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Tag: FMCG

  • HUL’s 2 ads pulled up, ASCI upholds 21 more

    MUMBAI: HUL‘s two ads, Rin detergent powder and Pepsodent Germicheck Magnet, have run into trouble with India‘s advertising watchdog, ASCI.

    As per the complaint, the TVC of Rin claimed that “only Rin has yellow fighters that brighten dull yellow clothes”. The Advertising Standards Council of India (Asci) concluded that the claim is false and misleading as it is not the only detergent to do so the ad contravened Chapters I.1 and I.4 of the Code.

    This is not the first time HUL has been pulled up for advertising Rin. In 2010, the FMCG giant had run into legal problems due to its ad that compared Rin with Tide. P&G, the company that owns Tide, had taken HUL to court and the High Court had issued a stay order on the said ad.

    HUL‘s second ad that got punished was for its Pepsodent brand. The complainant said that Pepsodent Germicheck pack that he brought which was 200g for Rs 64 had an offer of Pepsodent G 40g free. The free 40g toothpaste is not Pepsodent G, which is better quality toothpaste, but the free 40g toothpaste is also Pepsodent Germicheck. This is a promotion gimmick. The promotion message on the pack was misleading and contravened Chapter I.4 of the code.

    The Consumer Complaints Council (CCC) of the ASCI upheld complaints made against 23 advertisements out of 30 during August.

    The upheld ads were from various sectors like Education, Healthcare and FMCG with media houses. During the same period it did not uphold complaints against seven such advertisements.
    According to ASCI, the increase in complaints is largely due to National Advertising Monitoring Service (NAMS) which continues to monitor and pick up a large number of misleading advertisements across sectors.

    HT Media‘s Hindustan ki Lehar was upheld too. As per the complaint, the advertiser claimed that Hindustan ki Lehar “has a circulation of 12 Lakh copies”. The CCC concluded that the claim, “Hindustan has a circulation of 12 Lakh copies”, was not substantiated by an independent research organisation. The ads contravened Chapter I.1 of the Code.

    Divya Bhaskar Group‘s three ads were upheld. The ads were – Divya Marathi, Twice the readership in Bhatinda and Ahead in readership in Patiala. As per the complaint, the promotional material of the advertiser claimed that Divya Marathi has five editions which are the “No.1 dailies by circulation”. The figures given are completely different from the circulation figures given by the ABC (Audit Bureau of Circulations) and are misleading. The publicity material contravened Chapter I.1 of the Code.

    Twice the readership in Bhatinda ad claimed that “their readership is twice that of competition in Bhatinda city” while ‘Ahead in readership in Patiala‘ ad claimed that “their readership is 20 per cent more than that of the competition in Patiala city”. The CCC concluded that the claims of the ads were not substantiated by an independent research organisation. They both contravened Chapter.I.1 of the Code.

    In Cavinkare‘s ‘Fairever Fairness Cream‘ ad, the advertiser claimed that Fairever Fairness has a natural fairness system with saffron, milk and wheat germ oil that prevents skin from darkening and gives clear smooth skin. The complainant said that the advertiser needs to give scientific proof in substantiation of these claims. In the absence of scientific proof, the CCC concluded that the claim, “the cream prevents the skin from darkening”, was not substantiated. The advertisement contravened Chapter I.1 of the Code. It was upheld.

    Ultratech India‘s ad- 18 Again – Vaginal Tightening and Rejuvenation Cream was upheld. As per the complaint, ‘‘18 Again‘‘ claims vaginal tightening and rejuvenation of the vagina and it says “Feels like a virgin”. The TVC also shows an old lady ordering the product. The entire TVC represents vulgarity, in light of the generally prevailing standards of decency and propriety, which would cause widespread offence particularly among women. The advertisement contravened Chapter II of the Code.

    In education sector the ads that were upheld were that of EMDI Institute Of Media & Communication, Mangalayatan University, NIFE Institute Of Engineering, Sigma Institute Of Management and Technology and M S Ramaiah Institute Of Technology.

