Tag: AAAI

  • Lodestar team wins Young Spikes Media Competition

    By A Correspondent

     

    The Advertising Agencies Association of India (AAAI) declared that the team of Lokita Rathod and Vivek Salunke of Lodestar UM, Mumbai, was winner of Young Spikes Media Competition 2013, India.

     

    This competition was organised by the Advertising Agencies Association of India (AAAI), and supported by The Times of India group to encourage young advertising professionals in the country and providing them with an opportunity for international exposure. This year the theme for the competition was “VOTE for a strong INDIA”.

     

    The winning team will  participate in the Spikes Asia’s Media Competition to be held in Singapore next month. This would be an all-expense-paid trip.

     

    The two-phased judging was with participation of senior industry members. Jury members for the final phase of judging were : Sam Balsara, Chairman & Managing Director, Madison World, CVL Srinivas, Chief Executive Officer – South Asia, GroupM; Jasmin Sohrabji, CEO – SouthEast Asia and Nandan Srinath, Director, Times group.

     

  • Effie Asia-Pacific launched with C4As

    As part of Effie’s global expansion, Mary Lee Keane, President of Effie Worldwide, announced the launch of the Effie Asia-Pacific programme, in partnership with the Confederation of Asian Advertising Agencies Association (C4As).

     

    Effie Worldwide’s signature initiative, the Effie Awards, is recognized throughout the industry as the global standard of marketing effectiveness excellence. With the addition  of the regional Asia-Pacific Effie programme, Effie Worldwide’s international network now expands to 40 programmes and four regional programmes.

     

    “Given rate of changes in media, technology, consumer behaviour, and even business models, there’s never been a more demanding or exciting time to be focused on delivering effectiveness in marketing,” said Carl Johnson, Chairman of the Board of Directors, Effie Worldwide and Co-Founder of Anomaly.

     

    The Effie APAC programme, organized by the C4As and managed by Tenasia Group, will recognize effective work that has run in the Asia-Pacific region.  The C4As is a non-profit organization dedicated to the marketing communications industry and has experience collaborating with organizations in many different countries throughout the region, including North, South and Southeast Asia.

     

    “The Effie Awards is the world’s most established and recognized award competition for marketing effectiveness and we are certainly delighted to partner Effie Worldwide in organizing the Asia-Pacific program,” said Anthony Kang, Chair of C4As. A pilot APAC Effies was previously awarded in 2008 in partnership with Effie Singapore partner, IAS.

     

    Finalists and winners in all Effie programs in the Asia-Pacific region will be included in the Effie Effectiveness Index (http://www.effieindex.com), which identifies and ranks the marketing communication industry’s most effective agencies, marketers and brands by analyzing finalist and winner data from worldwide Effie competitions.

     

    “Asia-Pacific is a key subject on every global marketer’s mind, along with the ever-important subject of effectiveness,” said Daryl Lee, Global Chief Executive Officer, UM and member of the Board of Directors, Effie Worldwide. “Effie is now more than ever, the global authority on marketing effectiveness.”

     

    Srinivasan K Swamy is the Immediate Past Chairman of the C4As and representing the AAAI, Nagesh Alai is Treasurer of the association.

     

  • IBF, AAAI, ISA and TAM reach a consensus. Finally

    By A Correspondent


    Representatives of advertisers, media agencies, broadcasters and TAM have finally been able to iron out their differences and agreed to agree on an agreement.
    The media and public will now get to know television viewership in thousands, colloquially referred to as TVT. TVT captures and reflects growth in TV audiences in the country in terms of absolute numbers. TVT will be the sole currency in the public domain.

    In addition four-week TVT rolling average will be provided every week. The rolling average is statistically more stable data on viewership, especially for smaller audiences in niche channels, regional languages, English language programs and news.

    For internal evaluation including planning and buying, %TVR weekly will be available to advertisers and advertising agencies.

    The three constituents have also agreed that TAM will make all future audience measurement changes based on inputs from the joint-industry BARC Technical Committee.

