Tag: GroupM

Is VoD biz making money or it’s still investing?

MUMBAI: Beyond the hype, what are the ground realities of earning revenue? Or, is it still all about investing in content and infrastructure? When’s the likely inflection point when businesses could start to look at break-even?

Trying to answer these questions at the CASBAA OTT Summit 2017 were — AltDigital CEO Nachiket Pantvaidya, SonyLiv EVP and digital head Uday Sodhi and GroupM South Asia chief growth officer Lakshmi Narasimhan.

Evaluating the OTT space and enumerating on the best business model, the moderator for the evening — Provocateur Advisory principal Paritosh Joshi — asked the head of the recently launched (soft) AltBalaji app about the mantra to grab maximum eyeballs in the OTT space.

Answering the doubt, Pantvaidya said, “India is a large market and the idea with AltBalaji is to connect with the 50-70 million people which correspond to e-commerce or functional 3G. There is also a market outside India of approximately 70 million people who want content. I think it is a library game. For SVoD to take off, content and habit formation among the people is crucial — our platform has content ranging from sublime to ridiculous. As Sameer (Nair, Balaji Telefims CEO) said, we are here to capture the market space between Narcos and Naagin.”

Taking cue from Pantvaidya’s point, Sodhi added, “The consumer is sorted in its head about what he wants. There is a clear habit formation. They are consuming on the go. There is a difference in the watch-time and they are coming back to watch linearly same shows. Habit formation is happening.”

India’s online video space will predominantly be an advertising led video-on-demand (AVOD) market even though subscription led VoD shows higher growth on a low base. If the digital eco-system becomes a SVoD dominated market, will that mean no business or loss for the advertising agencies? “There has been a pricing mistake in the last three years. The platforms come with a point of view that it will surpass television. The consumers think of these platforms as channels providing content. The players have to price it that way. In the US, OTT outstrips payTV in terms of subscribers but its annual revenues are lower,” added Narasimhan.

Pantvaidya added, “There is lack of development in the appreciable distribution system. It can survive when there is subscription. You can share profits with them if you are a SVoD. With free content comes carriage fees.

Further, Sodhi believes that its early days for everyone and there is no model which has been cast and stoned yet. He segregated the entire process into three phases. The phase one is when you throw content. In the second phase, people start coming to your platform and your focus is o retain them. Money making only comes in the third level. Citing examples of the three existing models in the world, YouTube, which is 100 per cent advertising, Netflix, SVoD based platform and Apple which is transnational pay-per-view platform. “All these platforms are fairly growing, and have reached this point after 15 years. They have come out of their strengths to build a model,” said Sodhi.

Narasimhan opined that the AVoD services in the OTT space have not been explored yet. He also said that data from servers indicate that kids,youth and top-end consumers are moving to digital from TV which clearly shows that the eco-system is evolving in India.

Joshi posted a question at the panelists asking whether they are underestimating the willingness of the consumers to pay for content. Pantvaidya agreed to his point, and said, “Scale and volume is necessary for spending. One should have faith in their content for it to sell.”

Sodhi added, “There is room for so many things. Everything is falling into its right place. The run-away is getting shorter before the take-off.”

OTT services are exploding in India and the business is more likely to be advertising-led in the short term. The OTT sector has clearly become a space to watch out for as the infrastructure continues to improve, devices get smarter and data prices fall. Let’s see what the future holds for these players.

March 7, 2017
Adex 17: TV to contribute 45pc, FTA to aid 8pc growth rate, says GroupM

MUMBAI: GroupM, one of the leading global media management investment conglomerates, has released its biannual advertising expenditure futures report ‘This Year Next Year’ (TYNY) 2017, forecasting India’s advertising investment to reach an estimated Rs.61,204 crores in 2017. This represents a growth of 10 per cent for the calendar year 2017 over the corresponding period in 2016.