    TVC Sky Shops‘ Dr. Slim Tea print ad claimed that Slim Tea being an herbal tea can help lose weight effectively. The CCC concluded that the claims made in the ad and cited in the complaint were not substantiated with clinical trials. Since the ad contravened Chapter I.1 of the Code, the complaint was upheld.

    TVC Sky Shop‘s another ad on Full Gliding LG Touch Screen was upheld. As per the complaint, the Complainant ordered an LG mobile phone from TVC Skyshop in May 2012 for a special offer price of Rs 5890 plus Rs 250 for delivery charges. The phone was delivered two weeks later but the phone supplied was not an LG phone but some other brand. The touch screen was not working properly and the QWERTY key pad numbers were not functional. The pouch supplied did not fit the phone. The CCC concluded that the mention of the LG logo contravened Chapter IV.2 of the Code – “Advertisements should not make unjustifiable use of the name or initials of any other firm, company or institution, nor take unfair advantage of the goodwill attached to the trademark, or symbol of another firm”.

    In healthcare sector the ads that were pulled out were of Lida Slimming Pills, Global Heart Foundation, Obecu Capsule (Nirmeeti Health Care), Telebrands India‘s Chimaxx Daily Walke and Sanchi Namkin & Sada Matta (Bhopal Sahakari Dugdh Sangh Maryadit).

    Brad Eye Glass Remover ad that claimed- “Remove eyeglass with 100 per cent Ayurvedic eye drops”, “Helps reduce eyeglass 0.5 per month”, “Helps remove cataract without operation”, “Helps diabetes patients, darkness”, “No side effect”. The ad misleads eye patients into not using eyeglasses and to rely on the eye drops. The ad also misleads diabetics into rely on this product. The print advertisement claims and the website claims need to be substantiated with data from independent research. The CCC concluded that the claims made in the advertisement and cited in the complaint were not substantiated. The ad contravened Chapter I.1 of the Code. The complaint was upheld.

    Sistema Shyam Teleservices‘ MTS Mblaze ad was upheld. As per the complaint, the advertiser claims to be India‘s Fastest Internet service provider. The CCC concluded that in the absence of comparative data, the claim “India‘s Fastest Internet service provider” was not substantiated. The advertisement contravened Chapter I.1 of the Code.

    In Farmtrac 40 Tractor‘s ad there is a wrong interpretation of the concerned product feature. The ad compares wheel base of the two tractors, and claims that Farmtrac 40‘s slightly longer wheel base provides better stability in haulage work. The CCC concluded that the comparison of the two tractors on only a few factors is likely to mislead consumers that the Advertiser‘s product is better than the complainant‘s. The ad was misleading by omission and contravened Chapter I.4 of the Code. The complaint was upheld.

    During the month of August, the CCC also received complaints against seven print ads. The complaints were received against the ads of “Whirlpool Cooking Appliances”, “Massey Ferguson Tractors”, “Hemor Rite”, “Metro Group of Hospitals”, “Graphic Era University”, Best Brown Rice, Mohak Hi-tech Speciality Hospital. However, as these advertisements did not contravene ASCI‘s codes or guidelines, the complaints were not upheld.

  • P&G ad spend rises 8.98% in Q1

    P&G ad spend rises 8.98% in Q1

    MUMBAI: FMCG giant Proctor and Gamble (P&G) increased its ad spends for its first quarter ended 30 Spetember but the ratio of advertising expenses to total income reduced compared with a year earlier.

    In the first quarter, the FMCG major spent Rs 685.5 million on advertising and promotions, up 8.98 per cent from Rs 629 million a year earlier.

    The advertising spend as a percentage of total income was down to 17.53 per cent in the first quarter from 20.81 per cent a year earlier.

    Its total income was up by 24.50 per cent to Rs 3.76 billion in the first quarter from Rs 3.02 billion a year earlier.

    The company‘s net profit rose 5.82 per cent to Rs 452.7 million from Rs 427.8 million a year earlier.

    On 31 October, the global FMCG giant celebrated its 175th anniversary. On the occasion, P&G global CMO Marc Pritchard said, “I‘m proud of the accelerations of social and digital and even the elevation of combining that with public relations. I‘m proud of some of the really breakthrough creativity I‘ve seen on some of the brands. Old Spice continues to be very creative. I like what I‘ve just seen on SK-II and Vicks – some really good work.”

