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Tag: WPP

  • NDTV files fresh appeal against Nielsen in New York supreme court

    NDTV files fresh appeal against Nielsen in New York supreme court

     MUMBAI: New Delhi Television (NDTV) ain’t giving up on its law suit against global research agency Nielsen on account of the TV ratings service it runs in India with global advertising powerhouse WPP under TAM Media Research. Last week, the newscaster filed fresh papers with a New York state supreme court appealing against its decision earlier this year to dismiss its $1 billion suit against Nielsen and WPP.This time, however, it has named only Nielsen group companies in the appeal, whereas earlier it had included both in its suit.

    While dismissing the suit, the New York court had then said that NDTV’s claim and complaint should be filed and contested in Indian courts where TAM, the Nielsen-WPP joint venture is based and not in New York.

    NDTV’s nine month old lawsuit states that it has lost hundred of millions of dollars in ad revenues on account of the inaccuracies in TAM’s TV ratings service in India and that it needs to be compensated for the loss. It had alleged that TAM staff took bribes in exchange for overstating ratings.

    In its fresh appeal (a copy of which is with indiantelevision.com) which it filed with the court on 15 May, NDTV sought a reversal, annulment or modification of the trial’s court’s dismissal of its application earlier as it has mistakenly ruled that the Big Apple is not a proper venue for the suit because it “failed to accept as true the allegations” that the New York-based Nielsen owns and controls the “Nielsen process” upon which its ratings services around the world operate.

    Additionally, the NDTV appeal has stated that the court has disregarded the fact that Nielsen’s hq and “senior management (and several key witnesses and thus evidence) are located in New York and the court wrongly concluded that the defendants were foreign.”

    The court has also erred earlier in dismissing its amended complaint, NDTV has stated in its appeal, “for its failure to include an indispensable party (TAM)..the court wrongly concluded that its claims address TAM’s misconduct in India when in fact NDTV’s claims are based solely on the conduct of the New York-based Nielsen.”

    “The Indian courts likely lack jurisdiction over Nielsen,” as it is based out of New York, pleads the new NDTV filing. “Contrary to the trial court’s rulings..we properly pled that Nielsen breached a duty it owed to NDTV and the breach resulted in a compensable injury.”

    NDTV has pointed out that it had brought the bugs in TAM’s ratings process in India to WPP’s and Nielsen’s notice. Both had promised to have these rectified, but did nothing about it forcing it to take the matter to the US courts.

    WPP and Nielsen had denied NDTV’s claims and said that the case should be argued in India and the not in the US, which the New York court had accepted while dismissing the case.

    TAM, on its part, in recent times, has been making efforts to spruce up its act, aiming to guarantee impartiality of its ratings service. It has set up a vigilance desk’, headed by a former senior policeman, and a ‘transparency panel’ of regulation experts. But some broadcasters have said these changes have come too late.

  • WPP Q1 2013 revenues grow 6%; looks to maintain tempo

    WPP Q1 2013 revenues grow 6%; looks to maintain tempo

    MUMBAI: Sir Martin Sorrell‘s charge is doing very well, thank you. Take a dekko at the Q1 2013 financials that the global advertising and marketing leader WPP has posted. Revenue growth is at 5.85 per cent, which seems not much, but it is far better than some of its peers‘ performances (Omnicom at 2.8 per cent and IPG at 2.4 per cent). Revenues were at ?2.53 billion as against Q1 2012‘s ?2.39 billion.

    On a like-for-like basis, excluding the impact of acquisitions and currency fluctuations, revenues were up 2.1 per cent with gross margin up 1.9 per cent compared with the same period last year.

    North America led the media communications conglomerate‘s growth by contributing 35 per cent of the total revenue pie followed by the Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe region at 29.1 per cent. Western Continental Europe accounted for 23.4 per cent of WPP‘s Q1 2013 revenues while United Kingdom pitched in the rest 12.5 per cent. The UK and the Asia Pacific Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe region were the only two regions which showed a growth in share of the revenue pie.

    Business sector wise, advertising and media investment management continued to be the strongest sector accounting for 40.8 per cent of the total revenues, followed by branding and identity, healthcare and specialist communications with 27.3 per cent, while consumer insight and public relations and public affairs made up 23.2 per cent and 8.7 per cent respectively.