    Commenting on the changes IBF President Man Jit Singh said: “We are delighted to have reached this agreement. We believe it is important for the industry, and from the perspective of our social responsibility, we must reflect both the growing television audience and the data in a more stable and useful manner. We want to thank AAAI and ISA in collaborating and working out a solution acceptable to all constituents”.

    “As three concerned constituents, who believe in working together, we have decided to refer all future currency related changes to the BARC technical committee. I’m glad that now we will have an effective guide and monitor for ratings in the country,” said Hemant Bakshi, Chairman of Media Committee and Managing Committee of the Indian Society of Advertiser.

    “Getting weekly TVR% is important for media planners and buyers to effectively plan and buy TV  and do mid- plan course corrections and post analysis. We are glad that we have been able to agree that the agencies and advertisers will have access to this data as in the past. From tomorrow, we look forward to being able to focus back on our clients businesses and effective planning and buying for their brands,” said Arvind Sharma, President of the Advertising Agencies Association of India.

    A TAM spokesperson has also issued a statement saying: “TAM is happy to receive a common brief from the three Industry Stakeholders (IBF, ISA and AAAI) and will work very closely with them to ensure its smooth roll out.”

  • IBF, AAAI, ISA and TAM reach a consensus. Finally!

     

    By A Correspondent

    Representatives of advertisers, media agencies, broadcasters and TAM have finally been able to iron out their differences and agreed to agree on an agreement.

    The media and public will now get to know television viewership in thousands, colloquially referred to as TVT. TVT captures and reflects growth in TV audiences in the country in terms of absolute numbers. TVT will be the sole currency in the public domain.

    In addition four-week TVT rolling average will be provided every week. The rolling average is statistically more stable data on viewership, especially for smaller audiences in niche channels, regional languages, English language programs and news.

    For internal evaluation including planning and buying, %TVR weekly will be available to advertisers and advertising agencies.

    The three constituents have also agreed that TAM will make all future audience measurement changes based on inputs from the joint-industry BARC Technical Committee.

    Commenting on the changes IBF President Man Jit Singh said: “We are delighted to have reached this agreement. We believe it is important for the industry, and from the perspective of our social responsibility, we must reflect both the growing television audience and the data in a more stable and useful manner. We want to thank AAAI and ISA in collaborating and working out a solution acceptable to all constituents”.

    “As three concerned constituents, who believe in working together, we have decided to refer all future currency related changes to the BARC technical committee. I’m glad that now we will have an effective guide and monitor for ratings in the country,” said Hemant Bakshi, Chairman of Media Committee and Managing Committee of the Indian Society of Advertiser.

    “Getting weekly TVR% is important for media planners and buyers to effectively plan and buy TV and do mid- plan course corrections and post analysis. We are glad that we have been able to agree that the agencies and advertisers will have access to this data as in the past. From tomorrow, we look forward to being able to focus back on our clients businesses and effective planning and buying for their brands,” said Arvind Sharma, President of the Advertising Agencies Association of India.

    A TAM spokesperson has also issued a statement saying: “TAM is happy to receive a common brief from the three Industry Stakeholders (IBF, ISA and AAAI) and will work very closely with them to ensure its smooth roll out.”

  • Arvind Sharma re-elected President of AAAI

    By A Correspondent

     

    Arvind Sharma

    Arvind Sharma, Chairman & CEO of India Subcontinent, Leo Burnett (TLG India Pvt Ltd), was re-elected President of Advertising Agencies Association of India (AAAI) for the year 2013-2014 at its Annual General Body Meeting held last Firday (July 19).

     

    M G ‘Ambi’ Parameswaran, Executive Director & CEO-Mumbai, Draftfcb+Ulka Advertising Pvt Ltd, was re-elected Vice-President of the Association.

     

     

    Other members of the Executive Committee in alphabetical order are:

    Ashish Bhasin                                    Aegis Media India Pvt Ltd

    Ganesh Baliga                                    Fifth Estate Communications Pvt Ltd

    Kunal Lalani                                      Crayons Advertising Ltd

    Nakul Chopra                                    Publicis Communications Pvt Ltd

    Pranav Premnarayen                    Prem Associates Advertising & Marketing

    Rohit Ohri                                           Dentsu Marcom Pvt Ltd

    Sam Balsara                                       Madison Communications Pvt Ltd

    Srinivasan K Swamy                       R K Swamy BBDO Pvt Ltd

     

    Immediate Past President, Nagesh Alai, Chairman, Interface Communications Pvt Ltd, will be the ex-officio member of the new AAAI Executive Committee.

