MxMIndia

Category: ADVERTISING

  • Last year, Magna Global had predicted an 8.7% growth for Indian adspends. This was revised mid-year to 7.8%. The growth for 2012-13 based on its estimates, is 7.8 percent

    India ad revenues to grow 11.3% in 2014: Magna Global. 2013 Growth: 7.8%

    By A Correspondent

     

    Indian media companies will see ad revenues growing by +11.3% next year with the internet again leading the growth at +31.4%, according to Magna Global’s annual advertising forecast for the year 2014.

     

    The growth in television adspends will be 10.4%, while that for newspapers will be 8.8%. Magazine adspend growth will 2.3% while OOH will be 12.1% and Radio at 11%. Cinema, given its lower base, will grow at 20%.

     

    Last year, Magna Global had predicted an 8.7% growth for Indian adspends. This was revised mid-year to 7.8%. The growth for 2012-13, although based on its estimates, is 7.8 percent.

     

    The economic environment remained weak throughout 2013 but is still expected to improve in 2014, especially in the developed world which has experienced four years of slow growth and stubborn unemployment, according to a communiqué. In its October 2013 update, the IMF forecast world output (real GDP) to accelerate to +3.6% in 2014. This is marginally below its April forecast (+4.0%) but still stronger than the 2013and 2012 growth (+2.9% and +3.2% respectively). The latest IMF update also confirmed that the Euro markets are finally emerging from recession as of the end of 2013 (+1.0% GDP growth expected in 2014, +1.4% in Germany). The US will accelerate from +1.6% to +2.6%. Meanwhile,the emerging “BRIC”economies will also re-accelerate after experiencing a “soft landing” in 2012-2013: India +5.1% (following +3.8% in 2013), Russia +3.0% (following +1.5% in 2013); Brazil and China’s are expected to grow by +2.5% and +7.3% respectively (on par with 2013).

     

    Venkatesh S

    That level of economic activity is not particularly impressive by historical standards but confidence indices keep improving and we believe advertising spending will reflect and amplify that economic trend says Venkatesh S, EVP, Director Intelligence, Magna Global, India.

     

     

    Look out for our detailed report on the Magna Global numbers on Tuesday, December 10

     

    Caption: India advertising revenue by media category 2012-2014

     

  • He will assume office in January 2014 when MR Varghese moves into regional role as CEO Maxus Asia-Pacific

    Kartik Sharma to take charge from Ajit Varghese as Managing Director, Maxus South Asia

    By A Correspondent

     

    Kartik Sharma

    GroupM and Maxus have announced the new Managing Director for Maxus South Asia- Kartik Sharma. Mr Sharma takes over the reins from current Managing Director Ajit Varghese from January 2014, as Mr Varghese moves into a new regional role as CEO Maxus Asia-Pacific. Mr Sharma moves up from Managing Partner, Maxus and will report into CVL Srinivas, CEO, GroupM South Asia and Mr Varghese. He will also now be a part of the GroupM South Asia EXCO.

     

    After completing his MBA from Narsee Monjee Institute of Management Studies in 1995, Mr Sharma joined HTA as a Media Planner on the Unilever Business. He moved to Lintas as Channel Planning Director from 1997, where he continued to work on Unilever, in addition to clients like Bajaj Auto, Raymonds etc. In 2000, he joined Mindshare where he was Planning Director from 2000-03. He was in Madison from 2003-07, heading Madison Media Research Center. Mr Sharma has been a part of Maxus since 2007 and looked after the West region from Mumbai. He has been instrumental in the success of the agency and worked across key client relationships including Vodafone, L’oreal, Tata Sky, Shopper’s Stop to name a few.

     

    Commenting on the appointment, CVL Srinivas, CEO, GroupM South Asia said, “Kartik has done a stellar job as Managing Partner, Maxus, working closely with Ajit in shaping the Maxus brand, creating client delight, winning several new businesses and helping Maxus dominate industry awards. I wish him the very best and also welcome him to the GroupM South Asia EXCO which will benefit immensely from his product knowledge and experience.”

