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Tag: ad spends

  • India is third largest contributor to Zenith’s 3-year global adex prediction

    India is third largest contributor to Zenith’s 3-year global adex prediction

    MUMBAI: Zenith has predicted that the global ad expenditure will grow 4.5 per cent in 2018, reaching $581 billion by the end of the year. For the coming years, the agency expects the advertising expenditure to grow behind the global economy and its forecast has mentioned 4 per cent growth for 2019, followed by 4.2 per cent in 2020 and 4.1 per cent in 2021.

    The forecast for 2019 is slightly down from its September prediction of 4.2 per cent growth.

    The report has indicated that regions in ‘Fast-track Asia’ (India, China, Indonesia, Malaysia, Pakistan, Philippines, Taiwan, Thailand, and Vietnam) are expecting the growth to rise to an average of 6.2 per cent a year to 2021.

    India has been ranked third (followed by USA and China) in the list of top ten contributors to ad-spend growth 2018-2021 and is expected to see $4,506 million in ad-spends, which is 6 per cent of the expected total global advertising expenditure

    North American ad-spend will grow 3 per cent in 2019 and will show an average 3.4 per cent growth each year to 2021 as the “ad market has been growing fairly steadily but unspectacularly since 2010”. Latin America is expected to record an average growth rate of 4.1 per cent a year to 2021. Combining “large scale and rapid growth” China will contribute 19 per cent to the global growth rate and will spend $14,461 million for advertisements.

    The forecast has further revealed that six of the ten largest contributors will be rising markets (China, India, Indonesia, Brazil,  South Korea and Russia), and they will contribute 37 per cent of new ad-spend over the next three years.

  • APAC shows highest growth in ad spends over mobile web: Smaato report

    APAC shows highest growth in ad spends over mobile web: Smaato report

    MUMBAI:  Real-time advertising platform Smaato recently released its Global Trends in Mobile Programmatic report, by analysing data from billions of mobile ad impressions served on its exchange during the first half of 2015. As per the report, Asia Pacific countries recorded the highest growth during the first half of 2015 with India growing by 279 per cent followed by Singapore 225 per cent, Indonesia, 142 per cent and Malaysia 126 per cent.

    “Asia Pacific (APAC) showed the most growth during the first half of 2015 vs. the first six months of 2014, with China delivering an astounding 315 per cent increase in growth, India showing a 279 per cent increase in growth and Singapore growing by 225 per cent. More disposable income means bigger and more powerful smartphones; this in turn drives both the publisher/app developer and mobile advertiser ecosystems that rely on Smaato’s platform,” reads the report.

    When it comes to Smaato exchange, the report suggests India takes the second rank in top 10 countries list by supply and ranks third by spending.

    “Rich media and larger ad sizes are becoming increasingly popular in the Asia-Pacific as marketers use more creative and engaging content to get their messages across,” said  Smaato Asia Pacific vice president and general manager Malcolm Wong.

    “The average individual would have about 27 applications on their smartphone (Nielsen 2014), and with a voracious appetite for mobile applications observed in the Asia-Pacific, more advertising budgets could be expected to shift to mobile in future,” added Wong.

    Social apps like Facebook and Twitter could be the driving force behind this surge in mobile web usage. According to a recent report from IAB, 52 per cent of smartphone owners say they tap links in mobile apps that take them to web articles they want to read.

    “The shift to mobile began with the mobile web – and then apps took over,” said Smaato CEO Ragnar Kruse. “Although we can’t say for sure whether we’re looking at a huge comeback of the medium, the fact remains that publishers and advertisers can’t afford to ignore the mobile web. Mobile ad strategies -whether it be the size of ads or the use of rich media – must be created with both app and mobile web usage in mind,” he added.

  • Nestle Ad spends in FY-2014 at Rs 445.47 crore

    Nestle Ad spends in FY-2014 at Rs 445.47 crore

    BENGALURU:Last September, Indiantelevision.com had estimated that the marketing spends by one of the biggest spenders on advertisement and sales promotion (ASP) in India, nutrition, health and wellness company Nestle India Limited would be about Rs 450 with a variation of +10 per cent.