    In line with the group‘s strategic focus on new markets, new media and consumer insight, WPP completed 13 transactions in the first quarter. Nine acquisitions and investments were classified in new markets (of which eight were in new media), two in consumer insight, including data analytics and the application of technology and two driven by individual client or agency needs.

    Specifically, in the first quarter of 2013, acquisitions and increased equity stakes have been completed in advertising and media investment management in Canada, Colombia, Hong Kong, Indonesia, Myanmar, Philippines and Thailand; in consumer insight in the United States and Myanmar; in public relations and public affairs in China; in direct, digital and interactive in the United States, the United Kingdom, South Africa, Turkey, Argentina, Brazil, Colombia, Uruguay and Australia, says the media group‘s release.

    WPP gained a total of ?940 million in net new business wins (including all losses) in the first quarter, compared to ?1.159 billion in the same period last year and in line with the quarterly average in 2012 of approximately ?940 million. Of this, JWT, Ogilvy & Mather, Y&R, Grey and United generated net new business billings of ?281 million.

    Also, out of the group total, GroupM, its media investment management company,which includes Mindshare, MEC, MediaCom, Maxus, GroupM Search and Xaxis, together with tenthavenue, generated net new business billings of ?465 million ($743 million).

    In its financial guidance for the rest of 2013, WPP says “our prime focus will remain on growing revenues and gross margin faster than the industry average, driven by our leading position in the new markets, in new media, in consumer insight, including data analytics and the application of technology, creativity and horizontality. At the same time, we will concentrate on meeting our operating margin objectives by managing absolute levels of costs and increasing our flexibility, in order to adapt our cost structure to significant market changes and ensuring that the benefits of the restructuring investments taken in 2012 are realised.” It has targeted like-for-like revenue and gross margin growth of 3 per cent and also improving its operating margins by half a point.

  • WPP’s Sorrell bearish about print media as an ad medium

    MUMBAI: When WPP group CEO Martin Sorrell speaks, the world listens. And he does not pull any punches.

    Sorrel, while speaking at the FT Digital Media Conference in London yesterday, said something that should make owners of traditional print media like newspapers and magazines sit back and do some introspection about their future. Sorrell said that advertisers should think about reducing the amount that they spend on newspapers and magazines and focus more on online and digital media.

    The WPP group and its clients are already doing that. Come next year, and Google could well overtake News Corp next year as the place where the agency spends most of its clients‘ money.

    Citing numbers, he said that 34 per cent of WPP‘s $72 billion media investments on behalf of clients went towards digital last year.

    ews Corp – a relatively more traditional print media player with oodles of magazines and newspapers – was the biggest media outlet for its clients‘ communications at $2.5 billion last year. But Google is coming on strong and WPP spent $2 billion on ads across its products, which was a 25 per cent jump over last year.

    By the end of next year Google could push News Corp away as being at the top of the list of media outlets where WPP spends its client money, he highlighted.

    Citing data from the US, where WPP spends $40 billion a year on media, Sorrell said that there is a big disparity between advertisers‘ print spend and consumers‘ print usage. “We are investing 20 per cent of WPP clients‘ media budgets on magazines and newspapers, but consumers are only spending seven to 10 per cent of time consuming print. That has to change.”

    He pointed out that the share of ad spend in other media such as TV, outdoors and radio is matching the time that consumers spend on them “TV viewing is about 43 per cent of consumers‘ time, (ad) investment is 43 per cent” he said.

    He has also accused Google, Facebook and Twitter of being media owners masquerading as tech companies. “I do regard Google as a media owner, yes. These are media owners masquerading as technology companies. Google sells Google, Facebook sells Facebook. Twitter sells Twitter.”

  • $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.

  • Kohler awards creative biz to Ogilvy

    MUMBAI: Bathroom and kitchen fittings manufacturer Kohler has awarded its creative mandate to WPP‘s creative agency O&M India.

    The account was previously handled by the Delhi office of Publicis Groupe‘s Leo Burnett who won it in April 2010. The win is the result of a multi-agency pitch that was initiated in November last year.

