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Tag: advertising

  • ZMCL reports 112 per cent PAT growth in Q1-2014 compared to Q1-2013

    ZMCL reports 112 per cent PAT growth in Q1-2014 compared to Q1-2013

    BENGALURU: Zee Media Corporation Limited (ZMCL), formerly Zee News Limited announced good growth figures for Q1-2014 as compared to Q1-2013, but middling to flat and lower results when compared to the previous quarter Q4-2013. The Company owns and operates seven news/current affairs and regional language channels, namely Zee News, Zee Business, Zee 24 Taas, Zee 24 Gantalu, Zee Uttar Pradesh Uttarakhand, Zee Madhya Pradesh Chhattisgarh and Zee Punjab Haryana Himachal.

     

    Let us take a look at the Q1-2014 figures

     

    ZMCL reported more than doubling of PAT (112 per cent) to Rs 8.51 crore in Q1-2014 as compared to PAT of Rs 4.01 crore in Q1-2013 and a 6.1 per cent growth as compared to Q4-2013.

     

    Operating revenues grew 12.2 per cent (y-o-y) to Rs 77.68 crore in Q1-2014 as compared to Rs 68.88 crore reported in Q1-2013. However, ZMCL’s operating revenues for Q1-2014 were 1.7 per cent lower than the Rs 79.04 crore reported for Q4-2013. Income from operations at Rs 70.2 crore in Q1-2014 grew 16.4 per cent from Rs 60.286 crore in Q1-2013.

     

    Advertising revenues which constituted 68.1 per cent of the total revenues for Q1-2014 grew 14.2 per cent (y-o-y) to Rs 52.9 crore as compared to Rs 46.32 crore (67.2 per cent of total revenues for the quarter) in Q1-2013 and were up 1.4 per cent as compared to the Rs 52.19 crore (66 per cent of the total revenues for the quarter) reported in Q4-2013.

     

    Subscription revenues in Q1-2014 also grew, albeit at a higher rate of 19.3 per cent to Rs 21 crore (27 per cent of the total revenues for the quarter) as compared to the Rs 17.6 crore (25.6 per cent of the total revenues for the quarter) reported for Q1-2013, but were 5.4 per cent lower than the Rs 22.2 crore (28.1 per cent of total revenues for the quarter) ZMCL reported for Q4-2013.

     

    Other sales and services saw a drop of 23.2 per cent to Rs 3.78 crore in Q1-2014 from Rs 4.96 crore reported in Q1-2013 and were 19.2 per cent lower than the Rs 4.68 crore for Q4-2013.

     

    In Q1-2014, total expenses saw a small jump of 7.6 per cent to Rs 68.37 crore from the Rs 63.55 crore reported in Q1-2013 and were 8.1 per cent lower than the Rs 74.4 crore for Q4-2013.

     

    ZMCL director Punit Goenka said, “Our ambition to reach deeper into the lives of our viewers has led us to change our name from Zee News Limited to Zee Media Corporation Limited. We will continue to pursue growth in the untapped regions of our country and provide them with varied news, infotainment and entertainment content across delivery platforms. Apart from the latest launch of Zee Madhya Pradesh Chhattisgarh, we have also launched Zee Rajasthan recently. The channel has content for all facets of the viewer from Rajasthan, be it crisper local news bulletins, entertainment programmes reflecting the typical lifestyle or discussions on issues related to the common Rajasthani man.”

     

    ZMCL whole-time director Alok Agrawal said, “Even as we are aggressively expanding our regional channel bouquet, we have not left sight of our current deliverables. We have made efforts to squeeze even more efficiency out of our operations and have restricted increase of various costs. On the other hand, both Advertising and Subscription Revenues have shown an increase over the last year. We have taken special initiatives related to the content which are expected to yield results in the coming quarters.”

  • TDSAT to accept news broadcasters’ appeal on ad cap

    TDSAT to accept news broadcasters’ appeal on ad cap

    MUMBAI: Is there some relief in store for India’s TV broadcast sector in terms of advertising allowed to be telecast per hour? A slight glimmer of hope appears to have emerged yesterday.