     

    Added Ajit Varghese, Managing Director, Maxus South Asia: “Kartik is an excellent choice for Maxus going forward especially considering his product strengths and client focus. A long standing employee of GroupM, he has the in-depth knowledge and insight of what is needed to take Maxus to the next level. Kartik has been the key architect in growing the Maxus Mumbai office 3 fold in the last 6 years and building up a collaborative culture of working across offices and between various teams inside GroupM.”

     

    Speaking to the media about his appointment as Managing Director, Kartik Sharma said, “The last six years at Maxus has been very exciting. What I love most is the passion & collaborative culture where every team member works hard to deliver on our 10/10 vision of delighting clients. Our focus on constantly improving the product and the ability to develop a unique work culture has helped us deliver winning solutions for clients. I look forward to my new journey and am confident it will be equally exciting & fulfilling.”

     

  • Kartik Sharma take charge from Ajit Varghese as Managing Director, Maxus South Asia next month when the latter moves into regional role as CEO, Maxus Asia-Pacific

    Kartik Sharma to helm Maxus South Asia wef Jan ’14

    By A Correspondent

     

    Kartik Sharma

    From its India headquarters in a part-woody and part-concrete environ of North Mumbai, media conglomerate GroupM announced a new captain to steer Maxus South Asia on Monday. Kartik Sharma, currently Managing Partner, will be Managing Director for the media network’s India region from January 2014, taking charge from Ajit Varghese who has been appointed CEO Asia Pacific. There were rumours that the replacement for Mr Varghese could be brought in from the outside, but that evidently was due to the long wait since the transition for Mr Varghese was announced in September.

     

    An alumnus of NMIMS Mumbai, Mr Sharma will report into CVL Srinivas, CEO, GroupM South Asia and Mr Varghese. In Maxus since 2007, Mr Sharma has been looking after the Western region and worked across key client relationships including Vodafone, L’oreal, Tata Sky, Shoppers Stop to name a few. He has earlier worked with HTA, Lintas, Mindshare and Madison.

     

    Commenting on the appointment, Mr Varghese said, “Kartik is an excellent choice for Maxus considering his product strengths and client focus. He has the in-depth knowledge and insight of what is needed to take Maxus to the next level.” Added CVL Srinivas, CEO, GroupM South Asia, “Kartik has done a stellar job as Managing Partner, Maxus, working closely with Ajit in shaping the Maxus brand, creating client delight, winning several new businesses and helping Maxus dominate industry awards.”

     

    Speaking on his elevation, Mr Sharma said, “The last six years at Maxus have been very exciting. Our focus on constantly improving the product and the ability to develop a unique work culture has helped us deliver winning solutions for clients. I look forward to my new journey and am confident it will be equally exciting and fulfilling.”

     

    The current role and what he will helm post January will, according to Mr Sharma, be different given the overall leadership responsibility. When asked what Mr Varghese meant by taking Maxus to the next level, Mr Sharma said: Digital is the core of what we do. Given the pace at which data is hitting us is nothing that humankind has seen so far. The important thing is to understand what’s noise and what’s good. It’s important to use data intelligently,”

     

    But doesn’t too much of technology convert a media agency into a tech firm? “Whether we call it a media or tech company is semantics,” said Mr Sharma underscoring the need to understand technology. The digital media is growing over 30 per cent year-on-year and this, the MD-designate said, requires significant attention.

     

    On awards and Mr Varghese dream of the agency winning top honours at the Emvies, Mr Sharma said: “The Emvies are a mix of creativity and effectiveness and hence important. It’s very important to keep winning awards. But when we do work, it’s for the brand and not for awards. Awards though help in bringing the best in us.”

     

  • The principal engine of adspend growth from 3.6% in 2013 to 5.3% in 2014 to 5.8% in 2015 and 2016 will be mobile technology, notes ZenithOptimedia's annual ad expenditure forecast

    Mobile to drive global adspend growth over next 3 yrs: ZO

    By A Correspondent

     

    Advertising is set to see the strongest sustained period of growth in 10 years with global adspend growth forecast to rise from 3.6% in 2013 to 5.3% in 2014. Growth is then set to increase to 5.8% in 2015 and 2016. The principal engine of this growth will be mobile technology, which is expanding the space for media consumption.

