ITV

Tag: Levers

  • What now for broadcasters and advertisers?

    What now for broadcasters and advertisers?

    The clock is ticking down for the seven broadcast networks, (actually eight, if you include Discovery too that joined the fray over the weekend) which coerced TAM to report on them on a monthly basis unilaterally without consulting either the Indian Society of Advertisers (ISA) or the Advertising Agencies Association of India (AAAI).

     

    Late Friday evening, advertisers such as Levers, P&G, Loreal, ITC, Britannia, Marico and Godrej put these broadcast networks on notice that if they did not revert to weekly ratings within 72 hours, all advertising on their channels would be pulled off and release orders would stand cancelled, 48 of those hours have already gone past. These broadcasters have only 24 hours left to take a decision.

     

    More advertisers have been sending in their notices over the weekend and this is likely to continue over today. And their 72 hour time bomb notice will also continue to tick.

     

    Advertisers sent the emails over the weekend to probably show they too mean business. Senior managements and sales heads in broadcast networks normally head of for their weekend holidays or timeoffs and hence are normally loathe to convene for any major decisions. With two days out of the three day notice period gone, now broadcasters will be hard-pressed to congregate and do some brainstorming and decide on their way forward today itself.

     

    Above their heads is the guillotine of losing revenues. An estimate is that these broadcaster will lose Rs 22 crore a day collectively should there be a pullout.

     

    There’s more to worry about for the broadcasters. If there are no TVCs, what will they do with the time that has been left vacant by the absence of ads? Fill it with promos of their own shows? Film trailers? But for how long?

     

    They may have to incur further costs should they rely on extra content from 22-24 minutes being churned out currently to 26-27 minutes. That is going to mean writing out larger cheque amounts to TV producers as they will have to work their crew and casts for longer hours.

     

    Continuing being rigid is an option broadcasters have. But it could lead to advertisers being equally rigid, leading to a standoff. Somebody will have to blink.

     

    Even though some of the broadcast CEOs have been haw-hawing, saying that it is the advertisers who will do so, because they need the TV channels and history shows that they are prone to buckling under earlier when they are threatened with no ads, it need not hold true on this occasion.

     

    Advertisers have options today: there are close to 300 channels which are continuing with weekly ratings, while around 105 channels are on a monthly engine. They could put their ads on the weekly-rating- channels. Unless of course the eight “rogue” (in the eyes of the advertisers) networks convince the remainder to join the monthly ratings gang.

     

    At this stage, media observers feel, both sides are doing some grandstanding, watching each others’ moves closely. The squeeze will come when ads stop on TV, and if there is a stalemate. And it will be felt by both.

     

    The year has already seen a slowdown on the economic front, thanks to a weak rupee and a general slowdown. Financial results for most companies are not expected to be something that shareholders will take too kindly by end this year.

     

    Hence, it is in the interest of both to come to the negotiating table, and hammer out a face-saving solution, sooner than later, and keep the advertising cash flows going between each other. A week’s loss of advertising equates an estimated Rs 150 crore in revenue. And a possible further slow down in consumer off take of products from shop shelves for the advertisers. That’s something both cannot afford.

  • 7 broadcast networks have 72 hours to revert to weekly TV ratings

    7 broadcast networks have 72 hours to revert to weekly TV ratings

    MUMBAI: Seven broadcast networks which have told TAM to shift to monthly reporting of TV ratings of their channels have been given 72 hours to revert to weekly reporting, after which all advertising release orders (ROs) for spot bookings will stand cancelled. This is contrary to reports that advertisers have already sent RO cancellations effective last evening.

     

    The CEO of a channel told Indiantelevision.com that his network has received emails pertaining to large advertisers like Levers, Procter & Gamble, Loreal, Dabur, ITC, Britannia, Marico and Godrej. “But I don’t expect any cancellations between today and Monday. The action will begin on Tuesday.”

     

    Agrees Group M south Asia CEO C.V. L Srinivas: “Notices have been sent out across the board from our clients as of yesterday evening. Advertisers are quite clear: they are not going to carry spots on channels for which there is no data.”

     

    Almost 102 channels come under these networks and this figure has gone up to 105 with Discovery Networks also writing to TAM wanting to be reported on a monthly basis.

