ITV

Tag: advertising

  • Mudra Ahmedabad retains N K Proteins’ creative biz

    MUMBAI: Mudra Ahmedabad has retained the creative account of N K Proteins following a multi agency pitch in which Grey had also participated.

    The agency‘s mandate will be to roll out an ad campaign for N K Proteins‘ soon-to-be-launched brands in edible oil category. It will be launched by the end of this year.

    Mudra Ahmedabad has been working with the brand for over two years now. Prior to that One Advertising used to handle the mandate.

    Registered in 1993, N K Proteins is engaged in the refining of all types of edible oil.

  • Advertising picks up in 2012: Nielsen

    MUMBAI: Advertising spending across television, newspapers, radio, outdoor, Internet and cinema see an increase in the beginning of 2012 compared to last year, according to Nielsen’s quarterly Global AdView Pulse report.

    Though TV continues to attract the majority of ad dollars, Internet advertising sees the biggest increase, with advertisers spending 12.1 per cent more in Q1 2012 than one year prior. During that time, ad spend overall increased 3.1 per cent globally.

    Across the regions, the findings are markedly different as each media has taken root and evolved uniquely.

    Television: Dollars devoted to TV advertising grew 4 per cent in North America, second only to outdoor, and 7.5 per cent in Latin America. In the Middle East and Africa, TV ad spend grew a whopping 33.8 per cent.

    Internet: Online ad spend was a bright spot for the industry, with growth around the globe. Growth was particularly notable in Europe (12.1 per cent), Latin America (31.8 per cent) and the Middle East and Africa (35.2 per cent).

    Print (Magazines and Newspapers): Magazines saw a minor decline compared to last year, but newspapers grew by 3.1 per cent. In Latin America and Asia Pacific, both media grew by 7.6 per cent and 10.3 per cent respectively in Latin America, and 3.6 per cent and 5.4 per cent in Asia Pacific. North America saw nominal declines in print ad spend.

    Radio: Radio saw increases in every region around the globe, including a 2.6 per cent increase in North America and 2.8 per cent in Europe. In emerging markets in Latin America and Middle East and Africa, those increases were much higher. Radio grew 18 per cent in Latin America and 21.1 per cent in the Middle East and Africa.

    Cinema: In the Asia Pacific, cinema grew by 27.1 per cent, offsetting the declines seen in Latin America and the Middle East and Africa.

    Outdoor: Still a nascent industry, outdoor is growing rapidly. In the past quarter, outdoor ad spend increased by 6.4 per cent globally. This included gains of 4.4 per cent in North America, 45.3 per cent in the Middle East and Africa and 21.1 per cent in Asia Pacific. Only Europe experienced a decline.

  • Slowdown to impact outdoor advertising

    Slowdown to impact outdoor advertising

    MUMBAI: The looming slowdown in the Indian advertising industry will badly hit the outdoor medium, according to media agencies who are revising their forecasts for this year.

    Zenith Optimedia CEO Satayajit Sen ranks it as the third most impacted, after print and radio. “We were expecting the outdoor  space to grow at 5-10 per cent this year. But it will now post low single-digit growth. All peripheral mediums like outdoor will experience ad budget cut,” he says.

    Lodestar UM COO Nandini Dias feels that outdoor and print will be the most affected ad mediums. “A number of sectors like retail, finance, and banking have pulled back advertising. Since outdoor and print have a higher CPT (cost per thousand) than TV or radio, they will be more affected. Even during the last pull back, cost effective mediums like TV were the least affected,” she says.

    From the advertisers’ point of view also, the availability of other “cost effective” options with “better metrics for measuring effectiveness” may affect the growth in outdoor.

    Broadcasters, who are one of the major spenders on outdoor advertising, are less bullish on splurging in hoardings than they were in earlier years. Zee Entertainment Enterprises Ltd. (Zeel) is reducing its ad spend on outdoor while increasing its exposure on digital.

    Says Zeel marketing head – national channels Akash Chawla, “If you see outdoor and billboards, it is involved in the marketing mix but that component has been going down for us since the last 3-4 years on a constant basis.”

    In 2008, Zeel’s ad spend on outdoor was around 40-45 per cent of the entire marketing spend, which has fallen down to 28-31 per cent now.

