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Tag: Jerry Buhlmann

  • Digital ad-spend to be 37.6% Vs TV’s 35.9% by ’18: DAN

    MUMBAI: The world media is reaching a tipping point in ad spend now as digital overtakes television, mobile overtakes desktop and paid search overtakes print. Dentsu Aegis Network’s forecasts suggest that, in 2018, digital will be the top media in terms of global share of spend, taking over television for the first time. Digital’s share of total media spend is predicted to reach a 37.6% share in 2018 (up from 34.8% in 2017), versus 35.9% for television (down from 37.1% in 2017), amounting to a total value of US$ 215.8 billion.

    Based on data received from 59 markets across the Americas, Asia-Pacific, Europe, Middle East and Africa, Dentsu Aegis Network’s Ad Spend Forecasts – June 2017 point to a more cautious economic outlook in 2017 than the previous year, with global ad spend growth falling from 4.8% to 3.8% (see Figure 1). However, conditions are set to improve in 2018 with forecast growth in ad spend of 4.3%. Events will play a key role in 2018, with events such as the Winter Olympics & Paralympics in South Korea, the FIFA World Cup in Russia and the US Congressional elections all expected to stimulate ad spend growth.

    · New ad spend growth forecasts show caution in 2017 but improved outlook for 2018.

    Global ad spend to hit $563.4 billion in 2017 with digital driving growth.

    Global ad spend growth holds at 3.8% amid cautious near-term outlook

    · Globally, mobile ad spend is set to overtake desktop in 2017, with digital overtaking TV in 2018

    · Innovation in digital advertising (video, social, programmatic) powers spend growth

    Despite concerns about the economic impact of Britain’s decision to leave the European Union, UK ad spend growth held up better than expected in 2016 at 6.1%. While there are signs of caution in 2017, with growth dipping to 4%, 2018 is forecast to see growth bounce back to 5.9%. A similar picture unfolds in the United States, where a slowdown to 3.6% is forecast for 2017, followed by a slight improvement in 2018 to 4.0%. The United States also remains the largest market in the world, accounting for 37.7% of global advertising spend in 2017. Advertising spend in emerging markets continues to outpace developed economies. For example, ad spend growth in India is forecast to grow at 13% in 2017, while China is the second largest market in the world by share of advertising spend—remaining the only emerging economy to feature in the top five largest ad markets.

    Mobile and digital become the new default settings: Our forecasts show how digital technology continues to disrupt and drive innovation in the way brands connect with their consumers. In 2017, we forecast that advertising spend on mobile will overtake desktop, reaching 56% in terms of share of global Digital advertising spend. In 2018, mobile ad spend will grow further to account for a total of US$116.1 billion. With smartphone subscriptions set to reach 4 billion by 2025 and about a third of consumers reporting that their smartphone is their primary source of entertainment, we can expect to see this trend continue to strengthen.

    Furthermore, our forecasts suggest that in 2018 digital will be the top media in terms of global share of spend, taking over television for the first time. Digital’s share of total media spend is predicted to reach a 37.6% share in 2018 (up from 34.8% in 2017), versus 35.9% for television (down from 37.1% in 2017), amounting to a total value of US$215.8 billion. Reflecting the continued disruption by digital technology of the print media industry, Paid Search (advertising within the sponsored listings of a search engine) is forecast to overtake traditional print media (newspapers and magazines) in 2018. Print media has been on a downward trajectory for some years now, but will likely fall to a 13.8% share of total spend in 2018 (down from 15.1% in 2017) while paid search is forecast to grow to 14.6%, up from 13.6% in 2017.

    Video, social and programmatic power innovation and growth: While digital ad spend is growing rapidly and set to overtake television, within digital there are a number of new sources of growth that point to the future of advertising. For example, in 2017, online video is set to grow by 32.4%; social by 28.9%; and programmatic (i.e. automated ad buying) by 25.4%. Looking ahead, brands will need to embrace the potential of disruptive technologies such as virtual reality, artificial intelligence and voice activation. However, research suggests that only 8%of brands currently intend to use virtual reality for advertising purposes.

