ITV

Tag: WPP

  • Sorrell raises WPP growth forecasts

    Sorrell raises WPP growth forecasts

    MUMBAI: WPP Group, the world‘s largest advertising conglomerate, has raised the 2011 growth forecasts and predicted a boost in its dividend.

    The group had previously expected its individual businesses to grow between 3 and 4 per cent in the coming year.

    Speaking at a media conference, chief executive Sir Martin Sorrell said: “Actually, it‘s stronger than that. It is coming through stronger. WPP at this stage is seeing pretty good strength across the board”.

    The resurgence in the US and China and the uplift in traditional advertising markets have contributed to the company‘s growing optimism. 

    Sorrell also noted that WPP, which has 2,400 offices in 107 countries, has grown by 4.5 per cent in the year to the end of October and that its “highly likely” that the group would notch up 15 per cent dividend growth rate in the latter half of 2010.

    According to him the group, which owns agencies such as Ogilvy & Mather and JWT, is now intending to increase the dividend for 2011. He also cautioned that the European debt crisis hasn‘t had any impact yet, though it was causing “massive uncertainty” and it is still “too early to predict”.
     

  • WPP arms foray into content globally, healthcare in India

    MUMBAI: Ad agencies are making forays into new areas in a bid to increase revenues. The leader WPP and its arms have taken the lead. Globally, JWT has already entered the content business and producing shows for television.

    Closer home, WPP’s Sudler & Hennessey, one of the leading global healthcare communications firm, has launched its operations in India in lieu for the forthcoming WTO (World Trade Organisation) norms which will change the name of the marketing and communication game for India’s pharmaceutical companies.

    Glossy men’s magazine Gear and ad agency J Walter Thompson are teaming up to produce pop culture TV programming.
    The first project is a half-hour music series called Conversations which will be hosted by Gear editor in chief Bob Guccione Jr. Guccione founded Spin magazine in the ’80s and still has many contacts with musicians. There is no word yet on where the show will run.

    The crossover from magazines to TV and film has become an increasingly popular trend. From CosmoGirl to Outdoor Life, magazines have been lending their names to TV programs to expand revenue streams and to expand brand awareness. Leading men’s magazine Maxim recently inked a deal to produce movies.

    Meanwhile, WPP’s Sudler & Hennessey (S&H) has entered the Indian market through 50:50 tie-up with Rediffusion DY&R. The JV firm will offer communication services for the healthcare segment. Formed nearly 60 years ago, S&H has a presence in more than 17 countries with an annualised billings of over $900 million. The group boasts of several global clients such as Glaxo Smithkline, Pfizer, J&J, Novartis, Roche – all of which have a presence in India.

    S&H will have two divisions – S&H Communications and Intramed. The first division will focus on OTC (over the counter) and prescription brands whereas Intramed will develop educational and awareness programmes. The various services on offer include brand positioning, medical education and communication, professional marketing and promotion, consultative assessment, consumer marketing and promotion, corporate brand identity, package design and market research.
    The unorganised sector comprises of a major chunk of the Indian healthcare segment and the absence of inadequate laws (related to patents) add to the woes of the organised players. S&H will offer a viable alternative to companies who wish to communicate and educate the consumers. S&H has also developed models to enable pharma companies to work with doctors and directly with consumers.

  • Korean Broadcasting, BBC to back Miptv’s Content 360

    Korean Broadcasting, BBC to back Miptv’s Content 360

    MUMBAI: The Korean Broadcasting Commission (KBC) and the BBC are backing Miptv’s Content 360, the international competition to commission innovative, interactive content and applications for mobile and broadband.

    The event is a part of Miptv featuring Milia, which takes place in Cannes between 16 to 20 April.

    WPP’s OgilvyOne Worldwide is partnering the competition for the first time, alongside returning partner National Film Board of Canada (NFB).

    Content 360 provides the opportunity for international multimedia and application developers to present original ideas which fully exploit the creative potential of new digital platforms and maximise the interaction between audiences and broadcast television. The call for entries is now open, with winners of the competition sharing €100,000 in development funding, asserts an official release.

    KBC director Jinny Kwak said, “DMB has created a whole new culture where people are creating new lifestyles by experiencing completely different forms of broadcasting. At Content 360, KBC hopes to serve as a fresh motivation for new media platforms, such as DMB, to create and develop their own unique content.”

    “The BBC wants to build relationships with the most creative companies out there and together deliver successful services across all new media platforms. This explains our involvement from the inception of the Content 360 competition,” says Jonathan Kingsbury, Head of External Supply, BBC New Media and Technology.

    Milia director Ted Baracos added, “Content 360 brings together the creative ideas and digital applications which are key ingredients in the new multi-platform world. As part of Miptv featuring Milia, it also provides an unparalleled networking and financing opportunity between traditional and new media.”

