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Tag: GroupM

  • $99 bn spent on internet ads globally in 2012: GroupM

    MUMBAI: Global internet advertising at $99 billion has amounted to 19.5 per cent of the total ad investment for 2012, according to GroupM‘s This Year, Next Year: Interaction 2013 report. This justifies GroupM‘s prediction in last year’s report that said internet ad spends that year will surpass $98 billion.

    Global internet advertising, according to GroupM, posted a 16.2 per cent growth over the year-ago period.

    Geographically speaking, North America led the list with internet spends to the tune of $38.3 billion (38.69 per cent of global internet ad spends) followed by the Asia Pacific region at $30.6 billion (30.91 per cent) and Western Europe in third place with spends of $ 24.1 billion (24.34 per cent).

    In 2011, the spends on internet advertising stood at $84.8 billion. Back then, it made up 17 per cent of the total global advertising investment. In 2011 too, North America led the pack in terms of overall digital ad spending with an estimated $34.5 billion; Asia-Pacific came in second with $24.8 billion followed by Western Europe with $21 billion.

    The study is part of GroupM‘s media and marketing forecasting series drawn from data supplied by parent company WPP‘s worldwide resources in advertising, public relations, market research, and specialist communications. The study has expanded its scope since last year, adding six new countries to its research bringing the total to 26 countries.

    The study predicts that in 2013 digital advertising spending will reach $113.5 billion globally, a spike of 14.6 per cent from 2012. This is estimated to be 21 per cent of all measured advertising investment in the year. North America will continue to be the region with the highest internet ad spends with an estimated $42.8 billion; Asia-Pacific is predicted to follow with $36.8 billion and Western Europe is estimated to see ad spends in the range of $26.6 billion.

    In the U.S., digital ad spends reached $35.4 billion in 2012, a 23 per cent share of the overall domestic market and a 10 per cent increase over the previous year, according to the study. This year those figures are expected to reach $39.7 billion for a 25.4 per cent share and a 12 per cent increase over 2011.

    GroupM global chief digital officer Rob Norman said, “The internet no longer belongs to the old world and eastern Asia, nor does it depend upon evolution of infrastructure conceived a generation or more ago, but instead reaches every continent and economically active individual. Ken Olsen, founder and CEO of Digital Equipment said in 1977, ‘There is no reason for any individual to have a computer in his home.’ It turns out that he may, inadvertently, have been right. Why have a computer in your home when you can have computing anywhere you like?”

    Norman also touched upon the issue of the rise and impact of online video. “Tablets created an entirely new and original mechanism of media consumption in less than three years. Tablets combine the display quality of HDTV, the interactivity of the PC and the location awareness, touch interface and app ecosystem of the mobile phone. Media is being re-imagined for the tablet and is increasingly seen as the future home of what we have always described as the print industry, the decline of which is precipitous with ever-fewer exceptions,” he sated.

    According to the report, e-commerce per user will stand at $859 in 2013, a 64 per cent increase since 2007. International e-commerce total adds up to $917 billion for 2012 with a run-rate growth of 18 per cent to a predicted $1.1 trillion in 2013. This volume of e-commerce generates an estimated 40 per cent of online paid-media ad investment today.

    The study also reveals that the average percentage of consumers’ “media time” spent online has risen from 21 per cent in 2007 to a predicted 30 per cent in 2013. In 2011, it was 19 per cent.

    Additionally, it was also found that investment in print media continued to lose share while digital media investment continued to gain. While print accounted for 14 per cent of the media time spent in a day, it attracted about 24 per cent of investment, down from 48 per cent. The decline of print advertising reflects falling circulations in the old world, but its share of the world‘s media day has been surprisingly stable, and even increased in 2011, thanks to China.

    % shares of the media day (26 countries)
     
    2007
    2008
    2009
    2010
    2011
    2012
    2013f
    Online
    21
    22
    25
    26
    27
    29
    30
    TV
    42
    42
    42
    41
    39
    38
    38
    Print
    15
    16
    15
    14
    16
    14
    14
    Radio
    16
    19
    19
    18
    18
    18
    18
    Total
    100
    100
    100
    100
    100
    100
    100

    These figures thrown up by the GroupM report substantiate the media communications conglomerate‘s confidence in the medium. The year 2012 saw media communications networks focus on digital capabilities with the big guns going on a shopping spree around the world.