    Commenting on the latest ad spend forecasts, Dentsu Aegis Network CEO Jerry Buhlmann said, “We are reaching a tipping point in ad spend now as digital overtakes television, mobile overtakes desktop and paid search overtakes print. Digital and data must now be the default settings for advertisers. Evolving to people-based marketing rather than audience-based marketing and using data to increase addressability is essential for brands to manage tighter conditions in 2017 while positioning themselves for future growth.”

    “At the same time, the challenge for brands is to ensure that they are ready to embrace the potential of new innovation. As technologies such as virtual reality and voice activation become more prominent, brands must ensure that they remain relevant by creating new value for their consumers.”

    Carat India MD Kartik Iyer commented, “India continues to be amongst the few countries seeing growth rates in double digits. While this may be slightly lower than past expectations owing to various market drivers like demonetization and GST, the growth is clearly expected to continue. Driving this growth is Digital with a growth rate of over 35% which is far in excess of that seen by other more traditional media. And with digital quickly progressing on its path of becoming the Go To media for entertainment, this trend is also expected to continue. Other media like TV and cinema are expected to grow at around 12% while Radio and OOH should see a growth of 10% and Newspapers around 8%.”

    “Another medium that is driving growth is that of ambient (at over 15% growth rates). Considering the changing retail environment, the medium, in tandem with digital is becoming pivotal for delivering quality engagement with consumers.”

  • Dentsu Aegis Network forms ninth global network brand MKTG

    Dentsu Aegis Network forms ninth global network brand MKTG

    MUMBAI: Dentsu Aegis Network has formed its ninth global network brand, MKTG, the lifestyle marketing agency it acquired in August 2014 headquartered in New York. 

     

    The agency’s transition towards operating as one global brand, MKTG will grow from 450 full time employees and 7,000 brand ambassadors in the United States, to nearly 1,000 full time employees in 14 countries, providing a truly global lifestyle marketing solution for clients. 

     

    The realigned agency will provide clients with an integrated through-the-line service offering including sports and entertainment consulting, experiential marketing, sponsorship identification, negotiation and activation, hospitality, strategy, research and insights, custom measurement, digital and creative capabilities, content development, design and retail marketing.

     

    “The tremendous growth and importance of lifestyle marketing made it clear that strategically it was time to unify our like-minded businesses as one single brand. As a network, we are constantly evolving to meet the demands of our clients, to be responsive to the needs and desires of consumers and to remain pioneering in the evolution of our industry,” said Dentsu Aegis Network CEO and Dentsu Inc. executive officer Jerry Buhlmann.

     

    In addition, out-of-home agency posterscope’s experiential arm, psLIVE’s offices across Europe and Asia Pacific, South Africa’s crimson room, Australia/New Zealand’s Apollo Nation and US-based sports and entertainment consultancy team Epic will be realigned as part of MKTG over the next 12 months.

     

    Dentsu Aegis Network chairman & CEO South Asia Ashish Bhasin said, “In India, the lifestyle marketing solutions market is growing at twice the rate of the ATL market. With Fountainhead, a leading player in India and MKTG, a leading global player, we now will have the best offering of global standards, through Fountainhead MKTG, which will make us the best lifestyle marketing solutions agency in India. This is another big step forward in helping us achieve our mission of being the second largest agency group by end 2017 in India, overturning for the first time the existing ranking which has historically been in place for over 80 years in India.”

     

    “We are truly excited about this next chapter and the opportunity to work across the network to deliver unrivalled lifestyle marketing solutions for brands. The realignment will also greatly benefit our current long-standing client base and our employees who now have the ability to plug into resources and opportunities around the globe,” said MKTG global brand president and MKTG USA CEO Charlie Horsey.

  • Indian ad spends to grow by 11.3% in 2016; digital to lead way: Carat

    Indian ad spends to grow by 11.3% in 2016; digital to lead way: Carat

    MUMBAI: Global media network Carat’s first forecast for worldwide advertising expenditure in 2016 shows that Indian advertising spend is poised to grow by 11.3 per cent in 2016.

    Following the formation of a stable government in 2014 led by Narendra Modi, the economic prospects look bright in India.While Indian advertising spends increased by +8.7 per cent in 2014, as per the agency’s forecast, it is poised to leap by double digits of +11 per cent in 2015.