     

    According to ZenithOptimedia’s new Advertising Expenditure Forecasts, growth in global adspend next year will come from the continued steady improvement in Europe and the three ‘semi-quadrennial’ events: the Winter Olympics, the football World Cup, and the mid-term elections in the US. We forecast that the global advertising market will accelerate to 5.8% in 2015 as a strong broad-based economic growth takes hold, followed by another year of 5.8% growth in 2016. This assumes that the Eurozone’s gradual recovery continues and no new crisis occurs.

     

    Mobile is expanding overall media consumption

    Mobile is now the main driver of global adspend growth. This the first time in the past 20 years that a new platform is expanding overall media consumption without cannibalising any of the other media platforms. We forecast mobile to contribute 36% of all the extra adspend between 2013 and 2016. Television is the second largest contributor (accounting for 34% of new ad expenditure), followed by desktop internet (25%), which continues to enjoy significant growth alongside that of mobile advertising.

     

    Despite its sizeable growth, mobile advertising still only accounted for 2.7% of global adspend in 2013. By 2016, however, we expect it to account for 7.7% of adspend, leapfrogging radio, magazines and outdoor to become the world’s fourth-largest medium. We count as mobile all internet ads delivered to smartphones and tablets, whatever their format.

     

    Rising Markets are growing three times faster than Mature Markets

    The world’s ad markets are growing at two very different paces. Mature Markets are struggling with debt and low innovation, and their populations are ageing, with growing numbers of retirees supported by a shrinking workforce. We forecast these markets to grow at an average of just 3% a year between 2013 and 2016. Meanwhile Rising Markets are improving their education systems, infrastructure, productivity and adoption of technology, and they have a young population with an expanding workforce. We expect them to grow at 9% a year. The Rising Markets currently account for 35% of global adspend, but we expect them to contribute 61% of adspend growth between 2013 and 2016.

     

    BRIC growth is slowing

    The G7 markets (Canada, France, Germany, Italy, Japan, the UK and the USA) have a median age of 40; they account for 58% of global adspend, but we forecast them to grow at an average annual rate of only 3.6% between 2013 and 2016. The BRICs (Brazil, Russia, India and China) have grown enormously over the last twenty years, and now account for 14% of global adspend, up from 1% in 1993. They are much younger than the G7 (with a median age of 31), and we forecast them to grow at an average of 9.5% a year over the next three years, but this is well down on their average growth of 15.8% in the previous decade.

     

    “Mobile technology is creating new opportunities for marketers to connect with consumers. Combined with the continued rise of young, dynamic markets, this will spur healthy and sustained growth in global adspend over the next three years,” said Steve King, ZenithOptimedia’s CEO, Worldwide.

     

    ZenithOptimedia is headed by Anupriya Acharya in India.

     

  • Mr Ram will head Global Advertisers' pan-India marketing initiatives

    Global Advertisers appoints Sudhendu Ram as National Head Marketing

    By  A Correspondent

     

    Sudhendu Ram
    Sanjeev Gupta

    Leading outdooradvertising agency Global Advertisers has strengthened its team with Sudhendu Ram appointed to head marketing initiatives pan-India. The agency has expanded its business in Tier II and III cities wherein large scale of BTL activities are taking place.

     

    Commenting on the appointment, Sanjeev Gupta, MD, Global Advertisers, said “The outdoor industry is undergoing tremendous change, brands are now exploring new opportunities to tap consumers of tier II and tier III cities. Therefore, to cope up with the increasing demand, we have roped in several senior professionals and young talent this year. Now we have Sudhendu on our board to maximize our reach and improve the quality of our service. We wish him all the best for his new challenge.”

     

    Speaking on the association with Global Advertisers, Mr Ram, said “My aim is to take Global to the next level of media engagement and recall with my deep understanding of media and expertise in terms of networking and knowledge.”

