Tag: E-commerce

Lower e-commerce spending slows down TV ad growth: Madison

MUMBAI: H1 2016 has not been a good time for the advertising industry – TV specially – according to leading Indian ad agency Madison Media.

Against the projected 20 per cent TV ad growth for the full year, only 11 per cent growth has been achieved in H1 2016. This compares poorly with the gee-whiz 35 per cent growth rate achieved in H1 2015 over H1 2014 on the back of a substantial increase in e-commerce spends and the ICC World Cup.

The drop in the TV ad growth rate is also the main reason why the total ad market growth in H1 2016 has only been 12.9 per cent, says Madison Media. This has led to a downgrade of the earlier projected growth rate for 2016 from 16.8 per cent to 13.2 per cent. The drop in value of advertising growth has been accompanied by a reduction in the volumes of adverts on most TV programming genres, with the exception of Hindi movie and Kannada channels.

The Madison-Pitch report says that the TV industry attracted around Rs 10,198 crore in ad spending in H1 2016 as compared to Rs 9186 crore in H12015. FMCG advertisers splurged 16 per cent more in H1 2016 at Rs 5,346 crore (Rs 4,622 crore in H1 2015) but contributed 72 per cent to the growth rate of the industry. E-commerce as a category shaved spending by 37 per cent as it fell from Rs 629 crore in H1 2015 to Rs 394 crore in H1 2016.

“The drop in growth rates in TV is led by a lower contribution of e-commerce which is a category known to pick and choose high priced inventory / impact programmes and substituted by FMCG users who resort to everyday advertising and seek high value for money,” explained Madison Media & OOH CEO Mr Vikram Sakhuja.

Clothing fashion and jewelry ad spending also slipped into the negative zone with a 22 per cent plunge from Rs 308 crore in H1 2015 to Rs 241 crore in H1 2016.

The telco internet and DTH segment, however, maintained its growth of last year with spends of Rs Rs 1198 crore (Rs 1068 crore in H1 2015),

In a release sent out last week, Madison Media said it expects this trend to continue and if it does, the overall ad industry should be on course to hit a spend of Rs 50,000 crore by end 2016. However, the agency says it is culling down its TV growth rate number from 20 per cent to 11 per cent.

Which Madison World chairman Sam Balsara says is not good news at all. “The drop in growth rate of TV advertising does not augur well for the economy as generally a spurt in ad spends leads to higher GDP growth.”

August 16, 2016
Lower e-commerce spending slows down TV ad growth: Madison

MUMBAI: H1 2016 has not been a good time for the advertising industry – TV specially – according to leading Indian ad agency Madison Media.

Against the projected 20 per cent TV ad growth for the full year, only 11 per cent growth has been achieved in H1 2016. This compares poorly with the gee-whiz 35 per cent growth rate achieved in H1 2015 over H1 2014 on the back of a substantial increase in e-commerce spends and the ICC World Cup.

The drop in the TV ad growth rate is also the main reason why the total ad market growth in H1 2016 has only been 12.9 per cent, says Madison Media. This has led to a downgrade of the earlier projected growth rate for 2016 from 16.8 per cent to 13.2 per cent. The drop in value of advertising growth has been accompanied by a reduction in the volumes of adverts on most TV programming genres, with the exception of Hindi movie and Kannada channels.

The Madison-Pitch report says that the TV industry attracted around Rs 10,198 crore in ad spending in H1 2016 as compared to Rs 9186 crore in H12015. FMCG advertisers splurged 16 per cent more in H1 2016 at Rs 5,346 crore (Rs 4,622 crore in H1 2015) but contributed 72 per cent to the growth rate of the industry. E-commerce as a category shaved spending by 37 per cent as it fell from Rs 629 crore in H1 2015 to Rs 394 crore in H1 2016.

“The drop in growth rates in TV is led by a lower contribution of e-commerce which is a category known to pick and choose high priced inventory / impact programmes and substituted by FMCG users who resort to everyday advertising and seek high value for money,” explained Madison Media & OOH CEO Mr Vikram Sakhuja.

Clothing fashion and jewelry ad spending also slipped into the negative zone with a 22 per cent plunge from Rs 308 crore in H1 2015 to Rs 241 crore in H1 2016.