    Carat’s also released its latest forecasts for 2015 and actual figures for 2014, with all markets ring-fencing digital media spending, even when faced with negative economic headwinds.

    Asia Pacific

    In the Asia Pacific market, advertising spend is forecast to grow by a solid +5.2 per cent in 2015. This has however been revised down from the +5.9 per cent previously forecast in September 2014, with its major market Japan moderating forecasts from +1.7 per cent to +0.9 per cent, alongside a number of other markets including Hong Kong, Taiwan, Malaysia and Vietnam. Growth is expected to pick up pace in 12 out of the 14 markets in 2016 with growth overall of+5.8 per cent in 2016. 

    Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, Carat’s global advertising expenditure forecast showsthat digital media, with a predicted $17.1 billion or +15.7 per cent increase in spend in 2015, is outpacing previous Carat predictions from September 2014. Powered by a dramatic rise in mobile ad spending globally of +50 per cent and online video of +21.1 per cent predicted in 2015, Carat forecasts that digital will, for the first time, account for more than a quarter of all advertising spend in 2016 with a market share of 25.9 per cent.

    From a global perspective, Carat forecasts that in 2015, advertising spend across all media will increase by $23.8 billion to reach $540 billion, accounting for a +4.6 per cent year-on-year increase. Market optimism continues into 2016 with Carat’s first forecast for the year predicting a year-on-year global advertising growth of +5.0 per cent.

    Carat Advertising spend forecast -March 2015

    Digital media spend continues to be the star driver of growth in the global advertising market, with a predicted $17.1 billion increase in spend in 2015 corresponding to a 15.7 per cent year-on-year growth rate, outpacing previous Carat predictions from the September 2014 report.New predictions for 2016 highlight that digital will continue to grow at double-digit levels, at 13.8 per cent, and will account for more than a quarter of all advertising spend globally.

    Trend Highlights from the report:

    ·Digital’s unwavering positive trajectory is being powered by a dramatic rise in mobile, online video, social media and programmatic spending. Carat predicts that in 2015, global mobile spend will increase +50 per cent, and online video will be up +21.6 per cent. US programmatic display advertising spending is predicted to grow +137 per cent to reach $10 billion this year, accounting for 45 per cent of the US digital display ad market.

    ·Digital media spend is being ring-fenced by advertisers even in markets with significant negative economic headwinds.In Central & Eastern Europe for instance, while total advertising spend is predicted to decrease by 2.2 per cent this year, digital media will see a double-digit growth of +12.9 per cent. Digital media is the only media expected to grow in this region this year.

    ·Carat’s first advertising expenditure forecasts for 2016 show elevated confidence in the advertising market, a robust +5 per centgrowth despite a still-recovering economic climate boosted by a year of events- the UEFA European Football Championships, Rio 2016 Olympic Games and US presidential elections.

    ·Global forecasts for 2015 have been revised down from the +5.0 per cent previously forecast in the September 2014 report, to +4.6 per cent. This is due to a reduction in advertising spend predictions in key markets including Russia, Japan and Brazil.

    ·The recovery in Western Europe has driven a second consecutive year of growth in 2015, predicted at +2.8 per cent. This follows a +2.3 per cent increase in advertising spend in the region in 2014. Growth is driven by the UK market, which is predicted to grow strongly by +6.4 per cent, and Spain by +6.8 per cent following the improved economic climate and consumer sentiment there. Greece (+8.0 per cent), Ireland (+5.7 per cent) and Portugal (+9.4 per cent) are also showing relatively high growth rates this year recovering after suffering severely from the global economic recession. Growth of advertising spend in Western Europe in 2016 is forecast to continue at the predicted level for 2015 of +2.8 per cent.

    By media, whilst Digital is the star performer in terms of growth, achieving higher that predicted levels in 2014 of +17.4 per cent and accounting for 21.7 per cent of market share, TV will continue to command the majority of market share for the foreseeable future, reaching 42.7 per cent in 2014, and is predicted to grow by more than +3 per cent year-on-year in 2015 and 2016. The steady decline in Print is expected to continue, however Out-of-Home is now positioned as the second fastest growth media, behind Digital, with a global market share of spend of 7.1 per cent. For the first time, Out-of-Home is predicted to outpace Magazines global share of advertising spend, with Magazines forecast to achieve 6.9 per cent market share in 2015, and with continuing declines for this media, it is predicted to fall behind Radio for the first time in 2016.