As per GroupM, the ad spending in 2016 was Rs. 55,671 crore. Even though the year began on a very optimistic note, the overall Adex took a downturn due to lower than expected ad spend growth from sectors like FMCG, traditional retail, telecom and sporadic spending in categories like Ecommerce. In the Januray-October period itself the Adex was growing at a lower trajectory than forecast. Furthermore, demonetization in the last quarter had a negative impact of about 2 per cent on the total Adex in 2016.

Speaking on the TYNY 2017 report, GroupM South Asia CEO CVL Srinivas said, “Despite a volatile 2016, we are estimating advertising expenditure growth at 10 per cent in 2017. The first quarter will give a slow start to the year, with the market picking up from March-April, fueled by a stable recovery process post demonetization. Sectors that are contributing to this positive trajectory include Auto, Media and e-Wallets. In addition Government and Political parties will increase spending with elections in several states this year.” Explaining the media scenario, he added. “Digital is leading the Adex growth with a 30 per cent growth, while TV continues to be the largest medium in the mix. Print continues to grow at a stable rate of 4.5 per cent and is still the second largest medium in the Adex.”

Looking at the advertising industry worldwide, GroupM estimates the global advertising expenditure (adex) to grow by 4.4 per cent and Asia-Pacific to grow by 6.3 per cent. With an estimated adex growth of 10 per cent, India remains one of the fastest growing ad markets globally. While 80 per cent of incremental ad spend growth in major markets comes from digital media, in India the numbers are more evenly split between traditional and digital media. Digital media accounts for about 40 per cent of the incremental ad spend growth.

The Indian advertising expenditure growth rate is also in line with the revised GDP forecast; India’s GDP is estimated to grow between 6.5 to 7.5 per cent. This will be led by low interest rates, sustained urban demand and the impact of key policy reforms. Over the last seven years, ADEX to GDP growth ratio has been between 1.5-2X, and 2017 will be no exception.

GroupM also elaborated on the major media trends that will emerge in the Indian advertising industry. These include trends in sports programming, content, data and digital media. Globally, GroupM has been leading the conversation on viewability with brands and partners. Taking this program forward, chief growth officer Lakshmi Narashimhan, explained the importance of viewability, “As India matures as a digital advertising market, transparency and trust are critical for higher adoption of the medium. Those adopting high viewability standards will be able to differentiate themselves on quality parameters. Once implemented, platform choice and pricing will depend on viewability scores.”

GroupM estimates the Digital Adex to grow by 30 per cent in 2017 to Rs. 9,490 crore. The digital Adex is estimated to take a 15.5 per cent share of the total Adex this year. There will be a high emphasis on viewability metrics and outcome based optimization. Ad spends will grow on OTT platforms, as internet speeds improve and catch up TV gains ground.

2017 is estimated to be a modest year for newspapers with 4.5 per cent growth. The increase in ad spends expected from print heavy sectors like Auto, BFSI, e-wallets will contribute to this growth. Vernacular and regional newspapers will see a higher growth rate.

Television continues to be the largest medium contributing to the Adex with close to 45 per cent share. This year, the growth rate for TV is 8 per cent, with ‘Free To Air’ channels adding more inventory, and pure HD content gaining ground. The market will also see a consolidation of niche channels.

While Radio is expected to grow at a little over 10 per cent, there is scope for the medium to pick up as the Phase 3 rollout is completed in 2017. Higher growth is expected as stations will see the supply impact of the full year.

Other media such as OOH will witness good traction from sectors addressing rural audience and premium niche audience. As per the trend in recent years, Cinema advertising will grow at a high double digit rate of 20 per cent. Cinema consolidation has led to investments in infrastructure, this coupled with the growing acceptance of premium Indian and Hollywood content by advertisers augurs well for the medium.

