ITV

Tag: WPP

  • NDTV, WPP harden stance over lawsuit against TAM

    NDTV, WPP harden stance over lawsuit against TAM

    MUMBAI: News broadcaster New Delhi Television Ltd (NDTV) on Thursday hit back hard at global communications agency WPP, which indirectly owns 50 per cent of TAM Media Research, for threatening defamation proceedings over allegations in a lawsuit against TAM’s faulty television ratings in India.

    In a rejoinder to WPP’s statement on Wednesday, NDTV said WPP has made a “silly error” in dismissing NDTV’s lawsuit as “hypothetical” and claiming that the lawsuit has not been served weeks after it was filed in the Supreme Court of New York.

    In a rebuttal, NDTV said the service of the lawsuit was made on 10 August in New York, and the normal processes under the Hague Convention are also under way. The Hague Convention relates to serving of judicial and extrajudicial documents abroad in civil or commercial matters, under the Hague Conference, a global inter-governmental organisation.

    WPP, on its part, insisted, “Service has not taken place and any suggestion that this has taken place is false. There has been a faulty attempt to serve on one company but nothing on the others at all. No lawyer acting on behalf of any WPP company has made any such statement.”

    NDTV filed the lawsuit late last month alleging gross inaction against manipulation of television ratings in India on the part of TAM, its parents AC Nielsen Research Services Private Limited and Kantar Market Research Services Private Ltd, and Kantar’s owner WPP, which is listed on the London Stock Exchange and on Nasdaq.

    According to NDTV, the lawyers for Kantar Media Research (UK) have already confirmed to NDTV that the service on his client was acceptable in New York. “In fact, matters have progressed much beyond ‘service‘; the lawyers for Nielsen have been in touch with our lawyers and have requested for an extension. In addition, the CEO of Kantar has been in touch with us and has acknowledged receiving the complaint. NDTV has affidavits to substantiate this,” NDTV said.

    WPP, in an email response to Indiantelevision.com, said, “In fact, Kantar Media (Research) UK is not even named as a party to any lawsuit.” WPP is the owner of Kantar. WPP is right as the only Kantar group company named as defendant in the NDTV lawsuit is Kantar Media Research.

    In a retort for terming its lawsuit hypothetical, the news broadcaster said it is “baffled and amused by the PR effort issued by WPP. PR is clearly the main aim, as the WPP statement contains a number of legal flaws.”

    “We suggest WPP refrain from using their massive PR machine to make baseless threats against NDTV. Instead we request that WPP should focus on honestly fixing (for want of a better word!) their badly damaged and dishonest (television) ratings system in India – which in their statement they acknowledge they have control over and is their responsibility,” NDTV said.

    On Wednesday, WPP had said it has instructed its lawyers to consider filing defamation suit against NDTV and that it along with its operating companies – Kantar and TAM – were also in the process of filing an application in New York to have the lawsuit dismissed.

    “We are taking the unusual step of proceeding to dismiss the hypothetical lawsuit, despite the lack of any service, simply due to the attempted “trial by media” which has been generated by the (unserved) lawsuit. In any event, there is no merit in the purported claims, nor do the US courts have any jurisdiction to hear any such claims. Any claim should be made properly, in India, in front of the Indian courts, which are more than capable of properly hearing any valid claim,” WPP said.

    WPP, in a teaser, said NDTV appears to be blaming their poor financial performance on the ratings. “NDTV ‘s financial state shows a dramatic decline, with its market capitalisation declining from around $800 million in early 2008 to around $60 million today (23 August). Over the same period NDTV‘s share price has declined from a high of Rs 512.70 to around Rs 50 today. NDTV is operating in an extremely competitive market, and its competitors have also been in a difficult position, NDTV‘s decline is not down to any perceived failures in TAM data.”

  • TAM owner WPP speaks up, threatens defamation suit against NDTV

    TAM owner WPP speaks up, threatens defamation suit against NDTV

    MUMBAI: WPP, the world’s largest communications services group, has threatened to file defamation proceedings against New Delhi Television Ltd (NDTV) for offensive allegations made by the Indian news broadcaster in its lawsuit in the New York Supreme Court.

    NDTV has filed the lawsuit alleging gross inaction against manipulation of television ratings in India by TAM Media Research, its parents AC Nielsen Research Services Private Limited and Kantar Market Research Services Private Ltd, and Kantar’s owner WPP, which is listed on the London Stock Exchange and on Nasdaq.