     

    The Advertising Agencies Association of India (AAAI) has a very large number of small, medium and large-sized agencies as its members who together account for almost 80% of the advertising business placed in the country.

     

  • Will the ad switch-off get broadcasters to revert to weekly ratings?

     

    By A Correspondent

     

    Logically, ads of FMCG majors who sent letters to eight broadcast group on Friday evening should’ve been off air from late last night, but given that there was a Sunday in between, the 72-hour notice given is being considered to be 72 working day hours.

     

    The advertisers have decided to take on the broadcasters head-on. “We’ve decided we don’t want to get bullied any longer,” one big spender told MxMIndia, adding that the channels need to acknowledge that until there is enough money from distribution, it’s the ads that are funding their business.

     

    While broadcasters have adopted a wait-and-watch game, privately, they admit that they are cornered this time around. Moreover, a Colgate needn’t worry about Oral B using this opportunity to over-advertise because both Colgate and P&G have sent us pull-out letters, one channel revenue head told us.

     

    However, the real losers, as industry analysts tell us, are the broadcasters because the revenue loss will be real when it actually starts. “Since most broadcasters are CEO-run or are publicly listed, the stakes are lower for CEOs,” the analyst told us. Except for Zee and Sri Adhikari Brothers, a blip is not a huge worry for MNC-owned or listed company CEOs. “It’s only when the losses mount that the international/regional headquarters will start putting the pressure.”

     

    Meanwhile, another analyst MxMIndia spoke to reasoned that broadcasters will lose out by asking for monthly data. “The monthly release is not going to be a combined number for 30-31 days. It will give you the same weekly break-up. So it’s in a sense a case of deferred live.” Advertisers and media agencies can still review the numbers and nail the channels sales team, he said. “The problem is also for the channel programming team and bosses because in the absence of weekly data, they will not be able to tweak content if ratings are going south and it’s tougher doing it after month,” said the analyst.

     

    The industry-watchers we spoke with believe that for advertisers the issue is now of their egos being hurt by the insistence of broadcasters to go monthly. The demand to refer the matter to the BARC technical committee has been shot down because there is a feeling that the switch to a monthly release of numbers will not get a two-thirds majority that may be deemed imperative for changing the ‘technical’ framework of measurement.

     

    Meanwhile, the offensive against broadcasters was raised last evening by the Advertising Agencies Association of India issuing  a statement on the current impasse on Television Audience Measurement. Said Arvind Sharma, President of the AAAI: “For fourteen years, TAM has been the TV Audience measurement system in the country. It has been the currency on the basis of which advertising planning, buying and selling have been conducted. We all agree that this measurement system needs to evolve. That is the common goal towards which broadcasters, advertisers and advertising agencies came together to create Broadcast Audience Research Council (BARC). BARC will take 10 months or so to start generating its audience measurement data. In the meantime, however, if individual broadcasters try to force unilateral changes in the current system, as some have tried, it will result in a disorderly and hybrid measurement system. It will become impossible for advertising agencies and advertisers to plan and therefore, buy TV spots. In this scenario, it is natural for advertisers to begin to question the value of advertising in this medium at all. Cancellation of TV releases by many advertisers on eight network groups that have insisted on unilateral changes is a natural outcome of that. More clients are following”.

     

    The statement added: AAAI believes that any change in the TV measurement system needs to be thought through and to have support from all the three industry constituents – Broadcasters, Advertisers and Advertising Agencies. “We continue to be firmly of the belief that dialogue among all constituents is essential for evolving the system. We remain open to discussions, as always,” said Mr Sharma.

     

    Hinting at the broadcasting fraternity’s refusal to budge, Mr Sharma said: “This does require similar openness across all constituents. We will continue to work towards a dialogue.”