This Year, Next Year, is part of GroupM’s media and marketing forecasting series drawn from data supplied by holding company WPP’s worldwide resources in advertising, public relations, market research, and specialist communications. The TYNY report is the most comprehensive understanding of the estimated media spends by advertisers in the current year. It also highlights some of the industry sectors that will have a major effect on advertising spends across media.

February 14, 2017
GroupM acquires controlling interest in MediaCom India

MUMBAI: WPP’s GroupM, the world’s leading global media investment group, yesterday announced it will be acquiring a majority stake in MediaCom India, a joint venture between GroupM India and Sam Balsara, the principal shareholder of the Madison Media group. While MediaCom India will continue operating as an independent brand, the agency will have the advantage of access to GroupM’s global infrastructure.

This acquisition continues WPP’s strategy of investing in fast growth markets, new media and digital.

“The majority acquisition of MediaCom in India represents a significant evolution in one of the world’s fastest growing economies. As India becomes a very attractive business hub for global clients, we are confident our talented team in India will deliver exemplary growth and results for all stakeholders,” MediaCom Worldwide CEO Stephen Allan.

Speaking on the acquisition, GroupM South Asia CEO CVL Srinivas said, “MediaCom India has won several prestigious clients, developed a strong digital presence and has delivered award-winning campaigns for clients. As a network, we have taken giant strides globally and in India towards a more Data and Tech-led core to our business. MediaCom India can harness our world-class media infrastructure to provide more value to its clients and people.”

Founded in 2007, MediaCom India became a joint venture in 2008. Over the last eight years, MediaCom India has established itself as one of the top 5 media agencies in the market in terms of market share (source: RECMA ratings 2015). In 2016, WARC ranked MediaCom India’s Mumbai office as one of the top 10 media agencies in the world based on performance in effectiveness and strategy impact for its clients.

The Content + Connection agency, MediaCom India, delivers not just individual channel efficiencies but also connected communications system effectiveness by developing and optimising all content –as the fuel that drives high-performing systems. Furthermore, the India team has adapted the ‘People First’ philosophy very well from its global parent, resulting in the lowest attrition rate in the media industry. The agency has consistently won all major awards, both global and local including M&M, Spikes Asia, FOM Asia as well as The Global Awards, EMVIEs, ABBYs, etc.

January 25, 2017
GroupM acquires controlling interest in MediaCom India

MUMBAI: WPP’s GroupM, the world’s leading global media investment group, yesterday announced it will be acquiring a majority stake in MediaCom India, a joint venture between GroupM India and Sam Balsara, the principal shareholder of the Madison Media group. While MediaCom India will continue operating as an independent brand, the agency will have the advantage of access to GroupM’s global infrastructure.

This acquisition continues WPP’s strategy of investing in fast growth markets, new media and digital.

“The majority acquisition of MediaCom in India represents a significant evolution in one of the world’s fastest growing economies. As India becomes a very attractive business hub for global clients, we are confident our talented team in India will deliver exemplary growth and results for all stakeholders,” MediaCom Worldwide CEO Stephen Allan.

Speaking on the acquisition, GroupM South Asia CEO CVL Srinivas said, “MediaCom India has won several prestigious clients, developed a strong digital presence and has delivered award-winning campaigns for clients. As a network, we have taken giant strides globally and in India towards a more Data and Tech-led core to our business. MediaCom India can harness our world-class media infrastructure to provide more value to its clients and people.”

Founded in 2007, MediaCom India became a joint venture in 2008. Over the last eight years, MediaCom India has established itself as one of the top 5 media agencies in the market in terms of market share (source: RECMA ratings 2015). In 2016, WARC ranked MediaCom India’s Mumbai office as one of the top 10 media agencies in the world based on performance in effectiveness and strategy impact for its clients.

The Content + Connection agency, MediaCom India, delivers not just individual channel efficiencies but also connected communications system effectiveness by developing and optimising all content –as the fuel that drives high-performing systems. Furthermore, the India team has adapted the ‘People First’ philosophy very well from its global parent, resulting in the lowest attrition rate in the media industry. The agency has consistently won all major awards, both global and local including M&M, Spikes Asia, FOM Asia as well as The Global Awards, EMVIEs, ABBYs, etc.