     

    Media reports are that the Telecom Disputes Settlement Apellate Tribunal (TDSAT) has given directions to the News Broadcasters Association (NBA) to submit its appeal against the 12 minute per hour Telecom Regulatory Authority of India’s (TRAI’s) mandate. It also gave TRAI two weeks to file its responses to news broadcasters’ concerns. And the NBA has been given a further two weeks to file a rejoinder after that, say media reports. A new chairman Justice Aftab Alam was appointed to the TRAI last month.

     

    TRAI’s order has forced news channels to reduce their advertising commercial time per clock hour down to 20 minutes and general entertainment channels to 16 minutes per hour from 1 July 2013. This is slated to go down further to 12 minutes per hour from 1 October during the peak season of spending by most brands on TV.

     

    News channels have for the past decade or so operated by having an advertising inventory of between 25 and 30 minutes per hour of telecast, is what the TRAI had observed. This dragged down the quality of viewing experience of TV viewers and it had hence under the quality of service rules for consumers mandated that the advertising air time be brought down almost immediately mid-last year.

        
    Broadcasters had yelped and protested and even challenged TRAI’s locus standi on this decision last year with the TDSAT. But with no chairperson in place, the appeal had been kept in abeyance. The TRAI then came up with the quality of service regulations for advertising on TV on 22 March which have since then been enforced on the industry.

     

    ”It is true that broadcasters were going overboard in carrying too much advertising per hour,” says a media observer. ”But the business model of high carriage fees, low distribution revenues and relatively low ad rates has forced this upon news broadcasters. At least, general entertainment channels can charge higher rates. The government could have waited till digitisation was completed and the benefits of higher subscription-lower-carriage fees kicked in.”

     

    In fact most news broadcasters have pleaded that their survival is at stake. Estimates are that news channels in India account for an approximate six per cent genre viewership share.

     

    Advertising revenues for the almost 150 plus news channels operating in India in various language tot up to about Rs 2,200 crore. Broadcasters have claimed that the reduction in air time will not concomitantly be compensated by a hike in ad rates as advertisers and their agencies have only been eroding those over the past few years. They have also said that a large group of small advertisers who have been the main revenue source for TV news channels will not be in a position to absorb sharp hikes in ad rates. 10 second TV commercial rates for news channels vary between Rs 200 to Rs 2,500.

  • 7 broadcast networks have 72 hours to revert to weekly TV ratings

    7 broadcast networks have 72 hours to revert to weekly TV ratings

    MUMBAI: Seven broadcast networks which have told TAM to shift to monthly reporting of TV ratings of their channels have been given 72 hours to revert to weekly reporting, after which all advertising release orders (ROs) for spot bookings will stand cancelled. This is contrary to reports that advertisers have already sent RO cancellations effective last evening.

     

    The CEO of a channel told Indiantelevision.com that his network has received emails pertaining to large advertisers like Levers, Procter & Gamble, Loreal, Dabur, ITC, Britannia, Marico and Godrej. “But I don’t expect any cancellations between today and Monday. The action will begin on Tuesday.”

     

    Agrees Group M south Asia CEO C.V. L Srinivas: “Notices have been sent out across the board from our clients as of yesterday evening. Advertisers are quite clear: they are not going to carry spots on channels for which there is no data.”

     

    Almost 102 channels come under these networks and this figure has gone up to 105 with Discovery Networks also writing to TAM wanting to be reported on a monthly basis.

  • Google, Facebook corners more than half of advertising revenue spend in Asia

    Google, Facebook corners more than half of advertising revenue spend in Asia

    NEW DELHI: Google and Facebook have cornered around 60 per cent of the advertising revenue spent online in Asia, even as the online spending on commercials in India is around seven per cent.

    A study by Economist Intelligence Unit‘s (EIU) report on environment for Asia‘s Internet businesses revealed that the market is challenging as its size in Asia is still small and there are many players competing in the online advertising space.

    Monetisation through online advertising is not easy, as even big names in the global publishing industry have seen that there are simply too many players competing for same advertising dollars, the report said.