    UK-based WPP, led by media honcho Sir Martin Sorrell, made as many as 18 digital buys across the globe with America’s AKQA being the crowning jewel in its acquisition trophy. The company made some strategic investments in the Indian subcontinent as well with the acquisition of Indian digital services agency Hungama Digital and Pakistani digital agency Converge Technologies.

    France based Publicis Groupe was also aggressive in its digital aspirations and made 13 acquisitions in the digital ad agency space, three of which were in India. Other media agency networks like Havas Media, Dentsu and the Interpblic Group have also taken the acquisition route to strengthen their digital capacities. Havas underwent a restructuring that made way for an exclusive Digital Umbrella in order to better integrate its digital arm with its creative and media businesses.

    The advertisers too seemed to be gung-ho about the medium with almost every major brand making sure it gets its share of limelight in the digital space. Brands like Nike, Coca-Cola, Mercedes and McDonald‘s made use of tools like YouTube, Facebook and Twitter apart from display ads to influence and engage the audiences.

  • MEC India bags Dixcy Scott’s media biz

    MUMBAI: MEC India has been awarded the media duties for the innerwear brand Dixcy Scott, following a multi-agency pitch.

    The agency‘s Bangalore office will handle the account.

    Dixcy director Raghul Sikka said, “We have very aggressive plans for the coming year and we wanted a like-minded partner on board. It was a tough fight between equally competent agencies. We believe we have found that partner in MEC. We look forward to working with MEC”.

    Dixcy Scott heads – advertising and promotion Ganesh Sharma added, “Being a low involvement category, our media product needs depth coupled with an innovative approach to reach our target audience, which will eventually deliver the desired results for us”.

    MEC India MD T Gangadhar said, “Dixcy is a key player in the Indian innerwear market and we are delighted to have them on board. We look forward to a mutually rewarding association”.

    For the record, MEC, a GroupM agency, has a repertoire of clients that include Colgate Palmolive, Britannia, Reliance Industries, LG, Honda, FlipKart, Citibank, Nivea, Zee Network, CavinKare, DHL, Jaypee Group and Accenture.

  • Nestle consolidates digital biz with Maxus Digital

    MUMBAI: Nestle India has consolidated its digital and social media Duties with GroupM’s Maxus Digital.

    The FMCG major has been successfully executing various digital initiatives on brand websites, social media and mobile across brands. Nescafe, Maggi, Milkmaid amongst others are some of the largest Facebook Communities in their respective businesses. These digital assets of Nestle India that were being managed by multiple agencies have now been consolidated under Maxus digital.

    Maxus Digital will work closely with the company and also help manage the Digital Acceleration and Services Hub ‘DASH’. Maxus has dedicated a team for Nestle India with skills in social media platforms, measurements and creative and some of these team members will be operating from DASH in the Nestle Head Office.

    Maxus South Asia head of digital Unny Radhakrishnan said, “We are very proud to be a part of Nestle’s digital journey. In a digitally connected world, reaching and engaging consumers requires expertise and understanding in diverse areas of Creative, content, technology, media and the ability to measure. DASH that has been launched by Nestle is the first of its Kind in India and we are excited about enhancing their capabilities with our own digital expertise.”

    Maxus South Asia MD Ajit Varghese said” We are excited to partner Nestle India and at being able to set up the first of its kind digital team for them. Nestle has already developed some good digital assets and we will work closely with the Nestle team to mesh them with mainstream marketing. “

    Maxus Digital is the digital arm of Maxus and offers services in the areas of digital consulting, media, creative, technology and social. Maxus Digital’s clients include Nokia, Google, Vodafone, Titan, Hero Motocorp, Redbull, Fiat and Tata Motors.

  • GroupM launches Y-Co in India

    MUMBAI: WPP‘s media agency GroupM has launched an initiative aimed at leveraging the talent of its younger executives.

    The agency network has nominated a committee of 14 individuals from across all its agencies and specialist units to a youth executive committee called Y-Co.

    All the individuals nominated to Y-Co are star performers in their 20s.

    According to GroupM, the Y-Co will help the agency drive its strategic agenda forward with creative, youthful ideas and initiatives. It will complement the executive committee (senior leadership team) and work like a mini EXCO.

