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Tag: PwC

  • Online ad spend to surpass print, TV in Australia by 2013: Study

    MUMBAI: For the first time, the advertising spends on online medium will exceed that on television or newspaper by 2013, reports Interactive Advertising Bureau of Australia.

    The results, which were announced by IAB Australia in its Online Advertising Expenditure Report (OAER) compiled by PricewaterhouseCoopers (PwC), show that while the general advertising market is softening, online advertising is on track to surpass both newspaper and TV advertising in 2013.

    Online advertising has continued to grow, achieving 10 per cent year on year growth recording $813.25 million for the three months ending September 2012, the report said.

    When compared to the September 2011 quarter, all three reported sectors grew, with General Display marginally up one per cent, Search and Directories up 15 per cent, and Classifieds advertising up by seven per cent,

    IAB Australia CEO Paul Fisher said, “Double digit growth in the media and economic climate of the past 12 months bucks the trend across the broader media industry. While growth has slowed in digital this past quarter the outlook for the Christmas quarter looks encouraging.”

    “Our work as an industry to improve online behavioural advertising technology and deliver better audience and campaign measurement tools has resulted in more ‘brand‘ focused online advertising display formats and a clear and growing confidence in the medium by marketers,” Fisher added.

    PWC partner Maria Martin said, “While the online advertising sector is settling into strong and sustained growth, it‘s clear that the search by marketers for new ways to engage with consumers is fueling mobile advertising growth rates.”

    Mobile advertising recorded $22 million for the September quarter, representing 190 per cent year on year growth and a 24 per cent increase on the June 2012 quarter.

    Search and directories continues to dominate the online advertising sector overall with 53 per cent share of spend. Classifieds holds 21 per cent share and General Display 26 per cent market share.

    Within General Display, the motor vehicle category grew strongly to be the highest spending in the advertising industry this quarter, with finance and real estate sectors the next largest categories.

    The report also showed that the retail share of expenditure reached 7.2 per cent share, up from 6.5 per cent in the previous quarter. In Classifieds, real estate, recruitment and automotive were the leading categories. This is the same order as the prior quarter.

    The report undertook new approach for the study. The data collected from industry participants has been supplemented by estimates for Google display, video and mobile advertising as well as Facebook display and mobile advertising, while the prior methodology for estimating Google search has been refined.

    Historical mobile advertising data collected from industry participants has been combined with estimated Google mobile advertising to provide a picture of the aggregated mobile advertising market and trends.

  • Internet advertising in US soars 22% to $31 bn

    Internet advertising in US soars 22% to $31 bn

    MUMBAI: Revenue by way of Internet advertising in the US soared 22 per cent to $31 billion in 2011. The bulk of last year‘s spend went to search and display advertising, according to a report from the Interactive Advertising Bureau and PwC.


    The numbers show the growing importance of digital among advertisers who are choosing to place more dollars on websites, smart phones, and tablet devices to reach consumers.In contrast, newspapers have seen a drastic and steady fall. It is reported that advertising revenue in newspapers was $23.9 billion in 2011, down more than 50 per cent in a five-year period.


    The report also found mobile advertising increasing 149 per cent to $1.6 billion in 2011. While mobile advertising experienced the fastest growth of all the categories, it still represents a tiny sliver of advertisers‘ total spend. Search advertising remains the largest part of overall spending coming in at $14.7 billion, up almost 27 percent from the prior year.


    Display advertising, which includes video, banners and big splashy formats, rose 35 per cent to $11.1 billion.


    Another category showing significant growth was advertising associated with digital video. Compared to $1.4 billion in 2010, revenue reached $1.8 billion last year. This represented a 29 per cent year-over-year gain.

  • Mobile advertising drives M&C Saatchi growth for 2011

    Mobile advertising drives M&C Saatchi growth for 2011

    MUMBAI: Even as industry pundits predict that digital and mobile advertising is the mantra for the future, mobile advertising and social media marketing services helped M&C Saatchi to more than double its pre-tax profits last year.

    The mobile group has contributed 15-20 per cent of M&C Saatchi’s UK profits, doing work for brands including the O2 arena and Speedo.