    “On an increasing ad budget, billboard advertising as a component has decreased. We look at hoardings from show to show perspective. In totality, ad spend on OOH is coming down. Reason being that there are lots of other options of advertising available and the metrics evaluation in the other mediums is far better. When you talk about the geographical coverage, the entire thing in outdoor is to get into smaller towns but issues like difference in printing and creative not being put up on time happen. On digital our ads spend has grown to 10 per cent from 2 per cent in 2008. How many people log on, cost per contact and pay per click help monitor the medium and get a better ROI. When it’s about BTL (below the line), we tend to do an aggressive job and that continues,” says Chawla.

    UTV Broadcasting, which spends almost 20 per cent of its marketing amount on outdoors, will keep the budget at the same level.

    Says UTV Broadcasting head marketing Kunal Mukherjee, “For us, it is a pretty much constant space. Outdoor is a good medium to be continuously present in smaller towns.”

    Sony Entertainment Television (Set) spends around 15 per cent of its overall marketing budget in outdoor and will keep it that way.

    However, outdoor ad agencies feel that the slowdown will not be as much impacted as the other mediums.

    Milestone Brandcom founder and managing director Nabendu Bhattacharyya admits that it is not a very good year for the industry. “The industry as a whole is suffering and not only the hoardings. Though Telecom does not spend like it used to earlier, it is still the highest spender on hoardings followed by BFSI and then M&E. Automotive industry is also very active and luxury cars have been utilising hoardings as a medium in a big way. In smaller markets, the major spenders are gems and jewellery, lifestyle and real estate. I see FMCG spending a lot more.”

    However, he hints that the need of the hour is a 15-20 per cent discounted rate. “With a 15-20 per cent discount, it (hoardings) will be preferred over other mediums. Because the demand and supply chain will change, the clients will look at it more because it has become cheaper. Hence, outdoor will be least impacted.”

    According to Posterscope MD Haresh Nayak, hoardings as a percentage to OOH‘s total revenues have fallen over the years from 80 per cent to around 50 per cent. “The demand for activation continues. Clients have been looking at malls and multiplexes activations in a big way,” he says.

    Nayak estimates the outdoor industry to grow by 10-15 per cent this year compared to 18 per cent a year ago.”It is a very localised medium. It is easy to adapt and so it gets least impacted,” says Nayak.

    Also Read:
    Ad Slowdown Looms
    Signals are for a mild ad slowdown: Mindshare‘s Lala

  • Marico ups ad spend in fiscal as focus is on growth

    MUMBAI: Marico has upped its advertising and promotional spends by a mammoth 76.52 per cent for the three-month period ended 31 March 2012, reinforcing its focus on volume growth rather than margins.

    The company spent Rs 1.19 billion towards advertising in the final quarter, significantly higher than Rs 671.85 million that it consumed in the year-ago period.Advertisements and promotional spends were 14.3 per cent of the net sales in the quarter.

    Marico‘s advertising budget will continue to be higher in the coming fiscal as it focuses on growth through value-added products in its various segments.

    Marico’s net profit for the quarter fell by 2.67 per cent to Rs 696.971 million despite cut in product prices and high volume growth due to an increase in ad spend. Net sales grew 22.89 per cent to Rs 9.18 billion compared to Rs 7.47 billion a year ago.

    For the full fiscal also, Marico‘s ad spend rose 29.78 per cent to Rs 4.49 billion, from Rs 3.46 billion in the earlier year.

    Interestingly, Marico had said in August last year that the company would cut it ad spends and other costs to offset input cost pressure and avoid price hike.

    However, the company increased its spending on advertising and promotions in each quarter of FY’12, barring the second quarter when it remained flat.

    The major chunk of the spent was on the Saffola life World Heart Day Campaign 2011, which started in Q2 and continued in Q3 of FY’12.

    For the three-month period ended 31 December 2011, the company had spent Rs 1.34 billion on advertising, a 48.62 per cent jump from the earlier year. During the second-quarter of the fiscal, the advertising spends were at Rs 941.49 million.

    Even in the first quarter of the fiscal, Marico had increased spend on advertisement by 9.1 per cent as it had launched new products.

