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Tag: advertising revenue

  • 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.

  • Asia PAC advertising to grow 5% in 2014, 5.7% in 2015, 4.5%CAGR for 2014-19: MPA study

    Asia PAC advertising to grow 5% in 2014, 5.7% in 2015, 4.5%CAGR for 2014-19: MPA study

    MUMBAI: A new report published by Media Partners Asia (MPA) indicates that net advertising revenues, measured after discounts across 14 markets, will grow at 5.0 per cent this year to top US$121 billion. Next year, MPA projects a re-acceleration in growth with the advertising market to expand at 5.7 per cent. Between 2014 and 2019, MPA forecasts indicate that net advertising in Asia will climb at an average annual growth rate of 4.5 per cent.

     

    Commenting on the findings of the report, entitled Asia Pacific Advertising Trends & Database 2014 – 15, MPA executive director Vivek Couto said: “The macro landscape is uneven and there are headwinds to economic growth across Asia Pacific. Encouragingly, governments and policymakers across the region have implemented reforms to address structural issues and this trend is likely to accelerate in markets where positive political change has occurred. Ad spends from large multinational advertisers softened through much of 2014, partially offset by spends from domestic advertisers but this has dampened growth across Southeast Asia and other key markets. Multinational advertising demand may return but weakness across global emerging and developed ad markets may exert downward pressure on Asia.”             

        

    Key highlights from the report include:  

       

    o    Southeast Asia rebound. Contraction in advertising across Malaysia, Singapore and Thailand, partially offset by robust though slower growth in Indonesia, Philippines and Vietnam, means that net advertising revenues will grow at only 1.2 per cent in Southeast Asia in 2014, the lowest in five years. A rebound is expected in 2015 with 7.2 per cent growth.

     

    o    Market rankings. China will overtake Japan as Asia’s largest advertising market by 2016 while India will overtake Korea in 2017. By 2019, the six largest ad markets in Asia will be China; Japan; Australia; India; Korea and Indonesia.              

         

    o    TV. TV’s share of the advertising market peaked in 2011 at 42.9 per cent and while still resilient, market share has been edging downwards, reaching 41.6 per cent in 2014 with MPA projecting 40.7 per cent share by 2019. In mature markets, TV will remain a growth media in Hong Kong and to a smaller extent, Australia but the future will be more challenging in Japan and Singapore. In Korea, terrestrial TV also faces a challenging future. In growth markets, TV’s best performers, from a relatively high base, will be Indonesia, India, Philippines, Thailand and Vietnam.

     

    o    Digital. Total digital advertising revenue (including search, display and mobile) is expected to climb at a CAGR of 11.1 per cent over 2014-19 with aggregate market share growing from 23 per cent in 2014 to 31 per cent by 2019. Digital has overtaken TV to be the largest media in terms of advertising on Australia; by 2019, it will also be the largest media by advertising in China, Korea and New Zealand. In more developing online markets such as India, Indonesia, Malaysia and Thailand, digital will have a 10-20 per cent advertising market share by 2019 versus 6-8 per cent in 2014. Mobile advertising will become increasingly significant in China, Japan, Korea and Taiwan while the online video ad pie will continue to expand in China, Japan, Korea and Taiwan and grow rapidly from a low base in markets such as India.   

  • Missed call? It might be Facebook calling India

    Missed call? It might be Facebook calling India

    MUMBAI: Missed call: most of us have used it at some time or the other to connect with our friends when we are low on our mobile phone balance on our low end feature phones. Now Facebook is hoping to rake in the moolah courtesy this quirky habit amongst India’s light walleted mobile users.

    It announced a new ad format based on the missed call habit this morning through a post by its emerging markets ad products specialist Kelly MacLean.

    Describing it she writes:   “When a person sees an ad on Facebook they can place a “missed call” by clicking the ad from their mobile device. In the return call, the person will receive valuable content, such as music, cricket scores or celebrity messages, alongside a brand message from the advertiser — all without using airtime or data.”

    Facebook says 66 per cent of the 100 million or so of its users in India access the social networking site on their low-end feature phones using 2G services. Despite India being its second largest market, it contributed only Rs 75 crore to its top line last year, according to online site Quartz.

    “That’s a teeny-weeny fraction of its total global revenues of $5.49 billion (around Rs 33,000 crore),” says a media observer. “And it clearly needs to get India to generate more greenbacks.”

    Facebook says it has been testing the missed call ad product in India for sometime now and it has generated some success. It expects to give it a further push in the next few months as it rolls it out to advertisers.

    Among the advertisers which have used it is Garnier Men- a L’Oreal brand –  during the recently concluded cricket mega success, the IPL, from April to May 2014, says Facebook in  a case study it has published online.

    As part of the campaign, photo ads were placed on News Feed, targeting men between15-35, asking them to click to call for a chance to meet players from the Rajasthan Royals and win match tickets or official merchandise.

    “When someone clicked on the ad unit, a number was auto-populated in their phone dialer and a number was called. The call then dropped after a couple rings and the caller received an SMS with trivia questions to answer to enter the contest. The caller was also presented with a Flipkart link to purchase products,” Facebook says in the Garnier case study. It had partnered with Bengaluru based missed call services provider ZipDial for the promotion. 

    The social networking platform says the campaign saw Garnier achieve its goal of reaching 15 million of the target audience. 16 times more calls were generated from the Facebook missed call ad unit  than all other digital and print media combined, and its sales rose a claimed two and a half times year on year.

