ITV

Tag: FMCG

  • TO THE NEW partners with Sokrati to enhance and expand digital advertising services

    TO THE NEW partners with Sokrati to enhance and expand digital advertising services

    MUMBAI: TO THE NEW, Asia’s leading integrated digital services network, today announced a strategic partnership with Sokrati, a popular ad technology and analytics company. The strategic partnership will allow TO THE NEW to expand its service capabilities in the digital advertising space and enhance offerings in social media marketing and mobile advertising.

     

    Using the Sokrati platform, TO THE NEW will be able to integrate best in class ad solutions across search, social, display & real-time bidding into service delivery for clients. The partnership will also enable Sokrati to leverage TO THE NEW’s network in India, Middle East & South East Asian markets.

     

    According to the IAMAI and IMRB Report 2013, in FY 2012-13, out of the total online ad spend which contributes to 2,260 crore, majority of the ad spends went to search (38%) followed by display (29%) and social media (17%). The report further states that the Indian online advertising market is projected to reach INR 2,938 crore by March 2014.

     

    Commenting on the partnership, Mr. Puneet Johar, Managing Director, TO THE NEW said, “As brands increasingly rely on online media to acquire social and mobile first consumers, our association with Sokrati will broaden our multi-channel performance marketing capabilities. This along with our own analytics, content and technology platforms will enable us to deliver an integrated digital solution to clients.”

     

    TO THE NEW will leverage Sokrati’s expertise in the field of performance driven marketing which plays a crucial role in the sustenance of any organization. With its proprietary technology and solutions, Sokrati will help expand the network’s footprint on paid search, provide contextual and audience targeting on display advertising, drive loyal app-installs with mobile marketing and also help increase conversions and branding with personalized remarketing.

     

    “We are extremely excited to partner with TO THE NEW and their pan-Asia network. Every day, more advertisers across Asia are embracing digital as an integral part of their marketing strategy. We are confident that Sokrati’s customer-centric marketing solutions will help these advertisers expand their brand reach across all digital channels while keeping profitability and end users squarely in focus,” said Mr Ashish Mehta; Co-Founder & CEO, Sokrati.

     

    Through its business units – Ignitee Digital, IntelliGrape Software, Tangerine Digital, Techsailor and ThoughtBuzz, TO THE NEW offers expertise in digital marketing, content, technology, analytics and social media analytics. TO THE NEW collectively manages the mandate for more than 120 clients across Asia, in diverse sectors like BFSI, Automobiles, E-commerce, FMCG, Retail, Sports, Hospitality and Media & Entertainment.

  • Vivaki’s Mona Jain joins Zee Entertainment

    Vivaki’s Mona Jain joins Zee Entertainment

    MUMBAI: In December last year, Vivaki Exchange Mona Jain had put in her papers. The move came in after Lodestar UM and Cheil won the Samsung account from Starcom MediaVest Group.

     

    Jain, who has more than two decades of experience in marketing communications, was tight-lipped about her next move. Her joining Zee comes as a pleasant surprise to many.

     

    In-line with its plans to strengthen the senior sales team, Zee Entertainment Enterprises Limited (Zeel) today announced the appointment of Jain as EVP-cluster head and Rahul Sharma as sr. VP-national sales head.

     

    Speaking on both the appointments, Zeel chief sales officer Ashish Sehgal said, “We are extremely happy to have two media stalwarts join us from the industry. Mona brings with her an immense experience and understanding of the industry. She has been instrumental in key media launches and her knowledge will be really valuable in reinforcing our relationship with agencies & clients. Mona will play a key role in developing brand solutions, setting up a business model for geo-targeting & agency relationship management. She will also head the North region leading the Business Development team, new initiatives and niche channels.”

     

    “Rahul comes with a digital background, which will add a new dimension in selling traditional media. His proven skills in establishing start-up operations and successful launch of channel brands will play an integral role in helping the Company achieve its business objectives”; Sehgal further added.

     

    Commenting on her joining, Jain stated, “I am extremely pleased to be stepping into this position. ZEE looks poised for huge growth and it will be very exciting to be a part of this journey.”

     

    With over 20 years of experience in media and FMCG, Sharma said, “I have been a part of Television and it’s home coming to me. I am excited to join ZEE and be a part of the biggest Television Network.”