    Background: Being a part of a multi-national group, the company is generally quite tight lipped about sharing financials unless it has to legally do so. Details about the company’s advertisement spends are not indicated even in the company’s annual reports – what you have is a combination of the Advertisement and Sales Promotion spends declared as a single entry in the notes forming the part of the company’s annual financials. There is really no way that one could pin an exact number for these spends unless one has an inside track on the company’s marketing budgets. The projections and numbers in this report are pure conjecture based statistical tools used on the historical annual numbers revealed by the company in its annual reports. The author has no knowledge about Nestle’s strategy, past or present.

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

    In its FY-2014 annual report for the year ended 31 December, 2015, Nestle has indicated ASP spends at Rs 445.47 crore (4.52 per cent of Total Income from Operations or TIO), or just 1.01 per cent off the Rs 450 crore mark mentioned by us. Please refer to figure 1 below that has been updated until FY-2014.

    CAGR for Nestle’s ASP in absolute rupees in the eleven year period from FY-2004 to FY-2014 has increased slightly to 12.56 per cent as compared to the 12.55 per cent for the ten year period between FY-2004 and FY-2013.

    Indiantelevision.com had also estimated that Nestle would report TIO in the range between Rs 9534.09 crore and Rs 10640 crore for FY-2014. The company has reported TIO of Rs 9854.84 crore, well withinthe range indicated by us, while just missing the Rs 100 billion mark by a small fraction. The company’s TIO CAGR has gone down over the eleven year period starting FY-2004 until FY-2014 to 14.48per centas compared to the CAGR of 16.93 per cent for the ten year period between FY-2004 and FY-2013. Please refer to figure 2 below for actual y-o-y growth in TIO.

     

    In the company’s earnings release for FY-2014, Nestle managing director Etienne Bennet said, “2014 was a challenging year and I am satisfied that in a difficult environment, we have delivered both top and bottomline and our results are broadly in line with the Food and Beverages segment of the FMCG sector. We increased investments behind our brands and maintained healthy profitability despite strong headwinds in milk solids costs that were higher than international markets and were not passed onto the consumer fully. We remain focused on value portfolio management and are continuing to reshape the portfolio and communication to strengthen our leadership as Nutrition, Health and Wellness company.”

    Nestle’sProfit after Tax (PAT) has shown a lower CAGR during the eleven year period from FY-2004 to FY-2014 of 14.5 per cent as compared to a CAGR of 15.54 per cent over the ten year period FY-2004 to FY-2013. Please refer to figure 3 below for PAT performance. PAT for FY-2014 was Rs 1184.69 crore (12 per cent of TIO), sixper cent more than the RS 1117.13 crore (12.3 per cent of TIO) for FY-2013.

    Overall, the company’s PAT, both in terms of absolute rupees and as per centage of TIO shows an upward linear trend for the eleven year period between FY-2004 and FY-2014.

  • India to lead increased ad spends in BRIC countries: Warc

    India to lead increased ad spends in BRIC countries: Warc

    NEW DELHI: Global advertising expenditure is forecast to grow by 5.6 per cent at current prices in 2014, rising to 5.3 per cent in 2015.

    According to Warc’s latest International Ad Forecast, the BRIC countries led by India are expected to post the largest ad spend increase this year, although their impressive rates of growth are forecast to be much lower in real terms once inflation is taken into account.

    Ad spend growth is forecast to rise 14 per cent in India (5.6 per cent adjusted for inflation), 12.4 per cent in Brazil (6 per cent), 12.3 per cent in China (9.5 per cent), and 8.6 per cent in Russia (2.2 per cent).

    In its previous report published in October 2013, Warc anticipated global growth of 4.4 per cent in 2014 based on its analysis of 12 leading markets – Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, the UK and the US.

    However, improved trading conditions, greater economic stability and an expected stimulus from major sporting events, such as the FIFA World Cup and the Sochi Winter Olympics has led to a more positive outlook.