  • Rana Barua joins Contract Advertising as COO

    MUMBAI: Rana Barua, the former Chief operating officer (COO) of Law and Kenneth, has joined Contract Advertising India in the same position.

    Barua succeeds Umesh Shrikhande, who recently left to pursue other opportunities. He will partner the senior leadership team at Contract to ensure the best value proposition for clients.

    JWT South Asia CEO Colvyn Harris said, “Rana has diverse management experience with a proven track record that makes him an ideal choice for Contract, one of India‘s leading independent integrated advertising agencies. I am confident that Rana with his experience across advertising and integrated brand solutions will ensure that Contract continues to be a very successful agency.”

    Barua said, “I am excited with the opportunity of being a part of the Contract story. It is a wonderful time for our industry as it continues to evolve so rapidly. Contract is uniquely positioned to take advantage of this and I am confident I will be able to facilitate this process by partnering with the senior management team.”

    In his 19 years of experience Barua has served varied roles like COO of RED FM and the head of marketing for Radio City where he successfully repositioned the radio station to make it amongst the top two stations in the country.

    He started his career in advertising having worked at HTA (JWT), Ogilvy, McCann and Y&R. His category experience includes working with brands like Renault, eBay, ING Life, Godrej, Reckitt Benckiser, J&J, Gillette Parker, Microsoft, HP, Tata Tea, Zydus Cadila, Levers, Tata AIG & AIA, Marico, Virgin Atlantic, and ITC.

  • Law and Kenneth’s independent growth story

    MUMBAI: In 2004, it was a stormy period for Indian ad agencies as the multinational invasion was in full force. Lintas India had already been taken over by IPG Lowe in 2000 and four years later Enterprise Nexus, floated by Mohammad Khan, got merged with Bates.

    Standing firm against this onslaught was this pilot aspirant young Indian who rapidly rose to the rank of Publicis India CEO at the age of 29. He had already left that high position and was helping UK-based independent agency St. Luke‘s start up operations in India in 2002. In this wave of consolidation sweeping the ad world, Praveen Kenneth saw an opportunity rarely spotted or dared by others.

    Andy Law, who co-founded St. Luke‘s, was at that time having a rough time with the board members of the UK agency. He quit while Kenneth continued to head the India operations. But the Indian dreamer was secretly nursing his ambitions. He soon realised that being a part of a UK-based global agency network has its restrictions when it comes to growth and progress.

    In his professional career graph, Kenneth had already soared the high skies with stints at MAA Bozell, Ogilvy and Mather, McCann Erickson and as the CEO of Publicis India. During this time, he worked with brands like Coke, L‘Oreal, Cathay Pacific, Levers and Helwett-Packard.

    Restless at turning an entrepreneur, Kenneth decided to strike. Along with his UK mate Andy Law and investment support from
     Bodyshop‘s Anita Roddick, Kenneth gobbled up St. Luke‘s. His dream: to grow the business in India and make St. Luke‘s the hub of Asia Pacific. Thus was born eight years ago on 3 October the renamed Law and Kenneth as one of the first Indian independent agencies with a global footprint.

    “It was a daring dream,” recalls CEO and managing partner Anil Nair (Sr.) “But we knew that in order to realise our ideals, we need to go our own way and here we are today, eight years after going solo.”

    The core team at Law and Kenneth has remained unchanged since its inception with Nair (Sr.), managing partner and head of digital Anil K Nair (Jr.) and managing partner and planning director Sandhya Srinivasan.

    The journey has been rough and smooth amid fierce competition. Though Law and Kenneth didn‘t have the cash advantage, the scope to grow was immense as the Indian economy was opening up.

    Says Nair Sr, “We came into existence at a time when agencies were merging and getting consolidated. At the time, our resources were our existing clients like ITC, Bombay Dyeing and Godrej, and the workforce we employed.”

    Running simultaneous operations in London, the Middle East, Africa (Nigeria) and Australia with the focus being on India as the epicentre of growth, Law and Kenneth started its Delhi operations in 2006 and Dabur was one of the first clients for the branch. In 2008, Law and Kenneth started its office in Kolkata and in 2010, the Chennai office was launched. The Mumbai office continues to serve as the headquarters.