     

    Both the appointments are with effect from 5th March, 2014.

  • Outdoor industry shows promising growth curve in 2014

    Outdoor industry shows promising growth curve in 2014

    MUMBAI:  One of India’s premier outdoor advertising agency – Global Advertisers – revealed that it has witnessed promising growth in the outdoor advertising sector in 2013 due to several factors likes Lok-Sabha elections, new launches in telecomm, FMCG, Automobile etc. Global Advertisers MD Sanjeev Gupta said: “We believe that the future of out-of-home lies in 3Is-innovation, infrastructure and investment”. 

     

    According to the report by The Pitch Madison Media Advertising Outlook 2014, OOH is expected to bring in total ad spends of about Rs 2,138 crore and transit media continues to be the preferred option. “We at Global Advertisers have already anticipated the current market conditions and increased our inventory by 25 per cent in 2013,” Gupta added. India’s discerning customer has greater exposure in terms of brands, services and price knowledge. Customers are always looking for value for money products serving their need or luxury. This means, an Indian consumer is well-connected with the out of home world.

     

    It’s important to note that outdoor medium has evolved in malls and multiplexes, which holds out a good deal of hope and potential. Brands want to engage with the consumers more than ever before. There are several opportunities that this medium can tap into and Transit Media, Hoardings, Street Furniture, Neon have empowered the medium enabling it to grow and sustain itself in the highly competitive advertisement sphere.

  • IAA reveals categories for 2nd edition of IAA Leadership Awards

    IAA reveals categories for 2nd edition of IAA Leadership Awards

    MUMBAI: The International Advertising Association’s (IAA) India chapter revealed the categories for the second edition of the IAA leadership awards. Presented by India’s leading Hindi General Entertainment Channel COLORS, these awards celebrate the outstanding contribution made by marketing, advertising and media professionals by honouring them on a common platform. After a successful first edition of the IAA Leadership Awards held last year, this year, the Awards will expand its scope to recognize excellence across 21 Categories namely:

    IAA categories:

     

    1. Marketer of the Year – Banking

     

    2. Marketer of the Year – Insurance

     

    3. Marketer of the Year – Auto: 2 Wheeler

     

    4. Marketer of the Year – Auto: Passenger Vehicles

     

    5. Marketer of the Year – Mobile Services

     

    6. Marketer of the Year – Mobile Devices

     

    7. Marketer of the Year – FMCG: Personal Care, Laundry and Toiletries

     

    8. Marketer of the Year – FMCG: Foods & Beverages

     

    9. Marketer of the Year – FMCG: Consumer Durables

     

    10. Marketer of the Year – Home Improvement

     

    11. Marketer of the Year – Household Products

     

    12. Marketer of the Year – Ecommerce

     

    13. Media Agency Head of The Year

     

    14. Creative Agency Head of The Year

     

    15. CEO of The Year

     

    16. Media Person of The Year

     

    17. TV Anchor of The Year

     

    18. Editor of The Year

     

    19. Hall Of Fame

     

    20. Brand Ambassador OF The Year – Male

     

    21. Brand Ambassador OF The Year – Female

     

    Announcing these categories Srinivasan Swamy, President IAA India and VP-Development, IAA Asia Pacific, and Chairman, R K SWAMY BBDO commented “after the great response we received for the first edition of the IAA Leadership Awards, we have made some marginal changes in categories this year to take into account some feedback received. The final winners are being determined now on a number of product and service categories and of course some Awards for senior practitioners. The IAA Leadership Awards is our endeavour to recognize and salute these outstanding talent which has made impactful contributions in the market space and the companies and brands they led.”

     

    To ensure the authenticity and credibility of the awards and maintain the highest level of transparency at all stages, IAA had a task force which looked at various performance criteria in every category under consideration, like revenue/market share growth, marketing initiatives undertaken, innovative schemes, launches, advertising spends etc to shortlist the nominees. Nielsen (India) Private Limited was engaged thereafter to have the nominees voted upon by senior marketers from the same industry to pick the final winner. Ernst & Young LLP will look at the process to satisfy itself of its fairness and will officially tabulate the results.

