Tag: Nielsen

  • US ad spend rises by 7 per cent in the third quarter

    MUMBAI: This year continues to be one of growth for the US ad industry. According to Nielsen, ad spend in the US was up by seven per cent in the third quarter of 2012 compared with the same time last year-with the ad-heavy US presidential election and the London Summer Olympic Games likely contributors.

    The third quarter was big for automotive and auto dealerships in the US, which ranked first and third, respectively, for amount spent. Model year-end promotions traditionally make the third quarter the biggest of the year based on ad sales, and six of the top 20 companies based on ad spend during the period were auto manufacturers.

    Other third quarter sector leaders included fast food restaurants, wireless/telecom, retail, motion picture and pharmaceuticals. Auto spent $2.7 billion an increase of 26 per cent. The motion picture category though saw a decline in spend by 12 per cent to $689.7 million. Pharma‘s spend also fell by 22 per cent to $661.7 million.

  • India ad spend to grow 9% in 2013: Warc

    MUMBAI: Advertising spends in India are expected to grow 9 per cent in 2013, according to the International Ad Spends 2012 report released by advertising data research service Warc.

    The report says that global ad spends will grow at 4 per cent in 2013, which is a downgrade of 1.5 per cent from the previous prediction released in June. The forecast for 2012 has been downgraded by 0.5 per cent to 4.3 per cent. Taking into account forecast inflation, the report predicts that global ad spend will rise by just 1.8 per cent and 1.6 per cent this year and next. The reduction in the forecast has been attributed largely to a shaky global economy.

    The report is based on Nielsen figures for global ad spend in 2011 which is $498 billion. Applying Warc‘s growth estimates to this base sum, 2012‘s ad spend is expected to be around $519 billion and 2013‘s to be nearly $540 billion. The study took into account ad spends in 12 major markets across the globe (US, UK, Australia, Russia, India, Japan, China, Brazil, Canada, France, Germany and Italy).

    The BRIC (Brazil, Russia, India and China) countries are expected to lead the race for ad spends growth in 2013 with Russia growing at 14.6 per cent, China at 12.5 per cent, Brazil at 9.5 per cent and India at nine per cent.

    Australia, China, India and Japan are in Asia-Pacific. For these markets, Warc expects China to lead in 2013 with growth of 12.5 per cent, followed by India with 9 per cent. Ad spend in Australia is seen growing 2.6 per cent and Japan just 1 per cent in 2013.

    The US which was predicted to garner ad revenue to the tune of $153 billion in 2012, is expected to expand at 2.5 per cent next year (as opposed to predicted growth of 4.1 per cent this year). The main drivers for this year‘s ad growth were the US Presidential Elections and the Olympics, the absence of which next year will hit ad revenues hard. UK shares a similar fate with predicted ad spend growth at four per cent.

    In another study conducted by Warc which researched inflation in cost of television media, it reported that India is pegged to see media inflation (in television) at seven per cent.

    According to Vivaki Exchange CEO Mona Jain, “The critical inflation is coming in the general entertainment channels wherein there could be increased demand. Also, there is fragmentation in television. You have more no. Of channels and the channels are expanding their programming time slot, genres, there are more viewing options now hence it is influencing the price hike. However, the inflation is curbed because of the low market sentiments otherwise it could have been 10-11 per cent. The brands which spend premium have been more conservative.”

    MPG India MD Mohit Joshi said that Havas anticipates inflation of 10 per cent. “Inflation is largely a result of fragmentation (around 7 per cent) and the balance due to actual price inflation,” he added.

    The report shows that looking to 2013, television and online were expected to yield double-digit increases in China, India and Russia.

  • NDTV firm on legal pursuit against TAM

    MUMBAI: The New York Supreme Court (NYSC) is expected to give out its verdict on whether the complaint filed by Indian broadcaster NDTV against TAM‘s owning companies – Nielsen, Kantar and WPP – holds jurisdiction in America by mid January.