The telco internet and DTH segment, however, maintained its growth of last year with spends of Rs Rs 1198 crore (Rs 1068 crore in H1 2015),

In a release sent out last week, Madison Media said it expects this trend to continue and if it does, the overall ad industry should be on course to hit a spend of Rs 50,000 crore by end 2016. However, the agency says it is culling down its TV growth rate number from 20 per cent to 11 per cent.

Which Madison World chairman Sam Balsara says is not good news at all. “The drop in growth rate of TV advertising does not augur well for the economy as generally a spurt in ad spends leads to higher GDP growth.”

August 16, 2016
Indian digital ad spends to touch Rs 7,044 crore: IAMAI-IMRB report

MUMBAI: Fuelled by the smartphone explosion and bandwidth growth to consume digital video content in the country, the digital advertising market in India is projected to reach Rs 7,044 crores by December 2016 growing at a CAGR of 35 percent as per the ‘Digital Advertising in India’ report, which is jointly published by the Internet and Mobile Association of India (IAMAI) and IMRB International. The digital advertising market was estimated at Rs 5,200 crores by the end of December 2015 according to earlier reports.

The report finds that digital advertising spend is about 12 per cent of the total advertising spends in the country. In terms of volume, e-Commerce palyers lead the digital ad spends with Rs 1,040 crores, followed by Telecom and BFSI. However, a comparison of these verticals in terms of share of spends on Traditional versus Digital show that BFSI organizations incurred the highest share on digital advertisement spends. 40 percent of their overall advertising spends was on Digital followed by e-Commerce, Telecom and Travel.

In 2014, search ads constituted 30 per cent of the overall ad spends followed by Display ads at 23 per cent and Social Media at 18 per cent. The report finds that Search continued to lead in 2015 with spends close to Rs 1,488 crores. Social Media spend was close to Rs 940 crores. Spend on video ads such as YouTube also showed huge gains in 2015 and accounted for 17 percent of the overall ad spends in the digital space. This has been driven by higher Internet speeds available to the consumers coupled with an increase in mobile advertisements. As these trends continue, video advertisement is expected to gain further in 2016.

It isn’t just IAMAI that has high hopes on the rapidly growing digital advertising spends in the Indian market. It must be noted that the earlier released FICCI KPMG report pegged Digital Advertising at Rs 8,110 crores by the end of 2016 growing at a CAGR of 33.5 per cent, the highest growing medium of all. The report also suggested that the evident shift would be towards mobile and video advertising backed by the opening up of bandwidth in the country by 2020. The report estimated that by 2020 digital advertising will touch Rs 255.2 billion (Rs 25,520 crore) and contribute 25.7 percent of the total advertising revenue.

July 8, 2016
Indian digital ad spends to touch Rs 7,044 crore: IAMAI-IMRB report

MUMBAI: Fuelled by the smartphone explosion and bandwidth growth to consume digital video content in the country, the digital advertising market in India is projected to reach Rs 7,044 crores by December 2016 growing at a CAGR of 35 percent as per the ‘Digital Advertising in India’ report, which is jointly published by the Internet and Mobile Association of India (IAMAI) and IMRB International. The digital advertising market was estimated at Rs 5,200 crores by the end of December 2015 according to earlier reports.

The report finds that digital advertising spend is about 12 per cent of the total advertising spends in the country. In terms of volume, e-Commerce palyers lead the digital ad spends with Rs 1,040 crores, followed by Telecom and BFSI. However, a comparison of these verticals in terms of share of spends on Traditional versus Digital show that BFSI organizations incurred the highest share on digital advertisement spends. 40 percent of their overall advertising spends was on Digital followed by e-Commerce, Telecom and Travel.

In 2014, search ads constituted 30 per cent of the overall ad spends followed by Display ads at 23 per cent and Social Media at 18 per cent. The report finds that Search continued to lead in 2015 with spends close to Rs 1,488 crores. Social Media spend was close to Rs 940 crores. Spend on video ads such as YouTube also showed huge gains in 2015 and accounted for 17 percent of the overall ad spends in the digital space. This has been driven by higher Internet speeds available to the consumers coupled with an increase in mobile advertisements. As these trends continue, video advertisement is expected to gain further in 2016.