    In the more established markets, the UK is forecast to record the highest rate of growth on 5.8 per cent (3.8 per cent adjusted for inflation), closely followed by the US at 5.6 per cent (3.8 per cent).

    At current prices, they will be followed by Canada (3.2 per cent), Australia (2.9 per cent), Japan (2.3 per cent), Germany (2 per cent), Italy (0.7 per cent) with France trailing on 0.2 per cent projected growth.

    “This year is set to record the highest annual rate of growth since 2010, when the industry was bouncing back from recession,” said Warc data and journals director Suzy Young.

    “This is largely because the outlook for the global economy is now stabilising and advertisers are starting to feel confident about making additional investments,” she explained.

    Looking to 2015, all 12 markets are expected to show growth in ad spend at current prices, with India increasing its ad spend at the fastest rate of 13.5 per cent. 

  • Outdoor industry shows promising growth curve in 2014

    Outdoor industry shows promising growth curve in 2014

    MUMBAI:  One of India’s premier outdoor advertising agency – Global Advertisers – revealed that it has witnessed promising growth in the outdoor advertising sector in 2013 due to several factors likes Lok-Sabha elections, new launches in telecomm, FMCG, Automobile etc. Global Advertisers MD Sanjeev Gupta said: “We believe that the future of out-of-home lies in 3Is-innovation, infrastructure and investment”. 

     

    According to the report by The Pitch Madison Media Advertising Outlook 2014, OOH is expected to bring in total ad spends of about Rs 2,138 crore and transit media continues to be the preferred option. “We at Global Advertisers have already anticipated the current market conditions and increased our inventory by 25 per cent in 2013,” Gupta added. India’s discerning customer has greater exposure in terms of brands, services and price knowledge. Customers are always looking for value for money products serving their need or luxury. This means, an Indian consumer is well-connected with the out of home world.

     

    It’s important to note that outdoor medium has evolved in malls and multiplexes, which holds out a good deal of hope and potential. Brands want to engage with the consumers more than ever before. There are several opportunities that this medium can tap into and Transit Media, Hoardings, Street Furniture, Neon have empowered the medium enabling it to grow and sustain itself in the highly competitive advertisement sphere.

  • Pitch Madison projects 2014 to be a good year for media ad spends

    Pitch Madison projects 2014 to be a good year for media ad spends

    MUMBAI: The year 2014 is expected to be one of the best years of recent times for media advertising, including for television.

     

    Pitch Madison Media’s advertising outlook for 2014 estimates media advertising spends in 2014 to grow 16.8 per cent to  Rs 37,216 crore from Rs 31,877 crore in 2013, with the biggest contribution of Rs 5,000 crore to this growth coming from elections to the Lok Sabha and to assemblies of four major states including Maharashtra.

     

    Advertising spends on television are expected to grow well because of increased penetration of digitisation, as ad rates increase because of restricted supply with the enforcement of the 12 minute per hour cap on advertisements and with many new channel launches once the licences are issues after the Lok Sabha elections.

     

    The advertising spends on television in 2014 are expected to grow by a robust 15 per cent in 2014 to Rs 14,282 crore from Rs 12,419 crore in 2013. The growth in advertising spend on television was 8.2 per cent against the projected 6 per cent.

     

    The advertising spend outlook for 2014 contrasts that of 2013, when the watchword was caution. The prediction for growth of media advertising in 2013 was 7.4 per cent but the actual growth turned out to be higher at 11.1 per cent.

     

    On television, the completion of digitisation in the top 42 cities in 2013 led to increased spending on niche channels, SD and HD channels and also local advertising options due to split runs across channels.

     

    According to the Pitch Madison advertising outlook, the proliferation of channels from existing bouquets will increase inventory availability at higher rates.

     

    Television’s share in the total ad spend in 2014 is projected to fall to 38.4 per cent from 39 per cent in 2013. Television’s share in the advertising pie was 42.1 per cent in 2011 and 40 per cent in 2012.

     

    Though the growth in advertising spends on television seems to be healthy enough for the TV industry, increasing popularity of the internet is likely to cut down the share of television in total advertising spends.