    GroupM South Asia CEO CVL Srinivas said, “In a dynamic and digitally charged industry like ours, youngsters have a much better grip of what is going on. We felt it was time we gave them a platform for full and effective participation in decision-making. Implicit in this commitment is an acknowledgement that young people are part of the solution and catalysts of change.”

    Y-Co was formally launched by GroupM Global president Dominic Proctor during his recent visit to India.

    GroupM talent head Sonali Vaidya said, “We have a great talent pool of high performers amongst our younger staff. We plan to give them all a chance to be a part of Y-Co by rotating membership. We hope to build a better connect between the seniors and juniors of the organisation through this initiative.”

  • Siddharth Sethi to head Mindshare’s digital business

    Mumbai: Mindshare, the flagship media agency of GroupM, has appointed Siddharth Sethi as leader- Digital for Mindshare India.

    Sethi’s last stint was as director India for Xaxis, GroupM‘s audience buying company.

    He is taking over the position which was vacant since Ashok Lalla quit in May 2012. Lalla is now with Infosys as global head- digital marketing.

    In his new role, Sethi will be responsible for boosting the agency’s full-service digital offerings geared towards actively pushing adaptive planning, performance and digital analytics to the fore.

    Based out of Mumbai, he will report into Mindshare South Asia leader Ravi Rao.

    Rao said, “We are very fortunate to have someone with such integrated expertise at the helm of our digital offerings. Siddharth‘s experience of having led Xaxis in India will be another factor in enhancing the overall digital offering as well his entrepreneurial culture will take Mindshare into a league of its own, well within the Original Thinking Framework for all brands. He is technologically savvy, understands the brand space and is performance driven.”

    On his move to Mindshare, Sethi said, “I am delighted to be joining an agency with such an impressive digital portfolio. Over recent years Mindshare has really built a strong digital team with some really impressive digital and social media campaigns under its belt. I am really looking forward to building on this reputation.”

    Sethi has over 12 years of experience in media management, marketing and product management. He has spent the last seven years focused on helping digital startups create products and revenue streams.

  • GroupM launches a consulting division

    MUMBAI: GroupM has launched GroupM Consulting Services, a new division designed to help clients achieve improvements to their marketing effectiveness and business results.

    The announcement was made by GroupM North America CEO Kelly Clark, who said the new unit would be led by Ernie Simon, a media agency executive with more than 25 years of experience.

    Simon was most recently OMD chief strategy officer. He also spent 10 years at the GroupM agency Mindshare.

    GroupM is the parent company to WPP media agencies Maxus, MEC, MediaCom, and Mindshare. It is the leading global media investment management operation with 2011 global billings of $90.7 billion (Source: Recma).

    Clark said that Simon, whose new role is effective immediately, was the ideal candidate to lead the new division.

    “Ernie‘s credentials speak for themselves. He‘s a total professional with a great mix of strategic and analytical skills. He also has extensive experience in a wide range of product and service categories, and we are delighted to welcome him back.”

    Simon will serve as president of the new division and will lead a team of analysts and consultants. The group will work with its clients to leverage capabilities and resources from across GroupM and its holding company WPP. The group‘s services will include the following:

    • Marketing and media analytics
    • Portfolio management
    • Marketing budget allocation and optimization
    • Target prioritization and optimization
    • Business forecasting
    • Return on media/marketing investment

    Simon worked at Mindshare from 1998 until 2009 where his roles included Chief Strategist and President of Strategic Planning, among others, most of them related to client leadership. At one point he served as Worldwide Strategic Planning Director on the Gillette account encompassing 50 brands in over 100 countries. He also managed the Bristol Myers-Squibb US account, as well as the Warner-Lambert/Pfizer business. He joined Mindshare when it was founded in 1999; he previously worked in the media department of WPP sister agency JWT.

  • Women Power: Anita Kotwani

    As the International Women’s Day approaches, Indiantelevision.com catches up with some of the leading ladies in the media business to discuss the role of women in the current scenario. Mindshare’s Anita Kotwani shares her views on how it is to function in the media industry as a woman. With 16 years of experience in media planning, business development, marketing, media management, product promotions and team building, Kotwani is currently principal partner, client leadership at GroupM’s Mindshare.