It isn’t just IAMAI that has high hopes on the rapidly growing digital advertising spends in the Indian market. It must be noted that the earlier released FICCI KPMG report pegged Digital Advertising at Rs 8,110 crores by the end of 2016 growing at a CAGR of 33.5 per cent, the highest growing medium of all. The report also suggested that the evident shift would be towards mobile and video advertising backed by the opening up of bandwidth in the country by 2020. The report estimated that by 2020 digital advertising will touch Rs 255.2 billion (Rs 25,520 crore) and contribute 25.7 percent of the total advertising revenue.

July 8, 2016
Magna revises Indian Adex growth in 2016 from 18.4 to +16.2 percent

MUMBAI: Going by the recently released half yearly Adex report by IPG Mediabrands India, the Indian advertising industry is growing at a rate of +16.2 percent in 2016. The size of the industry is expected to touch $ 9 billion or Rs 564 billion (Rs 56,400 crore) equivalents by this financial year. Magna Global, an IPG resource that puts together this industry recognized report has revised the rate from its earlier prediction of 18.4 per cent in 2015, to 16.2 percent in the current report. Magna also predicts that Indian Adex will see a slight dip in 2017 and grow at a rate of +15.7 per cent.

On revising the forecast, Magna Global – India director of intelligence practice EVP S Venkatesh said, “Basis our initial read of the emerging trends we had envisaged a stronger headwind across digital formats on the mobile platform while the real numbers for H1-2016 suggests a lesser significant acceleration”

From a global perspective, India has overtaken Italy and made space for itself in the top ten list of advertising markets, and estimated to move up 4 ranks to become the 6th largest advertising market by 2020.

On India’s performance as an advertising market, IPG Mediabrands CEO Shashi Sinha said, “The outlook is extremely positive as globally India remains one of the fastest growing markets. In fact, India is now one of the top ten advertising markets in the world.”

Breaking the report further into media sectors, Television with 42 per cent market share will grow +17 percent. The biggest revenue growth drivers in the sector would be the T20 World Cup, Indian Premier League (IPL) and non-cricketing leagues buttressed by E-commerce, Telecom, Auto and CPG advertising. Addressable television and expansion of the measurement into rural India equips advertisers to reach more consumers and broadcasters to monetize now counted audience. Measurement will evolve to include addressable TV audience and though connected TV currently doesn’t pose a threat to linear advertising, it will open doors for more on demand content access. Mushrooming of both domestic and international OTT (over-the-top) players will eventually fragment TV viewing time.

Print will continue to be the second biggest medium in India with 35 percent market share and ad sales growth of +8 percent. Conventionally print heavy advertisers in CPG, BFSI, Automobile and now E-commerce will contribute to the segment growth.

Digital formats continue to disrupt traditional with the highest growth at +40 percent and increasing its share of market by 2 points to 13 percent. Videos will be the fastest growing format driven by consumption on mobile devices. Screen time will only increase as smartphones get bigger with better displays and faster bandwidth. Trailing this trend expect advertisers to ear mark higher promotional budgets.

Radio through foot print expansion along with increase in volume is estimated to grow +18 percent in 2016, whereas OOH will grow +15 percent in 2016. Both these segments will hold onto their market share of 4 per cent and 6 percent respectively.

The report also shared that India will retain its position as the fastest growing economy with real GDP (gross domestic product) growth of +7.5 percent in 2016. According to International Monetary Fund (IMF), India is likely to maintain the same GDP growth in 2017 as well. Consumer inflation slightly outside of target will force the central bank to hold onto its policy rates.

However the earlier reduction in rates gave the much needed impetus to automobile, housing, durables and education sectors. The farm sector, if favoured with a good monsoon, will set to rebound its output. The report estimates private consumption to mirror the growth rates and push for higher marketing spends.

June 16, 2016
Magna revises Indian Adex growth in 2016 from 18.4 to +16.2 percent

MUMBAI: Going by the recently released half yearly Adex report by IPG Mediabrands India, the Indian advertising industry is growing at a rate of +16.2 percent in 2016. The size of the industry is expected to touch $ 9 billion or Rs 564 billion (Rs 56,400 crore) equivalents by this financial year. Magna Global, an IPG resource that puts together this industry recognized report has revised the rate from its earlier prediction of 18.4 per cent in 2015, to 16.2 percent in the current report. Magna also predicts that Indian Adex will see a slight dip in 2017 and grow at a rate of +15.7 per cent.