  • Dabur Q2 ad spend subdued before raising the pitch during festival season

    MUMBAI: Fourth largest FMCG company Dabur India‘s expenditure on advertising in the second quarter ended 30 September was 41 per cent more than a year earlier but was subdued compared to the preceding quarter.

    It spent Rs 1.81 on advertising in the second quarter, which was much lower than Rs 2.30 in the first quarter ended 30 June. In the second quarter of previous year, Dabut‘s advertisement spend was Rs 1.28 billion.

    However, this is the fourth quarter in a row when the company has substantially increased its marketing spends on a year-on-year basis. In the third quarter of fiscal year 2012, the advertisement expenses were up 46.9 per cent, in the fourth quarter up by 43 per cent and in the first quarter of this year up by 51 per cent.

    The advertising and marketing spends constituted 11.85 per cent of total revenues for the second quarter of the current fiscal and 14.09 of the total expenses.

    The fall in advertising spend in the second quarter from the first quarter was on account of advertising plans being held back for the festival season.

    “It (advertising spend) has been a little muted in the second quarter compared to what we were in the first, largely on account of the festive season, which begins a little later. We break advertising now in October rather than September like we normally would have done,” Dabur CEO Sunil Duggal told a television channel.

    Dabur expects its advertising spends to be around 12-12.5 per cent of sales for the whole of 2012-13. In 2011-12, Dabt spend a total of Rs 6.59 billion, which was 23 per cent more than in 2010-11.

    Dabur‘s revenue in the second quarter were Rs 15.28 billion, up 20.6 per cent from Rs 12.67 billion a year earlier. The company‘s net profit grew by 16.09 per cent to Rs 2.02 billion in the second quarter from Rs 1.74 billion a year earlier.

    For the half year ended 30 September, Dabur recorded 46.95 per cent increase in ad spends at Rs 4.1 billion. The company‘s revenue in the first half of this year stood at Rs 29.99 billion, up 21.07 per cent from Rs 24.77 billion a year earlier, while its net income grew by 16.56 per cent to Rs 3.52 billion in the second quarter from Rs 3.02 billion a year earlier.

  • Competitive pressures increase HUL’s ad spend

    MUMBAI: FMCG major Hindustan Unilever Ltd‘s (HUL) spend on advertising increased for the third consecutive quarter in the three months ended 30 September, on heightened competitive intensity which has taken the industry ad spend to a 15-quarter high.

    HUL spent Rs 7.69 billion on advertising and promotion in the second quarter, 18.13 per cent more than Rs 6.51 billion a year earlier. “A&P was stepped up and maintained at competitive levels,” the company said in its earnings release.

    It started increasing its advertising spends from the fourth quarter ended 31 March 2012. For the fourth quarter it spent Rs 6.77 billion, up 8.67 per cent from a year earlier. For the whole of 2011-12, HUL‘s advertising spend was lower from a year earlier.

    HUL said, “The operating context remained challenging during the quarter with a volatile cost environment and heightened competitive intensity. Overall industry media spend was up significantly to its highest levels in over 15 quarters.”

    As the company fought competition in the FMCG industry, it remained absent from the Star Network‘s bouquet of entertainment channels for about three months. Earlier this month, HUL returned to advertise on the Star Network.

    HUL‘s ad spends in the second quarter accounted for 14.26 per cent of its total expenses of Rs 53.92 billion, against 13.45 per cent of total expenses of Rs 6.89 billion a year earlier. Its spend on advertising and promotion accounted for 12.18 per cent of total revenues in the second quarter against 11.6 per cent a year earlier.

    The company‘s revenue for the second quarter ended 30 September was Rs 63.11 billion, 12.50 per cent more than Rs 56.1 billion a year earlier. Its net profit also saw a double digit spike of 17.13 per cent to Rs 8.07 billion from Rs 6.89 billion a year earlier.

    On a half-yearly basis, HUL‘s ad spends increased by 28.77 per cent (first quarter‘s YoY increase was 30 per cent) to Rs 15.89 billion from Rs 12.34 billion a year earlier. For the half year, the ad spends constituted 12.52 per cent of the total revenues and 14.63 per cent of the total expenses.