    NDTV has sought $810 million as compensation for the loss in revenues it has suffered over the years because of manipulated viewership ratings and $580 million in penalty for negligence by Nielsen and Kantar officials.

    “In the light of these circumstances, WPP is also giving active consideration to issuing proceedings against NDTV for defamation and has instructed its lawyers accordingly,” WPP said in a statement on Wednesday.

    WPP and its operating companies – Kantar and TAM — are in the process of filing an “immediate application” in the New York court to strike out the law suit, which it has dismissed as “hypothetical”. It said it will also be seeking costs for having to do so.

    TAM had so far declined to comment as the matter was in the court.

    WPP said, in the light of the media comments following the filing of the NDTV suit, “it feels it is appropriate to comment on the lawsuit.”

    WPP pointed out that the lawsuit has not been served on WPP, nor on any of WPP’s operating companies, referred to in the NDTV lawsuit. “In any event, there is no merit, whatsoever, in any of the claims made in the hypothetical Law Suit relating to the WPP Parties, nor do the courts of New York have any jurisdiction to hear any such claims,” the WPP statement said.

    Referring to the six-point action plan proposed by TAM last week, WPP said, “As recent developments indicate, TAM is committed to working with the industry to continuously improve the use of technology, coverage and transparency. TAM has taken and continues to take stringent measures to protect the panel against repeated attempts at tampering by currently unknown parties and has recently agreed a series of additional steps with the industry to remove any question marks about the quality and reliability of the TAM data.”

    The six steps outlined by TAM include appointment of a security officer and a security agency, expansion in the number of peoplemeters in six top metros, an industry review of the research processes, independent audit of outlier homes, faster rotation of the peoplemeter homes and setting up of an internal audit team.

  • Possible Worldwide buys majority stake in Fortune Cookie

    MUMBAI: In furtherance of its strategy of expand its digital footprint, media communications group WPP‘s interactive marketing agency Possible Worldwide has acquired a majority stake in full service digital marketing services agency Fortune Cookie (UK) Limited.

    Fortune Cookie will combine its business with that of Possible Worldwide Limited in the UK to provide an enhanced service offering to its global clients.

    Fortune Cookie‘s consolidated revenues for the year ended 31 August 2011 were approximately ?9.4 million with gross assets as at the same date of approximately ?2.8 million.

    The agency was founded in 1997 by Justin Cooke who is currently the chair of the British Interactive Media Association (BIMA). Fortune Cookie is headquartered in London with operations in Poland, the Netherlands, US and Australia. Employing over 190 people, its clients include Canon, AEGON, NetJets, BP and Legal & General. The agency specialises in providing design and build, mobile and tablet apps and site development, online marketing services and digital strategy.

    WPP‘s digital revenues totalled $4.8 billion in 2011, about 30% of the group‘s total revenues of over $16 billion. WPP has set a target of 35-40% of revenue to be derived from digital in the next five years.

  • NDTV sues TAM, Nielsen for manipulation of data

    NDTV sues TAM, Nielsen for manipulation of data

    MUMBAI: Television news broadcaster NDTV has filed a lawsuit in New York seeking injunction against publication of television ratings by TAM Media Research and also compensation and damages, a move that can have major implications if the allegations are proved right.

    The lawsuit has been filed against TAM, its parent companies Nielsen and Kantar Media Research and senior officials of the companies in the Supreme Court of the State of New York.

    NDTV has demanded $810 million as compensation for the loss in revenues it has suffered over the years and $580 million in penalty for negligence by Nielsen and Kantar officials.

    In the petition, NDTV has accused the companies of knowingly allowing manipulation of viewership data in favour of channels that are willing to provide bribes to its officials.

    According to NDTV‘s complaint (a copy of which is with Indiantelevision.com), “rampant manipulation” of viewership data has been going on for at least eight years. “The loss of revenue caused to NDTV on account of the false, fabricated and manipulated data released to the public by Nielsen, Kantar and TAM over the past eight years is not less than $810 million,” it states.

    “This is a case, brought under New York State laws, of negligence, gross negligence, false representations, prima facie tort and negligence per se… This is also a case of a once noble company, Nielsen…exhibiting unabashed short term greed and reckless disregard of its duties and of its noble origin. It is a case of the two largest audience measurement conglomerates in the world, Nielsen and Kantar, formerly competitors, operating worldwide through a deliberately complex web of subsidiaries and joint ventures, creating, at least in India, a monopoly and abusing the power of that monopoly,” the lawsuit reads.