     

    The IAA Leadership Awards, this year, are scheduled to be held on 1 March 2014 at Grand Hyatt, Mumbai. Honourable Union Minister of State for Information and Broadcasting, Sri Manish Tewari will grace the occasion as the Chief Guest. The awards night will be attended by the cr?me de la cr?me of the marketing, advertising and media fraternity to see some of their leaders carry home coveted trophies.

  • Neo@Ogilvy names NDs of SEO and Mobile

    Neo@Ogilvy names NDs of SEO and Mobile

    MUMBAI: The full service digital arm of the the Ogilvy Group, Neo@Ogilvy has made a few appointments. Anil Singh joins Neo@Ogilvy as national director of SEO and Megha Ahuja will take on the role of national director (mobile) Neo@Ogilvy.

     

    On the appointments, Neo@Ogilvy president and country head Sanjay Ramakrishnan said: “It’s great to have Anil and Megha join the neo@ogilvy team. One of the goals at Neo is to build deep domain capabilities across each aspect of digital marketing – Search, Mobile, Social and Display. The depth of capabilities is going to matter even more in the ever changing digital landscape. Anil and Megha are specialists in their domains and bring in vast amount of knowledge and experience in the SEO and Mobile space and I am sure it’s going to benefit all our clients.”

     

    Singh brings in over 13 years of work experience in the digital space that spans various sectors. His expertise is specifically in SEO and prior to this he had spent seven years at Interactive Avenues, building the SEO practice from scratch. 

     

    Ahuja comes to us with a background that covers seven years in strategy, account management and digital marketing. Her exposure cuts across FMCG, auto, travel, telecom, media, healthcare and paints.

     

    They will both be based in Delhi

  • Dabur India Q3 PAT up 15% at Rs 242.88 cr; ad spend up 23.22% at Rs 289.62 cr

    Dabur India Q3 PAT up 15% at Rs 242.88 cr; ad spend up 23.22% at Rs 289.62 cr

    BENGALURU: One of India’s largest Fast Moving Consumer Goods (FMCG) companies, Dabur India Limited (Dabur) reported a 28.80 per cent jump in year-to-date (YTD) profit to Rs 678.63 crore as compared to the Rs 527.87 crore in the corresponding nine month period of last year. Advertising and Publicity expense during the current nine month period at Rs 779.21 crore was 19.6 per cent more than the Rs 645.06 crore in the corresponding period of FY-2013.

     

    PAT for Q3-2014 at Rs 242.88 crore was 15 per cent more than the Rs 211.11 crore in the corresponding quarter of last year, but was (2.75) per cent lower than the Rs 249.74 crore of the immediate trailing quarter. During FY 2013, Dabur reported PAT of Rs 763.42 crore.

     

    Dabur reported operating revenue of Rs 904.28 crore in Q3-2014, 16.8 per cent more than the Rs 1670.32 crore of Q3-2013 and 8.9 per cent more than the Rs 1748.81 crore of Q2-2014. During the nine month period that ended 31 December, 2013 Dabur reported operating revenue of Rs 5304.19 crore which was 14.9 per cent more than the Rs 4615.29 crore of the corresponding period of last year.  Operating revenue for FY 2013 was Rs 6146.38 crore.

     

    Dabur reported Total expense for Q3-2014 at Rs 1637.26 crore which was 17.2 per cent more than the Rs 1397.28 crore in Q3-2013 and 13 per cent more than the Rs 1448.56 crore of Q2-2014. YTD, Dabur’s Total expense at Rs 4530.18 crore was 14.25 per cent more than the Rs 3965.12 crore of the corresponding nine month period of 2013. For FY 2013, Dabur’s Total expense was Rs 5266.06 crore.

     

    Let us look at Dabur’s Advertisement and Publicity spends as percentage of Operating revenue and Total expense reported in Q3-2014:

     

    In Q3-2014, Dabur spent Rs 289.62 crore towards Advertisement and Publicity (Ad & Pub) which was 15.21 per cent of Operating Revenue and 17.69 per cent of Total expense for the period. This Q3-2013 figure was 23.22 per cent more than the Rs 235.05 crore in Q3-2014. Its Q3-2013 Ad & Pub spend was 14.41 per cent of Operating revenue and 16.82 per cent of Total expense for the period.