    The company‘s revenues for the first six months were at Rs 126.9 billion, up 13.31 per cent from Rs 111.99 billion a year earlier. Its net profit increased by 62.46 per cent to Rs 21.38 billion in the first half from Rs 13.16 billion a year earlier.

  • Rediffusion-Y&R bags creative mandate for Emami’s Mentho Plus and Fast Relief

    MUMBAI: Rediffusion-Y&R has won the creative duties of Emami‘s Mentho Plus and Fast Relief.

    With these two account wins, Rediffusion-Y&R gets creative duties for the FMCG giant‘s complete pain management portfolio because it already handled Zandu Balm‘s account.

    Emami general manager – marketing Vilien Dengle said, “Rediffusion-Y&R has been working closely with Emami for over four years now.

    hroughout, they have continued to exhibit an intimate level of engagement with our brands, the category, and our markets, which, coupled with their strong creative capabilities, have made our brands salient in the minds of our consumers. Hence, we are happy to entrust them with the creative duties for our entire pain management solution.”
    Rediffusion-Y&R also manages the marketing communication for the BoroPlus brand.

    Rediffusion-Y&R president D. Rajappa added, “We are delighted to contribute to the development and growth of such iconic brands of the Emami family. We partner with our clients to make brands important in the lives of its consumers through strategically sound and innovative creative ideas.”

  • HUL to be exclusive ad partner of Zee Bangla Cinema

    MUMBAI: Zee Entertainment Enterprises Ltd (Zeel) has signed an exclusive advertisement deal with the country’s largest spender on advertising Hindustan Unilever Ltd (HUL) for its newly-launched Bengali movie channel.

    This is the first time an entertainment channel has entered into an exclusive advertisement arrangement.

    As part of the deal, the FMCG major will exclusively get to advertise on Zee Bangla Cinema for one-and-a-half months. And for the next four-and-a-half months, Zee has committed 30 per cent of the ad inventory of the channel to HUL.

    For the first one-and-a-half months, the deal will act as a roadblock for other advertisers wanting to advertise on the channel. HUL will also get visibility on all the promotional activities of the channel.

    According to Zee Entertainment Enterprises Ltd (Zeel) chief sales officer Ashish Sehgal, the ad deal with HUL is beneficial to both the parties. “I am able to sell the channel from day 1 without the assessment of ratings and HUL will get to advertise exclusively on our channel,” he said.

    The channel was scouting for an advertising partner during the launch and had approached several clients. “HUL showed confidence in us and hence they are on board,” Sehgal said.

    Zeel already runs a Bengali GEC Zee Bengal, which also airs movies and already owns blockbuster Bengali movie titles.

    The Zee-HUL ad deal also comes in the backdrop of the FMCG company’s decision in June against advertising on any of the Star Network channels. HUL‘s ad and promotional spends in 2011-12 was Rs 26.97 billion.

    In India, Star also did ad deals for a shorter duration for its second GEC Life OK but it was with three advertisers. The other kind of deal worked out was by NDTV when its launched a co-branded lifestyle channel, NDTV Good Times, with Kingfisher.

    “This is an effective model of working where the new channels sign on clients as exclusive advertisers. Life OK had also done it with three brands including HUL for a month,” an executive with a rival broadcaster said, adding Bengal’s television advertising market is in the range of Rs 8 billion.

  • Hakuhodo Percept appoints Jayanto Banerjee as national planning director

    MUMBAI: Hakuhodo Percept has appointed Jayanto Banerjee as national planning director.

    Banerjee will be working closely with agency leaders across all major brands and clients handled by the agency.

    Based at the agency‘s Delhi office, he will be responsible for guiding the planning function, as well as spearheading “I-HPPL discovery”, the consumer knowledge and centre that focuses on understanding youth in India.

