Tag: Google

  • Generation C powers YouTube’s growth in India

    Generation C powers YouTube’s growth in India

    MUMBAI: Search engine giant Google has released new insights into India’s audiences on YouTube that reveal major opportunities for brand advertisers. More than 70 per cent of YouTube’s viewers in India are under the age of 35, while 72 per cent have a college degree or higher, according to an online survey by Google of more than 2000 Indians.

    The research paints a picture of a new type of consumer Google terms Generation C: a young, tech-savvy group of trendsetters who define what’s popular in content and culture. This group thrives on 4Cs, each of which represents an opportunity for brands to reach and engage Gen C on YouTube.

    Creation: YouTube users are deeply engaged with online video, spending hours watching, creating and uploading video on YouTube and creating opportunities for advertisers to engage with this prized demographic in the process.

    Three quarters of Indian web users say YouTube is their first stop when looking for videos online. The same proportion claims it’s one of their favourite websites. The research also revealed that one in five Indian YouTube users creates video content on a daily basis.

    Community: India’s Generation C constitutes an active online community, swapping videos with friends via email and social networks. More than half of Indian YouTube users share videos on social networks, and the same proportion also shares videos from YouTube over email.

    But that’s not the end of the story: About three quarters of Indian YouTube users go on to visit the site mentioned in a YouTube video and a whopping 3 in 5, posted a comment about the video, while 7 in 10 scroll down to read comments others have written.

    Curation: India’s Gen C cares about finding videos that matters to them, using subscriptions help manage their interests and content preferences–including branded content.

    Connection: Gen C switches between devices 27 times a day, and Indian users watch nearly 30 per cent of their YouTube videos on mobile. Smartphone owners spend one quarter of their YouTube time on mobile, while tablet owners spend about 20 per cent.

    YouTube Vice President of Marketing Danielle Tiedt said, “If brands create videos that Gen C loves to share, they will. If you create communities around your brand, Gen C will join and participate.” And with 2 in 3 Indian users visiting websites mentioned in the videos they watch directly, that’s a major opportunity.”

    Google predicts that as smartphone penetration continues to rise in India, so will the opportunities for brands to personally reach Gen C. That’s good news for advertisers, because greater connectivity across multiple screens create more opportunities for brands to communicate with this crucial audience.

  • Social media sites refuse to share information about Indian users

    Social media sites refuse to share information about Indian users

    NEW DELHI: Social media websites Google, Facebook and Twitter have declined to share information sought by the government about individual users in India or block their sites.

    It is learnt that a review committee had approved the decision to block 306 accounts on the social media site Twitter. The review committee consisted of the cabinet secretary Ajit Seth, Telecom Secretary R Chandrasekhar and the Legal Affairs Secretary B A Agarwal.

    After reviewing the 310 accounts that were blocked after the communal clashes in Kokrajhar district of Assam, the Committee found that some of these Twitter accounts had uploaded few of the altered pictures which played a part in sparking the clashes last year and it believes that these Twitter accounts have the potential to further inflame communal tension in the country.

    The review committee met with Google, Facebook and Twitter representatives and requested them to provide details of the said accounts but the companies had apparently not complied with these requests.

    Twitter mentioned that it had received requests for disclosure of user information from the Indian government during July to December 2012, but it complied with none of those requests. Google also stated in December that it had received 2,431 requests for disclosure of user data of 4106 accounts from the Indian government during July to December 2012 and it had complied with 66 per cent of the requests.

  • Google looks to better Google Map Maker through ‘Mapathon 2013’

    Google looks to better Google Map Maker through ‘Mapathon 2013’

    MUMBAI: Google India will be conducting its first ever mapping competition in India with Mapathon 2013 with the aim of providing people with the most comprehensive, accurate and easy-to-use maps of the country.

    Mapathon 2013, which starts on 12 February and culminates on 25 March, is an India-wide mapping contest open to just about anybody who lives in India.