On revising the forecast, Magna Global – India director of intelligence practice EVP S Venkatesh said, “Basis our initial read of the emerging trends we had envisaged a stronger headwind across digital formats on the mobile platform while the real numbers for H1-2016 suggests a lesser significant acceleration”

From a global perspective, India has overtaken Italy and made space for itself in the top ten list of advertising markets, and estimated to move up 4 ranks to become the 6th largest advertising market by 2020.

On India’s performance as an advertising market, IPG Mediabrands CEO Shashi Sinha said, “The outlook is extremely positive as globally India remains one of the fastest growing markets. In fact, India is now one of the top ten advertising markets in the world.”

Breaking the report further into media sectors, Television with 42 per cent market share will grow +17 percent. The biggest revenue growth drivers in the sector would be the T20 World Cup, Indian Premier League (IPL) and non-cricketing leagues buttressed by E-commerce, Telecom, Auto and CPG advertising. Addressable television and expansion of the measurement into rural India equips advertisers to reach more consumers and broadcasters to monetize now counted audience. Measurement will evolve to include addressable TV audience and though connected TV currently doesn’t pose a threat to linear advertising, it will open doors for more on demand content access. Mushrooming of both domestic and international OTT (over-the-top) players will eventually fragment TV viewing time.

Print will continue to be the second biggest medium in India with 35 percent market share and ad sales growth of +8 percent. Conventionally print heavy advertisers in CPG, BFSI, Automobile and now E-commerce will contribute to the segment growth.

Digital formats continue to disrupt traditional with the highest growth at +40 percent and increasing its share of market by 2 points to 13 percent. Videos will be the fastest growing format driven by consumption on mobile devices. Screen time will only increase as smartphones get bigger with better displays and faster bandwidth. Trailing this trend expect advertisers to ear mark higher promotional budgets.

Radio through foot print expansion along with increase in volume is estimated to grow +18 percent in 2016, whereas OOH will grow +15 percent in 2016. Both these segments will hold onto their market share of 4 per cent and 6 percent respectively.

The report also shared that India will retain its position as the fastest growing economy with real GDP (gross domestic product) growth of +7.5 percent in 2016. According to International Monetary Fund (IMF), India is likely to maintain the same GDP growth in 2017 as well. Consumer inflation slightly outside of target will force the central bank to hold onto its policy rates.

However the earlier reduction in rates gave the much needed impetus to automobile, housing, durables and education sectors. The farm sector, if favoured with a good monsoon, will set to rebound its output. The report estimates private consumption to mirror the growth rates and push for higher marketing spends.

June 16, 2016
Tyroo & Nazara to enable e-commerce in mobile games

MUMBAI: Tyroo Technologies, today, announced its partnership with India’s leading mobile game publisher and developer Nazara Games, to power their mobile game ‘Nazara Cricket’; riding on the cricket fever in India with the upcoming World Cup T20. Through this partnership, gamers soak on the spirit of cricket as well as get a chance to shop for their favorite merchandise and avail special e-commerce deals while staying within Nazara Cricket’s app. Going forward, Tyroo will also be powering all other mobile games of Nazara, including the crowd favorites like Chhota Bheem Race Game, Cut the Rope: Magic and Virat Cricket etc.

It is a major leap in mobile game monetization as Nazara moves beyond interruptive advertising. Nazara will now offer contextual and personal experience to the consumer. In this first of a kind gaming integration, high-affinity products will be curated to the gaming users using Tyroo’s Native Commerce Ad platform. Tyroo’s Native Commerce Platform can curate from more than 20 million SKUs across e-Commerce brands today. On the basis of customer preferences and insights obtained from Nazara, Tyroo will offer relevant products to gamers.

Speaking about the partnership, Siddharth Puri, CEO, Tyroo Technologies, said “The mobile gaming industry in India is poised to grow exponentially with the unprecedented rise of mobile-first population and Internet penetration. While our first phase was about digital commerce influencing customer choices by capturing their decisions, our objective now is to have a destination-less shopping experience. Nazara has always remained ahead of the innovation curve and this initiative to create a consumer to product relationship with enriched data will definitely help influence, engage and convert audiences into actual paying customers.”