    Content 360 entrants have time till 9 February to respond to written briefs provided across various categories, each of which has its own specific criteria as established by the event partners.

    KBC will reward the best entry in the cross-platform formats including DMB (mobile TV-centric) category and NFB is offering co-production financing for innovative new forms of socially responsive media. The BBC categories include : localness on bbc.co.uk, children’s content, cross-platform documentary, teenage drama and entertainment, and on-demand participation. OgilvyOne Worldwide has created a cross-media brand marketing category.

    Mint Digital Ltd Tim Morgan said, “Last year’s Content 360 was truly a great opportunity for a creative and technology company like ours to engage the global TV industry. Before Content 360, Mint Digital was a web design company. After Content 360, Mint Digital became a leading provider of social and user-generated web applications with new relationships with broadcasters and producers from around the world.”

    Content 360 finalists will promote their projects during a series of pitching sessions in front of a panel of key decision-makers. The competition winners will be announced on 19 April during the Content 360 zapping show.

    In addition to the pitching competition, Content 360 will focus on creative conferences such as learning from games, impact of virtual reality, tools and platforms enabling user-generated content, video search and social communities, adds the release.

    The Content 360 initiative also includes a dedicated pavilion for networking between digital creators and the international TV industry executives attending the Miptv featuring Milia exhibition.

  • WPP first quarter revenues up 16%

    MUMBAI: WPP’s acquisition of Grey Global has resulted in a sliver lining if one goes by the revenues that former has garnered post the take over. WPP’s revenues have seen a 16 per cent rise on the first quarter of 2005, which primarily reflecting strong organic growth and a first-time contribution from Grey from 7 March.

     
     
    The impact of currency in the first quarter of 2005 was minimal. On a like-for-like basis, excluding acquisitions and currency fluctuations, revenues were up almost six per cent. This maintains the improvement in the organic growth rate of the last two quarters of 2004 and reflects the growing focus by clients on improving profitability through innovation and branding and top line growth, rather than by relying solely on cost cutting.

    In all the regions that WPP has a presence in, a double digit revenue growth has been seen. In North America, revenues were up over 16 per cent; in Europe, the UK was up 12 per cent and Continental Europe up over 15 per cent.. Asia Pacific, Latin America, Africa and the Middle East was up 22 per cent.

     
     
    By communications services sector, advertising and media investment management was up over 17 per cent, information, insight and consultancy up 19 per cent, public relations and public affairs up over 12 per cent, and branding and identity, healthcare and specialist communications up almost 15 per cent.

    The net new business billings of GBP 875 million ($1.62 billion) were won during the first quarter. The Group has continued to benefit from consolidation trends in the industry, winning several large assignments from existing and new clients.

     
     
    In the first quarter both profitability and operating margin were ahead of budget. Full year margin forecasts are in line with the Group’s revised combined margin target for 2005, including Grey, of 14.3 per cent.
    Also, WPP’s operating companies continued to improve productivity. On a pro-forma basis, the number of people in the Group (excluding associates) was up 3.8 per cent as of 31 March 2005 to 71,097, as compared to the previous year. In Q1 2005, average headcount on a like-for-like basis was up 5.2 per cent to 64,368, compared with Q1 2004.

    Balance Sheet and Cash Flow

    WPP has continues to implement its strategy of using free cash flow to enhance share owner value through a judicious combination of capital expenditure, acquisitions and share cancellations, whilst ensuring that these expenditures are covered by free cash flow.

    Average net debt in Q1 2005 was down GBP 240 million to GBP 586 million, compared to GBP 826 million in 2004. The current net debt figure compares with a market capitalisation of approximately GBP 7.5 billion. Net debt at 31 March 2005 was GBP 938 million compared to GBP 825 million in 2004 — an increase of GBP 113 million, reflecting a GBP 384 million gross cash payment for Grey.

    In the twelve months to 31 March 2005, the Group’s free cash flow was GBP 572 million. Over the same period, the Group’s capital expenditure, acquisitions and share cancellations were GBP 646 million (including a GBP 384 million gross cash payment for Grey).

    In the first quarter of 2005, in addition to the completion of the acquisition of Grey, the Group made acquisitions or increased equity interests in advertising and media investment management in the United Kingdom, Denmark and Argentina; in information, insight and consultancy in Hong Kong; in public relations and public affairs in Denmark; in healthcare in the United States, Netherlands and Switzerland; and in direct, Internet and interactive in the United States.

    In Q1 2005, 3,367,000 ordinary shares were purchased, at an average price of GBP 6.17 per share and total cost of GBP 20.8 million. 2,250,000 of these shares were cancelled. The company’s objective remains to repurchase up to two per cent annually of its share base in the open market at an approximate cost of GBP 150 million, when market conditions are appropriate.