    Google is inviting amateur mappers and mapping enthusiasts from all over the country to help create better maps for India by adding their knowledge of local places through Google Map Maker.

    The top 1000 mappers participating in Mapathon stand a chance to win Android tablets, smartphones, gift vouchers and Google merchandise.

    So how does it all work? Google Map Maker is an easy-to-use tool that allows users to add more detail to Google Maps through a few simple clicks. Using Google Map Maker, users can select a specific area on Google Maps and add new information based on the local knowledge or by referencing Google Maps satellite imagery.

    With just another click, you can save and submit your input and once the submitted edit has been verified, the new information will be added to Google Maps.

    Highlighting the USP of Google Map Maker, Google India Product Manager Jayanth Mysore says, “It has always been our endeavour at Google to organize the world’s information and make it universally accessible and useful. One way we hope to achieve this is by mapping the world and what better way to do this than by asking users to map their neighbourhood.

    “Google aims to provide better maps for India by building better maps for the users, by the users. What started off as an initiative by a few Google engineers is now used across the world and today, citizens across India can participate in this great project through Mapathon 2013.”

    Google Map Maker was conceptualised in India more than four years ago, and ever since, it has provided a rich set of features for users to map with.

  • Yahoo and Google ink display ad deal

    MUMBAI: Internet giants Yahoo and Google have inked an agreement to have the latter serve up advertising on some Yahoo websites.

    According to the deal, Google can display contextual ads on Yahoo properties. Contextual ads are display ads which are related to the text featured on a website and are placed on the same page.

    Yahoo said it has recently signed a nonexclusive agreement that will have Google displaying ads on unspecified Yahoo Web properties “and certain co-branded sites” using the latter‘s ad programmes for both traditional computers and mobile devices.

    The financial details of the partnership were not disclosed but it was revealed that the ads will be displayed using Google‘s AdSense and AdMob services. It was also clarified by Yahoo that Google will be just one of its contextual ads partners.

    Yahoo further said, “By adding Google to our list of world-class contextual ads partners, we‘ll be able to expand our network, which means we can serve users with ads that are even more meaningful.”

    The two internet biggies have been competitors in the market for online search advertising. Yahoo has also formed a partnership with Microsoft Corp so that the two companies are teaming up to try to counter Google‘s dominance in that market. Concurrently, Google has also become a major force in area of display advertising which is Yahoo‘s core business.

    Yahoo earlier had sought out a search partnership with Google in 2008, but the deal was ultimately rejected by the antitrust regulators at the U.S. Justice Department.

  • Ban on YouTube continues in Pakistan

    Ban on YouTube continues in Pakistan

    NEW DELHI: The ban on YouTube in Pakistan imposed to protest the film ‘Innocence of Muslims‘ continues, though Interior Minister Rehman Malik had announced that it was being opened on public demand.

    Pakistan had lifted the ban on Saturday but re-imposed it later after discovering that the offensive content was still available on the online video platform.

    According to reports, all the ISPs in Pakistan received notification yesterday from the Pakistan Telecommunication Authority (PTA) to unblock YouTube with immediate effect and submit compliance through return email by 1700 hours.

    Before ISPs could send the compliance report to PTA, Ashraf issued an order to block the YouTube again on the grounds that YouTube had not removed the blasphemous movie ‘Innocence of Muslims‘ from its servers.

    The second directive of PTA to the companies said: “In pursuance of withdrawal of earlier MoIT directive of opening of YouTube, you are all now requested to block complete “YouTube” website immediately in Pakistan from all possible routes.”

    The website will remain blocked till further orders. Moreover, you are also requested to block the particular IPs of following version of YouTube without disrupting the non-YouTube traffic.

    YouTube has been off internet in Pakistan for a hundred days, during which the PTA is understood to have held discussions with Google.

  • Online ad spend to surpass print, TV in Australia by 2013: Study

    MUMBAI: For the first time, the advertising spends on online medium will exceed that on television or newspaper by 2013, reports Interactive Advertising Bureau of Australia.

