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Tag: Dentsu Aegis Network

  • Ad spends to grow by 10.5% to reach Rs 624 billion in India DAN Report

    Ad spends to grow by 10.5% to reach Rs 624 billion in India DAN Report

    MUMBAI: Advertising and digital communications group, Dentsu Aegis Network, has released it its biannual global forecasts, pointing to a more positive 2018 for Asia Pacific advertising expenditure than previously expected. 

    Ad-spend growth will rise from 4.0 per cent in 2017 to hit 4.5 per cent in 2018 – higher than the 4.2 per cent forecast in January 2018 and taking total investment to USD 215.95 billion. Regional events such as the 2018 World Cup that will be held in Russia, 2018 Winter Olympics South Korea, Asian Games in Indonesia and Australian federal election will play an important role in stimulating growth.

    Geographically, Asia Pacific is a major growth region, contributing 41 per cent of the global increase (USD 613.5 billion). Comparatively, North America accounts for 32 per cent, Western Europe accounts for 13 per cent with Latin America at 8 per cent and Eastern Europe 5 per cent.

    Dentsu Aegis Network Asia Pacific CEO Nick Waters says, “The region as a whole displays a positive outlook with increasing growth rates. We are seeing upward revisions in most key markets, with India, the Philippines and Vietnam showing high rates of growth.”

    Spend in China continues to grow at pace, though driven almost entirely by the e-commerce platforms Alibaba, Tencent and Baidu. Digital remains the dominant growth area with a quarter of Asia Pacific advertising spend expected to be delivered through mobile for the first time.

    Digital continues its rapid growth with online video gaining in share. This has been driven largely by the availability of high speed connectivity across the country, it is only set to grow faster. TV with a projected market share of 39.1 per cent continues to lead the media share of pie with Print at 29.3 per cent. 

    Speaking on the Indian context, Dentsu Aegis Network India and Amplifi president of media brands Kartik Iyer mentions, “India’s ad spend is projected to grow at 10.5 per cent as compared to the beginning of the year when the growth was expected to be over 11 per cent. It wouldn’t be a surprise to see some forward thinking brands trying to use Video Instead of TV  in a few test and learn cases.”·

    India advertising spend market is expected to grow in 2018 by 10.5 per cent to reach Rs 624 billion. Though there had been a slow start in Q1-2018, the market was picking up from March-April, fuelled by a stable recovery post demonetisation/GST/RERA buoyed by the State Elections in Meghalaya, Tripura, Nagaland and Karnataka in April. The India South Africa Match in January, Budget announcement in February, lead to continued expansion and growth of regional newspapers and television. Both social and online video will see growth for the next five years as India continues to evolve their internet, mobile, cloud audience.

    In China, advertising market is predicted to grow 6.5 per cent in 2018, up from the previous forecast of 5.4 per cent, to reach RMB 630 billion of global ad investment. Growth will be driven by digital, which is forecast to command 60 per cent of advertising spend and increase by 14.8 per cent. The online giants Baidu, Alibaba and Tencent (BAT) are projected to contribute around 80 per cent of this growth, underlining their dominance of the marketplace. Mobile payments are also one to watch in the coming years as platforms such as WeChat or Alipay make cash obsolete in large parts of the country. 

    The mobile device is steadily becoming our primary point of access to all digital services and content. In 2018, 52.2 per cent of all worldwide online traffic was generated through mobile phones, up from 50.3 per cent in the previous year, according to Statista. People now spend an unprecedented amount of time on their smartphones—more than five hours a day, according to some estimates. This growth in usage is largely driven by the widespread availability of high-quality digital Video. Mobile Video consumption is exploding among all age groups and content categories. 9 in 10 Social media users opt for mobile browsing, with mobile apps accounting for 70 per cent of time spent on Social media.

    Reflecting this, mobile is forecast to represent a quarter of global ad spend 25.2 per cent this year exceeding the previous prediction of 24.8 per cent. With Mobile payments forecast to be more popular in the coming years, Mobile is set to continue on a positive growth trajectory a forecast 18.8 per cent in 2019. 

    Traditional media spend is forecast to decline by -0.5 per cent in 2018 and -0.4 per cent in 2019. Newspapers and magazines are expected to continue their downward trend, with falls of -7.5 per cent and -6.5 per cent respectively. Radio, Out of Home and Cinema spend are expected to show steady growth.