    “In Asia this is compounded by the small size of individual markets. In Malaysia and Thailand, for example, just one per cent of advertising revenue is spent online. In India, this is slightly higher at seven per cent. But of the $ 410 million being spent online, 60 per cent goes to Google and Facebook, with only the remaining 40 per cent going to other online players,” it added.

    This is mainly because Google and Facebook have the highest number of users on the internet, being the top two sites in the world.

    “Online advertising budgets, while growing, remain small and skewed towards the larger players. While e-commerce is growing rapidly, finding the winning business model remains difficult in many markets,” the EIU report said.

    Outside of North Asia, entrepreneurs report that internet users are reluctant to pay for intangible items such as content. This is particularly so when there is pirated content easily available, it added.

    However, EIU said mobile advertising is slowly gaining traction and Asia will be one of the biggest markets.

    While online advertising in Asia is forecast to grow at a modest pace (from 24 per cent of worldwide online advertising in 2010 to 26 per cent by 2015), the mobile advertising market is really taking off.

    By 2015, Asia is expected to account for one-third of the mobile advertising market globally, it said.

    Online advertising spend in India was about Rs 2,260 crore as of March 2013 and is estimated to grow to Rs 2,938 crore by 2014, while, mobile advertising is estimated to reach Rs 250 crore in 2013, a growth of 40 per cent year-on-year.

    Globally, online advertising revenue stood at USD 99 billion in 2012, which is estimated to grow at 15 per cent to USD 113.5 billion in 2013. In the case of mobile advertising, the revenues were USD 6.4 billion in 2012 and is expected to touch USD 9.7 billion in 2013.

  • Dangal TV appoints Aidem Ventures as its advertising partner

    Dangal TV appoints Aidem Ventures as its advertising partner

    MUMBAI: Dangal TV has appointed Aidem Ventures, the media consulting, marketing and advertising sales company as its advertising partner. Dangal TV is the leading regional channel that delivers content suited to the entertainment needs in the core Hindi speaking belt.

    “Aidem has the necessary footprint across key advertiser markets, hence was our obvious choice. The advertising sales company also has its offices spread out in the key advertiser markets,” says Dangal TV chairman and managing director Manish Singhal. Prior to Aidem, the channel concentrated more on BTL oriented promotional activities to garner more eyeballs. “In terms of distribution, we have established ourselves across the cow belt region,” he adds.

    The channels‘ immediate plan involves addressing the needs of its valuable advertiser who are targeting the cow belt region. “A substantial amount of investment will be made to create a buzz in the cow belt region and amidst trade media websites,” says Singhal.

    Dangal TV is also a 24 hours free-to-air entertainment channel, committed to offer a comprehensive viewing experience and caters to diverse demands of its viewers. The channel offers a strong mix of movies and serials in Bhojpuri as well as in Hindi. The continuous film entertainment element of the channel gives it a theatre-like feel thus making it the channel of choice for a vast majority of film enthusiasts.

    The channel which was launched in 2009, within weeks of its launch, took on the number 1 position in the states of UP, Bihar and Jharkhand. “A robust programming strategy aided by strong distribution has helped us achieve the current status,” opines Singhal.

    “We at Dangal have a thorough understanding of the Hindi-speaking belt. That, along with our huge investment in acquiring Bhojpuri and Hindi content serves as a strong endorsement of our vision to create a new standard in the Bhojpuri entertainment space. We look forward to a continued association with Team Aidem to help us achieve better yield for the channel over the long term,” says Singhal.

    Regional channels accounted for approximately 27 per cent of total television viewership in 2012. “This is proportionate to the advertising market share the channels commanded during the same period. Advertising interest in regional markets is strong and broadcasters see immense potential for revenues from local advertisers who are willing to pay a premium to reach their targeted audience,” informs Aidem Ventures director Vikas Khanchandani.

    A staggering number of advertisers are now seeing the benefits of developing localized communications strategies using sponsorships, promotions and integrated branded content around regional TV. “It gives us immense pleasure to be associated with the market leader in the Bhojpuri genre and look forward to driving its vision,” says Khanchandani.

    Dangal TV has established a strong foothold in the Indian television industry which is evident from its availability across cable and leading DTH platforms including Dish TV, Videocon DTH, Airtel Digital TV and DD DTH. The channel boasts of a modern infrastructure to broadcast Digital Quality Signals promising exceptional clarity and reach, compatible with prevalent technology.