    The results, which were announced by IAB Australia in its Online Advertising Expenditure Report (OAER) compiled by PricewaterhouseCoopers (PwC), show that while the general advertising market is softening, online advertising is on track to surpass both newspaper and TV advertising in 2013.

    Online advertising has continued to grow, achieving 10 per cent year on year growth recording $813.25 million for the three months ending September 2012, the report said.

    When compared to the September 2011 quarter, all three reported sectors grew, with General Display marginally up one per cent, Search and Directories up 15 per cent, and Classifieds advertising up by seven per cent,

    IAB Australia CEO Paul Fisher said, “Double digit growth in the media and economic climate of the past 12 months bucks the trend across the broader media industry. While growth has slowed in digital this past quarter the outlook for the Christmas quarter looks encouraging.”

    “Our work as an industry to improve online behavioural advertising technology and deliver better audience and campaign measurement tools has resulted in more ‘brand‘ focused online advertising display formats and a clear and growing confidence in the medium by marketers,” Fisher added.

    PWC partner Maria Martin said, “While the online advertising sector is settling into strong and sustained growth, it‘s clear that the search by marketers for new ways to engage with consumers is fueling mobile advertising growth rates.”

    Mobile advertising recorded $22 million for the September quarter, representing 190 per cent year on year growth and a 24 per cent increase on the June 2012 quarter.

    Search and directories continues to dominate the online advertising sector overall with 53 per cent share of spend. Classifieds holds 21 per cent share and General Display 26 per cent market share.

    Within General Display, the motor vehicle category grew strongly to be the highest spending in the advertising industry this quarter, with finance and real estate sectors the next largest categories.

    The report also showed that the retail share of expenditure reached 7.2 per cent share, up from 6.5 per cent in the previous quarter. In Classifieds, real estate, recruitment and automotive were the leading categories. This is the same order as the prior quarter.

    The report undertook new approach for the study. The data collected from industry participants has been supplemented by estimates for Google display, video and mobile advertising as well as Facebook display and mobile advertising, while the prior methodology for estimating Google search has been refined.

    Historical mobile advertising data collected from industry participants has been combined with estimated Google mobile advertising to provide a picture of the aggregated mobile advertising market and trends.

  • Facebook to set up official external advertising network

    MUMBAI: Social networking website Facebook is planning to start an external advertising agency that will be able to capitalise on the data collected by it over the years about people‘s preferences and habits on the web. This also means that advertisers will now be able to use information about users in order to target ads at specific groups while they surf the net.

    The data that Facebook has about users includes things like their likes, posts made on the site and the friends one makes on the social networking site.

    The initiative will open a new source of revenue for Facebook. Increasing revenue is an important thing for the publicly traded company since it has not been able to do any wonders since it launched its IPO.

    The model would be similar to Google‘s AdSense, something that has proven popular and effective and could give the social media website a chance to compete with Google‘s advertising.

    Earlier an executive from Facebook‘s counsel office was quoted in Forbes as having said that “everything you do and say on Facebook can be used to serve you ads. Our policy says that we can advertise services to you off of Facebook based on data we have on Facebook.”

    Recently, WPP CEO said in an interview with LiveMint, “Facebook is a social medium and a branding medium rather than an advertising medium. It is dangerous to invade people‘s social space. A conversation on Facebook is inherently a social conversation and not a commercial conversation. So the means of engagement are far more subtle. If I engage you to write something nice about me or WPP on your Facebook page, that would be better than taking a display ad on Facebook. I have said this historically-that Facebook is a powerful branding medium.”

  • Raj TV inks revenue share deal with Google

    Raj TV inks revenue share deal with Google

    MUMBAI: Chennai-based Raj Television Network has entered into content hosting services agreement with Google Ireland for content sharing in Google Internet platforms with various mobile, internet based and hand held devices.

    The company, which runs a clutch of channels across five languages, expects substantial revenue contribution from Google agreement from advertisement and viewership mode of revenue share.