    A source informed indiantelevision.com that NDTV plans to keep on with its efforts against the TV ratings agency TAM and its holding companies irrespective of the judgement. “If the New York Supreme Courts rules that the case has jurisdiction in America, they will continue with it there. If the Court says India is the right country for this litigation, the broadcaster will pursue the case in India anew,” the source said on condition of anonymity.

    The parties currently involved are filing their amended complaints and/or motions to dismiss NDTV‘s lawsuit according to the deadlines given by the NYSC in September this year.

    In a recent interview with liveMint, WPP CEO Martin Sorrell commented: “NDTV doesn’t have just their restaurant lawyers involved, they have others as well now. They have upgraded. There is no development. Not to my knowledge, no. NDTV seems to have gone quiet on it.”

    The source said that “there is no point in making noise over nothing till the issue of jurisdiction is settled.”

    On the matter of lawyers, the industry insider explained that there is always a team of lawyers involved in such cases. While a certain set of lawyers worked on the preliminary complaints, when it is time for discussion and arguing in front of the judge another set of lawyers are called in. In essence it is as simple as saying, “Different roles to different lawyers.”

    NDTV has expanded its legal team on the case by getting on board law firm Pepper Hamilton which has handled legal matters for the Indian news broadcaster in the past as well.

    In October, NDTV informed the NYSC that it has dropped action without prejudice against Cavendish Square Holding B.V., J. Walter Thompson, IMRB International, a division of Hindustan Thompson Associates Private Limited, and Kantar Market Research Services Pvt. Ltd. which were named in the original document.

    Earlier this week, Prasar Bharti had approached the Competition Commission of India against India‘s lone TV ratings agency TAM insinuating anti-competitive practices. The pubcaster had filed the complaint against TAM on 16 November alleging that the ratings agency has been using its dominant position in audience measurement by excluding markets where Doordarshan channels have strong presence. The complaint was filed under section 4 of the Competition Act 2002, which pertains to abuse of dominant position by a market player.

  • Magazine ads more RoI efficient than TV: IPC

    MUMBAI: For magazine publishers, this is a research finding that would bring them cheer as they face dwindling subscriber and advertising numbers. According to UK-based IPC Media, magazine ads are more efficient than television in delivering return on investments (ROI).

    The research, named AdValue and carried out in collaboration with Nielsen, shows that every pound invested in magazine advertising fetches an average RoI of ?1.40.

    Advertising in magazines led to an average increase of eight per cent spend per consumer household spend.

    Nielsen used its Homescan panel alongside AdDynamix data to analyse the advertising campaigns of six FMCG brands – Lenor, Comfort, Flash Febreze, Hellmann’s, Colgate and Dove – and isolate the effect of the magazine advertising on household spend. Advertising spend data was then used to calculate the ROI.

    The AdValue research study aimed to understand the impact of magazine advertising on driving sales. This was carried out by analysing sales and media data using two different techniques – a panel-based and an econometrics based approach.

    Nielsen UK media analytics director Simon Nudds said, “AdValue demonstrates the ability of magazine advertising to increase sales and deliver measurable results.”

    IPC Insight also partnered with Mindshare on an econometric modelling project. This demonstrated that magazines deliver a higher ROI than TV and could be used to improve the efficiency of a campaign without increasing the total budget.

    IPC Insight director Amanda Wigginton said, “We’re delighted to be able to provide the industry with new, independently verified data on how magazines are driving sales. AdValue provides compelling evidence that magazines are effective in delivering ROI and directly impact the bottom line. Econometric modelling has also been able to show that magazines are often being under-utilised too!”

  • Nielsen files for dismissal of NDTV lawsuit

    MUMBAI: Global ratings and research company Nielsen has filed a petition in the New York Supreme Court seeking dismissal of New Delhi Television’s (NDTV) lawsuit over corruption in television ratings system in India.