    Hakuhodo Percept executive director Elvis Sequeira said, “At Hakuhodo Percept, we place huge emphasis on multi-talented, versatile professionals. And Banjo is a shining example of someone who can partner our clients brilliantly. Apart from his planning experience Banjo also brings with him the experience of heading agency offices, the experience of starting a digital and PR set up from scratch and the experience of having worked across five cities in India and Middle East. With Banjo‘s arrival and several key talented people in place, Hakuhodo Percept‘s transformation into a powerhouse of knowledge, strategy and creativity is now complete.”

    Banerjee has over 19 years of experience in senior management, strategic planning and client servicing across Mumbai, Delhi, Kolkata, Dubai and Muscat. He has been the regional planning director of Euro RSCG in the Middle East, and headed integrated agency offices in Dubai, Muscat and Delhi.

    He started his career with Lintas in 1993. He has also worked with Euro RSCG and Bates 141 for FMCG, automotive, consumer durables, airline, banking, insurance, retail, technology, hospitality and pharmaceutical brands.

  • Asci upholds 25 out of 38 complaints

    MUMBAI: The Consumer Complaints Council (CCC) of the Advertising Standard Council of India (Asci) upheld complaints made against 25 advertisements from various sectors like education, healthcare, FMCG and F&B sectors, ads of which are being tracked on TV and newspapers nationally by NAMS in June 2012.

    During the same period, the CCC did not uphold complaints against 13 ads while decision on one ad was kept pending.

    In the healthcare sector, Leonardo Olive Pomace Oil ad, which claimed that the oil “fights cholesterol and heart disease” and “lowers blood pressure”, was upheld. The CCC concluded that the claims mentioned in the ad and cited in the complaint were not substantiated. The advertisement contravened Chapter I.1 of the Code.

    Another ad that was upheld was of Kwality Walls Selection. According to the complainant, the advertorial makes a clear mention of the Kwality Walls Strawberry and Cheesecake as being an ice cream, when in reality it is a frozen dessert. The CCC concluded that the “mention of Kwality Walls as an ice cream”, is misleading and the advertorial contravened Chapter I.4 of the Code.

    According to the complainant, the communication in the Amul Ice cream‘s leaflet shows a “Kwality Walls” cup to depict Frozen Desserts as the words “feel it say it” can clearly be noticed from the picture of the cup on the leaflet. The communication tantamounts to generic disparagement of the Frozen Dessert as a category in general and Kwality Walls Frozen Dessert in particular.

    The communication further tries to pass off ice creams as a complete food which is easy to digest and full of energy. It is categorically stated no food can be termed a complete food, much less an ice cream. The CCC noted the contents of the advertisement and checked the advertiser‘s response and concluded that the advertisement did not denigrate the complainant‘s product. However, the portrayal of ice cream as a “complete food” was misleading and contravened Chapter I.4 of the Code. This complaint was upheld.

    Also, the complainant noted that Cadbury Chocolates‘ ad is clearly in breach of the Maharashtra Prohibition of Ragging Act, 1999 as it directly/indirectly propagates ragging. The CCC concluded that the ad is in breach of the law and contravened Chapter III.4 of the Code. The complaint was upheld.

    The other ads that were upheld in the healthcare sector were of Lotus Mustard Oil, TV 24 Shopee India, Om Healthcare Centre‘s Good Health, Slim Life, Sesa Hair Oil, Perma Healthcare‘s Seatone and Natural Medicine.

    Dainik Bhaskar‘s ad was also pulled up by the CCC. According to the complainant, the print advertisement on the hoarding claims that Dainik Bhaskar “is 3 times of Dainik Jagran” and quoted false circulation figures both for themselves and for Dainik Jagran and also did not mention any source in their advertisement. The advertisement contravened Chapter I.4 of the Code.

    According to the complainant, the print advertisement of Parachute Advanced Coconut Hair Oil claims that, “I have the World‘s Best Hair and so do you”, “International hair research has found that Parachute Advanced users have the World‘s Best Hair”. Claiming that Parachute Advanced users have the world‘s best hair is a superlative claim. The quality of hair does not depend only on hair oil. The CCC considered the technical data and concluded that the claim that its users have the “World‘s Best Hair”, is misleading. The advertisement contravened Chapter I.4 of the Code. The complaint was upheld.

