsh added, “I’m really excited at the thought of what we can do in the region. We have some brilliant people and I look forward to working with them to create an impact in such a diverse part of the world.”

     

    Welsh will start his new role on 1 October. His appointment follows the departure of Chris Jacques who was regional CEO. He will be based in Sydney but regularly travelling to Singapore, New Delhi, Kuala Lumpur, Shanghai and Tokyo.

     

    Welsh joined M&C Saatchi Sydney in 1997 as a senior writer and was then promoted to creative director in 2003. Previously, he led a team of over 50 creatives working across digital, direct, retail and above the line media in Australia’s largest agency.

  • Ogilvy acquires majority stake in Brazilian marketing agency Jüssi

    Ogilvy acquires majority stake in Brazilian marketing agency Jüssi

    MUMBAI: WPP’s wholly-owned operating company Ogilvy has acquired a majority stake of Jüssi Intention Marketing Ltd, an online performance, programmatic and conversion marketing agency in Brazil.
     

    Jüssi’s clients include Allianz Global Assistance & Corporate, Amazon, Decathlon, FNAC, Google, LinkedIn and Terra. Founded in 2010, the company employs 120 people and is based in S?o Paulo. Jüssi will be part of the Ogilvy Group in Brazil (Ogilvy & Mather, David Agency, Nine, Etco and Foster) and will continue to operate under the Jüssi name. 

     

     

    This investment continues WPP’s strategy of investing in fast growing sectors such as digital and its commitment to developing its strategic networks throughout Latin America, while bolstering the Group’s leadership position in Brazil.

     

    In Brazil, the Group (including associates and investments) generates revenues of around $600 million and employs over 7,000 people

  • Dentsu Ventures invests in US ‘cloud-first’ smartphone development startup

    Dentsu Ventures invests in US ‘cloud-first’ smartphone development startup

    MUMBAI: Dentsu Ventures Global Fund I has made an investment in San Francisco based Nexbit Systems Inc, a startup developing cloud-integrated services for smart devices from both the hardware and software perspectives.

     

    Nextbit is the third company in which Dentsu Ventures has invested since its launch in April 2015.

     

    The company was established with the objectives of investing in ambitious start-up companies that will create an as yet unseen future and furthering open innovation across the Dentsu Group through collaboration with investees. In addition to funding, Dentsu Ventures will support businesses and entrepreneurs by providing problem-solving solutions and resources that are unique to the Group.

     

    On 1 September, Nextbit launched Robin, a “cloud-first” smartphone that enables synchronized cloud storage of music, videos, apps, photos and other high-volume data without any user action required. The crowdfunding campaign for the Robin smartphone was launched the same day, and the US$500,000 goal was reached within a matter of hours. Nextbit is pushing mobile computing forward with the introduction of innovative software and hardware that solves important user problems such as running out of local storage space on smart devices.

     

    As smart devices continue to diversify, Dentsu Ventures believes that real-time data integration and linking across devices together with the development and provision of unprecedented user experiences that optimise this capability will become increasingly important. Nextbit’s innovative technology will offer smart device users an entirely new type of cloud service in this Internet of Things era.

     

    Looking ahead, the Dentsu Group will provide support for the spread of the Robin smartphone worldwide as well as the other new businesses that Nextbit will develop in the future.

  • Omnicom bags top honors at 2015 Spikes Asia Festival

    Omnicom bags top honors at 2015 Spikes Asia Festival

    MUMBAI: Omnicom agencies took the top honours at the annual Spikes Asia Festival of Creativity. BBDO received the night’s top honor, Network of the Year, for the second consecutive year, with DDB placing third. The award comes on the heels of BBDO winning the Cannes Lions APAC Network of the Year.

     

    On the other hand, Colenso BBDO won Agency of the Year and DDB Group New Zealand placed third. OMD China was among the top three Media Agencies of the Year.

     

    In total, over 40 Omnicom agencies in 12 countries contributed to nearly 150 Spike awards. More than any other holding company, Omnicom agencies won four Grand Prix awards in Design, Digital, Direct, and Promo and Activation, as well as three Creative Effectiveness awards.

     

    Colenso BBDO’s ‘Reduce Speed Dial’ innovative campaign for Volkswagen was a multiple award-winner taking the top prize in Digital and Direct. WhybinTBWA won a Grand Prix and two Golds for their ‘It’s Your Call’ campaign for 3AW. DDB Group New Zealand was among the top three agencies and won two Grand Prix awards, the highest honour, in Design, Promo and Activation.

     

    “Omnicom once again had a great showing at Spikes and it’s especially gratifying to see our networks and agencies continue their winning streak in an incredibly competitive region. I am extremely proud of the recognition, the work that earned it, and the people that made it happen,” said Omnicom Group president and CEO John Wren.

  • Onads Communications wins Bajaj Electricals’ entire creative account

    Onads Communications wins Bajaj Electricals’ entire creative account

    MUMBAI: Onads Communications has been appointed as the sole creative agency for Bajaj Electricals.

     

    Prior to this, Onads was handling about 30 per cent of Bajaj Electricals’ portfolio, while the incumbent Soho Square was handling 70 per cent of the business.  

     

    This is the first time that Bajaj Electricals has handed over its entire mandate to a single creative agency.

     

    Onads Communications founder Jignesh Maniar said, “This is a landmark achievement for Onads Communications and is a reflection of the faith that the management of Bajaj Electricals has in our creative abilities. We look forward to partnering them to take Bajaj Electricals to new heights in the future.”

     

    Onads Communications has been working with Bajaj Electricals for the last three years. The partnership initially started as a one year project for the company’s 75 Years celebrations.