     

  • The Effies 2013 awards ceremony is scheduled for Wednesday, January 15, 2014 at the Turf Club, Mumbai

    Ad Club receives 419 entries for Effies 2013

    By A Correspondent

     

    The annual Effie 2013 Awards organized in India by the Advertising Club has received 419 entries, a significantly higher number than the 357 of last year.

     

    Ajay Kakar

    Said Ajay Kakar, Chairperson, Effie 2013 Committee, “A growth of about 20% in the number of entries and participation of over 50 agencies shows the growing importance of ‘effectiveness’ of a marketing campaign and its direct impact on a business. In recent years, this has also been one of the key requirements of businesses from marketers and agencies. I am sure that this year we will witness a wide range of ideas that has created a lasting impact on brands across diverse categories.” The Effies judging is being in Delhi as well as Mumbai. Colors is the presenting sponsr, with Zee Media Corporation as the Associate Sponsor. Lenovo is the Technology Sponsor.

     

    The awards event will be held on Wednesday, January 15, 2014 at the Turf Club, Mumbai at 6.30pm.

     

  • Ruchi Soya's Popular Division appoints Maxus as Media AOR

    Maxus wins Ruchi Soya biz

    By A Correspondent

     

    Maxus India is the agency on record (AOR) for Ruchi Soya (Popular Division) including brands Mahakosh, Sunrich & Ruchi Gold. It won the media investment duties across a multi-agency pitch for Ruchi Soya’s edible oils business. The account will be handled by the Maxus Mumbai office and will be headed by Mangesh Korgaonkar.

     

    Speaking on the announcement, Alok Mahajan, Head of Marketing, Ruchi Soya Industries said, “We are extremely excited to work with Maxus India, one of the fastest growing media agencies in the world. We were impressed with their clear vision on our business, their thought leadership and above all their enthusiasm to partner with us on our journey towards becoming a truly world class consumer brand. We hope to have a long association with the agency.”

     

    Kartik Sharma

    Commenting on the new business acquisition, Kartik Sharma, Managing Partner, Maxus said, “We are delighted to come on board as an AOR for Ruchi Soya. Working with one of the leading FMCG companies in India, with a turnover of over Rs. 26,000 crores. is truly a great opportunity.”

     

  • RAPP India has roped in Kapil Bhatia as Associate Vice President for the agency’s growing clientele in Mumbai.

    RAPP India appoints Kapil Bhatia as AVP

    By A Correspondent

     

    Kapil Bhatia

    RAPP India has roped in Kapil Bhatia as Associate Vice President for the agency’s growing clientele in Mumbai.

     

    Mr Bhatia joins RAPP India from Squad Digital, Nairobi, where he was General Manager overseeing the operations of the agency across digital strategy, creative solutions, media planning, social media marketing and mobile marketing.

     

    Before moving to Nairobi, Mr Bhatia worked with the DDB Mudra Group for four years and was primarily in-charge of client servicing for one of the agency’s largest clients, LIC.

     

    Venkat Mallik

    Said Venkat Mallik, President, RAPP India and Tribal Worldwide India, ‘We are going through an interesting phase of transformation and growth at RAPP in India. Kapil joins RAPP at just the right time as we look to remodel the agency and introduce a set of new initiatives to strengthen  the multi-channel RAPP offering across Mass Media, E Commerce, Social Media, Email marketing & CRM. RAPP is one of the few agencies with the ability to offer genuinely integrated communication thinking and Kapil’s skills and experience complement this really well.’

     

     

    Bijoe George

    Commenting on this, Bijoe George, Vice President, RAPP India said, “As we go about building RAPP INDIA as a media agnostic, data-led agency we needed leaders who can champion this cause amongst clients. Kapil comes with the requisite experience and fits the bill perfectly”.

     

    On joining RAPP India, Mr Bhatia said, This is going to be an exciting opportunity to tap into my through the line communication understanding. I look forward to help RAPP with the building its multi-channel capabilities.