     

    In 2013, out of 15 categories of advertisers, advertising spends by seven of them showed a dip implying that advertisers are losing interest in television-based advertisements.

     

    Media, retail, alcoholic beverages and corporate have registered a negative growth of advertising spends on television in 2013 and only fast moving consumer goods emerged as the driver of growth for advertising on television.

     

    Print has shown immense promise and in 2014, regional dailies are expected to continue their onward march and grow at a faster rate at the expense of English dailies. In 2014, advertising in print is expected to grow by 17 per cent to Rs 15,405 crore. In 2013, print advertising spend had grown by 10 per cent and in 2012 by only 4.0 per cent.

     

    Radio is expected to grow by another 15 per cent. Consolidation within radio will take place due to the expected phase III auction rollout. Digital will continue to grow stronger at 29.5 per cent, outdoor medium is set to grow  by 8.2 per cent and cinema by 7.2 per cent.

     

    The outlook said it was time for the medium to reinvent itself for the advertiser.

     

    The digital medium will pull in a total of Rs 3,950 crore in 2014, which is Rs 900 crore more than Rs 3,050 crore in 2013. The growth in advertising spends on the digitial medium has however subsided from around 50 per cent from 2009 till 2012. In 2013, the growth on digital dropped to 32.4 per cent.

     

    The digital medium’s share in the total advertising pie will rise to 10.6 per cent from 9.6 per cent in 2013, 8 per cent in 2012 and 5.6 per cent in 2011.

     

    Due to the economic slowdown, marketers have scrutinised each and every penny spent and internet being a return on investment medium, it is becoming the preferred choice for them. The growth in online advertising is expected from FMCG, automobile and banking sectors.

     

    For radio, the growth in advertising spends in 2013 was 17.96 per cent against the projected 4 per cent. Looking at the growing faith of advertisers in this medium, the outlook projects 15.04 per cent growth in advertising on radio in 2014, with the total advertising spends adding up to Rs 1,262 crore against Rs 1,097 crore in 2013.

  • Lintas Media Guide 2006 Print pocketed 57% of the total ad spends in 2005

    Media matters and how. Lintas Media Services has churned out a comprehensive media guide, which is an analysis of media spends and buys in the year gone by.Released by Intellect, a part of the Lintas Media Group, it studies all genres; television, print, radio, internet, cinema, outdoor and gives a break up of the media environment and general media industry trends of last year.

    Expansion clearly has been the mantra for the print industry all through 2005. Across publications there have been launches of editions across cities or to penetrate into the lower pop-strata. Increasing competition has brought more and more supplements everyday to seek niche reader segments. The battle of the dailies in Mumbai market is an example of the expansion drive and the result of competition adding to the product. In magazines due to the allowing of foreign direct investment (FDI) we have seen the start of foreign mastheads coming to India and this will only get faster in the years to come.

    Publishers are seeing a balance between driving subscription revenues and advertising revenues. While a few have been able to push up issue prices, most others have kept the issue prices stable. Need to garner growing advertising revenues is aided by the geographical expansion and the niche targeting possible by supplements.

    Print advertising had a share of 57 per cent of the total ad spends for the year 2005. The buoyant categories such as finance, education, auto, retail, etc are all set to adding a lot to the advertising revenues further for the print industry. Realising their strength in terms of ground network, most publication networks are extending their services beyond print space selling to solutions that give a combination of print advertising along with activation programmes at the ground level. Some publications are also able to extend the solution into the web space or other media depending upon the properties they own or are aligned with.

    Like TV, advertising avoidance is an issue for print advertisers too and there are more and more instances of innovative advertising. Advertorials are also increasing besides all efforts to align with related content. However, these as yet form a minuscule percentage of the total advertising space though it is expected to grow in the years to come.

    Readership research does not offer anything new and the issues between the IRS (Indian Readership Survey) and NRS (National Readership Survey) continues as always. There is a need for the print research to reevaluate the needs of the medium and reorient their offering.