    For the full fiscal, the net profit stood at Rs 3.17 billion, up from Rs 2.86 billion in the previous fiscal, a 10.71 per cent increase.

    Marico’s annual net sales stood at Rs 33.97 billion as opposed to Rs 31.26 billion in the last year, registering a growth of 8.66 per cent.

  • GTV most trusted way of paid advertising: Nielsen

    GTV most trusted way of paid advertising: Nielsen

    MUMBAI: The importance of �earned’ media as a form of engaging with consumers has increased significantly in recent years, with word of mouth and online consumer reviews ranked by consumers in Asia Pacific as the most-trusted form of media or advertising, according to a recent study undertaken by Nielsen.

    The Nielsen online study into consumers’ level of trust in various forms of media and advertising and the relevance of information contained in media and advertising, found that 94 per cent of Asia Pacific consumers trust earned media, such as word of mouth and recommendations from friends and family, above all other forms of media and advertising.

    Consumer opinions posted online is the second most trusted form of media and advertising, with more than three quarters (76%) of Asia Pacific consumers indicating they trust the experiences of others’ shared online. Significantly, consumers’ trust in both word of mouth and online consumer reviews has increased exponentially in recent years, with word of mouth up 15 points in the second half of 2011 compared to the first half of 2007, and online consumer reviews up 14 points over the same period.

    Television, which enjoys the lion’s share of advertising expenditure in the Asia Pacific region, ranks as the most trusted form of �paid’ advertising for consumers in Asia Pacific, with 55 per cent indicating they trust ad messages delivered via TV. This was followed by other paid ads including magazines (54%), newspapers (52%), cinema ads (47%) and ads on the radio (47%).

    Although paid advertising on new media platforms, such as ads on social networking sites, text ads on mobile phones and online banner ads, still trails traditional forms of advertising in terms of the degree to which consumers trust it, this appears to be shifting; text ads on mobile phones and online banner ads posted some of the highest gains in consumers’ trust levels since 2007, up 18 points and 13 points respectively.

    Amongst other forms of media and advertising, the Nielsen study found that �owned’ media, in particular company websites, was widely trusted by Asia Pacific online consumers (63% of consumers said they trusted branded websites). A further 53 per cent of consumers in the region find content in emails they consented to receive to be credible. Interestingly, brand sponsorship resonates well with Asia Pacific consumers – 55 per cent trust this form of advertising.

    “These survey findings highlight the rapid fragmentation of media across the region, and the degree to which consumers’ attitudes towards all forms of media – paid, owned and earned – have shifted in a relatively short space of time,” notes Nielsen Asia Pacific, Middle East & Africa David Webb MD of Advertising Solutions. “It is interesting to note the number of new advertising categories which either did not exist, or were too small to list when Nielsen first conducted this study in 2007, such as social media advertising or display ads on mobile devices.”

    Webb notes that this continuing media fragmentation poses both opportunities and challenges for advertisers: “While advertisers are increasingly facing the dilemma of how to allocate their marketing budgets across a growing number of media platforms, the good news is that there have never before been so many opportunities for brands to engage with consumers. The real challenge marketers will face in the years ahead will be pinning down how to execute truly effective cross-platform campaigns, which utilize the unique benefits of each form of media and drive brand awareness, trial, loyalty and, ultimately, greater sales.”

    Consumers across the Asia Pacific region also regard �earned’ media content as the most relevant when it comes to looking for information on products and services, with information delivered via word of mouth and online consumer reviews ranking as the two most relevant forms of product information. In contrast, information delivered via ads on newer media platforms such as online video and banner ads, ads on social networks and mobile ads held less relevance to consumers than more traditional forms of advertising, a possible indicator that the messages contained in these ads is not yet hitting the mark.

    “The level of trust consumers place in various forms of advertising and media is clearly very closely linked to the level of relevance those media and ad messages,” observes Webb. “The evolution of â€?paid-earned-owned’ media has turned the traditional advertising model on its head, and it is now much more critical that brands deliver messages which are authentic, targeted and which encourage a two-way dialogue rather than a one-way push.”