     

  • As Chief Talent Officer, Gaurav Hirey will be responsible for driving the agenda on people, culture and values at GroupM which will include employee acquisition, training, development, retention and growth for India, Pakistan, Bangladesh and Sri Lanka

    GroupM elevates Gaurav Hirey to Chief Talent Officer, South Asia

    By A Correspondent

     

    Gaurav Hirey

    GroupM has announced the appointment of Gaurav Hirey as Chief Talent Officer South Asia. Part of GroupM since 2008 and currently Regional HR Director, APAC, Mr Hirey will relocate to Mumbai with effect from January 1, 2014.

     

    Mr Hirey will be responsible for driving the agenda on people, culture and values at GroupM which will include employee acquisition, training, development, retention and growth for India, Pakistan, Bangladesh and Sri Lanka. He will be a part of the GroupM South Asia Executive Committee and will report to CVL Srinivas, CEO, GroupM South Asia and Angela Ryan, Global CTO, GroupM.

     

    CVL Srinivas

    Speaking on the appointment, CVL Srinivas, CEO GroupM, South Asia said, “As we move to the next stage of the People Transformation journey, I am pleased to welcome Gaurav Hirey back as our Chief Talent Officer (CTO) – South Asia. Gaurav has a successful track record of making things happen and is the best person to lead our people agenda. We look forward to having him back with us.”

     

    Said Mr Hirey: ” Mumbai is home ground and so always a pleasure to be back! I am very excited about the new leadership and the new vision at GroupM South Asia and look forward to leveraging the last two years of my international exposure and the network to help and impact business results.”

     

  • Carat Fresh Rural, Aegis' rural marketing specialist for the Indian market has Bayer Crop Science, Godrej Consumer Products, Pidilite, Mahindra & Mahindra and Sony Max among its clients

    Aegis Media launches rural marketing cell

    By Ravi Balakrishnan

     

    Aegis Media has launched Carat Fresh Rural, a rural marketing specialist for the Indian market. The agency will operate as a separate division within Carat Fresh, Aegis’s activation wing. After a soft launch, Carat Fresh Rural counts Bayer Crop Science, Godrej Consumer Products, Pidilite, Mahindra & Mahindra and Sony Max among its clients. It is headed by Keshav Chandorkar, whose previous experience includes stints with Linterland (the rural division of Lintas) and Dun & Bradstreet. The current team strength is 30 people across seven offices. Carat Fresh Rural will also be working with 1,500 operators who are in charge of implementing rural marketing programmes.

     

    Significantly, Aegis is starting a pure play rural agency at a time when many in the business are opting out of the segment or merging it with urban activation. Rural marketing is expensive and operations oriented, demanding remarkable levels of financial commitment. Besides many marketers with extensive distribution have started using their own networks and local vendors to reach rural segments.

     

    Ashish Bhasin

    Ashish Bhasin, chairman – Aegis, India, remains bullish: “Many categories are near saturation in urban areas. Rural markets make sense given good monsoons, and government schemes that provide greater disposable income.” He believes this market has been very poorly serviced by the advertising industry but has potential. “The organised part of rural can be half or more than half the mainstream market, valued at between Rs 25 and Rs 30 crore. It is full of challenges but the pot of gold at the end is humungous.”

     

    Having a team full of veterans, Mr Bhasin intends avoiding many of the pitfalls of rural marketing. One of the largest misconceptions is assuming rural consumers can be served by a dumbed down version of urban communication. The other is underestimating the importance of implementation. Carat intends solving some of these problems via technology.

     

    Source:The Economic Times

    Copyright © 2013, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • Upclose with Sukesh Nayak, Group Creative Director and the writer of the Google ad that has been receiving rave reviews since it was released last month

    Ogilvy’s most envied: The Google Ad

     

    A quick chat with Sukesh Nayak, Group Creative Director and the writer of the Google ad, that has been receiving rave reviews since it launched last month. Sukesh and team were awarded the ‘Most Envied’ Envie award held on Monday, Dec 16 in Mumbai.

     

    So would you rate winning the ‘Most Envied’ award as the ultimate accolade?

    Yes, I personally admire the work of various members of the jury. And the fact that they chose this for the award is a great recognition.

     

    And how has the ad done for your client?