    Commenting on the Carat Advertising Expenditure forecasts, Dentsu Aegis Network, CEO Jerry Buhlmann said, “The strength of Digital continues to dominate discussions and the new distribution of spending. With a quarter of the global population now owning and relying on their smartphones daily, they are our second brain in our hands. Mobile dominates the way consumers access information, view content, browse products and purchase goods and this is reflected in the innovative services and approach we are discussing with our clients.

    By media:

    Globally,digital media spend is forecast to increase by $17.1 billion this year to reach 23.9 per cent of total global media spend in 2015.Digital’s growth far outpaces all other media types with a forecast increase of +15.7 per cent in 2015 and +13.8 per cent in 2016.

    Growth in digital spend is high in all regions. The highest in Asia Pacific at +20.1 per cent in 2015, followed by an impressive +16.4 per cent in North America and +16.2 per cent in Latin America. Even in Central & Eastern Europe, which is showing overall sluggish ad market growth, digital spending is predicted to achieve double digit growth this year of +12.9 per cent. In Western Europe growth is in high single digits (+9.8 per cent) this year.

    Mobile spend is notably rising dramatically at +49.7 per cent in 2015 with circa 50 per cent growth in each of the regions – Western Europe, Asia Pacific, North America and double digit growth in Latin America and C&EE. With the rise in smartphone ownership rates and data usage, mobile is playing a huge role in the way consumers access information, view content, browse products and purchase services and goods.

    Carat is seeing a major shift in behaviour with internet usage on mobile devices catching up with PC usage and exceeding it in some markets yet at an investment level, there is still a significant discrepancy with the amount of time spent with mobile media disproportionate to the advertising share mobile attracts.A factor, which is holding back investment in mobile is the difficulty in proving the ROI for more traditional businesses. Much of the early investment in mobile advertising has been amongst pure-play, app economy brands and business for whom there is an easily demonstrable ROI for investing in mobile.

    Mobility is the primary reason behind social’s explosive growth. Facebook and Twitter will continue to be the big winners in the mobile social space. Facebook leads the way in mobile advertising investment with their cost effective solution to advertisers, non-intrusive native advertising experience to audiences, targeting capabilities and selection of ad formats. Twitter is moving up with an increase in spending behind promoted tweets, its Amplify pitches and improvements to its targeting options such as the development of its TV targeting offering. One of its big plays this year is the introduction of Promoted Video for advertisers – a new way for brands to post videos that users can play in their timelines with a single tap.

    Online Video demonstrates continuing strong growth, +21.6 per cent forecast for 2015, with growth partly driven by a shift of investment away from TV. Expectations are particularly high for original content. In the US, nearly half (48 per cent) of online video budgets will go to ’made for digital’ video.

    Display spends including Video and Social is forecast to increase by 15.8 per cent in 2015. However it is ‘Search’ that continues to command the highest share of total Digital spend at 45 per cent, with growth of+12.6 per cent this year and +11.5 per cent in 2016.

    TV continues to command the highest share of spend, 42.2 per cent globally in 2015, remaining popular particularly in Latin America and the Middle East with share of spend above the global average in APAC and C&EE.

    There are indications, however, of TV’s share slowly eroding as it has decreased by 1.2 per cent points over the past five years. Growth was boosted last year by a slew of events with +4.4 per cent growth. TV spend is predicted to increase by +3.6 per cent this year, picking up in 2016 a quadrennial year – to +3.9 per cent.

  • Carat predicts global ad spend growth at 5% in 2014 & 2015

    Carat predicts global ad spend growth at 5% in 2014 & 2015

    MUMBAI: Carat, a global media network, published its updated forecasts for worldwide advertising expenditure in 2014 and 2015, with market optimism demonstrated through strong global and regional forecasts.

    Based on data received from 59 markets across America, Asia Pacific and EMEA, Carat’s latest forecast shows overall global advertising revenues accelerating by +5.0 per cent in 2014, an increase on the +4.8 per cent predicted in March 2014, and reaffirming positivity for 2015 with year-on-year growth predicted at +5.0 per cent.