     

    Dabur’s q-o-q Ad & Pub spend figure of Rs 289.62 crore for Q3-2014 was 27.33 per cent more than Rs 227.45 crore of Q2-2014. The Q2-2014 figure was 13 per cent of Operating revenue and 15.7 per cent of Total expense.

     

    The nine month period figure mentioned above as percentages of operating revenue and total expense are as follows:  YTD, Ad and Pub spend was 14.54 per cent of operating revenue and 17.03 per cent of total expense for the period as compared to the 13.98 per cent of operating revenue and 16.27 per cent of total expense of the nine month period that ended 31 December, 2013.

     

    For FY 2013, Dabur’s Ad and Pub spend at Rs 836.98 crore was 13.62 per cent of operating revenue and 15.89 per cent of total expense for the year.

     

    Category Growths as reported by the Company for Q3-2014

     

    The Health Supplements business for Dabur was a key driver of growth during the quarter, reporting a strong 19.5 per cent surge. The air freshener business for Dabur, under the brand Odonil, continued to surge ahead with an over 27 per cent growth during the quarter. Dabur’s food business also reported a robust near 18 per cent growth. Its shampoo business ended the third quarter of 2013-14 fiscal with a strong 24.7 per cent growth. The toothpaste business grew by over 14 per cent while the skin care category reported an over 13 per cent growth during the quarter.

     

    “We have delivered another quarter of strong volume-led growth. Dabur has been reporting strong and consistent performance despite intensifying competitive pressures and the challenging market environment being witnessed for some quarters now. Our focus on brand-building and market expansion programs coupled with a greater degree of innovation has helped Dabur sustain strong growth in the core categories, which have been significantly ahead of the market. Going forward, our focus will be on pursuing an aggressive and profitable growth strategy,” Dabur CEO Sunil Duggal said.

     

    The quarter saw Dabur introduce a host of new products and variants, including the new Fem Fairness Naturals facial bleach range and Vatika Hibiscus hair care range.

  • Pruned Ad expenses among Marico’s tightening measures bring higher PAT in Q3-2014

    Pruned Ad expenses among Marico’s tightening measures bring higher PAT in Q3-2014

    BENGALURU:  Indian consumer products and services company in the global beauty and wellness space, Marico Limited (Marfico) reported 27.87 per cent growth in PAT to Rs 135.37 crore in Q3-2014 from Rs 105.87 crore in Q2-2014 and 32.33 per cent from the Rs 102.29 crore in Q3-2013. 

     

    The company has been tightening its operations, as seems evident from the figures reported by it for the current quarter. Changes in depreciation and amortization calculation method since FY-2013 that result in a lower figure as compared to the older method, reduction in employee benefit, pruning of advertising and sales promotion expense (Ad and sales promo), lower finance cost, lower percentage of  ‘other expense’ in relation to its revenue are some of the changes that have been reported by Marico.

     

     Let us look as the figures reported by Marico vis-?-vis Ad and sales promo expense during Q3-2014 

     

    Marico spent Rs 134.08 crore towards Ad and sales promo in Q3-2014, (-15.94) per cent lower than the Rs 157.82 crore in the corresponding quarter of last year and (-0.85) per cent lower than the Rs 135.22 crore in Q2-2014. During the nine month period ended 31 December 2013, Marico spent Rs 439.27 crore on this account, which was (-6.99) per cent lower than the Rs 472.26 crore spent during the corresponding nine month period of last year. During FY 2013, Marico spent Rs 597.94 crore towards Ad and sales promo. 

     

    In terms of percentage of operating revenue (national and international), Marico’s Ad and sales promo expense has trended downwards. The figures for Ad and sales promo expense are: 11.19 per cent of Operating revenue of Rs 1198.35 crore in Q3-2014; it was 13.56 per cent of Operating revenue of Rs 1163.99 crore in Q3-2013; it was 12.12 per cent of Operating revenue of Rs 1,115.36 crore in Q2-2014; it was 12.18 per cent of Operating revenue of Rs 3606.37 crore during the nine month period ended 31 December 2013; and 13.17 per cent of Rs 3587.09 crore during the nine month period ended 31 December 2012. For FY 2013, Marico’s Ad and sales promo expense was 13.04 per cent of Operating revenue of Rs 4,584.35 crore. 