    Oh fantastic. It is really unfortunate they couldn’t make it for the Envies. The head of marketing was supposed to come down. From the conversations we’ve had with them, it’s been amazing.

     

    We saw Piyush in tears…

    Oh, he has been crying since he has seen the offline version.  He is my mentor. I wanted to get into advertising  ever since I saw his Fevicol ad when I was in college. I gave up banking for this. I am so happy today, It has been one of the best decisions I have made in my life.

     

    Tell us about how the ad came about

    Well, I wrote the film. And of course along with the entire team which was on stage. We had around five scripts we were pitching for this project, and this was one of them. As an agency, Keenu (Abhijit Avasthi) and I felt that this is the film that we would recommend if the client asks us ‘Which one do you recommend’. Luckily for us, that question never come because even they as a team came back saying this is film we want to do.

     

    Once the basic script was there then everybody I think I would credit every single person in the team. You know there are small little nuances if you have seen the film. Things like search… .So the basic script is there now everybody has got into it, I have got help from the planning people, I’ve got help from the account management people.

     

    But the film I wrote was only 85 per cent of what you see. The rest was added by the director, Piyush himself, Keenu… a great team effort.

     

    We saw Amitabh Bachchan having a long chat with you on stage?

    Oh, he was asking whether I have any personal memories or any family history of Partition.. how could you write something like this.

     

    And so what did you say?

    I was telling him about how a friend’s friend from my school in Dehradun who was in Delhi and how his grandfather came to India overnight, with nothing in hand. Today, he is a big industrialist in Delhi.

     

    The ad is a rage in Pakistan too…

    Yes, I heard that. You know we knew we had a good film, but we honestly had no idea that this is what it would become. It is very overwhelming for me personally because as you know in our business it’s all about…what are you going to do next.

     

    So what are you going to do next?

    I am screwed. It’s a great feeling. It feels awesome. But to beat this is going to be tough.

     

    Any thoughts of getting into big bad world of Bollywood?

    Honestly, haven’t thought about it. I think the best part of my job is being able to tell a story… whatever be the medium. That is something I really enjoy. I haven’t really thought about anything beyond this, because I am loving it so much. I am at my desk at work at 9am. I am the first guy in office because I just love to go there and work. That way, I get two hours of a clear window to work…then I do admin work the whole day.

     

    Hmmm.

    Like I told you, I was not meant to do this, I was doing something else in my life. I got into this by complete fluke. And I am really thankful to people who gave me break. I It’s the best job I can ever have. Like Mr Bachchan said: you enjoy it, you just get better at it.

     

    More reports on Ogilvy’s Envies tomorrow

     

  • Initiative takes over from ZenithOptimedia as Reckitt Benckiser's media planning and buying partner

    IPG Mediabrands’ Initiative bags Reckitt Benckiser mandate in India

    By A Correspondent

     

    When a top FMCG advertiser moves its media agency mandate globally, there’s a stir in the advertising marketplace. Reckitt Benckiser (RB), which owns 19 big brands like Dettol, Strepsils, Durex, Clearasi, Harper, Bang, Mortein etc, has appointed the Aegis, Havas, Publicis and IPG networks as its global media agency partners. In India, where RB is among the five biggest adspenders, IPG Mediabrands’ Initiative has been appointed the media agency.

     

    This follows a global review to ensure the company benefits from “best-in-class media planning and buying” across around 60 markets in which it advertises. RB had existing arrangements with Havas and ZenithOptimedia (Publicis). Aegis and IPG are new additions to its global roster. Initative takes over the mandate in India from ZenithOptimedia.

     

    Said Heather Allen, executive vice president global category development, “Our media investment is critical for our brands to engage with consumers around the world.  Reckitt Benckiser is one of the world’s fastest growing companies in consumer health, hygiene and home and we’re looking forward to successful growth for our agency partners and us going forward.”

     

    “The learnings that we have got on the RB business will stay with us and we are richer for these. We thank RB for their support and wish them and their new agency all the very best for the future,” said Anupriya Acharya, Group CEO, ZenithOptimedia India.