    The agreement will ensure 100 per cent presence for Raj TV Network on Google‘s internet platforms. The company’s various channels content with different genre are available at youtube.corn/rajtv.

    The company has 50,000 hours of video contents and company proposes to start a separate exclusive Internet portal for content sharing in addition to the tie up with various platform providers including Google.

    The agreement with Google and proposed own portal for E-mode of content sharing will enable the viewers around the globe, to watch various genre of TV broadcasted contents on real time and archived mode with help of internet and will augment additional revenue source to the company’s business.

    Raj Television Network is engaged in broadcasting five channels namely Raj TV, Raj Digital Plus, Raj News 24×7, Raj Muzix and Vissa. It is one of the largest Tamil television and broadcasting companies in the southern region.

  • Coca-Cola retains top spot in Interbrand’s Global Brands report

    MUMBAI: Coca-Cola, Apple and IBM lead brand consultancy Interbrand‘s 13th annual Best Global Brands report.

    While Coca-Cola retained its top position, Apple jumped to number two with stellar sales in both developed and emerging markets over the last year.

    Social media giant, Facebook (69), enters the report after making headlines as the third largest IPO in US history, and Google in fourth spot experienced a 26 per cent increase in brand value over the last year, exceeding rival Microsoft‘s (5) brand value for the first time in the history of Interbrand‘s report.

    Interbrand publishes its Best Global Brands report of the world‘s 100 most valuable brands on an annual basis.

    Interbrand‘s methodology – the first of its kind to be ISO certified – analyses the many ways a brand touches and benefits an organisation, from driving bottom-line business results to
    delivering on customer expectations.

    To develop its report, Interbrand examines the three key aspects that contribute to a brand‘s value:

    • The financial performance of the branded products or service
    • The role the brand plays in influencing consumer choice
    • The strength the brand has to command a premium price, or secure earnings for the company

    2012 Overview: Delivering meaningful brand experiences across all touchpoints

    Against the backdrop of continued global economic uncertainty, this year‘s top 100 brands excelled in securing their market position and delivering more personal and enriching experiences to consumers — across geographies and platforms.

    Interbrand Global CEO Jez Frampton said, “As global competition increases and many competitive advantages, like technology, become more short-lived, a brand‘s contribution to shareholder value will only increase. The world‘s 100 most valuable brands are leading the way by listening to consumers, employees, and investors alike and delivering a seamless and holistic brand experience across an ever-evolving range of touchpoints.”

    In a fast-moving world where consumers‘ offline and online brand experiences constantly intertwine, the leading brands are staying actively engaged, tapping into the inexorable rise of data and information in order to drive innovation across all industries. They are spending the time and money required to understand the role their brand plays in consumers‘ lives – and they are strategically weaving their brand proposition into every interaction.

    New entrants in 2012

    Pampers (34): Pampers, the top-selling diaper brand in the US and P&G‘s number one selling brand in the world, earned the highest ranking position among this year‘s new entrants. Pampers has effectively used social media platforms and loyalty programmes to connect to its consumer base. Such efforts (and increased financial transparency on P&G‘s part) have earned Pampers a high-ranking spot in this year‘s Best Global Brands report.

    Facebook (69): Facebook‘s IPO in May enabled Interbrand to examine the social media behemoth‘s financials for the first time. Despite its rocky start as a publicly listed stock and lingering uncertainty about its business model, Facebook‘s growth as a brand, especially in developing markets, earns it a position in this year‘s report.

    Prada (84): Prada returns to the Best Global Brands report this year. The brand‘s continued growth in revenue is fueled largely by 250+ DOS (Directly Operated Stores) worldwide – a network that has expanded by keeping a careful eye on increasingly sophisticated customers in developing markets.

    Kia (87): For the past few years, Kia has been one of the fastest-growing global automotive brands. In the US, Kia‘s market share has grown for 17 consecutive years and its sales numbers continue to rise, even in the troubled European marketplace.