  • Advertising has to be backed by strategy and tactics

    Advertising has to be backed by strategy and tactics

    VARCA, Goa: Advertising has a limitation to its effectiveness and there is a need to be clear in strategies and tactics.

    “Advertising effectiveness is no more than 41 per cent,” said author and brand guru Prof John Philip Jones,.

    Jones outlined four secrets of advertising – gatekeeper, continuity, medium-term effect and brand building.

    Speaking at Goafest 2012, Jones said that if advertising campaign doesn’t have the immediate effect, one should stop it and launch a new campaign. He noted that there are few behavioural measures. â€?There is high involvement purchase like for products such as cars. Such products are highly priced and are not included in frequent purchase. At the time of buying such products, the consumers make rational choices and they are looking for advertisements which are not the same in low involvement purchase goods where the advertisements come looking for customers.”

    In the low involvement purchase, rational message is given within emotional envelope. These are low priced products and it’s the habitual choice that people usually make. â€?They don’t weigh pros and cons for this,” he said.

    According to Jones, most customers buy products (any brand) because the last box is empty. Most consumers have a repertoire of two to four brands in any category. Advertising can influence the choice of brand especially with message propinquity.

    He said that the ad budget is a big trade off. Advertising and profits are both residuals, after payment of direct and indirect costs. Usually, advertising and profit amount are same. Sales effect of advertising increases and decreases. (10 per cent increase in advertising means 10 per cent reduction in profit and 10 per cent decrease in advertising means 10 per cent increase in profit).

    Tentative budget consists of competitive, expenditure, brand history and econometrics. One has to decide if he can afford it. If yes, then one must go ahead with the ad campaign. But if it is unaffordable, then one must examine future sale and profit projection.

    Internet has not been a very efficient ad medium, but continues to post strong growth. “Its growth would continue and it would be the No. 3 medium, after TV and direct mail,” he said.

    Jones concluded by saying that emotional appeal has immediate effect. But at the same time no ad can work if it is only emotional; it has to have some rational element.

  • Internet advertising in US soars 22% to $31 bn

    Internet advertising in US soars 22% to $31 bn

    MUMBAI: Revenue by way of Internet advertising in the US soared 22 per cent to $31 billion in 2011. The bulk of last year‘s spend went to search and display advertising, according to a report from the Interactive Advertising Bureau and PwC.


    The numbers show the growing importance of digital among advertisers who are choosing to place more dollars on websites, smart phones, and tablet devices to reach consumers.In contrast, newspapers have seen a drastic and steady fall. It is reported that advertising revenue in newspapers was $23.9 billion in 2011, down more than 50 per cent in a five-year period.


    The report also found mobile advertising increasing 149 per cent to $1.6 billion in 2011. While mobile advertising experienced the fastest growth of all the categories, it still represents a tiny sliver of advertisers‘ total spend. Search advertising remains the largest part of overall spending coming in at $14.7 billion, up almost 27 percent from the prior year.


    Display advertising, which includes video, banners and big splashy formats, rose 35 per cent to $11.1 billion.


    Another category showing significant growth was advertising associated with digital video. Compared to $1.4 billion in 2010, revenue reached $1.8 billion last year. This represented a 29 per cent year-over-year gain.

  • Hotel Renaissance’s creative mandate goes to Onads Communications

    Hotel Renaissance’s creative mandate goes to Onads Communications

    MUMBAI: Luxury hotel brand Renaissance has handed over its creative mandate to Onads Communications.

    The responsibilities include handling the creative duties of the group‘s Powai property for its upcoming campaigns and to promote the hotel as a weekend destination.The agency‘s Mumbai office will handle the business.

    The incumbent agency on this account is White.

    The brand intends to make use of media platforms such as print, outdoor and radio. The advertising will focus on local communication and contact programmes with the brand‘s customers and clients.

  • BBC Advertising opens first office in Switzerland

    BBC Advertising opens first office in Switzerland

    MUMBAI: BBC Advertising has opened its first office in Switzerland, as it looks to capitalise on the recent growth in the market and build on its existing successful business relationships there.

    As growth in the Swiss market has been fuelled predominantly by the luxury category, BBC Advertising, part of the UK pubcaster‘s commercial arm BBC Worldwide, is positioned to meet that demand, with the BBC commercial platforms‘ editorial output and production values attracting the premium demographic that luxury brands are seeking.