     

    In terms of percentage of Total expense, Marico’s Ad and sales promo expense during Q3-2014 was 13.15 per cent of Total expense of Rs 1,019.58 crore;  During Q3-2013, it was 16.33 per cent of total expense of Rs 1,022.89 crore; During Q2-2014, it was 15.44 per cent of Rs 966.69 crore; During the nine month period ended 31 December 2013, Marico’s Ad and sales promo expense was 14.28 per cent of Total expense of Rs 3,076.05 crore as compared to the 14.97 per cent of Total expense of Rs 3,154.56 crore during the corresponding nine month period of FY 2013. During FY 2013, Marico’s Ad and sales promo expense was 14.74 per cent of Total expense of Rs 4,057.02 crore. 

     

    Marico says that its India operations FMCG business, which contributes 76 per cent to group revenue, grew nine per cent in terms of value and three per cent in terms of volume during Q3-2014, indicating a better price realisation during the quarter.  During the nine month period ended 31 December 2013, (YTD) Marico’s Indian FMCG business grew six per cent in both value and volume.  

     

    Marico claims a premier position on key parameters in market share (on basis of 12 month moving average total or MAT) for many of its branded products. It claims a market share of 56 per cent in India for its coconut oil under the brands Parachute and Nihar. For its edible refined oil brand Saffola, the company claims a market share of 57 per cent and no. 1 position.

     

    Marico says that its hair oil brands Parachute Advansed, Nihar, Hair & Care have a market share of 28 per cent and are ranked 1 in India. Its claims the 5th position in India with a market share of five per cent for its deodorant brands Set Wet and Zatak. 

     

    Marico’s largest branded product with 24 per cent contribution to group revenue, Parachute Coconut oil in rigid packs showed growth of six per cent in value and two per cent in volume. YTD, this product showed a decline in value by (-one) per cent, while showing a volume growth of two per cent.  

     

    Marico’s value added Hair Oils portfolio with brands like Parachute Advansed, Nihar, Hair & Care and having  17 per cent contribution to group revenue grew 16 per cent in value and 8 per cent in volume during Q3-2014. YTD, it grew 17 per cent in terms of value and 13 per cent in terms of volume. 

     

    Its refined edible oil brand Saffola with 16 per cent contribution to group revenue grew seven per cent in terms of value and nine per cent in terms of volume. YTD, Saffola grew five per cent in terms of value and nine per cent in terms of volume. 

     

    The company has raised the prices across all products in December 2013.

     

    Marico Group CEO Saugta Gupta said, “We believe that the soft consumption environment has bottomed out and the performance of the Company will pick up steadily going forward. In order to make the Company future ready, we are investing significantly on go-to-market transformation, cost management, innovation and analytics project. The Company will start reaping the benefits of these capability building initiatives from FY15 onwards. We will also experience greater synergies in product portfolio and talent mobility across different geographies in the coming year.” 

     

    Marico Group CFO Milind Sarwate said “Marico’s FMCG Business has managed to grow despite the challenges of the economic slowdown in India and instability in some of our overseas markets. The basics of our business are however robust. The Kaya demerger is now effective with Bombay High Court approval. We now expect shares in Marico Kaya Enterprises Limited to list in April 2014.”

     

    Click below for:-

     

    Information Update – Q3FY14

     

    Media Release – Q3FY14

     

    Statutory Advertisement – Q3FY14

  • HUL y-o-y ad spends up by 13 per cent, down q-o-q by 2.6 per cent in Q3-2014

    HUL y-o-y ad spends up by 13 per cent, down q-o-q by 2.6 per cent in Q3-2014

    BENGALURU: Indian FMCG major Hindustan Unilever Limited spent 13 per cent more in Q3-2014 towards advertising and marketing at Rs.929.46 crore as compared to the Rs.822.16 crore during Q3-2013, but 2.57 per cent lower than the Rs.954.02 crore for Q2-2014.

     

    During the nine month period ended December 31, 2013 (y-t-d), the company spent Rs. 2773.26 crore, 15.04 per cent more than the corresponding period during the last year. During FY2013, HUL spent Rs.3231.88 crore towards advertising and marketing during FY2013.