     

    What all stakeholders are hoping for is the emergence of a back-channel to negotiate a settlement between the stakeholders. Watch this space for more.

     

  • AAAI goes on offensive, says advertisers left with no option but to cancel activity on 8 broadcast groups

    By A Correspondent

     

    Arvind Sharma

    In what appears to be a clear offensive against broadcasters, the Advertising Agencies Association of India issued a statement on on the current impasse on Television Audience Measurement. Said Arvind Sharma, President of the AAAI: “For fourteen years, TAM has been the TV Audience measurement system in the country. It has been the currency on the basis of which advertising planning, buying and selling have been conducted. We all agree that this measurement system needs to evolve. That is the common goal towards which broadcasters, advertisers and advertising agencies came together to create Broadcast Audience Research Council (BARC). BARC will take 10 months or so to start generating its audience measurement data. In the meantime, however, if individual broadcasters try to force unilateral changes in the current system, as some have tried, it will result in a disorderly and hybrid measurement system. It will become impossible for advertising agencies and advertisers to plan and therefore, buy TV spots. In this scenario, it is natural for advertisers to begin to question the value of advertising in this medium at all. Cancellation of TV releases by many advertisers on eight network groups that have insisted on unilateral changes is a natural outcome of that. More clients are following”.

     

    The statement adds: AAAI believes that any change in the TV measurement system needs to be thought through and to have support from all the three industry constituents – Broadcasters, Advertisers and Advertising Agencies. “We continue to be firmly of the belief that dialogue among all constituents is essential for evolving the system. We remain open to discussions, as always. However, this does require similar openness across all constituents. We will continue to work towards a dialogue,” said Arvind Sharma.

     

  • No impact of AAAI, ISA statement. SAB pulls out of TAM subscription

    By A Correspondent

     

    To those who thought that broadcasters would back down after the apex bodies of advertisers (ISA) and ad agencies (AAAI) issued their statement endorsing the need to continue with the existing currency of television measurement administered by TAM, the move from Sri Adhikari Brothers (SAB) to pull out its subscription from TAM is a setback.

     

    SAB, which runs music channel Mastiii and regional entertainment channels Dabangg and Dhamaal, has joined MSM, Times TV and NDTV in the show of no-confidence in the prevailing television viewership measurement system in the country.

     

    Confirming the news, Mr Markand Adhikari, Vice-chairman and Managing Director of the SAB said he was pulling out given the reasons that are well-known.

     

    When asked on what his gameplan would be given that measurement numbers from a BARC-appointed system would be at least a year away, the issue will be discussed jointly with other channels.

     

    Meanwhile, a broadcaster who wished to stay anonymous is hopeful that there will be a settlement to the problem. “Losing out on subscriptions will impact TAM’s operations and hence it will surely provide a solution. And broadcasters too can’t live without measurement for too long.” The senior channel executive also indicated that while the IBF has issued an advisory last week, it may adopt a less offensive stance now.

     

  • Ads back on telly as IBF, AAAI resolve differences on Net billing

    By A Correspondent

     

    Advertisements will be back on Indian television as the Indian Broadcasting Federation (IBF) and Advertising Agencies Association of India (AAAI) resolved their differences on the net billing issue in a meeting that ended late last night (May 2).

     

    Facing tax liabilities on account of non-deduction of TDS on agency commission, broadcasters had stopped airing ads as advertising agencies did not agree to their proposal to move to net billing. While the Advertising Agencies Association of India (AAAI) continues to maintain that the tax demands made on some broadcasters are bad in law, it has committed that it will attempt to get a circular from CBDT that clarifies that broadcasters like other media  are not required to deduct TDS from agency commission since broadcasters do not pay the agency commission.

     

    In a meeting that lasted over seven hours, representatives from IBF and AAAI arrived at a solution that met the needs of broadcasters and at the same time assured agencies of their legitimate earnings. Consequently, ads will be back on air starting today (May 3).