    TV spend is forecast to move back into growth in 2018 following a -0.7 per cent decline in 2017, remaining a major medium in the mix with 35.5 per cent of overall investment. 

    Figure 1: Growth in global ad spend 2017-19 (% y-o-y at current prices)

     

     

     

    2017a

    2018f

    2019f

    GLOBAL

    3.3 (3.1)

    3.9 (3.6)

    3.8

    NORTH AMERICA

    2.5 (2.5)

    3.4 (3.1)

    3.2

    USA

    2.6 (2.6)

    3.4 (3.2)

    3.1

    CANADA

    0.0 (0.0)

    2.3 (1.1)

    5.1

    W. EUROPE

    3.2 (3.3)

    2.9 (2.6)

    2.9

    UK

    4.2 (3.6)

    4.2 (3.8)

    4.7

    GERMANY

    2.3 (2.2)

    2.6 (2.6)

    2.9

    FRANCE

    2.7 (1.7)

    2.5 (2.0)

    2.8

    ITALY

    0.9 (0.9)

    1.4 (1.9)

    1.1

    SPAIN

    2.3 (1.9)

    1.5 (1.4)

    1.2

    C&EE

    8.8 (8.3)

    7.8 (7.4)

    6.6

    RUSSIA

    14.3 (12.9)

    11.7 (10.4)

    8.5

    ASIA PACIFIC

    4.0 (3.5)

    4.5 (4.2)

    4.4

    AUSTRALIA

    2.3 (2.7)

    2.8 (2.9)

    2.4

    CHINA

    6.3 (6.0)

    6.5 (5.4)

    6.0

    INDIA

    8.9 (9.6)

    10.5 (12.5)

    11.1

    JAPAN

    1.6 (1.0)

    1.5 (1.6)

    1.2

    LATIN AMERICA

    8.3 (8.1)

    6.9 (8.8)

    7.3

    BRAZIL

    2.8 (2.1)

    2.3 (5.0)

    2.6

     

    Figures in brackets show our previous forecasts from Jan 2018

    Figure 2: Growth in global ad spend by media, 2017-19 (% y-o-y at current prices)

     

     

     

    2017a

    2018f

    2019f

    TELEVISION

    -0.7 (-0.9)

    1.2 (0.5)

    1.1

    NEWSPAPERS

    -9.4 (-9.0)

    -7.5 (-7.9)

    -7.4

    MAGAZINES

    -7.6 (-7.2)

    -6.5 (-5.9)

    -6.4

    RADIO

    1.2 (0.5)

    2.0 (1.3)

    1.2

    CINEMA

    6.1 (4.8)

    5.9 (4.6)

    5.2

    OOH

    2.6 (3.0)

    2.2 (2.4)

    2.1

    DIGITAL

    15.2 (15.0)

    12.6 (12.6)

    11.3

     

    Figures in brackets show our previous forecasts from Jan 2018

     

  • RTB House opens AI Marketing Lab for advertisers

    RTB House opens AI Marketing Lab for advertisers

    MUMBAI: RTB House, a global company providing retargeting technology with top online advertisers has opened a new research division called AI Marketing Lab. The lab will research and develop cutting edge mar-tech solutions for both publishers and advertisers.

    The lab will conduct research and development in broad marketing areas and support all the international markets including new markets like India and US. Present in across 70 countries, RTB House opened its first office in India in September 2017. The new lab will remain separate from the main R&D department and focus on creating an environment for inventing and developing new mar-tech solutions across digital advertising formats including programmatic ads.

    “We’ve been highly focused on improving our primary personalised-retargeting system which is a benchmark in the digital marketing industry globally. We’re now looking to the future, to expand our knowledge, technology, and resources to new areas in order to develop another game-changing solution. One of the most promising areas is improving effectiveness of acquiring new traffic by advertisers,” says RTB House CEO Robert Dyczkowski.

    “In 2017, we achieved one of our biggest goals and introduced deep learning technology into 100 per cent of the crucial elements of our predicting mechanism including for brands and advertisers in India which was a market first. The Indian market has been slow but is rapidly seeing an adoption in new age advertising technologies like programmatic ads. With this lab we aim to pioneer industry first innovations for advertisers in India using artificial intelligence,” adds RTB House India Country Manager Kshitiz Randhir Shori.

    RTB House has also earmarked $5 million for establishing the lab and the amount will also be used for hiring researchers and engineers with expertise in deep learning.