    From a regional perspective, Carat predicts further positive momentum in 2014 for North America and Western Europe, compared with figures announced in March 2014. The US continues to show strong on-going market growth, with levels of advertising spend in North America expected to exceed the pre-recession peak in 2007 for the first time by the end of 2014. Western Europe is predicted  to see a return to positive growth of +2.7 per cent after two consecutive years of declining advertising spend, driven by a strong UK advertising market forecast to grow by a robust +7.5 per cent, this year.

    Whilst forecasts show a slight decline in growth when compared with predictions from March 2014, Asia Pacific and Latin America are still both forecast  to outperform global predictions, with growth rates for 2014 of +5.4 per cent and 12.1 per cent respectively, and the only regions to see double digit growth in some markets.  Carat’s data also highlights that the outlook for 2015 continues to be encouraging with all key markets forecast to return to positive growth.

    In media, digital outperforms previous predictions for 2014 with year-on-year growth forecast at +16.1 per cent. Digital  will also increase its total share of spend, reaching 20.5 per cent in 2014 and 22.6 per cent next year, when it will outpace the combined Magazines and Newspaper global share for the first time. Whilst the steady decline in print is expected to continue, all other mediums are predicted to achieve year-on-year growths of approximately 3-5 per cent in 2014 and 2015.

    Dentsu Aegis Network CEO Jerry Buhlmann said, “Carat’s latest advertising forecast gives us increased optimism for the outlook of global and regional advertising spend. With the global recession further behind us and a healthy trend of 5 per cent year-on-year global ad growth, there is positive momentum building across the industry.”

    He added, “Whilst Digital continues to headline market trend discussions, the components within this dominant media now provide the interesting chapters, with the opportunities in mobile leading the debate. With changes and trends in consumer behaviour driving business opportunities, brands need to deliver innovative and integrated solutions to reap the rewards ahead.”

  • Aegis Q3 revenue growth better than rivals

    MUMBAI: Amid slowdown in Asia Pacific and Europe, Aegis Group has posted fiscal-third quarter revenue growth of 14.5 per cent. Even the organic revenue (excluding acquisitions and disposals) growth was at 6.3 per cent for the three-month period ended 30 September, higher than rivals WPP Group, Havas and Publicis Grooupe who ran slower at around two per cent.

    Aegis, which houses media agencies such as Carat and Vizeum and digital network Isobar, did not provide revenue figures as it is in the process of being acquired by Dentsu.

    By geographical region, Aegis‘ organic revenues in the Asia Pacific region saw a slump to four per cent compared to 14.4 per cent in the trailing quarter. Europe, Middle East and Africa slowed from 3.8 per cent in Q2 to 2.8 per cent in Q3. The Americas grew by 15.2 per cent in the third quarter which is down 18 per cent in the second quarter.

    Aegis Media grew at 6.3 per cent while its research arm Aztec grew at 6.7 per cent.

    The Group made a number of acquisitions and investments in the third quarter of 2012, including Catch Stone in China, Hablar in Japan, C2 in India, D2D and iSpy in the UK, W Garden in France, Irokeesi in Finland, and IQ Mobile in Austria.

    The group‘s total revenue for the first nine months ended 30 September increased by 16.3 per cent while its organic revenue saw an increase of 7.9 per cent. Aegis Media delivered total net new business wins of $2.9 billion during the first nine months of the year as compared to $2.4 billion in 2011.

    Aegis Group chief executive officer Jerry Buhlmann said, “Aegis produced another strong performance in the third quarter of 2012, with continued market-outperformance and sector-leading organic growth. Our strong business mix, supported by targeted acquisitions, gives Aegis a unique opportunity to deliver the integrated campaigns our clients require in the convergent media environment.”

    Earlier on 12 July Japanese media company Dentsu Inc. and Aegis announced that they had reached agreement on the terms of a recommended cash offer by Dentsu for Aegis. Shareholders approved the transaction at shareholder meetings on 16 August 2012.