     

    Arvind Sharma

    Says Arvind Sharma, President AAAI, “We are happy that we have resolved the impasse.  We ensured that both broadcasters’ and agencies’ business interests are protected.  We are happy that the solution we have found will meet the needs of our member agencies in terms of their transactions with their clients.” The IBF spokesperson wasn’t available for comment at the time of writing though informally they communicated to this correspondent that all was now well.

     

  • MIB bows to news TV pressure, pushes TAM to delay ratings data release

    By A Correspondent

     

    In what is clearly a case of government interference in the broadcast business, measurement agency TAM Media has been compelled by the Minister Manish Tewari-led Information and Broadcasting Ministry to not release the data for ratings for the last week as well as for around the last two months which it had agreed to not release. The other stakeholders – the IBF, ISA and AAAI – have been mute witness to the decision and chose not to take the government head-on.

     

    While TAM spokespersons were unavailable for comment, sources tell us that news broadcasters had petitioned TAM to not release data for a while. When TAM sought the advise of other industry stakeholders, they (the other bodies) trashed the plea and chose to go ahead with the release.

     

    However, it appears the news broadcasters were able to convince the government which used its power to push ahead with the late evening knock.

     

    Late last night, TAM issued the following statement: “At the request of the I&B Ministry, the Government of India, and in concurrence with IBF, AAAI & ISA, we are delaying the data release to Thursday/Friday.The reason for doing so is that  the Government of India has requested us to withhold release of news channels data by two or three days.  The industry is meeting with the ministry to take a decision. Thank you for your cooperation.”

     

    While TAM and the other industry bodies are not required to toe the government line, they chose to do so, fearing retribution in the future, an industry observer told MxMIndia.

     

    News channels are reportedly desirous of a longer ratings-free window. They believe the current processes followed by TAM do not effectively track their viewership. However, advertisers and media agencies want the presence of a measurement currency so that they can effectively spend monies.

     

     

     

  • Let the (ratings) games re-begin!

     

    By A Correspondent

     

    After a brief two-month hiatus, the broadcast industry will be waiting with bated breath to lay their hands on the viewership data that will be released by TAM tomorrow – that is, December 19 2012. The day will be of utmost importance in the broadcasting fraternity as it marks the release of data post the digitization drive that transpired across four major metros and also for the fact that the industry expects new trends to emerge, something that was amiss when the analog world was largely in operation until October 31, 2012.

     

    Just to recap, TAM had stopped issuing ratings to the industry citing deferment. In wake of the phase-wise DAS implementation that was scheduled to take place across the four metros, the custodians of TAM Media Research – Advertisers (ISA), Media Agencies (AAAI) and TV Broadcasters (IBF) – had arrived at a joint consensus on the need to temporarily defer TAM TV Viewing data release for the All India market for a period of 9 Weeks starting Week 41 (October 7, 2012, Sunday) and ending Week 49 (December 8, 2012). This deferred data will now be released on December 19, 2012 along with data for Week 50 (December 9-15, 2012).

     

    LV Krishnan

    At a press conference last week, LV Krishnan, CEO, TAM Media, highlighted the progress that had been made so far post the switch to digitization by the four metros and what were the immediate trends that were showing up in the new universe. What was heartening to note was that most analog homes in Mumbai and Delhi had made the imperative switch to digital with Mumbai recording a 93 per cent conversion rate compared to Delhi that recorded an impressive 97 per cent. On the other hand, Kolkata witnessed only 70 per cent conversion from C&S homes to digital while Chennai recorded more abysmal figure of just 26 per cent homes that had moved on to digital.

     

    Emphasising on the new rating mechanism, Krishnan said that as per the advice of the CIC committee, TAM will not report homes in the DAS area that are not digital. This will lead to the universe also shrinking correspondingly. Thus while analogue data from Mumbai, Delhi and Kolkata will not be released, an exception will be made for Chennai where it will continue to report analogue data given the low conversion rate observed there. Krishnan added here that the Urban Agglomeration or non-municipal corporation areas in Mumbai that consist of Navi Mumbai, Thane, Dombivli, Kalyan etc will continue to release analog data as they would be liable for conversion when the second phase kicks in. Thus, going forward, the data that would be released will be reported at breaks of C&S 4+, NCS (Terrestrial), C&S Digital 4+ and C&S Analogue 4+ (for non-DAS areas).