    Q: How has the business of media changed in the last decade?

    A: It has been an enriching and rewarding experience through the years as the backroom media function of the erstwhile years has come to the forefront with the media agency getting an equal stake as compared to the creative agency in front of the clients.

    Q: How conducive is the environment for women to thrive in the media business today?

    A: This is one industry where we have seen women standing up at par with their male counterparts and in many cases are the ones leading the businesses. Recognition of the value that they bring to the business has been seen across the board and their efforts have been rewarded and recognised.

    Q: What are the major challenges women face today in the media business?

    A: The foremost challenge is to keep pace with the changing environment. Recognising the importance of new and emerging media, newer technologies will be critical going forward. Ensuring that we start the process of training on these mediums from the seniors would be important as otherwise you will have the younger lot being a lot savvier on the newer environments than yourselves.

    Another aspect that is challenging is respecting one as a senior. As a boss you need to ensure that you add value to your employees or the staff reporting to you. The respect that you gain from them when you are able to direct, guide, motivate or delegate as per the skill / will framework is an integral part for their development. In their success lies yours and you need to ensure that you carve out their growth trajectory in the organisation.

    Q: What changes would you like to see in the work environment to make it a better and more conducive place for women?

    A: The constant struggle that I do see for our industry is the work-life balance that is so hard to maintain. And for women with families and children to take care of, coping with both home and work is a challenge. I would really like to see flexible hours for women so that they can balance out their family and work life. As long as they are able to deliver on the work load, giving them the flexibility to work as per their convenience would help women to continue working rather than taking the necessary sabbatical that many do once they have kids to manage.

    Q: What advice would you give to the young girls entering the business of media today?

    A: For a person from a law background coming into this industry accidentally, I would really like to state that this industry grows on you. It is challenging and fun, yes stressful as well, but the satisfaction of making a difference and helping brands grow is another high. To add to that, the recognition and accolades that you draw for some path breaking work you have done on brands challenges you time and again to raise the bar on the businesses one handles.

  • Atit Mehta made media head for South Asia at Unilever

    MUMBAI: Fast moving consumer goods giant Hindustan Unilever Ltd (HUL) has made a couple of changes in its senior management.

    Atit Mehta, currently manager media services, has been appointed as head – media, South Asia, Unilever succeeding Abhiroop. He will report to Rahul Welde, vice president-media, Unilever.

    An HUL spokesperson confirmed the news and spoke about the other change in the senior team. “Abhiroop Chuckarbutty, currently head – media, South Asia, Unilever, has been appointed as GM – packaged foods, HUL and will report to Geetu Verma, executive director – foods, HUL.”

    Chuckarbutty was appointed to the post of head – media, South Asia in November 2011. Mehta has been with HUL since 2008 when he joined as senior media services manager. Before that he was with Colgate Palmolive as country media manager from 2007 to 2008. He has also worked on the agencies‘ side as business director with GroupM for seven years from 2000 to 2007.

  • Mediacom bags media biz of Mars

    MUMBAI: GroupM‘s Mediacom has won the consolidated business of Mars in India following a multi-agency pitch that saw participation of incumbent agencies and Starcom MediaVest Group.

    Mediacom already handles the account of Mars in 18 countries across the world.

    In India, the account was earlier divided between RK Swamy Media and MEC India. However, Mars‘ brand Wrigley India was being handled by Mediacom and hence the agency has retained the account.

    MediaCom India MD Debraj Tripathy said, “Yes we have won the account and we have already started working on it.”

    On 2008, Mars Incorporated together with Berkshire Hathaway Incorporated had boughtout chewing gum brand Wrigley.

  • Apollo Hospitals consolidates media biz with Mindshare

    MUMBAI: Apollo Hospitals has consolidated its media duties with Mindshare following a multi-agency pitch that took place in early December.

    The GroupM agency was pitted against Madison Media in the final round of the pitch. The account size is pegged at around Rs 200 million.

    Mindshare‘s Chennai office will service the account. Mudra Max was the incumbent agency handling Apollo Hospital Chennai account.

    The agency has already started working on the business. It will soon launch the brand‘s national campaign with focus being on television and digital medium.

    For the record, Lowe Lintas is the creative agency of record (AoR) for Apollo Hospital.