    Luminous Battery/Inverter as was also upheld because the CCC concluded that the claims mentioned in the advertisement like “Luminous Batteries give more backup when compared with other batteries” and cited in the complaint were not substantiated. The ad contravened Chapter I.1 of the Code.

    Leads Bariatrics‘ TVC, which claimed “give a scar less weight loss surgery”, was upheld as the CCC concluded that the promotion of weight loss surgery is an oversimplification of the remedy to reduce weight. The claim is misleading.

    Pure Roots Gold Cream Bleach‘s TVC claimed that the bleach has pure gold added in it. It also claims to remove dead cells and opens pores and gives instant glow in just ten minutes. According to the complainant, the advertiser needs to provide scientific proof to substantiate this claim. In the absence of supporting clinical information from the advertiser, the CCC concluded that the claims mentioned in the advertisement and cited in the complaint, were not substantiated. The advertisement contravened Chapter I.1 of the Code. The complaint was upheld. As per the advertiser‘s response, their company believes in fair and proper competition. On receiving a complaint from ASCI, the advertiser has already modified the said advertisement immediately.

    The CCC concluded that the TVC for Third Eye of Nirmal Baba is likely to encourage superstition as well as it is likely to lead to grave or widespread disappointment in the minds of the consumers. The advertisement contravened Chapter I.5 of the Code. The complaint was upheld.

    Videocon Air Conditioner‘s ad with claims like “Your daily dose of good health from Videocon air conditioners” and “Vita Air technology releases Vitamin C into the air” was pulled up by the CCC. The complaint said that the advertiser needs to substantiate these claims with technical comparative data. In the absence of comments from the advertiser, the CCC concluded that the claims mentioned in the advertisement and cited in the complaint, were not substantiated. The advertisement contravened Chapter I.1 of the Code.

    In education sector, the CCC upheld the complaint against ads of Career Launcher‘s Powerful Prep Program, T.I.M.E. BBS/BCA/HM/LAW, Institute of Apparel Management, NIPS School of Hotel Management and Nalanda Institute of Advanced Studies Lovely Professional University.

    Smartprep Education Smart Prep‘s Guidance and Expert Training was also upheld. As per the complaint, Smart Prep claims that its faculty has “delivered 5 out of top 10 Ranks and 46 out of top 100 ranks in BBS‘11”. Smart Prep should submit detailed evidence/ independent substantiation to validate its claim and is kept pending. The CCC considered the data submitted by the advertiser. The claim can be considered substantiated subject to a spot check by the ASCI Secretariat.

    The CCC also received complaints against two print advertisement and 10 television commercials during the month of June 2012. The complaints were received against the ads of “Smart Prep Education Pvt Ltd.‘s Unique Training System‘‘, “Kamal Toordal”,” Uninor”, “Airtel”,” Indica 10 minutes Herbal Hair Colour”, “Fiat Punto Sport”, “Ayur Sunscreen Lotion”, “Nasivion “, “Fiama Di Wills‘s bathing bar “, “Sanofi Seacod “, “New Extra Strong Axe” and “Mahindra Duro 125 DZ”. However, as these advertisements did not contravene Asci‘s codes or guidelines, the complaints were not upheld.

  • P&G ups ad spend in FY12 despite fall in profit

    MUMBAI: FMCG major Procter & Gamble (P&G) increased its ad spend by 25.95 per cent in its financial year ended 30 June 2012. The company spent Rs 2.33 billion in FY12 as compared to Rs 1.85 billion a year earlier on advertising and promotions.

    The ratio of advertising and promotions spend to total sales of P&G was, however, marginally lower at 17.96 per cent against 18.44 per cent a year earlier.

    P&G recorded annual revenue of Rs 12.97 billion, which is 29.31 per cent more than Rs 10.03 billion a year earlier. Its net profit rose 19.87 per cent from Rs 1.51 billion in FY11 to Rs 1.81 billion FY12.

    For the quarter ended 30 June 2012, the FMCG giant spent Rs 482.8 million on ads and promotions; a 6.55 per cent increase from Q4 FY12‘s Rs 453.1 million. The revenue for this period was reported as Rs 3.13 billion having scaled up by 27.76 per cent from the corresponding quarter in 2011 at Rs 2.45 billion.