    Ralph Lauren (91): Making its first appearance in the top 100 since 2009, Ralph Lauren‘s notable brand growth in the past year can be attributed to highly innovative communication patterns and consistency across all touchpoints and formats.

    MasterCard (94): MasterCard makes its debut in the 2012 Best Global Brands report after an impressive year. The company‘s launch of its “Priceless Cities” campaign and a growing suite of solutions for business owners are steadily increasing consumer satisfaction – and contributing to its rise in brand value.

    Top rising brands in 2012

    Apple (+129 per cent): Despite Steve Jobs‘ passing, consumers‘ emotional connection to the Apple brand remains stronger than ever – this was made clear just recently with the launch of iPhone 5. Even in the face of increasing competition from rivals Google and Samsung, the company continues to demonstrate its commitment to protecting the Apple brand and its intellectual property. Such commitment enabled Apple to post quarterly revenue of $35 billion and quarterly net profit of $8.8 billion in July.

    Amazon (+46 per cent): Amazon has introduced the Kindle Touch and Kindle Fire in 175 countries, stretching the Kindle beyond its e-reader origins and turning it into a serious
    rival to the iPad. The Kindle Fire now enjoys the world‘s second-largest tablet market share.

    Samsung (+40 per cent): Samsung became the global leader for smartphone shipments in 2011 ahead of Apple and Nokia. Samsung also generated a great deal of online buzz by integrating its Galaxy SIII and Note into the Opening Ceremony of the 2012 London Olympics. Despite its legal battle with Apple, Samsung‘s global market share is 32.6 per cent and its brand value increased by a meteoric 40 per cent in the past year.

    Nissan (+30 per cent): Nissan recovered quickly from last year‘s natural disasters in Japan and grew its market share by pushing the envelope on innovation and by creating bold vehicle designs like that of the Nissan Juke. Nissan‘s ability to overcome challenges and continually innovate caught the attention of consumers and helped increase its brand value by 30 per cent.

    Oracle (+28 per cent): Oracle has been branching out beyond database solutions in order to stay ahead of competitors. The company continues to make strategic acquisitions and grow its capabilities and offerings, especially in cloud computing. Oracle‘s 28 per cent increase in brand value this year proves that such strategies have impressed customers and investors alike.

    Technoplogy brands continue to dominate: Technology brands continued their strong push of recent years, with four of the five top risers hailing from the sector (Apple, Amazon, Samsung, and Oracle).

    In addition, five of this year‘s Top 10 brands come from within the technology sector (Apple, Google, Microsoft, Intel, and Samsung). Apple, in particular, experienced record growth in brand value. While there is no question that products like the iPad and iPhone 5 are attractive to consumers around the world, Apple‘s values and unmistakable human touch are what set it apart from competitors in the end.

    Automotive brnds move beyond recovery: Automotive brands are becoming more attuned to the emotional connection consumers have with their cars. This has caused many automakers to develop more effective, technologically savvy ways to reach target markets and help prospective buyers better relate to car brands.

    Audi‘s (55) digital showroom, Audi City, is revolutionising the future of retailing by combining digital product presentations and personal contact with dealers. Similarly, Ford (45) is working hard to improve MyTouch, its in-car communications and entertainment system. Brands like BMW (12) and Hyundai (53) are investing in global brand campaigns and are becoming more digitally connected and tailored to narrower target groups.

    For the most part, the entire industry appears to be focused on engaging customers and prospects in a more relevant and personalised manner throughout the entire purchase cycle.

    Luxury brand prove resiliant: Despite the current economic landscape, all of the luxury brands in this year‘s report increased their brand value. As the meaning of luxury shifts, this year‘s top luxury brands reflect a changing global consciousness – with success dependent not only upon a portfolio of superior products and superb quality of service, but also a strong cohesive brand, a formidable digital presence, and reputation that is timeless, elevated, and refined. The 2012 Best Global Brand report includes seven luxury brands: Louis Vuitton (17), Gucci (38), Herm?s (63), Cartier (68), Tiffany (70), Burberry (82), and Prada (84).