     

    Among the few trends that were observed as a result of the digitization drive, Krishnan pointed out the move had been a boon for niche genres like English and kids entertainment that witnessed a spike in viewership (time spent) during this phase. He noted that about 60 percent of channels with a pre-DAS share between 0 and 0.5% gain in share had witnessed a 4 percent net share gain post digitization. This was not the case for larger market share channels that witnessed a slight reduction in the net share gain.

     

    In order to facilitate the ever-expanding universe size, TAM has said that it would be increasing its sample size by about 400 peoplemeter boxes in the Mumbai and Delhi markets starting from the first quarter of 2013. It has also decided to add another 250 peoplemeter boxes to centres such as Chennai, Hyderabad, Bangalore and Kolkata.

     

    While all systems are set for the December 19, 2012 release Krishnan stated that with digitization having set in it was important to be cautious when analysing data in this phase like for example taking averages, looking at trends, not cutting data too fine such as a particular half hour on a particular day, ensuring that sample sizes are sufficient etc. Asserting his gameplan for the future, Krishnan said that for Phase 2, TAM seeks to carry-forward the learnings and continue working with the committee to make it conducive and resourceful for the broadcast environment.

     

    MxMIndia spoke to a few members from the broadcast fraternity to see if not having data for two months made any difference to their survival and what would be their expectations from the new ratings that get released from December 19, 2012.

     

    Ajay Bhalwankar, Head- Content – Hindi GECs, ZEE

    “There is a myth about every Wednesday morning being a scary one….You won’t find us running helter-skelter every Wednesday. Ratings tell you what has been liked and what has not been liked but not what has to be done! So they are just a reference point. We have an internal meter which we follow to check whether our shows are creating magic or not. Initiatives on digital and social media brought us closer to our audiences. This internal judgement is important. I started my career in the ’90s and we had no ratings then for nearly eight years. So, ratings do not bother me.”

     

    Anand Chakravarthy, Business Head, BIG CBS Networks

    “Our issue with TAM has always been that the English entertainment genre has never been well represented. The fact is that the English entertainment speaking audiences are never fairly represented in the sample, due to which the data released is not quite comprehensive. As a network, we have never depended on numbers to sell; we’ve always talked about the quality of content and the quality of our offering which has been our strength. In fact we have always maintained that TAM data is not a yardstick for niche channels like the English entertainment channels because the sample size of TAM does not represent this audience well.

     

    Even with digitization happening, the question, is how well will the new sample represent households that watch English entertainment channels? There could be some amount of movement of market shares between genres as we know that some parts of metros are still not disconnected completely. Therefore the universe size may reduce in some markets that will lead to change in ratings from the larger genres to possibly the smaller genres. But the fundamental issue, does the TAM ratings represent the English entertainment genre well enough and does it have the right sample size and profile of people, the answer to that is no. It will continue to be a problem unless it is addressed very clearly and head-on. That’s an issue that needs to be addressed very quickly. We are working with TAM to see how we can better evolve the system so that the English entertainment space is represented well enough.”

     

    Nina Elavia Jaipuria, EVP & Biz Head – Sonic & Nickelodeon India

    “What happened was for the good of the industry because it was required that everybody come to a consensus and see that the data is sanitised thanks to the changing environment and that it would give us a better understanding of phase 2. So while life was disrupted for about 8 weeks, it was all for a good cause. But having said that, I also believe that TAM is the only currency that exists in this industry and therefore we did miss its release to some extent. But it was a minor hurdle and nothing major so as to change our lives drastically.

     

    As for the release of data once again from tomorrow, we have to see what the new TAM has in store for the industry. They must be having their hands full as of now but then there is a committee which is looking to sanitize data that gets released. With the digitization numbers already pouring in, we are eager to see the kind of trends that the kids entertainment genre has managed to throw up. I see content and marketing playing important roles as they will drive viewership to the genre. So I would wait to see what TAM has to offer and take that lesson to phase 2 of digitization. I am sure that TAM will keep themselves abreast of the sample size and formation based on the manner in which digitization gains acceptance. So the universe will also move accordingly and I am sure that TAM would have taken into account that factor. Whether it is SEC fragmentation or it is the universe movement, TAM surely would have taken all these things into account. Also, digitization will only help the industry in terms of it becoming more transparent and more measurable and the fact that the niche genres will have a better chance to survive.