    On 6 November, it was announced that all antitrust clearances identified in Part A of Part Three of the Scheme Document have been obtained, with the exception of clearance from the Ministry of Commerce of the People‘s Republic of China (“MOFCOM”) pursuant to the Anti-Monopoly Law of the People‘s Republic of China (the “Anti-Monopoly Law”).

    “Dentsu and Aegis remain confident that the Scheme will become effective on or prior to 28 February 2013 (the long stop date referred to in the Scheme Document),” Aegis said.

  • Aegis posts impressive H1 results ahead of Dentsu takeover

    MUMBAI: Global media conglomerate Aegis which is headquartered in London posted an organic revenue growth of 8.6 per cent for H1 2012, up by 0.8 per cent over year-ago.

    The billings for the H1 period of 2012 were ?596.8 million. In 2011, the Aegis group recorded billings worth ?519.1 million, registering a YoY increase of 15 per cent. Profits for the same period rose by 10.32 per cent from ?25.2 million in 2011 to ?27.8 million in 2012.

    Aegis Media APAC’s revenue increased by 17.3 per cent to ?115.8 million from ?98.7 million in 2011. China and Australia were the leading performers in the region for Aegis with other markets also doing reasonable well.

    The company’s revenue in the Americas region increased by 38 per cent to ?134.8 million as opposed to last year’s ? 97.7 million. Its North American business continued to improve its market position with the appointment of Carat US as General Motors Co’s global strategic media partner in January 2012.

    Geographically, the Europe, Middle East and Africa (EMEA) region revenue increased by 5.3 per cent (from 2011’s ? 290.7 million) to ?306.1 million with Russia, the UK, Turkey and across the Middle East and Africa delivering strong performances.

    In January 2012, the group acquired a further 41 per cent of the share in Norwegian agency Qualité Search taking its stake from 34 per cent to 75 per cent, thus obtaining control of Qualité which has joined the iProspect brand in Norway.

    In February 2012 Aegis fully acquired the holding company of Roundarch Inc, a digital agency which specialises in designing and building enterprise-class digital solutions for clients. Roundarch has been combined with Isobar, Aegis’s existing digital creative network in the US and renamed as RoundarchIsobar.

    In March 2012, Aegis acquired 70 per cent in the Hungarian out-of-home agency PPI Central Europe. PPI has been rebranded to become part of the Postercope EMEA division of Posterscope Worldwide.

    In May, the group fully acquired Beijing-based digital agency eLink Advertising, which is now a part of the Isobar network in China.

    Aegis Group chief executive officer Jerry Buhlmann said, “Successfully delivering our strategy in recent years has consolidated Aegis’s market-leading position and, in July, the Board recommended a ?3.16 billion cash offer from Dentsu. Once completed, this transaction will create one of the world’s most dynamic marketing services groups, the first truly global communications group born in the digital age, with the global reach to provide increased scale, capability and investment to support our clients. For our people, the combination offers continuity and the promise of working for one of the most exciting, high growth companies in our industry.”

  • Aegis continues targeted acquisitions

    Aegis continues targeted acquisitions

    MUMBAI: Aegis Group, which has just sold its Synovate research operations to Ipsos, said its organic revenues grew 7.8 per cent excluding Synovate for the first half of this year. Including Synovate, the company claimed organic revenues rose 7.3 per cent.

    The earnings show that media services have boosted Aegis‘ growth, and the company continues to be buyer, not a seller of media shops. It has announced a deal to buy Russia out-of-home media specialist Master Ad.

    Aegis said it has spent about $106.4 million on 11 acquisitions so far this year, but said it is mainly focused on “organic growth” and long-term margin improvement from its operations.

    “We have continued our focus on targeted acquisitions, extending our capabilities and positioning us in key geographies, all of which leave us well placed for future growth,” stated Aegis CEO Jerry Buhlmann, noting that the spin-off of Synovate represents the “largest structural change in the history” of the company.

    “Once the sale is completed, Aegis will become a more focused group, with the opportunity to accelerate further the delivery of sustainable, profitable growth, and increased financial flexibility to make targeted acquisitions,” he asserted, adding a cautionary “medium term” outlook due to “macro-economic uncertainties,” which were also reflected in a revised global ad spending forecast released this morning by Aegis‘ Carat unit.