    Nielsen’s contention is that India, not New York, is the appropriate venue for the lawsuit. According to Nielsen, NYSC is the wrong court of law for the legal fight as NDTV receives its TV ratings data from Tam Media Research, a company that works in India.

    Earlier in August, WPP had filed a similar motion with the NYSC to dismiss NDTV’s lawsuit. NDTV had on 26 July filed its lawsuit accusing 31 entities, including TAM, Nielsen, Kantar and their officials, of knowingly allowing continuation of manipulation of television viewership data in favour of broadcasters willing to pay bribes to its officials or representatives.

    WPP owns half of TAM in India through its subsidiaries – Kantar and Cavendish, and the other half of TAM is owned by The Nielsen Company.

    In its petition, Nielsen has said that the dispute concerns the quality of a TV ratings data subscription service. “NDTV—a company headquartered in India—receives in India from TAM, another Indian company, pursuant to an agreement executed between the companies in India,” Nielsen said.

    Nielsen further argued that NDTV had been subscribing to the TAM ratings service since 1998, which it used for promoting its TV shows to advertisers in India. It also pointed out that while the Indian broadcaster claimed it had evidence that the ratings data was flawed, it sued Nielsen and the uninvolved subsidiaries eight years after that.

    “None of the four entities sued is a joint venturer in TAM or has ever executed an agreement with NDTV regarding TAM’s subscription service—in this Court, asserting a grab bag of irrational and defective claims apparently under New York state law. According to NDTV, these Nielsen companies should be held liable under contract and tort law based on meetings NDTV had with a few Nielsen representatives in 2012—in India—concerning NDTV’s allegations about TAM’s TV ratings data,” the petition said.

    Nielsen also argued in the dismissal plea that NDTV failed to name
    TAM, with whom it has a contract for the ratings services, as a party to the suit. “In the Amended Complaint, NDTV viciously attacks TAM’s reputation and seeks damages because TAM’s TV ratings data ‘are not reliable’ and ‘tainted by widespread fraud and corruption.’ TAM has a right to defend against such attacks, and NDTV should not be allowed to suppress that right by bringing a lawsuit in another country, where TAM has no contacts.”

    Nielsen also stated that NDTV’s lawsuit “blatantly ignores” the company with whom it has a contract.

    “Instead, NDTV attempts to transform a potential contract claim against TAM into tort and oral contract claims against the Nielsen defendants. Nothing in the law supports such a magic trick. Simply put, NDTV fails to allege a legal duty independent of a contract and fails to allege all of the elements needed to support each cause of action,” argued Nielsen.

  • Telecom ad spend continues to grow: Nielsen

    MUMBAI: Though many industry sectors are spending cautiously in today‘s uncertain economic environment, telecom companies invested significantly more on advertising in the first half of 2012 than they did last year, according to Nielsen‘s Global AdView Pulse report.

    With a 7.9 per cent increase in global ad spending, the telecom sector saw the largest increases in emerging markets, like Latin America (32.5 per cent) and the Middle East and Africa (28.3 per cent).

    After more cautious spending during the first quarter, the automotive sector also boosted ad spending by 6.3 per cent during the first half of 2012, compared with the same period last year.

    Even in the embattled region of Western Europe, advertising spending increased by 1.4 per cent when comparing the first halves of 2012 and 2011.

    Entertainment‘s ad spend grew by 6.3 per cent. The media sector grew by 4.9 per cent. The financial sector‘s spend grew by 4.5 per cent. The durables segment saw a reduction in ad spend by 4.4 per cent. The healthcare sector along with Industry and Services also saw reductions in ad spend.

  • Global net spend up, print down: Nielsen

    MUMBAI: Advertising is on the rise around the globe and across nearly all media types, according to Nielsen‘s Global AdView Pulse report.

