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Tag: ad spend

  • India’s ad spend estimated at 13.3 per cent by Magna Global Forecasts 2015

    India’s ad spend estimated at 13.3 per cent by Magna Global Forecasts 2015

    MUMBAI: In its latest study of global media owner advertising revenues, covering 73 countries, Magna Global estimates that ad revenues grew by more than 5.5 per cent this year, to reach the half-trillion mark ($512 billion). Advertising sales will grow by more 4.8 per cent in 2015 to reach $536 billion.

    Some of the most significant revisions in the 2015 forecasts are found among BRIC markets. China and Brazil advertising revenues are still predicted to grow by a decent amount (+8.6 per cent and +5.9 per cent, respectively) although two to three points below previous expectations. Russia is the single biggest negative revision, due to the combination of declining energy prices and the partial withdrawal of Western investors amidst geopolitical tensions; the 2015 advertising growth forecast is cut from 7.0 per cent to 0.8 per cent.

    India will, thus, become the most dynamic among the four BRICs, with an expected ad spend growth of +13.3 per cent following a similar pace of 2014 (+13.2 per cent).

    The general elections that took place in the first part of the year generated massive incremental spend. The outcome of the election, bringing a new BJP-led Government to power, improved business and consumer confidence, is what prompts ad growth forecast in the coming year. The new government is also committed to invest billions in order to connect millions of rural Indians to broadband internet, in a plan advertised through a recent meeting between the new Prime Minister Narendra Modi, and the Facebook founder Mark Zuckerberg.

    Magna Global global forecasting director and author of the report Vincent Letang said, “In 2014, the long-awaited European recovery finally came in time to partly offset a weaker- than-expected growth in the US and the BRICs. In 2015, the lack of non-recurring events, the continued slowdown of the BRICs and the deflationary effects generated by the rise of digital media will inhibit global advertising growth, in a slight disconnect with the positive acceleration in the macro-economic environment.”

    The report highlights that in the APAC, within digital, the fastest growing formats are social (+58.6 per cent growth), followed by video (+37.6 per cent growth) and search (+25.5 per cent growth). Mobile spend on social formats continues to lead the way, and other formats will follow.

    Television remains the dominant format for advertising spend in APAC, and spend will grow by 3.5 per cent this year and represent slightly over 40 per cent of all advertising dollars. Broadcast television continues to dominate the TV landscape, although multi-channel television is gaining share due to slightly higher growth rates, and by 2019 will represent nearly one quarter of TV dollars. Print continues to lose market share, and newspaper and magazines together will represent less than one in five advertising dollars this year. This is down from one third of all spending as recently as 2008.

    APAC will continue to be one of the stronger regional drivers of global advertising spend, although its lead on the global growth rate continues to narrow. Its total share of global ad spend will only increase slightly between this year and 2019, from 29 per cent to just over 30 per cent of total spend.

  • Colgate ups ad spend by 22 per cent during Q3-2014

    Colgate ups ad spend by 22 per cent during Q3-2014

    BENGALURU: Consumer products major and one of the largest advertisers in its segment in the country, Colgate-Palmolive (India) spent 21.64 per cent more towards advertising expense during Q3-2014 at Rs 121.46 crore as compared to the Rs 99.85 crore during the corresponding quarter of last year. Also, its Q3-2014 ad spend was 1.67 per cent higher than the Rs 119.47 crore during the immediate trailing quarter.

     

    During the nine month period ended December 31, 2013, Colgate spent Rs 343.32 crore towards advertising. This ad spend was 25.99 per cent higher than the Rs 272.49 crore the company spent during the corresponding nine month period of last fiscal. During FY 2013, the company spent Rs 354.59 crore towards advertising.

     

    Colgate’s revenue for Q3-2014 at Rs 891.11 crore was 13.7 per cent higher than the Rs 783.77 crore during Q3-2013, but 1.07 per cent lower than the Rs 900.73 crore during the immediate preceding quarter. Revenue during the nine month period ended December 31, 2013 at Rs 2651.53 crore was 13.69 per cent more than the Rs 232.28 crore during the corresponding period of last year. Colgate’s revenue for FY 2013 was Rs 3163.81 crore.

     

    Ad spends as percentage of total revenue during the various periods were: 13.63 per cent in Q3-2014; 12.74 per cent in Q3-2013; 13.26 per cent in Q2-2014; 12.95 per cent for the nine month period ended December 31, 2013; 11.68 per cent for the nine month period ended December 31, 2012 and 11.21 per cent of the total revenue during FY 2013.

     

    Colgate’s PAT for Q3-2014 at Rs 112.83 crore was 1.6 per cent higher than the Rs 111.05 crore during Q3-2013 and 3.02 per cent higher than the Rs 109.52 crore during Q2-2014. Colgate had paid a First Interim Dividend of Rs 122.39 crore (Rs 9 per share having face value of Re 1) in November 2013 and Second Interim Dividend of Rs 122.39 crore (Rs 9 per share having face value of Re 1) in December 2013.

     

    Some of Colgate’s major brands include its oral care brand Colgate; personal care brand Palmolive and household care brand Axion.

  • Global ad spend goes upward in the first half of 2013

    Global ad spend goes upward in the first half of 2013

    NEW DELHI: Ad spends grew by a substantial 6.4 per cent in the first half of 2013, making it the largest growth among different regions of the world.