Commenting on the partnership, Manish Agarwal, CEO, Nazara Technologies said, “Nazara’s IP based games have a huge fan following. IP based gaming builds a highly engaged community with context of gaming and we are offering a great opportunity to e-commerce companies to showcase their relevant merchandise to the millions of engaged fan boys/girls of the IP. This association with Tyroo will allow us to offer gamers on the Nazara network a very contextual shopping experience without interfering in the core game play.”

Tyroo’s Native Product Ads technology has been developed keeping consumers at the epicenter of the mobile advertising ecosystem. While other e-commerce ads overwhelm and confuse a consumer by showing different products to choose from, Native Product Ads only show relevant products as per consumer interest, reducing their efforts of buying products online.

Native Product Ads technology allows different formats for app developers based on their mobile app design, font and layout and drive purchase via Product Discovery. It also enables advertisers to monitor native product ad performance through an in-built dashboard and accordingly use product analytics to create more engaging content for the audiences.

March 9, 2016
Tyroo & Nazara to enable e-commerce in mobile games

MUMBAI: Tyroo Technologies, today, announced its partnership with India’s leading mobile game publisher and developer Nazara Games, to power their mobile game ‘Nazara Cricket’; riding on the cricket fever in India with the upcoming World Cup T20. Through this partnership, gamers soak on the spirit of cricket as well as get a chance to shop for their favorite merchandise and avail special e-commerce deals while staying within Nazara Cricket’s app. Going forward, Tyroo will also be powering all other mobile games of Nazara, including the crowd favorites like Chhota Bheem Race Game, Cut the Rope: Magic and Virat Cricket etc.

It is a major leap in mobile game monetization as Nazara moves beyond interruptive advertising. Nazara will now offer contextual and personal experience to the consumer. In this first of a kind gaming integration, high-affinity products will be curated to the gaming users using Tyroo’s Native Commerce Ad platform. Tyroo’s Native Commerce Platform can curate from more than 20 million SKUs across e-Commerce brands today. On the basis of customer preferences and insights obtained from Nazara, Tyroo will offer relevant products to gamers.

Speaking about the partnership, Siddharth Puri, CEO, Tyroo Technologies, said “The mobile gaming industry in India is poised to grow exponentially with the unprecedented rise of mobile-first population and Internet penetration. While our first phase was about digital commerce influencing customer choices by capturing their decisions, our objective now is to have a destination-less shopping experience. Nazara has always remained ahead of the innovation curve and this initiative to create a consumer to product relationship with enriched data will definitely help influence, engage and convert audiences into actual paying customers.”

Commenting on the partnership, Manish Agarwal, CEO, Nazara Technologies said, “Nazara’s IP based games have a huge fan following. IP based gaming builds a highly engaged community with context of gaming and we are offering a great opportunity to e-commerce companies to showcase their relevant merchandise to the millions of engaged fan boys/girls of the IP. This association with Tyroo will allow us to offer gamers on the Nazara network a very contextual shopping experience without interfering in the core game play.”

Tyroo’s Native Product Ads technology has been developed keeping consumers at the epicenter of the mobile advertising ecosystem. While other e-commerce ads overwhelm and confuse a consumer by showing different products to choose from, Native Product Ads only show relevant products as per consumer interest, reducing their efforts of buying products online.

Native Product Ads technology allows different formats for app developers based on their mobile app design, font and layout and drive purchase via Product Discovery. It also enables advertisers to monitor native product ad performance through an in-built dashboard and accordingly use product analytics to create more engaging content for the audiences.

March 9, 2016
E-commerce giants dish out swanky offers this Women’s Day and Mahashivratri

MUMBAI: E-commerce giants normally lure customers through various discount offers throughout the year, and then there are festival and other special days when these companies offer customers exclusive discounts. This Mahashivratri and Women’s day companies have found yet another reason to attract more shoppers in order to boost sales and traffic onto their websites and apps by offering high discount rates. Some of these websites include E-commerce players like Flipkart.com, Paytm.com,Snapdeal.com, Cashkaro.com, Sendmygifts.com, Cubishop.com, Shoppingoutlet.in, Healthians. The online eyewear portal Lenskart.com is supporting women by donating 2.5 percent of total sale towards women empowerment.