     

    Overall, the FMCG giant saw standalone revenue during Q3-2014 increase by 9.39 per cent to Rs.7037.78 crore from the Rs.6433.69 crore during the corresponding quarter of last year and increase by 4.31 per cent from the Rs.6747.20 crore during the immediate trailing quarter.

     

    Its nine month revenue to December 31, 2013 increased by 8.67 per cent to Rs.20472.47 crore from Rs.18839.25 crore during the nine month period ended December 31, 2012. HUL had revenue of Rs.25206.38 crore during FY2013.

     

    Based on this advertising and marketing  spends percentage with respect to revenue during Q3-2014 was 13.21 per cent, in Q3-2013 it was 12.78 per cent and in the immediate preceding quarter it was 14.14 per cent.

     

    The corresponding advertising and marketing spends percentage of overall standalone revenue was slightly higher at 13.55 per cent during the nine month period ended 31 December 2013 at Rs.2773.26 crore as compared to the 12.8 per cent (Rs.2410.75 crore) during the corresponding period of last year. During FY2013, the percentage of standalone revenue that the company spent towards marketing and advertising was 12.82 or Rs.3231.88 crore.

     

    HUL’s PAT jumped by 22.02 per cent to Rs.1062.31 crore during Q3-2014 from Rs.871.36 crore in Q3-2013 and was up by b16.26 per cent from the Rs.913.80 crore during Q2-2014. PAT for the nine month period of FY 2014 at Rs.2995.36 crore was lower by a little less than half a per cent as compared to the Rs.3009.47 crore during the corresponding period of last year. HUL’s PAT for FY2013 was Rs.3796.67 crore.

     

    The company reported healthy performance and growth in most of the segments it operates in. Here is a reproduction of a part of the company’s press release.

     

    Soaps and Detergents deliver a healthy performance

     

     Skin Cleansing delivered another quarter of volume led growth. The category performance was driven by Dove, Pears, Lifebuoy and Breeze. Pears was relaunched during the quarter with a new proposition around younger looking skin. The liquids portfolio saw accelerated growth led by Lifebuoy Handwash.

     

     In Laundry, growth was led by the premium segment. Surf growth was buoyed by the robust performance in Surf Excel Easy Wash and Excel Matic while Rin saw good growth on the bars portfolio. Wheel was re-launched with a superior formulation at the end of the quarter. Comfort fabric conditioners continued to lead market development with sustained high growth. Household Care delivered another strong quarter with both Vim and Domex growing in double digits.

     

     Personal Products growth steps up

     

     Skin Care grew well in a slowing market. The re-launch of Fair & Lovely, with the new ‘Best Ever Formula’ and a focused activation plan in the last quarter, is on track. Lakme and Dove grew well and the facial cleansing portfolio registered strong growth, driven by a range of differentiated innovations launched earlier in the year.

     

    Hair Care sustained its strong growth momentum with broad based double digit volume growth. Dove led the category performance with accelerated growth while Sunsilk, Clinic Plus and TRESemmé continued to make very good progress.

     

     In Oral Care, both Pepsodent and Close Up delivered stepped up double digit growth in a competitive market. Pepsodent GermiCheck which was relaunched in the last quarter with a superior product and proposition did particularly well. A&P investments were significantly stepped up to sustain our competitive position in this category.

     

     Colour Cosmetics maintained its strong innovation led growth momentum across both Lakmé and Elle 18. Lakmé continues to strengthen its position in premium make up driven by a range of exciting and contemporary offerings from Absolute and 9 to 5.

     

     Beverages led by double digit growth in tea

     

    Tea delivered another quarter of broad based growth with Taj Mahal, Red Label, 3 Roses and Taaza growing in double digits, driven by a strengthened mix and focused in-market activities. The sustained thrust on leading market development for tea bags, enabled flavoured and green tea bags more than double sales in the quarter. The Lipton Clear Green Tea portfolio was expanded with the launch of new packs. In a slowing Coffee market, Bru continued to drive category premiumization, led by Bru Gold.