    The increasing move towards online and its accompanying video formats also presents a great opportunity for advertisers to benefit from appearing on BBC Advertising‘s wide range of platforms, which includes BBC.com, lonelyplanet.com, digital apps as well as its network of commercial television channels, including BBC World News.

    According to recent research by Toluna, TV and online are the most effective platforms for inspiring consumption of luxury goods among both men and women.

    BBC Advertising has also today announced the appointment of Sarah Green to lead the new operation in Switzerland, based in Lausanne.

    Reporting into BBC Advertising‘s Regional Director for France, Benelux & Switzerland, Laeticia de Belloy Green will be responsible for managing the existing international client base in Switzerland and for developing new business opportunities across the BBC Worldwide commercial portfolio.

    Green commented, “Setting up this new office presents us with an exciting opportunity to connect international media buyers in Switzerland with all the fantastic content and innovative ways of delivery that only BBC Advertising can offer. I‘m excited about finding new opportunities and building fruitful new relationships.”

    de Belloy said: “BBC Advertising is delighted to have Sarah heading up our new office in Lausanne. She brings with her great expertise, insight and enthusiasm and I look forward to seeing our business grow and develop in Switzerland.”

  • Advertising to grow 8% in 2012: Lodestar UM CEO Shashi Sinha

    Advertising to grow 8% in 2012: Lodestar UM CEO Shashi Sinha

     

    The slowdown pinch was not felt in 2011. It was marked by the cricket World Cup and, along with the Indian Premier League, the first eight months were healthy as brands and advertisers spent a lot.

    Total TV advertising spend went up by 16-18 per cent last year. Ad growth on print, however, was slow and there were many categories that didn‘t spend on the medium. In our case, we were lucky as Tata Motors is a big spender on print.

    TV and print in combine account for around 85 per cent of India‘s total ad spend. I don’t think that has changed. TV has grown dramatically because of the World Cup and other tournaments that were telecast.

    The total ad spend in the country is estimated to be Rs 330 billion. The other mediums – radio, outdoor, digital and cinema – contribute about 15-16 per cent. The slowdown in 2011 had to do a lot with specific clients and industries. The sentiment definitely changed after Diwali, but the overall numbers were not really affected.

    Today with so much viewership fragmentation and more channels launching to fill up niches, it is becoming costlier to reach out to the same audiences. The whole ecosystem is gaining as advertisers have to spend more money to target the same audience. It is because of fragmentation that a lot of positive things are happening.

    There is much talk about digital and, though the total ad spend on that medium is just Rs 15 billion, it is occupying the mindset. I am not sure whether critical mass will come or not but a lot of people realise that the ad spend pattern will change dramatically in the future; they are talking about different forms like search, display, engagement or content.

    The big change that is happening is that people have started believing that digital has to be integrated into our plans. Unlike the US and other western countries, India is outer-directed. People in western countries do lots of stuff online and they have no time for family; Indians, on the other hand, spend more time with the family and go out to consume entertainment. Radio, Outdoor, activations in malls and Cinema is going to grow. It is not that digital will grow at the expense of something else; it will all complement each other. So, unlike the west where digital grew rapidly, in India it will not grow on value terms or size because it is too small. It may grow in percentage but in absolute numbers it may not be very big.

    In 2012, ad spend may grow 7-8 per cent increase. FMCG companies may not face a problem as they are seeing growth and there is expansion from the rural markets. Even in case of automobiles where there is tough competition, let us not forget that India is still underpenetrated and not even 7-8 per cent of people own cars.

    Slowdown in advertising will be talked about, but large organised players will be there both in terms of value and volumes; it is the smaller companies that may be affected.

    The two points to highlight here are:

    1. The ability to get the data and capture the right database in a country like India is a big challenge and it is going to multiply day by day because the country is too huge and complex. You will have to have the ability to track audiences which are across multiple touch points and multiple mediums. This will remain a big challenge because you will have to reach out to the right audiences.
    2. Convert mindset that finally you aren‘t buying GRPs. You will have to finally deliver what the client wants.

    The future is in performance driven models and databases that can track complex consumers.