     

    Marketers continue to gradually increase their global ad spending, as expenditures grew 3.5 per cent in the second quarter of 2013 and 2.8 percent on a year-over-year basis for the January-June periods of 2013 and 2012, according to Nielsen’s quarterly Global AdView Pulse report.

     

    Although many marketers remain conservative with advertising budgets, those in Latin America continue to buck the norm, increasing their expenditures by 13.1 percent (to $13.5 billion) for the January-June period.

     

    All regions contributed to global growth for the first half of the year except Europe, where marketers remain modest with their ad budgets amid the regions’ continued fiscal crisis, resulting in a six percent decline for the period. Ad spend continued to recover after slumping during the economic downturn, with growth of 3.9 percent in the Middle East and Africa, and 2.7 percent in North America.

     

    Argentina contributed significantly to growth for the Latin America region with nearly 30 per cent growth. Indonesia, China and the Philippines all contributed to double-digit ad growth in Asia-Pacific for the first half of 2013, with expenditures reaching $51 billion. In Europe, ad spend increased in Norway, Switzerland, and Greece (2.5 per cent, 0.6 per cent, and 7.4 per cent respectively), while expenditures declined in all other countries in the region.

     

    Nielsen Global AdView Pulse measures ad spending for TV, newspapers, magazines, radio, outdoor, cinema and Internet display advertising. Ad spend is based mainly on published rate-cards. Some markets may exclude select media due to data availability.

     

    The external data sources for the other countries included in the report are:

     

    Argentina: IBOPE
    Brazil: IBOPE
    Croatia: Nielsen in association with Ipsos
    Egypt: PARC (Pan Arab Research Centre)
    France: Yacast
    Greece: Media Services
    Hong Kong: admanGo
    Japan: Nihon Daily Tsushinsha
    Kuwait: PARC (Pan Arab Research Centre)
    Lebanon: PARC (Pan Arab Research Centre)
    Mexico: IBOPE
    Pan-Arab Media: PARC (Pan Arab Research Centre)
    Portugal: Mediamonitor
    Saudi Arabia: PARC (Pan Arab Research Centre)
    Spain: Arce Media
    Switzerland: Nielsen in association with Media Focus
    UAE: PARC (Pan Arab Research Centre)

  • GroupM downgrades 2013 global ad spend

    MUMBAI: Due to the continuing sluggishness in the US and European economies, the global ad spend in 2013 will grow by 4.5 per cent, as per GroupM’s revised forecast.

    The study revealed that the forecast is almost a full percentage point lower than the 5.3 per cent spending hike GroupM predicted in June.

    The 70-country forecast predicted that global ad spending in 2013 will increase 4.5 per cent compared to 2012, representing $531 billion.

    The revised spending forecast was made in GroupM’s biannual worldwide report, “This Year, Next Year,” which also concluded that 2012 ad spending in measured media will hit $508 billion, a 4.6 per cent increase over 2011 spending of $486 billion.

    For the U.S. market, the report said advertising investment in measured media grew 3.5 per cent in 2012 to $152.4 billion, up from $147.2 billion the previous year.

    For 2013, the new report predicted a less optimistic 2.7 per cent increase to $156.5 billion.

    GroupM chief investment officer Rino Scanzoni said, “Ad spending in 2013 won’t enjoy the boost from Olympic and election-year spending we saw in 2012. At the same time, overall economic conditions in the US do not support more than very moderate advertising spending expansion.”

    GroupM Futures Director Adam Smith said ad investment in the Eurozone periphery (Greece, Ireland, Italy, Portugal and Spain) is expected to fall 15 per cent this year, a 40 per cent contraction from its peak spending year of 2007 and comparable in real terms to 1998 spending levels.

    “Western Europe is the slowest region for ad spending growth, with a 2.6 per cent contraction expected in 2012, the worst year since 2009‘s 11 per cent collapse. Western Europe now accounts for 20 per cent of global advertising, down from 30 per cent in 1999 and heading for 17 per cent in 2017,” Smith added.

    Smith also said that Russia and Turkey continue to lead ad spending growth in central and Eastern Europe, a regional economy that is one-fifth the size of Western Europe but with twice the ad spending growth.

    The study is part of GroupM‘s media and marketing forecasting series drawn from data supplied by parent company WPP‘s worldwide resources in advertising, public relations, market research, and specialist communications.

    The report predicted that investment in digital media would account for 19.5 per cent of measured ad spending globally this year ($99 billion) and 21.4 per cent in 2013 ($114 billion), with respective growth rates of 16 per cent and 15 per cent. Those figures are comparable to the GroupM forecast made earlier this year.

    “Digital ad growth remains strong, sustained and structural, though one or two highly-digitized European markets now look for growth in usage as opposed to new users,” said Smith. “More newsworthy is our rising dependence on digital to support total growth, now furnishing over 60 per cent of new incremental ad dollars in 2012 and 2013. This produces a reciprocal reduction in TV’s contribution, being the only other large growth medium.”

    In other media categories, TV accounted for 43 per cent of measured global media investment in 2012, the same amount recorded for the previous year.

    “We continue to predict TV‘s share of global ad budgets peaking in 2012 at 43 per cent as other screens begin to claim meaningful amounts of consumer time,” Smith added.