January 25, 2017
Streamers 50% of online population; 60% content streaming on mobile devices: GroupM

NEW DELHI: Globally online streaming is getting mainline. Or so it seems. Streamers make up almost 50 per cent of the online population, while over 60 per cent of content streaming, led by music, is now done over mobile devices and much of it can be linked to “moods and moments”, according to a study done by GroupM and Spotify.

The report, put out by GroupM on its website early 2017, says the TV and movie streaming landscape is currently dominated by paid subscriptions, which promise users a high-quality, ad-free viewing experience. The TV and movie streamers make up about 40 per cent of the streaming realm.

According to the study, if the entry price point for TV and movie streaming is typically a monthly subscription fee, the entry price point for music streaming is even better: free. Because while most music streaming services do offer a paid subscription plan—much like the top video services— some, such as Pandora, Spotify, YouTube, and SoundCloud, also offer a completely free listening experience, supported by ads.

The study, undertaken in seven markets, including the US and parts of Europe, further observes that approximately 20 per cent of mobile music steamers report listening to music while out running errands and 30 per cent say they listen to music while showering.

Streaming audio and video content now play a constant role in people’s daily lives—and this drives a whole new set of consumer behaviours that the analysts like to call the streaming mindset. GroupM feels as people clamour for more content that they can get anytime, anyplace, their consumption habits span a wider range of media types and drive higher engagement across their day. The result is a greater value on access to content over ownership.

As streaming becomes standard, it’s now an expectation for consumers to have access to all media, all the time. In the process, the concept of “ownership” has become outdated. The study found that streamers are 23 per cent more likely than non-streamers to report valuing access to content over ownership, not only for music but for TV and movie content as well. “Controlling for demographic variables, this sentiment runs true across generations. Similarly, streamers in more mature markets (for example, the US) are more likely to endorse an access mindset, suggesting that the sentiment indeed grows over time,” the study observes.

“Today, streamers make up almost 50 per cent of the online population, according to our survey. So it’s time to see streaming as the norm rather than the niche— as an integral piece of your media plan rather than an afterthought,” observes Rob Norman, Chief Digital Officer, GroupM, adding that for brands and marketers, these on-demand, on-the-go streaming services have the potential to provide unprecedented levels of consumer under¬standing.

This ‘moods’ and ‘moments’ approach has the potential to open up about $220 million in new ad revenue in the seven markets surveyed, AdAge comments.

For this study, GroupM paired Spotify’s streaming data for its +100 million users alongside GroupM’s LIVE PANEL, a 30-market consumer resource panel built from a Lightspeed database of 5.5M consumers. To add some context to the product and LIVE PANEL data, GroupM also surveyed 20,000 people around the globe to uncover the streaming state of mind.

“Our results reveal rising trends, key metrics, and important truths that can ultimately help make sure your media plan is future-proof, built around high-quality content and made for the consumers of tomorrow,” Norman explains.

January 6, 2017
Streamers 50% of online population; 60% content streaming on mobile devices: GroupM

NEW DELHI: Globally online streaming is getting mainline. Or so it seems. Streamers make up almost 50 per cent of the online population, while over 60 per cent of content streaming, led by music, is now done over mobile devices and much of it can be linked to “moods and moments”, according to a study done by GroupM and Spotify.

The report, put out by GroupM on its website early 2017, says the TV and movie streaming landscape is currently dominated by paid subscriptions, which promise users a high-quality, ad-free viewing experience. The TV and movie streamers make up about 40 per cent of the streaming realm.

According to the study, if the entry price point for TV and movie streaming is typically a monthly subscription fee, the entry price point for music streaming is even better: free. Because while most music streaming services do offer a paid subscription plan—much like the top video services— some, such as Pandora, Spotify, YouTube, and SoundCloud, also offer a completely free listening experience, supported by ads.