    Garnier general manager Rupika Raman had this say about the test: “When we were approached by Facebook to become the first brand globally to take part in the click to missed call innovation, we were excited to try it out. It has reaped rich dividends and has been highly impactful.”

    Facebook has partnered with India’s largest mobile phone service provider Airtel, and missed call platform provider ZipDial, as it begins rolling out the new ad unit in India.

    The site says that it will soon start offering features such as life-stage targeting (new moms and dads, graduation moments) to advertisers, while it has already started offering geo-targeting options wherein advertisers can target people by state or even multiple states in India without having to list multiple cities.

    And to get around the doubting Thomases about its efficacy as an ad medium it has partnered with Nielsen to serve polls to people on feature phones. “Our new measurement solution provides advertisers with greater tools to measure brand sentiment, purchase intent and ad recall for the first time on mobile as well as desktop,” Facebook has highlighted in the post.

    The announcement of the new ad format has come at a time when Facebook COO Sheryl Sandberg is visiting India hobnobbing with government officials, and small and medium business owners.

    (Pix courtesy: Facebook)

  • ZMCL reports growth in ad, subscription revenue by 9, 18 per cent in FY-2014

    ZMCL reports growth in ad, subscription revenue by 9, 18 per cent in FY-2014

    BENGALURU: Zee Media Corporation Limited (ZMCL), the erstwhile Zee News Limited, reported advertising (ad) revenue of Rs 220.51 crore in FY-2014, 9.2 per cent more than FY-2013. The company also reported an 18.5 per cent growth in subscription revenue to Rs 99.9 crore in FY-2014.

     

    ZMCL total income from operations in FY-2014 at Rs 335.16 crore was 10.32 per cent more than the Rs 303.82 crore in FY-2013. The company’s total income from operations in Q4-2014 at Rs 82.78 crore was (-9.72) per cent lower than the Rs 91.69 crore in Q3-2014 and 4.69 per cent more than the Rs 79.07 crore in Q4-2013.

     

    Let us look at the other numbers reported by ZMCL for FY-2014 and Q4-2014

     

     

    ZMCL PAT for FY-2014 at Rs 18.93 crore (5.65 per cent of income from operations) was (-21.67) per cent lower than the Rs 24.17 crore (7.95 per cent of income from operations) in the previous fiscal.  The company reported PAT of Rs 4.11 crore (4.97 per cent of income from operations) in Q4-2014, which was (-30.52) per cent lower than the Rs 5.92 crore (6.45 per cent of income from operations) in the immediate trailing quarter and (-40.16) per cent lower than the Rs 6.87 crore (8.69 per cent of income from operations) during the year ago quarter Q4-2013.

     

    Other income during FY-2014 at Rs 20.81 crore was (-11.7) per cent lower than the Rs 23.58 crore in FY-2013.

     

    The company has suffered operational loss in Q4-2014. Other income of Rs 9.70 crore which includes dividends of Rs 3.60 crore and Rs 4.80 crore from ZMCL’s subsidiary companies as well as exceptional item of Rs 5.98 crore and a negative tax expense of Rs 2.01 crore has resulted in a PAT of Rs 4.11 crore mentioned above in Q4-2014.

     

    The company’s total expense for FY-2014 at Rs 325.76 crore (97.19 per cent of income from operations) was 17.08 per cent more than the Rs 278.23 crore (91.58 per cent of income from operations) in FY-2013. In Q4-2014, total expense at Rs 93.09 crore (112.47 per cent of income from operations) was 12.67 per cent more than the Rs 81.30 crore (88.67 per cent of income from operations) in the immediate trailing quarter and 19.28 per cent more than the Rs78.05 crore in Q4-2013.

     

    ZMCL’s operational cost at Rs 66.13 crore (19.73 per cent of income from operations) in FY-2014 was 24.86 per cent more than the Rs 52.96 crore (17.43 per cent of income from operations) in FY-2013. The company’s operational costs in Q4-2014 at Rs 20.28 crore (24.5 per cent of income from operations) in Q4-2014 was 23.8 per cent more than the Rs16.38 crore (17.86 per cent of income from operations) in Q3-2014 and 43.34 per cent more than the Rs14.15 crore (17.89 per cent of Income from Operations) in Q4-2013.

     

    ZMCL reported a 11.49 per cent increase in Employee Benefit Expense (EBE) in FY-2014 at Rs 99.1 crore (29.57 per cent of Income from Operations) as compared to the Rs 87.71 crore (28.87 per cent of Income from Operations) in FY-2013. The company’s EBE dropped (-3.56) per cent in Q4-2014 to Rs 25.13 crore (30.36 per cent of Income from Operations) from Rs 26.06 crore (28.42 per cent of Income from Operations) in Q3-2014 and was 8.31 per cent more than the Rs 23.2 crore (29.35 per cent of Income from Operations) in Q4-2013.

     

    Other expense in FY-2014 at Rs82.82 crore (24.71 per cent of Income from Operations) was 38.17 per cent more than the Rs 59.94 crore (19.73 per cent of Income from Operations) in FY-2013. The company’s Q4-2014 other expense at Rs27.83 crore (33.62 per cent of Income from Operations) was 44.97 per cent higher than the Rs19.2 crore (20.94 per cent of Income from Operations) in Q3-2014 and 30.64 per cent more than the Rs 21.31 crore (26.95 per cent of Income from Operations) in Q4-2013.