    Kohler Kitchen & Bath India MD Salil Sadanandan said, “Ogilvy is the name behind some of the most memorable ad campaigns for brands across diverse categories in the country. We welcome them on board and look forward to working on some great campaigns together.”

    O&M group president Prateek Srivastava said, “We are delighted to get an opportunity to work with Kohler. It‘s a sharp and aspirational brand. Besides, it‘s always a pleasure to work with a company whose business is also about creativity and aesthetics.”

  • WPP acquires majority stake in Thomas Idea through XM Asia

    MUMBAI: Global media communications giant WPP‘s XM Asia has acquired majority stake in digital marketing agency Thomas Idea in Thailand. XM Asia operates under JWT.

    Founded in 1995 in Bangkok, Thomas Idea employs 45 people and had total assets of around THB 50 million for the year ended 31 December 2012. Thomas Idea services include online strategy consulting, website design and development, digital marketing and applications design. Clients include Beiersdorf, Reckitt Benckiser, TIPCO, Abbott Laboratories and Pruska.

    This investment is another step in implementing WPP‘s objective of developing its businesses in the fast growing economies of Asia Pacific, as well as Latin America, Africa and the Middle East, and Central and Eastern Europe. Collectively, the Group, including associates, has revenues of $5 billion in the Asia Pacific region, and employs more than 46,000 people in that region. In Thailand, the Group, including associates, has revenues of approximately $140 million and employs around 1,600 people.

  • WPP welcomes lower court dismissal of NDTV law suit

    MUMBAI: Global media communications conglomerate WPP has issued a statement welcoming the lower court of New York’s decision to dismiss the law suit filed by Indian news broadcaster New Delhi Television Ltd (NDTV).

    On 4 March, the New York court ruled in favour of dismissing the case lodged by NDTV against WPP, Kantar and Neilsen regarding corruption in the television ratings system in India by Television Audience Measurement (TAM).

    WPP’s statement reads –

    “As previously noted, NDTV‘s case was dismissed 4 March 2013 by the court on jurisdiction (“forum non conveniens”) grounds, on the basis that there were “minimal contacts” with New York.

    “Further, the court did in fact address the causes of action raised by NDTV. According to a transcript of the oral argument and the decision rendered by the Court, Judge Sherwood stated that if he were to look at the various claims he would dismiss those claims as well.

    “The Court could go on and look at the claims aimed at dismissing the individual causes of action. In the interests of time I am not going to do that. Although, I will tell you that were I to go through them all I would dismiss those claims, as well[…] I could go on and talk about the other causes of action for fraud and breach of contract and so on […] And were I to go through those The Court would dismiss those, as well.

    WPP is pleased with the Court‘s decision and welcomes the complete dismissal of this ill-founded and inappropriate law suit. WPP is confident that if NDTV elects to appeal this decision in New York, the judge’s well-reasoned decision will be affirmed.”

  • Carter Murray Named CEO of Draftfcb Worldwide

    MUMBAI: The Interpublic Group (IPG) has named Carter Murray Draftfcb Worldwide CEO. He replaces Laurence Boschetto, who will remain with the agency through a transitional period and then serve as a Senior Advisor to IPG in a consulting capacity. Murray will be based out of New York.

    Thirty eight year old Murray comes in from WPP’s Y&R, where he was president and CEO for North America and Y&R New York CEO. He has previously served as chief marketing officer and worldwide account director on Nestlé, as well as a member of the executive committee at Publicis Worldwide.

    Murray began his career at Leo Burnett in Chicago and has held a number of posts at the agency, including stints in Germany and the United Kingdom. Howard Draft will continue in his role as executive chairman at Draftfcb.

    IPG chairman and CEO Michael I Roth said, “We‘re very pleased to welcome Carter in this key role at an important time for Draftfcb. He understands consumer advertising and brands, has demonstrated the ability to motivate diverse teams and raise the quality of creative work, nurture client relationships and win global business. This combination of skills and experience in a dynamic new leader is what the agency needs in order to evolve its integrated model and drive growth.”