    NDTV has also stated that it presented evidences to Nielsen and other parties and its senior officials promised to take remedial actions. However, all promises to make changes proved to be a “sham” and bad data continued to be released “recklessly and in pursuit of profits.”

    At a meeting NDTV had with Nielsen and TAM officials on January 20 2012, NDTV had arranged a detailed presentation by a whistleblower, who was a consultant providing on ground services to TAM. The consultant informed those present that he used to bribe TAM personnel as well as peoplemeter homes in order to manipulate ratings for TV channels and he was successful at doing so. The consultant further stated that he was also able to bribe TAM officials to select him as a sample PeopleMeter home and had a PeopleMeter installed in his own premises.

    NDTV has not disclosed the identity of the consultant in the lawsuit. The 20 January meeting was also attended by Robert Messemer, Chief Security Officer at The Nielsen Company.

    NDTV is being represented by attorneys Adam Finkel and Rohit Sabharwal.

    “The primary reason that data could be so easily manipulated in India was due to the persistent refusal of Nielsen and Kantar to provide adequate funds for TAM to increase its sample size and invest in the systems/quality/security procedures,” the lawsuit says.

    Apart from TAM, Nielsen Group, Kantar Media Research, WPP, JWT, IMRB International, and the Nielsen directors are also made party to the lawsuit.

    NDTV claims that TAM is employing an inadequate sampling size for the Indian market, and also of using inadequate security measures to protect its data. It has also alleged that the lack of security has led to an atmosphere of widespread corruption, with different networks bribing sample households to watch them, and TAM employees taking bribes in exchange for helping to game the numbers.

    The lawsuit lists 42 counts against Nielsen, Kantar, TAM and other defendants, ranging from breach of fiduciary duty and gross negligence to tortious and negligent interference with prospective economic advantage.

    “TAM India doesn‘t comment on any litigation,” said a spokesperson of TAM, a joint venture of Nielsen, Kantar and Cavendish Square Holdings B.V.

    Earlier in 2001 Outlook Magazine and later in 2002 Zee Group had carried exposes on manipulation of TAM ratings.

  • WPP acquires majority stake in digital agency KKLD GmbH

    MUMBAI: WPP‘s German-based marketing services network, Commarco GmbH, has acquired a majority interest in KKLD GmbH.

    KKLD is a German-based digital agency that specialises in brand and digital communication strategies, creative solutions, eCommerce and social media. It is based in Berlin and employs 30 people in its offices in Germany and New York. The clients of KKLD include BMW, MINI, Baume and Mercier, Bayer and Swarovski.

    According to the company, KKLD‘s unaudited revenues for the year ended 31 December 2011 were approximately $4.97 million, with gross assets at the same date of approximately $4.49 million.

    This investment continues WPP‘s strategy of developing its services in fast-growing and important markets and sectors and strengthening its capabilities in digital media.

  • WPP’s Millward Brown buys out Cadem Advertising

    MUMBAI: WPP‘s global research agency Millward Brown has acquired Chilean consumer insights company Cadem Advertising.

    Millward Brown is a global company focused on brands, media and communications. It is part of Kantar Group, the insights arm of WPP plc.

    Founded in 1997, Cadem has operated as a licensee of Millward Brown for many years providing brand tracking, quantitative and qualitative research services.

    According to the official communiqué, Cadem employs 87 people and key clients include Coca-Cola, Falabella Retail, Nestle, Telefonica and Unilever. Its unaudited revenues for the year ended 31 December 2011 were approximately $6.55 million with gross assets of approximately $2.66 million.

    This acquisition continues WPP‘s strategy of investing in fast growing markets and sectors and its commitment to developing its strategic networks throughout Latin America. The Group collectively employs (including associates) 15,000 people with revenues of $1.5 billion in Latin America.

    Post acquisition, Cadem Advertising will become Millward Brown Chile, and, consequently, Millward Brown will consolidate its operations in Latin America, by being present in the entire region, with offices in Brazil, Mexico, Argentina, Colombia, Peru, Chile and Central America.

    Millward Brown Latin America CEO Fabian Hernandez said, “This acquisition is helping us to leverage our business as the most important market research company in the region. Through our presence and service throughout Latin America and by offering excellence in our methodologies and analysis, we are consolidating ourselves as strategic partners for our clients in their market research and brand, media and communication consulting projects in Latin America.”

  • WPP strengthens Latin American foot print with 70% stake in Foster Informatica

    MUMBAI: Global marketing & communications giant WPP has acquired 70 per cent stake in Brazil-based digital agency Foster Informatica through its operating agency Ogilvy & Mather.