Mobile e-commerce and virtual wallet company Paytm.com has come up with exclusive deals by offering flat 30 percent cashback on premium watch brands for women and up to 50 percent cashback on the bestselling products. Taking off from its ‘Big Billion Day’ a couple of years ago and last year, Flipkart.com has come up with Big Shopping Day from the seventh to the ninth of March and customers can avail up to 20 percent off plus an extra 10 percent off on transactions through SBI cards.

Cashback and coupons website like Cashkaro.com are offering high discounts between 50 and 80 per cent rates plus cashback and rewards on purchase of any item on Women’s day on any purchase through Amazon.in and Askmegrocery.com. In addition to this, Cashkaro is also offering upto10.2 percent reward on purchase of item through Flipkart.com.

For Mahashivratri, Askmegrocery.com and PepperTap.com have a flat 10 percent off on grocery items.

Customers can avail a deal of their choice on Snapdeal.com, while women’s apparel, footwear and accessories have up to 25 percent off. Beauty and personal care products are available with discounts between 50 and 70 percent.

In order to make women’s day special, Sendmygifts.com offers presents with discounts of up to 55 per cent for orders worth Rs 500 or more, plus 15 percent extra off on flowers, cakes and combos and 10 percent off on non-perishable products.

Cubishop.com, the marketplace for the consumer electronics industry is offering portable mini bluetooth stereo S10 music speakers for just Rs 350 and mono bluetooth headset worth Rs 275. Meanwhile Shoppingoutlet.in is offering beats pill multicolor bluetooth portable speaker OEM worth Rs 1,199 and JBL micro wireless speaker for Rs 1,399.

March 8, 2016
E-commerce giants dish out swanky offers this Women’s Day and Mahashivratri

MUMBAI: E-commerce giants normally lure customers through various discount offers throughout the year, and then there are festival and other special days when these companies offer customers exclusive discounts. This Mahashivratri and Women’s day companies have found yet another reason to attract more shoppers in order to boost sales and traffic onto their websites and apps by offering high discount rates. Some of these websites include E-commerce players like Flipkart.com, Paytm.com,Snapdeal.com, Cashkaro.com, Sendmygifts.com, Cubishop.com, Shoppingoutlet.in, Healthians. The online eyewear portal Lenskart.com is supporting women by donating 2.5 percent of total sale towards women empowerment.

Mobile e-commerce and virtual wallet company Paytm.com has come up with exclusive deals by offering flat 30 percent cashback on premium watch brands for women and up to 50 percent cashback on the bestselling products. Taking off from its ‘Big Billion Day’ a couple of years ago and last year, Flipkart.com has come up with Big Shopping Day from the seventh to the ninth of March and customers can avail up to 20 percent off plus an extra 10 percent off on transactions through SBI cards.

Cashback and coupons website like Cashkaro.com are offering high discounts between 50 and 80 per cent rates plus cashback and rewards on purchase of any item on Women’s day on any purchase through Amazon.in and Askmegrocery.com. In addition to this, Cashkaro is also offering upto10.2 percent reward on purchase of item through Flipkart.com.

For Mahashivratri, Askmegrocery.com and PepperTap.com have a flat 10 percent off on grocery items.

Customers can avail a deal of their choice on Snapdeal.com, while women’s apparel, footwear and accessories have up to 25 percent off. Beauty and personal care products are available with discounts between 50 and 70 percent.

In order to make women’s day special, Sendmygifts.com offers presents with discounts of up to 55 per cent for orders worth Rs 500 or more, plus 15 percent extra off on flowers, cakes and combos and 10 percent off on non-perishable products.

Cubishop.com, the marketplace for the consumer electronics industry is offering portable mini bluetooth stereo S10 music speakers for just Rs 350 and mono bluetooth headset worth Rs 275. Meanwhile Shoppingoutlet.in is offering beats pill multicolor bluetooth portable speaker OEM worth Rs 1,199 and JBL micro wireless speaker for Rs 1,399.

March 8, 2016