    Roth added, “We thank Laurence for his contributions to our search for his successor and to the agency, including a consistent and high level of operational and financial delivery. We wish him well in his ongoing industry activity, particularly in the area of diversity and inclusion, where we will continue to work together.”

    Murray said, “I am greatly looking forward to this opportunity. Draftfcb has outstanding people, clients and a commitment to putting together the best of brand advertising and accountable communications disciplines, such as digital, CRM and activation. That‘s a powerful promise we must make good on. When we do, the Draftfcb offer will be hard for clients to resist. Working with the strong leadership teams across the network and with Interpublic‘s continued support, I feel we can deliver on that vision and do something really special.”

    Boschetto said, “Carter brings energy, a new perspective and range of talents that will take us to the next level. I‘ll do everything to help him step into the CEO role seamlessly and I know our senior teams will do so as well. I thank all of our nearly 9,000 people around the world for their support and I know the agency‘s best days are ahead. Moving onto the next chapter personally, in working to promote our industry and in particular to work for greater diversity among our ranks, is something to which I am very much looking forward.”

  • WPP acquires Canada’s john st.

    MUMBAI: Global communications network WPP has acquired Canadian creative agency john st.

    Founded in 2001 and based in Toronto, john st. employs approximately 100 people and has unaudited revenues for the year ended 31 December 2012 of approximately $14.0 million.

    The acquisition of john st. strengthens WPP‘s presence in Canada. “We see enormous value in being part of WPP,” said john st. president Arthur Fleischmann. “We‘ll now be able to augment our current services in areas that clients are asking for, such as media, direct and public relations.”

    john st.‘s clients include AstraZeneca, Kruger, ING Direct, Maple Leaf Foods and Tata. Over the last 12 years, john st. has built an international reputation as one of Canada‘s leading innovative creative agencies. It was recently named Silver Agency of the Year as well as Silver Digital Agency of the Year by Strategy, a leading Canadian marketing publication.

    WPP is the leading communications services group in Canada. WPP remains committed to building and broadening its client offer in the mature economies of the world. Collectively (including associates), the Group has revenues of $450 million and employs more than 2,500 people in Canada. WPP companies represented in the market include JWT, Ogilvy, GroupM, Hill+Knowlton Strategies and Burson-Marsteller. In 2010, WPP‘s wholly-owned subsidiary Young & Rubicam Group acquired the Toronto-based TAXI creative network.

  • Mindshare introduces content marketing, strategic partnerships practice

    MUMBAI: Mindshare, a WPP strategic planning and media investment agency, has announced the establishment of a newly formed Content Marketing and Strategic Partnerships practice.

    This is Mindshare‘s most recent response to increasing client demand for a unifying content strategy across all forms and formats – paid, owned and earned. In 2005, Mindshare launched Mindshare Entertainment (MSE).

    MindShare MD- communications planning Stacy Minero has been promoted to lead this initiative for Mindshare.

    Minero will be responsible for driving a more strategic and systematic approach to content marketing from advanced planning to development, discovery, and distribution.

    Drawing from a suite of proprietary tools designed to inform strategies and evaluate opportunities, she aims to infuse more insights and analytics into content marketing.

    Minero will report to Mindshare Communications Strategy practice head Tim Elton.

    Mindshare North America CEO Antony Young said, “Technology is driving consumers to access their entertainment and information across multiple emerging channels, devices and platforms. Our clients are recognising that marketing messaging has to go beyond traditional advertising formats such as, 30 second TV ads if they are to engage consumers and communicate more persuasively. We see a major opportunity to develop content marketing strategies early in the brand communications planning process that captures wider content formats and build these into a wider brand communications effort.”

    “Stacy‘s demonstrated expertise in creating this link between brands and the often unarticulated needs and desires of their audiences. She also has exceptional digital acumen that can turn content strategies into actionable ideas and partnerships,” Young added.

    As Practice Lead, Minero will leverage a team across Mindshare‘s entertainment, digital and broadcast groups. They will also look to actively partner with external and independent technology, entertainment and content companies seeking to work with brands.

    Minero said, “Everything starts with consumer insights and a deep understanding of mindset and motivation. To create human connections, we need to understand what compels people and link those insights to content ideas that transcend traditional advertising.”