    The financial details were not disclosed.

    The Brazilian agency was founded in 1993 and is based in Sao Paulo employing 50 people. Foster‘s unaudited revenue for the year ended 31 December 2011 were 5 million Brazilian real, with gross assets of 4.1 million Brazilian real.

    WPP has been strengthening its foothold in the digital space by making a series of acquisitions around the world. While it recently acquired San Francisco-based digital agency AKQA in the US, in India it acquired Hungama Digital through JWT.

    Also Read:

    WPP on the prowl for digital deals in India, buys 51% of Hungama Digital via JWT

  • Omnicom in talks to buy LBi for $575 mn

    MUMBAI: Close on the heels of rival media communication house WPP buying out digital agency AKQA for $540 million, rival advertising giant Omnicom Media Group is said to be in talks to buy LBi, the independent full-service digital marketing agency, for an estimated $575 million (?368 million).

    LBi said it is in ‘ongoing discussions’ with third parties about a possible sale, but did not state whether Omnicom was among them.

    LBi International is Europe‘s largest independent marketing and technology agency having 30 operations in 16 countries and employing 2,120. The company’s turnover in 2011 was $250 million (?160 million) and net profit stood at ?22 million.

    The digital agency’s birth can be traced back to 2001 when Swedish internet consultancy Icon Medialab merged with rival Dutch web company Lost Boys to form Lb Icon. At the time, the operations were handled out of Amsterdam. Later in 2006, Lb Icon merged with Framfab and was renamed LBi. The newly formed entity then went on to acquire agencies Syrup and Special Ops in 2008 and BigMouthMedia in 2010. In November last year, the conglomerate bought youth marketing and social media agency, Mr Youth, in a deal valued at around $45m.

    With digital being touted as the medium of the future, the leading communication giants have been on an acquisition spree since the year began. Recently, WPP’s JWT bought 51 per cent equity stake in India agency Hungama Digital.

  • WPP’s Possible Worldwide appoints Kamal Krishna as MD for India

    MUMBAI: WPP’s digital agency Possible Worldwide (PWW) India has appointed Kamal Krishna as managing director and Prashant Shivankutty as senior vice-president in a bid to strengthen its India team.

    Krishna comes in from e-commerce beStylish.com where he was head marketing and was part of the launch team and led marketing and tech initiatives through two funding series.

    Shivankutty’s previous stint was with mobile value added services provider Comviva as associate vice-president.

    While Krishna will be responsible for enhancing PWW‘s regional operations along with managing the overall business, Shivankutty has been roped in to manage and upgrade the agency’s technology and creative teams for domestic as well as international digital delivery.

    Krishna has more than 15 years of experience. He has in the past led WPP Digital‘s key business initiatives and accounts across Asia and Africa. Pritor to beStylish.com, he was part of the team that established WPP’s digital agency Squad Digital. He has also been involved with the launch of Publicis Groupe‘s Digitas India and has worked on brands such as Hewlett-Packard, General Motors, Unilever, Skoda, Microsoft and Airtel.

    Starting his career in 1996, Shivankutty’s first job was with Infovision Group where he spent eight years heading its software development lab and CRM practice. He then shifted to Sapient in early 2004 and five years later to Quasar in 2009. In his last assignment, Shivankutty led global delivery at Comviva, managing clients such as Airtel, Tigo, MTN, BanglaLink, Grameen Phone and Etisalat.

    WPP launched Possible Worldwide as a global interactive marketing outfit 2011 by combining its digital agencies Schematic, Bridge Worldwide (US), ZAAZ (US), Blue (Singapore), Quasar (India), Grape (Russia) and Carnation Group (Europe).

    Australia Tourism Board, Makemytrip and Cathay Pacific.

  • Grey to handle creative duties of Network18’s corporate account

    MUMBAI: WPP owned ad agency Grey has won the creative duties for Network18’s corporate account

    The agency will handle the account from its Mumbai office.

    A multi-agency pitch was conducted prior to awarding the account to Grey.

    Grey recently won the creative mandate for In.com, which is part of Network18’s digital arm Web18.

    The agency will be responsible for brand building for the network and its first project will be along the lines of a corporate campaign in which the various arms, ventures and properties of the media conglomerate are likely to be leveraged.

    Network18 Group has operations across television, internet, entertainment, e-commerce, magazines and the mobile medium. The television operations include business news channels CNBC-TV18, CNBC Awaaz, general news channels CNN-IBN and IBN7, and IBN-Lokmat.