    Advertising spending on mobile devices leapt by 157 per cent last year to ?203.2m in the UK, according to figures published on Tuesday by the Internet Advertising Bureau and PwC.

    Revenues rose 22 per cent to ?153.1m in the year ended 31 December with pre-tax profits jumping from ?7.8 million in 2010 to ?16 million.

    The Financial Times quoted M&C Saatchi chief executive David Kershaw as having said: “2012 has started well. We see pretty good growth. We are looking at double-digit earnings growth next year and going into 2013.”

    In 2010 M&C Saatchi acquired Inside Mobile, an agency dedicated to creating applications and other forms of smartphone marketing.

    Much of M&C Saatchi’s mobile revenues are coming from existing clients. “There’s an inverse relationship between client knowledge and agency margin,” Kershaw told FT. “At the moment, client understanding of mobile is in the foothills, which means there’s a greater dependence on experts. There is not an oversupply of experts yet, which means you get a healthy margin. The next two or three years should be very healthy.”

    The agency’s newer international offices in South Africa, the US and Latin America also contributed to the boost as they became profitable.

    M&C Saatchi was hit by some big client losses particularly in Australasia but won in other fast-growing areas, such as mobile.

  • PWC releases nominations for Idea IIFA Awards 2006

    PWC releases nominations for Idea IIFA Awards 2006

    MUMBAI: PriceWaterhouseCoopers has released the nominations for the Idea IIFA Awards 2006 as per the results of voting by the film industry. The nominations were derived from the IIFA Voting Weekend held in the first week of April.

    During the course of the week, the best talent from Indian cinema including producers, actors, film directors, music directors, scriptwriters and singers cast their votes for the Popular and Technical awards. The nominations for the Popular Awards are now open for public voting, using the globally accessible www.msn.com/iifa and www.indya.com platforms. The voting process is monitored and audited by PriceWaterhouseCoopers, who are also the audit firm for the Oscars, informs an official release.

    The nominees for the best picture are Black, Bunty aur Babli, Iqbal, No Entry, Page 3 and Parineeta. In the best director category, Madhur Bhandarkar, Nagesh Kukunoor, Pradeep Sarkar, Prakash Jha and Sanjay Leela Bhansali have made it to the final list.

    In the best actor category, the nominees are Amitabh Bachchan, Saif Ali Khan and Shah Rukh Khan. In the actress category, the final nominee list includes Konkana Sen Sharma, Preity Zinta, Rani Mukherjee and Vidya Balan.

    This year’s IIFA Awards ceremony will be held on 17 June in Dubai.

  • Indian media Rs. 837 bn by 2010: Ficci

    Indian media Rs. 837 bn by 2010: Ficci

    DELHI: The Indian entertainment and media (E&M) industry is poised to grow at 19 per cent compound annual growth rate (CAGR) to reach Rs 837.4 billion by 2010 from Rs. 353 billion (Rs 35,300 crore), according to a new study.

    The television segment is slated to grow from its present size of Rs 148 billion to Rs 427 billion by 2010, according to a Federation of Indian Chambers of Commerce and Industry ( FICCI) and PricewaterhouseCoopers (PwC) report titled Indian Entertainment and Media Industry — Unravelling the potential.

    The radio sector is projected to grow four times to Rs.12,000 million by 2010, while filmed entertainment is slated to reach Rs 153 billion during.

    The print medium, according to the study is poised to grow from the present size of Rs 109 billion to Rs 195 billion.

    Economic growth, rising income levels, consumerism, coupled with technological advancements and policy initiatives taken by the Indian government, which are encouraging the inflow of investment, will prove to be the key drivers for the entertainment and media industry.

    The industry has been forecast to outperform the economic growth in each year till 2010.

    Two factors that will contribute to the growth of the industry are low media penetration in lower socio-economic classes and low ad spends a statement quoted Deepak Kapoor, executive director of PwC and leader for the organisations Entertainment & Media Practice in India, as saying.

    Today media penetration is poor in lower socio-economic classes, but efforts to increase it even slightly are likely to deliver much higher results, simply due to the absolute numbers being large, he added.

    Strong economic growth, rising consumer spending and regulatory corrections are drawing foreign investments in most segments of the E&M industry, especially the print media.