    Gains in areas such as Internet (7.2 per cent), radio (6.6 per cent ) and TV (3.1 per cent ) offset the 1.3 per cent decline in magazine spending in the first half of 2012, leading overall ad investment to be up 2.7 per cent.

    Internet advertising made a powerful surge in the emerging markets of the Middle East and Africa (30.3 per cent) and Latin America (20.6 per cent). Interestingly, despite being down in overall ad spend, Europe saw the third highest increase in Internet ad spend of any region (11.2 per cent ).

    While television continues to hold the majority of advertising dollars globally (61 per cent), the medium saw the biggest increases in Middle East & Africa (30.1 per cent), Latin America (6.2 per cent) and North America (4 per cent). TV investments declined 2.2 per cent in Europe and grew nominally in Asia Pacific (1.4 per cent).

    Magazine spending fell significantly in both Europe and North America, but magazines and newspapers both saw growth in other markets including Latin America, Asian Pacific, and the Middle East and Africa.

    Cinema experienced a noteworthy 40.2 per cent gain in the Asia Pacific market and a marginal gain in Europe of .4 per cent. This led to an increase of 5.9 per cent globally despite decreases in Latin America (-21.1 per cent) and the Middle East & Africa (-19.1 per cent).

    Outdoor media ad spend grew during the first half of 2012, with the biggest gains in the Middle East & Africa (38.8 per cent) and the Asia Pacific (16.7 per cent).

    Radio, which saw a global increase of 6.6 per cent, was also up in all regions measured.

  • Nielsen goes live with its cross-platform ratings measurement

    MUMBAI: Nielsen, a global provider of information and insights into what consumers watch and buy, has taken a major step forward for cross-platform advertising measurement by launching Nielsen Cross-Platform Campaign Ratings.

    Leveraging the Media Rating Council-accredited Nielsen Online Campaign RatingsTM and proprietary national TV panel, Nielsen Cross-Platform Campaign Ratings will deliver reach of video advertising across screens. The solution will be commercially available beginning 1 October.

    Nielsen Cross-Platform Campaign Ratings has been through extensive trials with a number of the industry’s biggest players across the advertising ecosystem. ESPN, Facebook, GroupM, Hulu and Unilever are among the dozen industry leaders who participated in trials for this service, which provides unduplicated and incremental reach, frequency and GRP measures for TV and Internet advertising.

    “Sports fans are on the cutting edge of changing consumer media behavior,” said ESPN Vice President of Integrated Media Research Glenn Enoch. “ESPN‘s participation in the Nielsen Cross-Platform Campaign Ratings trial reflects our constant exploration for new ways to measure cross-platform usage.”

    “Better understanding of the ads consumers see across all media is critical for marketers to build great campaigns – and for publishers to demonstrate the true value of their inventory,” said Facebook Head of Measurement and Insights Brad Smallwood. “Nielsen Cross-Platform Campaign Ratings is the first product that truly addresses this issue. Having a holistic, consumer-centric view of a campaign is a big step forward for the industry.”

    “As consumers watch their favorite TV shows across Internet-connected devices, measurement in this area becomes critical to the long-term health of the entire industry,” said Hulu Senior Vice President, Advertising Jean-Paul Colaco. “We are supportive of Nielsen‘s approach in advancing the reliability of cross platform measurement and look forward to continuing our collaboration with them.”

    “Nielsen Cross-Platform Campaign Ratings helps us determine who is seeing our advertising on TV compared to our digital advertising. This is increasingly important as we discuss how to spend our money across these critical media platforms,” Unilever, Director of Media Investment and Partnerships Jennifer Gardner.

    In addition to online video advertising, Nielsen’s approach measures online display and rich media advertising in combination with TV. Industry trials, run between March and August 2012 have demonstrated the power of a high-quality, third-party solution that provides directly comparable metrics across TV and digital, measuring unique audience on each, along with overlapping audience and total combined unique audience.