    The opening of the new lab also comes close on the heels of expanding to the US market with offices in New York, Boston and Chicago. It currently has more than 1200 clients in nearly 70 countries, including such well-known brands as Adidas, Hotels.com, New Balance, Trivago, Sephora and Walmart.com. The focus in the US market will remain on acquiring new clients and bolstering employee strength.

    As per a report on digital advertising by Dentsu Aegis Network, the Indian digital advertising industry is currently pegged at around Rs 8,202 crore and is expected to grow at 32 per cent CAGR to reach Rs 18,986 crore by 2020. Increasing penetration of digital media by the Indian audience will play a key role for advertisers to reach out to untapped audiences. The AI lab will seek to develop and implement new age solutions for an emerging market like India. With programmatic ads increasingly becoming popular by advertisers, AI lab will play an important role in assisting brands to improve their ROIs on digital spends and reduce ad fraud.

    RTB House is the first and only ad retargeting company to be powered entirely by deep-learning algorithms. Deep learning models high-level abstractions in data, and imitates the human cognition in processing data rapidly to create patterns that marketers use in decision-making while allocating ad-spends.

     

  • RPG Group’s new campaign speaks about happiness within & outside the organisation

    RPG Group’s new campaign speaks about happiness within & outside the organisation

    MUMBAI: RPG Group, one of India’s fastest growing conglomerates, has partnered with Dentsu Webchutney, the digital agency from Dentsu Aegis Network, to launch a campaign featuring four films with its brand tagline ‘Hello Happiness’.

    The Harsh Goenka-led RPG Group has not only made happiness intrinsic to its vision but has also adopted it as the brand tagline and embarked on a journey to promote, share stories, nurture and encourage a culture of happiness, both within and outside the group.

    This new campaign executed by Dentsu Webchutney Mumbai took its cue from the group’s vision statement that harbours a bright square smiley, alongside values such as ‘Unleash Talent’, ‘Touch Lives’ and ‘Outperform’. Spread across six weeks, the campaign, driven largely via short films, illustrates how the group has brought happiness into the lives of diverse stakeholders.

    RPG Enterprises DGM of corporate brand and communications Manjira Sharma says, “At RPG, we believe that if we are able to bring any change into the lives of people, we have done justice to the group’s existence. And this change is only evident through people’s smiles; that is the bar we have set to measure our success. This is the reason we had to own the position of happiness.”

    “Happiness isn’t a thing, it is a place. And to reach this place, we need to lighten ourselves of the baggage that we all carry in our hearts. RPG is an ebullient place, where we encourage our employees to shed this baggage, be themselves, and contribute to the group’s vision. And we are boastfully gleeful about this,” adds Manjira.

    Dentsu Webchutney EVP and branch head Nishi Kant mentions, “Real happiness is very tangible and each RPG film brings this home for the viewer whether that be a child jumping around at an unexpected happiness, the tears streaming down a mother’s cheek at her daughter’s achievement, the boundless joy experienced by a grandfather in his grandchild’s company or the cheerful confidence of a happy employee. The term Hello Happiness means the active expression of Happiness and that is what the RPG Group stands for.”

    To portray these stories of happiness, the campaign referred to examples from within the RPG Group companies – KEC International and Seniority.in, its CSR Initiative Pehlay Akshar and its employee friendly policies.

    The Hello Happiness campaign marks the beginning of the group’s ‘Happiness’ legacy, with many additions and variations to come.

  • DAN Consult aims to deliver business objectives with major clients on board

    DAN Consult aims to deliver business objectives with major clients on board

    MUMBAI: DAN Consult, the consulting arm of Dentsu Aegis Network, has successfully scaled up winning large growth consulting assignments with corporates like Tata Unistore (Tata Group’s e-commerce venture), UAE’s leading e-commerce platform Noon.com, India’s leading regional newspaper group Rajasthan Patrika, Rajasthan’s luxury hotel group Suryagarh Hotels along with a few other clients who wish confidentiality.

    DAN Consult is an integrated hub of growth consulting and marketing transformation services combining business consulting, product consulting, marketing and sales strategy, technology, data, AI, digital marketing, performance marketing and martech (marketing technology) to deliver on the business objectives of clients. The plan is to build a result focused consulting firm and fill a space today not captured by the large consulting firms or the tech companies specifically on digital growth where being hands-on is key to success.