The study, undertaken in seven markets, including the US and parts of Europe, further observes that approximately 20 per cent of mobile music steamers report listening to music while out running errands and 30 per cent say they listen to music while showering.

Streaming audio and video content now play a constant role in people’s daily lives—and this drives a whole new set of consumer behaviours that the analysts like to call the streaming mindset. GroupM feels as people clamour for more content that they can get anytime, anyplace, their consumption habits span a wider range of media types and drive higher engagement across their day. The result is a greater value on access to content over ownership.

As streaming becomes standard, it’s now an expectation for consumers to have access to all media, all the time. In the process, the concept of “ownership” has become outdated. The study found that streamers are 23 per cent more likely than non-streamers to report valuing access to content over ownership, not only for music but for TV and movie content as well. “Controlling for demographic variables, this sentiment runs true across generations. Similarly, streamers in more mature markets (for example, the US) are more likely to endorse an access mindset, suggesting that the sentiment indeed grows over time,” the study observes.

“Today, streamers make up almost 50 per cent of the online population, according to our survey. So it’s time to see streaming as the norm rather than the niche— as an integral piece of your media plan rather than an afterthought,” observes Rob Norman, Chief Digital Officer, GroupM, adding that for brands and marketers, these on-demand, on-the-go streaming services have the potential to provide unprecedented levels of consumer under¬standing.

This ‘moods’ and ‘moments’ approach has the potential to open up about $220 million in new ad revenue in the seven markets surveyed, AdAge comments.

For this study, GroupM paired Spotify’s streaming data for its +100 million users alongside GroupM’s LIVE PANEL, a 30-market consumer resource panel built from a Lightspeed database of 5.5M consumers. To add some context to the product and LIVE PANEL data, GroupM also surveyed 20,000 people around the globe to uncover the streaming state of mind.

“Our results reveal rising trends, key metrics, and important truths that can ultimately help make sure your media plan is future-proof, built around high-quality content and made for the consumers of tomorrow,” Norman explains.

January 6, 2017
BJP awards Madison Media assembly election media buying campaign

MUMBAI; The Bharatiya Janata Party is once again relying on the Sam Balsara headed Madison Media to handle its media buying during the upcoming state elections in Uttar Pradesh, Goa and Punjab. The agency had bagged the BJP’s media duties in 2014 for the parliamentary elections too following a multiagency pitch, which included GroupM, Lodestar UM, Prachar Communications, among others. Additionally, it had handled the media duties for the BJP during the assembly elections in Assam and Tamil Nadu.

Estimates place the spends that the BJP is going to splurge during the upcoming polls at anywhere between Rs 120 crore to Rs 200 crore. And Madison Media has been mandated to plan the TV and print media buying for the states.

Prime minister Narendra Modi’s BJP party is going to be tested during the assembly elections as the public sentiment appears to have turned marginally against him following the demonetization exercise and cash shortage thereafter. This has apparently troubled the common Indian who has had to wait for hours and days to take his money out of his own bank account, though the crunch seems to have eased over the past week or so.

The dates of the assembly elections are being decided by the Election Commission.

The Economic Times has stated that the BJP is working with O&M and Crayons as its creative agencies for Uttar Pradesh. And the party is leaving no stone unturned as it is keen to win the assembly elections from the Samajwadi Janta Party and a 2000 billboard strong campaign criticizing the SJP’s performance has commenced. Additionally, 400 video vans have been deployed to communicate the BJP’s message.

December 28, 2016
BJP awards Madison Media assembly election media buying campaign

MUMBAI; The Bharatiya Janata Party is once again relying on the Sam Balsara headed Madison Media to handle its media buying during the upcoming state elections in Uttar Pradesh, Goa and Punjab. The agency had bagged the BJP’s media duties in 2014 for the parliamentary elections too following a multiagency pitch, which included GroupM, Lodestar UM, Prachar Communications, among others. Additionally, it had handled the media duties for the BJP during the assembly elections in Assam and Tamil Nadu.