    The company‘s net profit for the quarter ended 30 June 2012 was 1 per cent less at Rs 352.7 million compared with Rs. 356.3 million a year earlier. The decrease in profit is mainly attributed to increased expenses under change in inventories of finished goods, work-in-progress and stock-in trade. In the last quarter of FY 11, the company actually earned Rs 34.1 million under this category while this year it spent Rs 62.1 million on the same.

    The FMCG giant was one of the sponsors at this year‘s Olympics Games held in London and earned quite a few pats on the back for its global ‘Thank You Mom‘ campaign. In India too, P&G carried out activities and initiatives as part of this campaign. Apart from sponsoring Indian boxer Mary Kom (who went on to win a bronze in the Flyweight (51kg) category), the company also carried out the ‘Fulfill her Wish‘ initiative.

  • Media agencies depend heavily on flagship clients

    Media agencies depend heavily on flagship clients

    MUMBAI: Single flagship clients account for over one-fifth of revenue for many media agencies, showing a symbiotic long-term relationship between them.

    Mindshare earned 20.3 per cent of its revenue in calendar year 2011 from Hindustan Lever, the largest advertiser in the Indian market. The FMCG major’s media spend in 2011 was $214.7 million, handled entirely by Mindshare which had total billings crossing the $1 billion mark in the year, RECMA’s (Research Company Evaluating the Media Agency Industry) global billings report shows.

    Incidentally, HUL has marginally scaled down its media spends in 2011 due to the slowdown in the Indian economy. The company had spent $241.9 million in 2010 to promote its rich and diverse reach of brands cutting across all segments.

    The GroupM agency’s other clients in India include Pepsico, GSK, Nike, Ford, Star Network, ICICI, Lenovo, Kellogg’s, IBM, Nestle, and Aditya Birla Capital.

     

    Brand Media Expenses* Media Agency Total Billing*2011 % contributed by Brand
      2011 2010      
    Hindustan Lever 214.7 241.9 Mindshare 1050 20.30%
    LG 56.2 77 MEC 300 18%
    Maruti Udyog 61.3 65.5 LMG 430 14.25%
    Nokia 58.7 58.5 Maxus 570 10.20%
    Pantaloons Retail 65.6 74.2 Allied Media 235 27.90%
    Reckitt  64.7 80.2 ZenithOptemedia 295 21.90%
    Samsung 81.8 60.2 Starcom 275 29.70%

    ZenithOptimedia, which had grossed a billing of $295 million in 2011, got 21.9 per cent of its revenue from Reckitt Benckiser. The company had spent $64.7 million in 2011 as compared to $80.2 million in 2010, according to RECMA. It has brands like Harpic, Air Wick, Calgon, Veet, Boots Healthcare, Nurofen, Strepsils, Clearasil, Adams Respiratory.

    The Samsung business accounted for 29.7 per cent of Starcom’s billing of $295 million in 2011. The Korean company spent $81.8 million in 2011, up from $60.2 million in the previous year.

    Allied Media, with a net billing of $235 million, made 27.9 per cent of its revenue from Pantaloons Retail, RECMA report shows. Pantaloons Retail had a media spend of $65.6 million in 2011, down from $74.2 million a year ago.

    GroupM’s MEC derives 18.73 per cent of its revenue from LG Electronics. Out of MEC’s billings of $300 million in 2011, the consumer electronics major shelled out $56.2 million towards media in 2011. LG has also cut its media spend by almost 27 per cent ($77 million in 2010), according to RECMA.

    Lintas Media Group got 14.25 per cent of its revenue from Maruti Udyog that spent $61.3 million on media in 2011. This was lower than what the company had spent in the year 2010 which was 65.5 per cent. Maruti Suzuki, Magyar Suzuki, M-800, Omni, Alto, WagonR, Swift, Dezire, Esteem, Zen, Estilo, SX4, Grand Vitara and Versa are the brands that run under the brand.

    GroupM’s Maxus earned 10.26 per cent of its total billing of $570 million in 2011 from its Nokia account. The mobile phone handset maker Nokia spent $58.7 million on media, almost the same ($58.5 million) as in 2010.