    GROWTH OF PUBLICATIONS

     

    Language
    2003
    2005
    #
    Circ(mm)
    %
    #
    Circ(mm)
    %
    Hindi
    213
    13.1
    28
    203
    12.4
    25
    English
    174
    10.1
    22
    166
    10.6
    22
    Marathi
    57
    2.9
    6
    43
    2.9
    6
    Tamil
    39
    3.2
    7
    37
    3.6
    7
    Gujarati
    32
    2.7
    6
    34
    1.1
    2
    Bengali
    28
    2.9
    6
    31
    3.1
    6
    Malayalam
    32
    5
    11
    33
    6.1
    13
    Kannada
    27
    1.5
    3
    26
    1.8
    4
    Telegu
    20
    2.2
    5
    18
    2.7
    6
    Other
    83
    3.1
    7
    76
    4.4
    9
    Total
    705
    446.7
    100
    667
    48.7
    100

     

     

    READERSHIP TREND

     

     

    Claimed Readership(%)
    		 2004 (IRS ‘03 R2) 2005 (IRS ‘05 R2)
    All India
    Urban
    Rural
    All India
    Urban
    Rural
    Dailies 33.2 54.7 24.8 35.9 56.1 27.0
    Magazines 13.6 25.3 8.7 14.5 25.5 9.6
    Any Publication 34.6 56.4 25.4 37.5 58.1 28.5
    Source: IRS 2005 R2

     

    The Times of India tops the English dailies list when it comes to the top five dailies according to IRS 2005 R2 (all India average issue readership). Hindustan Times, Hindu, Telegraph and Deccan Chronicle (in that order) follow in the list.

    In the regional dailies category, Dainik Jagran rules the roost, whereas Dainik Bhaskar, Daily Thanthi, Amar Ujala and Malayala Manorama follow suit.

    In the Top five English magazines, India Today tops the charts, whereas Readers Digest, General Knowledge Today, Filmfare and Competition Success Review feature in the top five list.

    In the regional magazines category, Saras Salil is the top read magazine. Vanitha, Kumudam, Grihsobha and India Today (Hindi) also feature the top five list.

    PRINT TOP CATEGORIES IN 2004 – 2005

     

    Category
    2004
    Rs crores
    Category
    2005
    Rs crore
    Educational Institutes
    435
    		 Educational Institutes
    506
    Corporate Brand Image
    400
    		 Property / Real Estate
    362
    Car / Jeeps
    300
    		 Corporate Brand Image
    323
    Property / Real Estate
    272
    		 Car / Jeeps
    304
    Two Wheelers
    257
    		 Independent Retailers
    250
    Coaching Centers
    146
    		 Two Wheelers
    222
    Financial reports
    145
    		 Readymade Garments
    166
    Cellular Phone Services
    138
    		 Coaching Centers
    156
    Social Ads
    125
    		 Cellular Phone Services
    144
    Events
    121
    		 Travel & Tourism
    142
    Source: Tam Adex & Lintas Media estimates based on indicative market costs

     

     

    PRINT TOP ADVERTISERS IN 2004 – 2005

     

     

    Advertiser
    2004
    Rs crores
    Advertiser
    2005
    Rs crore
    Maruti Udyog Ltd
    135
    		 Hewlett Packard
    115
    Bajaj Auto LTD
    100
    		 LG Electronics India
    86
    LG Electronics India
    89
    		 Hero Honda Motors
    72
    Samsung India
    85
    		 Bajaj Auto LTD
    72
    Tata Motors
    69
    		 Maruti Udyog LTD
    63
    Hero Honda Motors
    65
    		 Tata Motors
    57
    TVS Motor Co
    60
    		 Pantaloons Retail India
    56
    Hyundai Motor India
    59
    		 Hyundai Motor India
    56
    Hindustan Lever LTD
    57
    		 Samsung India
    54
    Hewlett Packard
    54
    		 Toyota Kirloskar
    52
    Source: Tam Adex & Lintas Media estimates based on indicative market costs

     

    Stay tuned for the next in the series…