    The detailed analysis of the UP market is as follows:

    hannel Avg Weekly GRPs Rel. Channel Share TSU (Min) TSV (Min)
    Uttar Pradesh
    Dangal
    		 14.72 29% 4.2 42.05
    Dabangg
    		 10.07 20% 2.9 22.50
    BIG MAGIC
    		 6.07 12% 1.6 13.38
    Mahuaa
    		 5.50 11% 1.5 18.35
    Z Uttar Pradesh Uttrakhand
    		 4.50 9% 1.2 13.72
    ETV Uttar Pradesh
    		 4.44 9% 1.2 12.72
    Sahara Samay UP UtKh
    		 1.57 3% 0.3 6.69
    Sangeet Bhojpuri
    		 1.15 2% 0.2 11.98
    SEA NEWS UP UT
    		 0.62 1% 0.1 6.55
    India News Uttar Pradesh
    		 0.51 1% 0.1 5.59
    Sadhna News UP UTKH
    		 0.39 1% 0.1 6.02
    anjan
    		 0.35 1% 0.1 4.84
    Sahara Samay BIH and JHARK
    		 0.28 1% 0.1 4.27
    Sudarshan News
    		 0.07 0% 0.0 3.67
    Mahuaa News BIH and JHARK
    		 0.03 0% 0.0 2.95
    HUMMRA M
    		 0.03 0% 0.0 3.30
    Source: TAM| TG: CS 4+ Yrs | Period: Wk. 18 to Wk. 25 2013
  • US ad revenues for Q1 seem flat

    US ad revenues for Q1 seem flat

    MUMBAI: Total advertising spending in the US in the first quarter fell 0.1 per cent from the year-ago period, at $30.1 billion, according to the latest figures from Kantar Media.

    Cable expenditures were up by 5.2 per cent, thanks to an increase in the volume of ad time and stronger demand from restaurants and auto manufacturers. Spanish-language TV spending was up 13.5 per cent, marking its seventh consecutive quarter of double-digit growth. However, this is lower than the 15 per cent annual growth rate seen in 2012. The Spanish-language segment continues to be led by gains among national broadcast networks.

    There was a 5.2 per cent decline in network TV spending, primarily due to weaker prime-time ratings. The Q1 comparisons were also hurt by the fact that ad money for NCAA Final Four Games has been shifted to April. Overall, sports programming did produce ad revenue gains for the broadcast networks though.

    Spot TV spending was down, by 2.4 per cent. However, if you exclude cyclical political advertising, this area was essentially flat versus last year. Spending on syndication was down 1.1 per cent.

    “It has been a lackluster start for 2013, with flat year-over-year results due in part to strong 2012 growth caused by political and Olympic ad spending,” said Kantar Media North America chief research officer Jon Swallen. “Data from the early second quarter are mixed, suggesting marketers are still being cautious and conservative with ad budgets. However, there are some bright spots, including healthy growth for Hispanic media and outdoor.”

  • Global adspend online to overtake print by 2015: ZenithOptimedia

    Global adspend online to overtake print by 2015: ZenithOptimedia

    NEW DELHI: Global advertising expenditure will grow by 3.9 per cent in 2013, reaching $518 billion by the end of the year.

    ZenithOptimedia has said this forecast for ad expenditure growth this year is down slightly from the 4.1 per cent forecast in December, mainly because 2012 turned out better than we expected, leaving tougher comparatives for 2013. In dollar terms, our forecast for 2013 is marginally ahead of last forecast, by $430 million.

    ZenithOptimedia has included India among the fast-track Asian countries, which also include China, Indonesia, Malaysia, Pakistan, Philippines, Taiwan, Thailand and Vietnam

    As has been the case since the start of the economic downturn in 2007, this growth will be led by rising markets, which will grow by 8.2 per cent on average in 2013, while the mature markets grow by just 1.8 per cent, weighed down by the Eurozone crisis. Over the next two years, growth will pick up in both rising and mature markets, reaching 9.4 per cent and 3.5 per cent respectively in 2015.