    WPP will also be looking at focusing on its key objectives of improving operating profits by 10 per cent to 15 per cent per annum; improving operating margins by half to one margin point per annum; improving staff cost to revenue ratios by 0.6 margin points per annum; growing revenue faster than industry averages; improving our creative reputation and stimulating co-operation among Group companies.

    WPP head honcho Sir Martin Sorrell was quoted in a media report as saying, “The continually increasing cost in network television, the fragmentation of media, and the development of new technologies are all moving the market toward direct, interactive and Internet.”

  • ‘Clients want better research insights, high quality data and speed’ : Tim Balbirnie – Synovate Asia Pacific CEO

    ‘Clients want better research insights, high quality data and speed’ : Tim Balbirnie – Synovate Asia Pacific CEO

    The world of market research in India is growing. Both channels and advertisers are seeking more clearer understanding of the consumer and his/her evolving media behaviour.

    One firm that helps in this regard in market research firm Synovate. Indiantelevision.com’s Ashwin Pinto caught up with Synovate Asia Pacific CEO Tim Balbirnie for a lowdown on the company’s activities and how it adds value for clients.

    What are the ways in which Synovate is helping add value to your offerings?

    We are finding an increasing number of clients are looking towards our online capabilities. We are expanding our global panel, ViewsNet, to facilitate the increasing demand for online research. More and more, we find clients appreciate our assistance with brainstorming workshops as a complement to the report.

    How much does the media and entertainment sector contribute to your revenue stream?

     

    Our media division makes a significant contribution to our revenue. However, we do not break up our revenues by division or indeed, area of specialisation.

    The media sector is important because it is very high profile within the overall research industry. It is also challenging work to conduct from a sampling and analysis perspective.

    Could you give me an idea about the time and effort involved in conducting major studies like Synovate Pax?

    It is significant. It is an ongoing effort to continue enhancing a media currency survey like Synovate Pax. Synovate has invested 10 years; a lot of time and energy; and intellectual rigour in ensuring the survey delivers accuracy, representativeness and meets the needs of major media owners, specialists and agencies across the Asia Pacific.

     

    We are using sophisticated data collection techniques to collect information from the most affluent segments of the population in Asia. In less developed markets this has its own challenges.

    How is Synovate able to work within tight deadlines without compromising on quality?

    As with all service industries, clients are – quite rightly – demanding more. They want better insights, high quality data and speed. Synovate is putting a great deal of emphasis on technology to help us deliver high quality work with faster and faster turnaround times.

     

    We now have a global chief information officer who is seizing this opportunity to drive the group forward from a technical perspective. Synovate is focussing on support services which had previously been regarded as back office functions and utilising those services as a way to deliver all the benefits of our global scope, reach and scale to clients.

     

    One of the things we will not do, regardless of deadlines, is compromise on quality. All Synovate offices have implemented quality control standards of the highest degree. Nothing we do will negate the need for maintaining these standards.
    ‘Moving customer loyalty to the centre of your business strategy requires a well thought-out plan. Our customer relationship architecture provides that guidance’

    What recent additions have been made to your product portfolio as far as the media and entertainment sector is concerned?

    Over the past 12 months we have added the ‘Media Atlas’ survey in Hong Kong, Malaysia and Bangkok. This study shines the spotlight on local media consumption and is being welcomed as a valuable alternative to information that has been in the marketplace for decades.

     

    This is also being introduced in the Philippines. Over the coming months further markets will be added. We have also introduced ‘Media Brand Values. This measures the relationship between C level executives and their media of choice.

     

    In addition, our ‘Young Asians’ survey looks at the media consumption as well as attitudes, brands of choice etc for eight to 24 year olds across the region, including India, and kicks off its second year later this month. This survey, given the importance of youth across Asia, is attracting much interest among clients.

    Have you acquired any research firms in Asia recently to add to your repertoire?

    Less than six months ago, we acquired Market Equity in Australia, a large independent firm. That acquisition, coupled with Aztec Information Services which was acquired in March 2005, has made Synovate a top five player in the Australian market. Australia is an important market to many of our regional clients. So it is a real benefit to now have a seamless Synovate regional operation throughout the major markets.

     

    Market Equity re-branded to become Synovate in December 2005. We also completed the purchase of the Filter Group, a youth marketing research company late last year.

    Could you talk about the kind of out of the box solutions that Synovate’s customer Loyalty practice division offers clients?

    Moving customer loyalty to the centre of your business strategy requires a well thought-out plan. Our customer relationship architecture provides that guidance. This blueprint is customised for each client, and built from a solid, proven framework.

     

    We work with every business in a different way. How we work with a company depends on its goals and where it is in building its own customer relationship architecture. We have some solutions that are starting points addressing aspects of loyalty such as customer, organisation, event, brand, market, employee and reputation.