    While DAN Consult has employees dedicated to business consulting, the practice also pools entrepreneurs, leaders and CEOs internally across the DAN group and the best breed external experts who have built and scaled businesses themselves and successfully created teams on a project-by-project basis. These industry-leaders will leverage their expertise across multiple domains to not just advise on strategy, but also form campaigns, products, and infrastructure including digitisation and Artificial Intelligence or solving business problems through an innovative and disruptive process.

    Lalit Bhagia has taken over as the CEO of DAN Consult. It will be the fourth entity under the DAN Performance Group, headed by Vivek Bhargava, along with the existing three companies under it – iProspect India, SVG Columbus and Merkle Sokrati.

    Bhagia and Bhargava, both ex-entrepreneurs themselves will collaborate to build and scale the DAN Consult business. Bhagia has led and built the digital growth strategy for companies like Star TV and Aditya Birla Financial Services among others. Prior to Star, he was the head – APAC at Digitas where he single-handedly built and scaled Digitas across India and Southeast Asia from scratch.

    Bhagia says, “With DAN Consult, we aim to deliver on business objectives and not the marketing objectives. Our business model rests on this very premise and thus we work with companies based on revenue growth using digital. In the long run, we will take a cut from the results, instead of charging fixed fees for time. This is a shift from what traditional consultants currently do and with this we hope to redefine the space. I am glad to have been chosen to create and build this business for DAN. This indeed is the next level of how agencies would evolve in the future.

    Bhargava mentions, “With 1800 digital experts and the diverse talent that the network possesses, we believe we enjoy a niche to cater to the unmet demand of clients beyond what tech companies and traditional consultancies are equipped to provide. The strength, dynamism, culture, flexibility, consumer understanding and risk-taking that a network like ours possesses along with some of the best minds in the business work as a huge added advantage. With Lalit at the helm, I’m positive we will be able to deliver great value to clients through our consulting efforts.”

    “The launch of DAN Consult enables our business to achieve the completion of the triumvirate of branding, media and consulting. We believe the market currently leaves scope for an offering of this nature and we are glad to introduce the consulting business under the DAN Performance Group, providing further value to our clients and working with CEOs and promoters to push the envelope through digital. Moreover, this is aligned with our One-DAN vision.” concludes Dentsu Aegis Network South Asia Chairman and CEO Ashish Bhasin.

  • CLab, Dentsu Impact team up for V-Mart’s latest campaign

    CLab, Dentsu Impact team up for V-Mart’s latest campaign

    MUMBAI: V-Mart Retail has partnered with Dentsu Impact and CLab, to launch its new campaign introducing the Bollywood pair of Ayushmann Khurrana and Bhumi Pednekar as brand ambassadors.

    V-Mart Retail commenced operations in 2003 and has grown to become one of the most preferred destinations for all fashion and lifestyle needs for consumers residing in tier-2 and tier-3 cities. With a presence across 14 states with 176 stores across 148 cities, V-Mart caters to approximately four crore customers every year. According to a data compiled by Bloomberg, V-Mart, which has recently been conferred as the ‘world’s best performing department stores chain this year’, is one of the leading value-retailers of the country and caters to the aspirational middle class residing in tier-2,3 and 4 cities across India.

    V-Mart Retail senior vice president of marketing and operations Snehal Shah says, “We are super-excited to associate with young talents like Ayushmann and Bhumi. We are a brand that believes in hard work, understands the requirements and dreams of the country that resides outside the reach of metros. It is these beliefs and values which make both Ayushmann and Bhumi a great fit to represent us as our brand ambassadors. Making their way into the tinsel town through sheer hard work and talent, their stories are what connects and resembles with V-Mart’s DNA and that of the millions enduring through daily struggle and yet daring to dream big.”

    The association was designed by CLab, the entertainment and sports marketing arm of Dentsu Aegis Network. CLab vice president Deepak Kumar mentions, “We are extremely happy to have crafted a successful alignment between the celebrities and V-Mart. Our approach for the brand was based principally on factors of immediacy, quick recognition and response, relevancy and lastly demographic integration and acceptance.”

    CLab has been set up under the mentorship of Haresh Nayak who is the managing director at Posterscope India. He says, “We have evolved from the time in which celebrity endorsements were a product of gut feeling and perception to the time which involves intelligent and scientific planning for celebrity-brand matchmaking. With Star Matrix, our proprietary celebrity recommendation tool, our vision is to bring accountability and informed decision making in a discipline which functions on probability and gut feeling of advertisers in getting celebrities/sports personalities to associate with their brands.”