     

     Packaged Foods growth steps up; Kissan, Knorr and Kwality Walls grow in double digits

     

     Kissan further accelerated with both Ketchups and Jams delivering strong growth on the back of impactful activation. Knorr had a good quarter particularly on Instant Soups which more than doubled volumes while the growth in Kwality Walls was driven by sharper in-market execution and the robust performance of Cornetto and Creamy Delights. Magnum continues to do well.

  • AsiaPac leads global ad growth: Nielsen

    AsiaPac leads global ad growth: Nielsen

    MUMBAI: Global advertising expenditures were up 3.2 per cent in the third quarter of 2013 for year-over-year period, driven largely by Asia Pacific’s expanding powerhouse ad market, as well as a bottoming out of Europe’s contracting ad market.

     

    According to Nielsen’s latest Global AdView Pulse report, Asia Pacific ad revenues surged seven per cent in the first nine months of 2013. China was up 16.7 per cent, Indonesia 22.1 per cent and Malaysia 15.7 per cent. The gains offset declines in Australia and South Korea.

     

    Television continues to be the favourite medium through which advertisers attempt to reach their consumers, commanding a 57.6 per cent share of all spending and growing 4.3 per cent. Display Internet, though representing a smaller share of spends at 4.5 per cent grew significantly by 32.4 per cent.

     

    Macro sectors contributing to the growth include FMCG, which saw a 5.9 per cent increase in ad spending for the year-to-date, and Industry & Services, which grew 11.3 per cent.

     

    The period also saw a slight improvement in Europe, with the market down just 0.4 per cent in Q3. Nielsen notes that the region’s ad market appears to be bottoming out. Indeed, Italy and Spain, among the hardest hit, may have the worst behind them, the report notes, and Greece saw its ad revenues gain 10.3 per cent.

     

    In the US the market was up 1.7 per cent by the end of September, even though it fell 1.3 per cent in the third quarter itself. And in Latin America, the year-on-year change was 13 per cent.

  • ‘Post 2-min ad cap on TV, OOH medium will see double digit growth’

    ‘Post 2-min ad cap on TV, OOH medium will see double digit growth’

    Out of Home industry has always been categorised as a supporting medium for television; however, it has gained more popularity amongst advertisers after the two-minute ad cap on television. Interestingly, television medium has sufficient channels and different TV slots to cope up with ad cap restriction. But I really think that OOH medium will grow and see double digit growth in the next three to five years. The key reasons for OOH medium’s growth would be that people have figured out better ways to utilise this medium in terms of innovations, latest technology and result orientated campaigns  and another reason is that the young audiences is spending ample amount of time outside, therefore this medium becomes much more relevant.

     

    The FMCG category has never made a significant use of OOH medium. But this will change consistently and this medium has more potential for the FMCG category. But the OOH medium will see a lot of spends from the entertainment and movies categories. Also, the OOH medium will see huge impulse spends from e-commerce sites and therefore this area will grow. I also believe that it will be difficult for brands to pay such sharp increase in rates.

     

    I believe that outdoor advertisements are one of the most cost efficient ways to reach potential customers and clients. Additionally, we can target with OOH the consumers across culture, language, season, age, and in any format. In order to address GAPS in terms of marketing reach, OOH is the best customized solution for the organization.

     

    However, there is tussle between advertisement spend when it comes to Internet and OOH. In fact OOH media is used throughout the year for product launches, branding initiatives, sales activation because of its cost-effectiveness.

     

    But I am also sure that TV budget will never be kept nil as it is an important medium. But having said that, a brand needs to be always active in OOH medium, as it gives multiplier effect on ground level. The large format with its local communication, singular pictorial representation, minimal and bold message, strategic locations, cost efficiency and media effectiveness helps a brand deliver its key message to a large audience in an uncluttered environment.

     

    With new techniques, innovation and new formats, outdoors has earned its share in the market. Brands which are looking at exploring unique solutions, outdoor offer them great creativity in still media and random visibility with the help of transit media.

     

    Importantly, outdoor will have to compete with print, radio and most importantly social media. Innovations will play crucial role if more brands are diverting their interest on this medium. Ambient and transit media along with BTL activation will become important.  Monitoring system and assured ROI will enhance the preference for the medium.

     

    (The writer is the Managing Director, Global Advertising)