Estimates place the spends that the BJP is going to splurge during the upcoming polls at anywhere between Rs 120 crore to Rs 200 crore. And Madison Media has been mandated to plan the TV and print media buying for the states.

Prime minister Narendra Modi’s BJP party is going to be tested during the assembly elections as the public sentiment appears to have turned marginally against him following the demonetization exercise and cash shortage thereafter. This has apparently troubled the common Indian who has had to wait for hours and days to take his money out of his own bank account, though the crunch seems to have eased over the past week or so.

The dates of the assembly elections are being decided by the Election Commission.

The Economic Times has stated that the BJP is working with O&M and Crayons as its creative agencies for Uttar Pradesh. And the party is leaving no stone unturned as it is keen to win the assembly elections from the Samajwadi Janta Party and a 2000 billboard strong campaign criticizing the SJP’s performance has commenced. Additionally, 400 video vans have been deployed to communicate the BJP’s message.

December 28, 2016
GroupM’s Shan Jain joins Publicis Media India

MUMBAI: Former GroupM executive Shan Jain has joined Publicis MediaIndia as the head of business transformation practice. Jain’s last stint was with GroupM, as Principal Partner, Client Leadership at Mindshare.

Jain comes with more than 24 years of rich and diverse experience across Media, Account Planning, Strategy and Account management and has worked with Mindshare, RK Swamy BBDO, The Media Edge, FCB Ulka, Lowe, McCann and Ogilvy. Some of the key clients she has led and contributed to are HUL Personal Care, HUL Foods and beverage, GSK, ITC, Maruti and Gillete. She is passionate about brands and consumer journeys and has to her credit multiple awards including Spikes and Festival of Media Asia and Festival of Media Global. While it is a national role, she will be based out of Gurgaon.

Publicis Media India CEO Anupriya Acharya said, “Business Transformation Practice of Publicis Media unlocks growth by re-engineering our client’s customer experience through a combination of talent and technology. Shan will be supported by Gautham Ram Pingali in this area who himself has a great experience around technology and its far-reaching impact on clients businesses. He also continues to lead the Content Practice in PM India.”

Jain said, “The excellent data, analytics and tech support that I can lean on within the group as well as the extended expertise for Publicis. Sapient puts us in a very advantageous position in the market to strike these conversations with clients.

December 8, 2016
GroupM’s Shan Jain joins Publicis Media India

MUMBAI: Former GroupM executive Shan Jain has joined Publicis MediaIndia as the head of business transformation practice. Jain’s last stint was with GroupM, as Principal Partner, Client Leadership at Mindshare.

Jain comes with more than 24 years of rich and diverse experience across Media, Account Planning, Strategy and Account management and has worked with Mindshare, RK Swamy BBDO, The Media Edge, FCB Ulka, Lowe, McCann and Ogilvy. Some of the key clients she has led and contributed to are HUL Personal Care, HUL Foods and beverage, GSK, ITC, Maruti and Gillete. She is passionate about brands and consumer journeys and has to her credit multiple awards including Spikes and Festival of Media Asia and Festival of Media Global. While it is a national role, she will be based out of Gurgaon.

Publicis Media India CEO Anupriya Acharya said, “Business Transformation Practice of Publicis Media unlocks growth by re-engineering our client’s customer experience through a combination of talent and technology. Shan will be supported by Gautham Ram Pingali in this area who himself has a great experience around technology and its far-reaching impact on clients businesses. He also continues to lead the Content Practice in PM India.”

Jain said, “The excellent data, analytics and tech support that I can lean on within the group as well as the extended expertise for Publicis. Sapient puts us in a very advantageous position in the market to strike these conversations with clients.

December 8, 2016