    FMCG/CPG brands increase in brand value & expand product offerings

    The rise in value of several FMCG/CPG brands — Kellogg‘s (29), L‘Oréal (42), Heinz (46), Colgate (47), Danone (52), Nestlé (57), and Johnson and Johnson (79) — reflect successful growth, especially in the developing markets. Another growing trend observed this year was the increasing number of FMCG brands expanding into the healthcare space. Avon (71) and Kleenex (80) were the only two brands to lose brand value (-4 per cent and -7 per cent respectively).

    Financial Services: Financial services brands are continuing to feel the impact of 2008‘s global economic downturn. Recent events, such as the notorious Libor scandal, have tarnished the reputation of leading brands like Credit Suisse – it declined by five per cent in brand value and ranked 95. There is reason to be optimistic about the future of this sector, however: Five of the 12 financial services brands in this year‘s report increased in brand value, including American Express (24), Morgan Stanley (54), AXA (58), Allianz (62), and Visa (74). MasterCard (94) was a new entrant to this year‘s report, an indication that its “Priceless” campaign continues to succeed in building a stronger connection between the brand and its growing customer base.

  • Size matters in changing adland

    MUMBAI: In the acquisition storm swirling across the advertising world, there are two strong currents that are pushing from below to force change in adland: the digital might of Google, Microsoft and their likes and the emerging high-growth markets including India.

    The compulsion to do buyout deals and outsize competitive agencies is coming from an evil that is economic crisis. Global media agencies are looking for safe harbours away from the slowing advertising markets of the United States and Europe.

    Prolonged recession since 2008 is providing the ideal climate for these deals to fertilise. The smaller players have become more open to sell as they seek escape from financial stress and acquisition prices become more affordable.

    “We will see more mergers and acquisitions take place. In a downswing, the values become lucrative and the benefits of consolidation become more apparent,” says Publicis South Asia CEO Nakul Chopra.

    The BBHs of the world were born in a different era and in a different period of history. Now is the time to build scale, volume, value and efficiencies through size. The scramble is on to consolidate advertising spends among the top five agencies, much like the way the other industries behave.

    “How long can the ad industry stay fragmented? It is the era of consolidation at the top,” says former Havas Media CEO and now
    BCCL director customer strategy Anita Nayyar.

    There is no other way to survive the onslaught of the digital players in a convergent media world. Agencies need to invest in digital expertise, technology and geographies. For tapping say Google, agencies with size will have a distinct advantage.

    And who knows where the ambitions of these digital giants will end? Sitting on huge cash piles, Google, Facebook, Apple or Microsoft may find business sense in owning media and entertainment companies as the world moves rapidly towards convergent economies.

    And what if they suddenly develop the appetite to gobble up extended areas like the agency business?

    That may be too much of an extended logic. It is definitely not the reason behind the current urge of agency owners to grow into bigger giants. Consolidation to tap deeper into clients in a digital era is the one big pull. And in a mightier ad world, growth can come through buyouts that provide complementary strengths.

    Japan’s Dentsu, overwhelmingly dependent on its revenues from the home market, has taken one such giant leap by agreeing to buy London-based Aegis Group for a whopping $4.9 billion. This will enable it to fly with greater stamina in Europe, a market it had earlier tried to dig into but failed. The Aegis buyout will place the Tokyo-based agency in the top position in the Asia-Pacific region while it becomes the second largest in western Europe, the fastest growing in North America and a global leader in digital markets.

    The Japanese agency couldn‘t have waited longer to spread far and wide. WPP has done a spate of acquisitions across the world, the most recent being independent digital agency AKQA. Publicis Groupe, on the other hand, gobbled up London-based Bartle Bogle Hegarty (BBH) for $848.5 million. The French agency also bought Rosetta, a digital marketing company, last year.

    “In this consolidation wave, Dentsu needed to balance their footprint. There was an inherent strategic need,” says Chopra.