    “Creating a way to reach, measure and monetize inventory across screens and platforms advances the industry toward the high caliber, seamless standard that can provide new opportunities for players across the industry,” said Nielsen President, Global Media Products and Advertiser Solutions Steve Hasker. “Nielsen Cross-Platform Campaign Ratings is an exciting step in helping advertisers, agencies and publishers further understand the impact of their campaigns, wherever they run – across platforms and markets around the world.”

    The Nielsen Cross-Platform Campaign Ratings launch comes as more and more consumers are living cross-platform lives. According to the latest Nielsen Cross-Platform Report, in addition to watching 34-plus hours of TV per week, the average American spends nearly five hours online on the computer. More than half of Americans now watch video online, with online viewing increasing average weekly video consumption to roughly 35 hours.

  • TV households in US fall by 500,000

    MUMBAI: The number of TV households in the US has decreased by 500,000, according to a report by Bloomberg quoting ratings provider Nielsen.

    The weekly ratings provider in the US has said that this trend is a reflection of the increase in popularity of online viewing.

    The number of US TV households stands at 114.2 million, New York-based Nielsen Holdings NV said in an e-mailed statement to Bloomberg. This is the second straight year it has reduced the number of homes with TVs. In May 2011, Nielsen adjusted the number to 114.7 million, a one per cent drop and the first decline since 1990.

    “We have had no household formation over the past several years, and I believe there is a modest amount of cord-cutting happening in younger households and in lower-income households,” Bloomberg Industries North America director research Paul Sweeney was quoted in the publication.

    This thus has given rise to the suggestion that it may be time to redefine TV households as a whole. The ratings agency conceded that it is currently working with TV and advertising clients on what should constitute a TV home and how to account for new products such as tablet computers. Online viewing is already being incorporated into ratings.

    Three out of the four largest broadcast networks experienced drops in audiences ranging from two to eight percent in the past year. Comcast Corp‘s (CMCSA) NBC, bolstered by the Olympics and football, increased its viewership by 19 percent, according to Nielsen data.

  • Saatchi & Saatchi conceptualises Olay’s new ad campaign

    Mumbai: Saatchi & Saatchi has designed the latest Olay campaign – ‘Olay Total Effects Skin Challenge‘.

    Besides taking the print, television and digital route, the campaign also involved a consumer engagement program, which gave women a platform where they could not only share their stories, but also challenge themselves when it came to younger looking skin.

    The new campaign is based on the insight that for many women as life changes over the years their priorities also change at every stage. And while other things become more important, skin care takes a back-seat. Keeping this as the main focus, the campaign was divided into phases.

    First, a debate was sparked off by posting controversial statements in the online media. This was then followed by a Nielsen survey. The results of the survey were shared online with the audience, which resulted in more buzz. Women were then urged to take the Olay Total Effects Skin Challenge and tell them how it made a difference to their skin and their lives. Simultaneously, to keep the interaction level high, various apps and Facebook activities were initiated.

    As the campaign progressed, women started sharing their experience online – compliments that they started receiving for their younger looking skin. These were then printed as advertorials and played as T.V. spots.

    The brand ambassador for Olay, Kajol, also brought this thought alive as she narrated her life story and how Olay Total Effects had helped her look young and beautiful through different stages of her life.

    Saatchi & Saatchi chief creative officer Ramanuj Shastry said, “Every woman is beautiful. But as her priorities change over the years, she becomes so busy that skin care isn‘t that important like it used to be. But why should her beauty be left behind, just because she‘s married or has become a mother? That‘s why through the ‘Olay Total Effects Skin Challenge‘, women can now become and feel beautiful all over again.”

    P&G Olay associate marketing director Danish Rahman added, “Olay Total Effects, being one of the leading brands in India, understands the challenges that women face every day, because of which they are unable to give enough time to their skin. So we have asked women to take the ‘Olay Total Effects Skin Challenge‘ and reclaim their beauty.”