    Internet advertising is supplying most of the growth in expenditure by medium, driven by technical innovations, such as better measurement of exposure to advertising, greater localisation, and integration with mobile devices. It is forecast that internet advertising will grow by 14.4 per cent in 2013, while traditional media will grow by 1.6 per cent.

    Display is the fastest growing medium within internet advertising, with annual growth of 20 per cent. This is being driven by the rapid rise of online video and social media advertising, each of which is growing at about 30 per cent per year. Continued innovation among the search engines – including richer product information and images within ads – is seeing a healthy rise in paid search. Paid search will grow by 13 per cent a year to 2015. Much of the growth in internet advertising is at the expense of print – internet advertising will increase its share of the ad market from 18 per cent in 2012 to 23.4 per cent in 2015, while newspapers and magazines will continue to shrink at an average of one per cent – two per cent a year. By 2015 online adspend will overtake print.

    Rising markets are outperforming the rest of the world. ZenithOptimedia predicts that rising markets will contribute 63 per cent of growth between 2012 and 2015 and will increase their share of global adspend from 34 per cent to 38 per cent.

    The high growth markets are in Latin America, Fast-track Asia, Eastern Europe and Central Asia, which are well ahead of the rest of the world, with an average of between 10 per cent and 11 per cent growth a year expected between 2012 and 2015. Despite this rapid growth, the US is still the biggest contributor of new ad dollars to the global market. Between 2012 and 2015, and the US is expected to contribute 28 per cent of the $76 billion that will be added to global adspend.

    There will be some change among the top 10 advertising markets between 2012 and 2015. USA, Japan, China and Germany will remain in first to fourth positions, and Australia and South Korea will still stay in eighth and tenth positions, respectively. However, the UK will fall from fifth to sixth position, France for seventh to ninth and Canada will fall out of the top ten altogether. Brazil is set to rise to fifth position and Russia will move from eleventh to seventh.

    The consensus among economic forecasters is that the global economy will gradually build up speed over the next three years. The Eurozone should start to pull out of recession towards the end of this year, which will help stimulate world trade. The global ad market will strengthen in step with the economy, although ad expenditure growth will remain behind GDP growth for the rest of our forecast period. The forecasts for 2014 and 2015 are unchanged at five per cent and 5.6 per cent respectively.

  • Facebook hits one million advertisers

    Facebook hits one million advertisers

    MUMBAI: Advertising is a form of communication for marketing. In today‘s date without using a digital platform nobody can think of promoting their product.

    Facebook has witnessed a phenomenal milestone of hitting one million active advertisers. This is the sign of advertisers adopting Facebook to promote their business.

    On this occasion, Small Business at Facebook director Dan Levy posted on the Facebook newsroom stated, “Over the past year I‘ve had the privilege of meeting and learning from many amazing business owners who use Facebook. Some have just set up their Facebook pages while others are experts who share their tips with others. I‘ve learned from companies like ministry of retail in Singapore, springwools in Ireland, and scene 75 entertainments in Ohio and many more around the world.”

    “I know business owners like these invest their hard earned money and time into running their companies. So today, on behalf of everyone at Facebook, I want to say thank you to them and to the over one million businesses like them who are active advertisers. You have chosen Facebook as a partner to grow your business. We appreciate the chance to work with you, and we celebrate your success,” Levy added.

    “The more than one million active advertisers on Facebook are real people with stories that inspire us and each other. I‘d love to hear your stories. And I know you like to learn from each other. I invite you to share your stories at facebook.com/business/success, so that you can inspire more entrepreneurs to turn their passions into reality. We all start small. And whether you‘re reaching your first customer or your millionth, I‘m thankful that we‘re a part of your business,” he added concluding his blog.

    He also communicated his ‘One Million Thank Yous‘ through the post.

  • Media pros find TAM blackout inconceivable; but readying for chaos

    Media pros find TAM blackout inconceivable; but readying for chaos

    MUMBAI: That Television Audience Measurement‘s (TAM‘s) ratings are battling for survival is common knowledge. But how this will affect the advertising process on television? And also what will happen if broadcasters force their hand and have TAM‘s ratings shut down, if but for a while? How will media professionals buy and sell? Definitely questions that are worth taking a looksee.