    Could you give me an idea of what advertising development research entails? How does Synovate work with media planners and FMCGs in this regard?

    At Synovate our philosophy is to integrate media measurement into brand and advertising tracking. This allows our media expertise to be of direct value to major advertisers.

    In what way have clients’ needs and expectations from Synovate grown in the past couple of years?

    Not too long ago, research companies were just producing data. Now we are doing so much more for clients – analysing, consulting and so on. I believe that we are an increasingly vital part of marketing.

     

    The research industry needs to move towards this model across the world. The way we are approaching this at Synovate is to work harder and better at understanding our clients’ needs and the analytics before we start a project. This understanding then carries all the way through the project and beyond.

     

    We are building our consultancy skills – investing in people that have both marketing and research backgrounds to drive this throughout the organisation.
    ‘We understand that everything revolves around business. Pretty graphs are not worth it unless they can be translated into actions – actions that improve business’

    How does Synovate move beyond just providing reports that contain lots of data?

    To move beyond just the data, Synovate is working more and more on client workshops, brainstorming and consulting. We are working to make our service more than a report. We want to help clients make their reports meaningful and help improve their marketing and business strategies. The bottom line is – well – the bottom line!

     

    We understand that everything revolves around business. Pretty graphs are not worth it unless they can be translated into actions – actions that improve business. We are all about applying the theory of research to real life in the business world.

    Often marketers tend to not define precisely what they require when they buy research. Also they have unrealistic expectations at times. How does Synovate cope with this difficulty?

    Again, we are working harder and better at understanding our clients’ needs and the analytics before we start a project. This is a two-way process.

     

    We understand clients better and they understand us. This understanding then carries all the way through the project and beyond. Our clients in general tend to have a clear understanding of what it is they need to know or find out.

    As per Synovate findings what role will new media play in the media consumption landscape?

    New media is without doubt influencing the decisions of advertisers who are seeking additional methods of communicating with their target audiences in an era where the consumer is increasingly in charge of media choices.

    Speaking of which, one issue that is coming up more and more is that of media clutter. With the multiplying of media options, the efficacy of research activity in tracking ever-more complex variables are being put under the scanner. Your comment?

    We have several tools which allow us to track consumer media pathways in real time. Mobile phones provide an excellent method because they are the one device which people carry with them day and night, and which allow us to interact with respondents to find out their media and advertising exposure across the day.
    ‘Market research industry across all of Asia Pac is still growing quickly. Growth in some markets is running at 15-20 % & most markets are above market predictions. A lot of this growth is linked to China, but more & more India is gaining sway’

    What kind of growth can we expect in the market research business in India and Asia?

    Historically, we have always achieved double-digit growth in the Asia Pacific region. I am confident we will maintain these levels of growth for the foreseeable future.

     

    Indeed, the market research industry across all of Asia Pacific is still growing quickly. Growth in some markets is running at 15-20 per cent and most markets are above market predictions.

     

    A lot of this growth is linked to China, but more and more India is gaining sway. I was at a seminar on regional forecasts the other day and the talk was of ‘China plus One’. Companies and investors don’t want to put all their eggs in the one basket.

     

    So they are investing in China and somewhere else in the region. Increasingly that ‘somewhere else’ is India. So as foreign investment increases in India, marketers will invest more and more there too. I see the country as a growth engine for Synovate – not our only one, but a significant one.

    What are the plans as far as India is concerned? How important a market is it as far as Asia is concerned?

    India is very important to us. We will continue to develop and grow our business there. As I mentioned India is becoming a significant market and a major consideration for most MNCs.

    Have you signed any recent deals with any Indian television channels to do research on their behalf?

    We work with several large media players in India. Synovate has a fully-fledged team in India to service media clients covering the entire genre of print, television, magazines and of course internet.

     

    Since its inception, the media research division has done a lot of work in the areas of image and brand tracking studies, positioning studies, and of course on Synovate Pax. This study is the barometer to measure the media consumption habits of the affluent in India.

    There have been reports that WPP is looking to acquire Synovate. Has anything progressed in this area? Is consolidation in the market research arena something that you expect to see this year?

    It is certainly flattering to be the object of our competitors’ attentions.

     

    But, despite some discussion last autumn, the fact is that no one has made a serious offer to buy us and that continues to be the case.

    Finally what does the future hold for Synovate?

    It’s a very bright future. Certainly, there are challenges from other industries which see research as a good thing to be in, but the demand is increasing significantly year on year. The nature of research is also changing.

     

    So while the core people skills will always be in demand, the focus will shift to more technologically based solutions such as online surveys, which are already with us.

     

    Our belief has always been to stay one step ahead of the competition – we believe this has helped drive our success in the past and will continue to do so in the future.