    Consolidation among the bigger agencies is nowhere near completion. Havas and the Interpublic Group could become the new targets for acquisition as the pecking order of the top five agencies remain unchanged even after combining Dentsu and Aegis. WPP leads the pack, followed by Omnicom, Publicis, IPG and Dentsu.

    The acquisition fever has also spread to the Indian shores. The largest takeover activity was made last year when Omnicom snapped up majority stake in Anil Ambani‘s Reliance-owned Mudra Group. The most recent acquisitions this year have been the total buyout of digital agency Indigo Consulting by Publicis’ Leo Burnett and 51 per cent of Hungama Digital by WPP’s JWT.

    “In this digital era, there is a need to offer a wider level of specialised services. We acquired Indigo Consulting, one of the largest digital agencies in India,” says Leo Burnett chairman and CEO for Indian subcontinent Arvind Sharma.

    The acquisitions across geographies are not going to end. The cross-border deals are, in fact, going to multiply. “The big change sweeping across the world is the power of the digital medium. In this cyclic wave, inorganic expansion is becoming an important route. Agencies want to leapfrog their understanding in the digital arena as consumer behaviour is changing fast. Since digital means global platforms, we are seeing more cross-border deals like Dentsu intending to acquire Aegis,” says ZenithOptimedia CEO Satyajit Sen.

    Sharma believes that mergers and acquisitions will last for at least a decade. “The dominance of television is waning and ad spends are moving away to digital. The market is getting more segmented and ad models are becoming complex. Also, TV, tablets and smart phones are merging into each other. Media companies are acquiring specialities as digital is becoming a powerful communication tool. Technology is driving interest and consumer time. These require new perspectives and new skillsets,” he explains.

    India with a 1.2 billion demographic has become a very important growth market for the global agencies. Commenting on S&P’s remark about India being the first fallen angel, WPP Group CEO Martin Sorrell told CNBC TV18‘s Anuradha Sengupta in an interview that “If India is a fallen angel, I would like to be a fallen angel.”

    The angels are inhabiting Brazil, Russia, India and China. While US is seeing very slow growth and Europe is caught in a debt crisis, the BRIC countries are growing strongly though of late they are tending to reverse their crazy pace.

    Sharma believes acquisitions will keep happening in India. If 4G turns out to be a success and the projection of 200 million subscribers over the next five years actually happens, it would throw open a lot of opportunities and challenges for agencies.

    “We will see digital and special units and talent being gobbled up. New creative shops will keep coming up and it normally takes seven years of growth for such smaller outfits to be a target for acquisition,” he says.

    Agrees Sen, “Acquisitions will be on the rise. Network agencies will have an advantage.”

    Will that signal the end of the mushrooming of independent agencies in India? Madison Media Group CEO Gautam Kiyawat does not think so. “Creative shops can be successful without the scale attached to it. I don’t see their death in India. They will continue to exist in numbers,” he says.

    The advertising landscape will possibly witness two trends. While mid-sized agencies will be buyout targets, the smaller creative outfits will find space to exist.

    Nayyar feels India will not follow the global trend where the top league will be occupied by five agencies who will dominate the market. Being diverse in nature, India will be a 10-15 player market. Agencies with sizeable volumes like Madison already exist. Like China, India is a volume market,” she avers.

    Percept Limited joint managing director Shailendra Singh agrees that India will have more players with strong volume business. “India is a totally different market. “We are a totally different market. Percept will not sell. Our media business, in fact, has been made the company of the year in the Group. We are client heavy and our growth is steady,” he asserts.

    The consolidation wave is looked at as a healthy development by some industry experts. “The trend to break free and set up smaller units has fragmented the market too much and clients have gained from this. The industry needs to work with better rates,” says Nayyar.

    Sharma holds a contrarian view. According to him, consolidation is not deep or penetrative enough to push up rates. “Consolidation has not been so dramatic that it will have an impact on agency compensations in the short run. It may slow down the drop in agency compensations but not necessarily push them up,” he says.