    And we spoke to that breed of professionals who create the ads, plan and do deals which go to make up the Rs 14,000 crore TV advertising spend in India – the ad agency pro, media planner and buyer.

    Most expressed outright discomfort about the possibility of there being no TAM ratings; some even went so far ahead, disregarding it as speculation which will not come to pass.

    AAAI president & Leo Burnett India south Asia chairman & CEO Arvind Sharma says: “We are crystal clear that advertisers will not work without the TAM ratings. There is no possibility that TAM ratings will be shut down.”

    Seconding Sharma, Maxus worldwide CEO Vikram Sakhuja states: “TAM shutdown for now seems to be speculation. We are not considering this scenario and will be looking for TAM ratings for media buying.”

    Mediacom MD Debraj Tripathy proffers his view: “Let‘s say hypothetically that I agree that there is a basic problem with the ratings. This doesn‘t mean that TAM has to be made to stop functioning. We have to address the problem instead of shutting down TAM. I am not open to discussion led by the mass and a unilateral decision. Any initiative against TAM has to be backed by data and research.”

    Tripathy, however, said if it is found that there is data insufficiency or incorrect data being dished out by TAM, then “it (shutdown) is permissible for a while, until TAM can make some perceived changes or until some other currency starts.”

    Most of them shuddered when they were told a TAM shutdown for a period is quite the way the broadcasters want to go. “There will be a chaotic situation,” says Vivaki Exchange COO Mona Jain. “Chaos,” shivers Tripathy. “I am not in favour of a unilateral decision by anyone as it will lead to utter chaos,” echoes Madison Media COO Karthik Laxminarayan.

    But nonetheless they have braced themselves for it and are open to using other methods to plan and buying for critical advertising buying decisions.

    Says Jain: “In the interim period when there will be no ratings, we will either go with earlier data; if not, for new shows that are being launched we will go by assumptions and gut-feel.”

    Agrees Laxminarayan: “In case of no TAM, I will refer to earlier data or general assumptions.”

    Is it possible that advertisers will hand TAM a life belt to allow it to stay afloat even though broadcasters are attempting to sink it, albeit temporarily? Sharma said, “Let‘s not get into that question because it is obvious that funds are needed for TAM; and worldwide, broadcasters have funded the TV ratings. The industry needs to find out a solution collectively.”

    Hopefully. Until they do, it would be wise for all in the TV advertising value chain to get ready for a chilling TV-rating-free vacation.

  • Magna Global says Indian ad market should grow 11.9% in 2014

    Magna Global says Indian ad market should grow 11.9% in 2014

    MUMBAI: Folks in advertising, there’s reason to cheer. The Indian advertising market is going to grow at a healthy 7.8 per cent in 2012-2013, outpacing its GDP growth, is the prediction of Intepublic group’s strategic global media unit Magna Global. Television and print are expected to contribute two thirds to this growth with television advertising growing at 6.6 per cent, Digital media at 31 per cent (faster than any other category with mobile and video outgrowing traditional display), newspapers (expanding in language and regional pockets) should grow at six per cent, while magazine advertising growth is expected to be flat. Radio and out-of-home advertising will grow +8.0%.

    India Advertising Market (Media Owner Revenues)

    Magna says this is relatively good highlights that this will happen at a time when India suffered it worst near decade slowdown in 2012, with real GDP growing by +4.0% compared to +7.7% in the previous year (source IMF). It adds that India’s economic outlook was downgraded by ratings agencies, which dampened investment sentiment. The impact of the corrective measures that the government took like reducing subsidies, opening up FDI in retail, and a plan to introduce targeted subsidies through direct transfers to reduce expenditure, remains uncertain in the short to medium term, says Magna And it cautions that in its April report, the IMF has forecast 5.7 per cent of real GDP growth this year and 6.2 per cent in 2014.

    India advertising revenue by media category 2012-2013

    Magna believes the Indian advertising market is going to show further buoyancy in 2014 by growing 11.9 per cent. The reason: the investment climate is expected to warm up and demand from external economies backed by solid domestic consumption will boost the Indian economy.