  • Saffola launches campaign to beat food cravings

    Saffola launches campaign to beat food cravings

    MUMBAI: WATConsult, the digital and social media agency from Dentsu Aegis Network, and Marico’s Saffola, launched a new campaign for its newly introduced offering, Saffola Active Slimming Nutri-Shake, titled ‘Beat The Crave’.

    The campaign is a first-ever audio-driven digital initiative that aims to distract the audience from unhealthy food cravings.

    The campaign undertakes an array of social media activities along with a microsite that has been created for users to visit and distract themselves whenever their craving strikes, thus enabling them to maintain their diet plan. The microsite will have multiple audio skits; also available on WhatsApp to encourage people attain their fitness goals. While each audio skit is crafted to help people distract from their cravings, it also allows them to learn the psyche behind these cravings and provides solutions to avoid them.

    Marico chief operating officer Sanjay Mishra says, “In line with Marico’s commitment to support a healthy lifestyle, we have teamed up with WATConsult and created a digital buddy which helps distract people from unhealthy food cravings in a fun way. These cravings just add inches to the waist derailing the efforts toward slimming. So, the digital audio buddy will work by distracting the user from any food craving and support consumers to find the right alternative healthy options”.

    The campaign also features several personalities from different walks of life who have been roped in to join the ‘Beat the Crave’ way. Healthy alternative recipes are also on offer to beat those cravings.

    WATConsult founder and CEO Rajiv Dingra adds, “Anyone trying to lose weight and get in a better lifestyle/better shape has to first and foremost deal with the very human problem of craving. But if you can distract your mind for around three minutes, you can survive a craving incident. With this insight and to avoid facing a conflict between the love for junk food vs the weight loss goals, we created a digital friend who helps you beat the craving.”

  • Dentsu Impact expands its footprint to Bangalore

    Dentsu Impact expands its footprint to Bangalore

    MUMBAI: Dentsu Impact, the creative agency from Dentsu Aegis Network (DAN) headquartered in Gurgaon, has expanded its footprint to Bangalore. The agency has set up a team of business, creative and strategy leads to run its operations in the city.

    While Montu Sangha has been roped in to head business, Amish Sabharwal will head creative. Krittika Chakraborty, meanwhile, has been promoted to head strategy for Dentsu Impact in Bangalore. As part of their new mandate, the trio will not only be in-charge of the existing businesses at Dentsu Impact, especially IKEA, but will also look at opportunities to expand the agency’s offerings and thus, revenues.

    With more than 14 years of experience in the business of communication, Sangha has worked across agencies in consulting and with the marketing teams of global brands such as HP and GE in India and the UK. During her stint with agencies, she has worked on the launch of brands for Unilever and ITC Foods. In her last role, she was the South Asia lead for advertising and promotions in GE Healthcare. 

    On joining the Dentsu Impact family, Sangha says, “I am very excited and look forward to my new role at Dentsu Impact, Bangalore. It is a great opportunity to partner with an iconic global brand like IKEA for their successful launch in India which is a key market for them. In the coming months, my focus will also be on identifying new areas of growth for Bangalore operations and to build a team that can offer a bouquet of services in the coming years.”

    For Sabharwal, this is his second stint with Dentsu Impact. He joins back from JWT where he was taking care of the Pepsi business. There, he was also involved in the revamp of Gatorade and the launch of Sting.   

    Sabharwal adds, “IKEA is not just another brand. It’s a culture. And it is great to be involved in scripting the India chapter after being an integral part of the pitch team. Both Montu and Krittika are great professionals and human beings to work with, and we will make sure that the impact is both heard and seen. I really thank Amit and Soumitra for the faith that they have shown in us.”

    Chakraborty has been with Impact for the last six years. She has nearly a decade of experience across marketing, branding and communication strategy. She has worked for a variety of categories such as automobiles, publications and home furnishings. She has been instrumental in leading strategic thinking on large scale businesses such as Maruti Suzuki and IKEA and is a keen believer in insight mining and storytelling for the digital age.

    Commenting on the expansion, in a joint statement, Dentsu Impact president Amit Wadhwa and chief creative officer Soumitra Karnik mention, “We have picked the best talent from inside and outside our organisation to take care of our Bangalore operations and IKEA is a very important part of this. We are sure that with Montu, Amish and Krittika at the helm, we will build a strong statement in the market.”