    Today, Law and Kenneth boasts of an expansive repertoire of clients across product categories like ITC, Renault, DAbur, Bharat Petroleum, TATA AIG, Indian Terrain, Vivel, Hero Motocorp, Godrej Interio, Essenza Di Wills, DAbur Honitus, e-bay, Times Now, Real Activ, Pidilite, Spencers Retail, Fiama di Wills, DAbus Foods, GVK, Kent, ING Life Insurance, Reliance, Zydus Wellness and Park Hyatt Goa.

    The agency is now readying itself for the next phase of growth and has expanded its senior level team. It recently made three senior level appointments in Rana Barua (chief operating officer), Amardeep Singh (chief creative officer) and Samir Datar (senior vice-president, strategic planning) in a bid to prepare for the next stage in its growth.

    Say Nair Sr, “We have almost doubled our business in the past two years and have an intensive six to eight months to look forward to as far as work is concerned. We felt that these appointments at senior levels were needed to expand our bandwidth and better cope with the work demand that faces us.”

    The growth for Law and Kenneth has come in the organic manner. One of the agency‘s founder clients ITC‘s entry into the personal care category was spearheaded by Law and Kenneth. As that business grew, it required them to expand their team which spurned their growth. Similar is the case with Dabur which re-launched Honitus syrup and lozenge, the communication for which was handled by Law and Kenneth. In case of Hero Motocorp, the agency handles the brand communication and does close to four to five campaigns a year.

    “Hero Motocorp is spending substantial amounts of money. It takes an army to handle as it is a humungous account. It‘s probably the largest two wheeler account in the country. We may not handle a single product, but people have seen the brand intervention and communication from ‘Hum mein hai Hero‘ to the Olympics communications to the mileage campaign. So in one year‘s time, there were four to five campaigns by us for the company and each campaign was in the Rs 200 to 300 million range, which makes it close to Rs 1.5 billion spent over a period of time,” says Nair Sr.

    Law and Kenneth is not an average advertising agency, according to Nair. The focus is to offer the client an integrated brand communications service. The agency prides itself on its integrated approach – it has a creative (Law and Kenneth), digital (Digital Law and Kenneth) and experiential (Ngage Law and Kenneth) wings to cater to the growing needs of its clients.

    The current plan is to actually make the agency a viable option for big brands. Law and Kenneth approaches the business with an absolute dispassionate and fair view on what works in a market place. There is no creative or planning or servicing agenda that the agency focuses on. The focus in turn is on coming up with outcomes that are favourable for the clients and the industry.

    “Nearly 20 per cent of our business last year came from non advertising ventures. Digital Law and Kenneth is seen as one of the most brand centric agencies in the country. The reason is that we don‘t only look at it as digital. The person driving that department, Anil K Nair, is a planner from mainline. Sometimes digital agencies lack in the understanding of brand principles, though they maybe fabulous at technology. So, we have a brand person to drive our digital front, interact with the clients and the technology people act as the backend. This formula has been a tremendous success. We handle clients like Idea and Hero through the digital set up,” informs Nair Sr.

    It is now looking at growth but the agency would like to continue to do so organically. It believes in acquiring or hiring talent rather than other idea shops.

    “It‘s not as if the option to acquire agencies or set ups haven‘t crossed out minds. But we feel that business is something we can always get. So for that we don‘t need to as such acquire companies. If it is talent, yes we are always on a lookout to expand the talent pool at Law and Kenneth. We don‘t lack on any level at Law and Kenneth at this stage. The only thing we lack maybe is time, and an acquisition will not help us with that,” says Nair Sr.

    While acquiring a company is not on the card, Law and Kenneth owners have no intentions of selling either. It plans to continue as an indie for the time being and build on its strengths. “We value our freedom, our thought and our set up and intend to, for the time being, nurture and grow that,” concludes Nair Sr.

    In terms of limitations and hurdles, the agency feels that getting new business is not a problem. The era of global brands collaborating with global agencies is fast waning and in fact, in markets like India, brands prefer working with local agencies so that they get the cultural nuances right. The glitch comes when the question of investments comes up. Being headquartered at Mumbai, Law and Kenneth India has to fend for itself and its global branches.

    “For other agencies, taking a loan or investments incurs them an interest rate at par with the global rates viz. two to four per cent. In our case, that same amount will cost us an interest rate of 18 to 19 per cent. This is our biggest hurdle presently. We do not have the benefit of a global headquarters,” reveals Nair Sr.