  • PwC sees strong merger and acquisition growth in US entertainment and media industry

    PwC sees strong merger and acquisition growth in US entertainment and media industry

    MUMBAI: Merger and acquisition activity in the US entertainment and media (E&M) market is on a strong growth trajectory, and this year is projected to reach levels not seen since 2001.

    A report 2006 M&A Insights — US Entertainment and Media Industry has been published by PricewaterhouseCoopers’ E&M Transaction Services Practice.

    The report notes that increasing levels of industry consolidation and deconsolidation activity are being driven by a number of trends and are being led by the convergence of media, communications and technology. There is also shifting consumer media consumption habits; and the increasing involvement and influence of private equity firms in deal making activity.

    Also fuelling this activity is a move by some global conglomerates to separate or divest non-core assets in an effort to increase shareholder value, according to the PwC report.

    At $72 billion, 2005 disclosed deal value increased 17.5 per cent during 2004 while disclosed deal volume increased two per cent to 252. The casinos, broadcasting and cable segments proved most active in terms of high profile transactions and highest deal value.

    PwC notes that based on activity seen so far, it appears that the industry is on a fast track to achieve greater deal volume and higher deal value in 2006 than in 2005.

    In addition to mega-deals with the potential to change the competitive landscape in entertainment and media, PwC expects middle-market deals of all sizes and across all sectors, to see increased activity in both value and volume. Adding to this growth are private equity firms, which are increasing their activity and investment level in entertainment and media and related industries. This is expected to evolve as conglomerates tighten their business focus, providing additional attractive investment opportunities.

    PwC’s analysis has revealed five factors as key to understanding the forces that are driving consolidation in E&M segments including casinos & gaming, broadcasting, cable, motion pictures/audio visual, Internet software and services, publishing, and advertising & marketing:
    — Convergence: Consumers continue to gain more control over when, where and how they consume content. In response to consumers’ needs and desires, media, communications, and technology industries will increasingly converge. As a result, PwC expects to see significant transactions, including deals ranging from strategic acquisitions of niche distribution technologies to large, non-traditional mergers that cross traditional industry boundaries.

    — Shifting content consumption: In traditional media sectors, consumers’ shifting content consumption activities will cause media audiences to fragment and advertising spending to grow more slowly. Conversely, in the online and interactive markets (Internet paid search and sponsorship, video games, etc.), advertising will increase more rapidly.

    Consequently, PwC expects to see increased acquisitions by advertisers and advertising-based publishers that are attempting to preserve their core revenue streams by acquiring the ability to reach consumers online with rich media, full-motion video, and e-commerce applications.

    — Rise of consumer-created content and communities of interest: This trend will offer consumers alternative media options and simultaneously provide advertisers with access to a “sticky” and potentially profitable environment of large audiences. As traditional content providers adapt to this changing landscape, they can seize opportunities to acquire companies that offer specialised content or technology serving the social network media space.

    — Continued impact of private equity firms: It is very likely that private equity firms will maintain and grow their significant presence, thus influencing the E&M industry. Increasingly, both the major global private equity firms and smaller, niche-oriented players are taking lead roles on the deals that are shaping and re-shaping the entertainment and media landscape. Private equity firms will continue seeking deals in solid, cash-flow-rich media companies and sectors that can generate strong shareholder returns.

    — Analysts and shareholders raising questions about global entertainment and media conglomerates: Both analysts and shareholders alike are increasingly questioning whether global conglomerates have become too large and complex to manage effectively, and companies are reacting. As a result, during the past two years, a significant trend in conglomerates looking to separate their organisations and/or divest non-core assets has occurred. (e.g. Clear Channel, IAC/Expedia and Liberty Media/Discovery in 2005; Viacom, Disney/ABC Radio Network and Stations, Cendant and Time
    Warner book publishing in 2006).

    This trend appears to be accelerating. So more E&M conglomerates deconsolidating and shedding additional non-core assets should occur in 2006. This trend presents opportunities for existing players to strengthen their holdings through strategic acquisitions, and for private equity players to craft investment platforms in a wider array of entertainment and media sectors.