     

    Also, it will become an environment where the reliance on ad-sales will witness a drop. It will not vanish completely but we will see more reliance on subscription, which will be a good thing. All this won’t happen overnight as only 4 metros have been included in phase 1, which will move to 38 other cities in phase 2 that will take another 4-6 months. But in the end the country will be digitized for good.

     

    From a qualitative perspective, we would like to see different slicing of data especially from a demographic and psychographic perspective in the kids’ genre. Traditionally we have been doing 4-14 yrs which is sliced 4-9 and 10-14 yrs and the more we look at kids today and the fact that they are becoming more dynamic today, there is a need to relook at the slicing by TAM.

     

    Ajay Trigunayat, CEO, English Entertainment Channels, Times Television Network

    We are of the view that it’s difficult to capture rapid macro-transitional changes:

     

    1. Analog >> Digital migration

    2. Panel Updation

    3. Change in SEC definition

     

    We certainly understand it’s a challenge to condense this transitional period but we are hopeful TAM will accurately reflect these changes soon.

     

  • Are suit-led agencies creatures of the past? And why AAAI must reinvent Goafest…

     

     

    Just a day after the vicinity was in grief over the Shiv Sena chief’s death, at Central Mumbai’s tony nightspot Blue Frog, friends and well-wishers of senior journalist Anant Rangaswami came in to witness (and celebrate) the release of the book ‘The Elephants in the Room – The Future of Advertising in India, 2016’. It was a simple event – emcee Karthik Iyer of Bengaluru-based Happy Creative Services made us chuckle with his wisecracks, Anant’s kids Rohan and Anya presented the first copy to his former boss and mentor Arun Arora (Chairman, Edvance and formerly President and ED, Bennett Coleman & Co Ltd) and finally a few words from Anant Rangaswami. For the rest of the evening, there were good spirits and food for company. The book surely asks some tough questions, and then puts recent history of the business in perspective. Our sub-140-character review: Unputdownable. If you’re in the biz of advertising, download now!

    To get a flavour of the book, we present two passages – one on suit-led agencies and the other on Goafest and why it must reinvent. Enjoy.

     

     

    The Elephants in the Room

    By Anant Rangaswami

     

     

    The very reason that suits ran most of the agencies in India till the late 1990s was due to a simple fact: the creatives didn’t care about, and didn’t know much about, managing a business and managing money. As a result, however talented and however critical to the business a creative was, he or she reported to a suit. It suited both well, during that time, till clients latched on to who, in the agency system, was the magician – and the answer was, ‘the creative’.

     

    [Creatives who aspire to head agencies must learn that, however painful it may be, they will have to gain more than a rudimentary understanding of accounts, of finance, of administration, of taxation. Currently, a number of agencies have suits as CEOs ONLY because the creatives fail at what are hygiene skill sets for managers].

     

    Ranjan Kapur perhaps saw this trend coming before anyone else. While he was clearly the head of Ogilvy in India, he saw the opportunity in leveraging the growing reputation and charisma of Piyush Pandey. During Kapur’s years, we saw the face and image of the agency change. While JWT (then HTA) had built a redoubtable reputation for their planning, by the late 1990s, Ogilvy was transformed into the most creative agency in the country as far as popular perception was concerned. Not just Ogilvy – it was Piyush Pandey who had become the God of Advertising Things.

     

    While Kapur pushed himself, cleverly, more and more into the shadows and pushed Pandey more into the sunlight, his contemporaries at the two largest competitors of the time, Prem Mehta at Lintas and Mike Khanna (and later Colvyn Harris) at HTA (to become JWT later), failed to notice what Kapur was up to – and why he was up to whatever they were up to. Mehta held on till he sold his stake in Lintas to Lowe; the status quo remains at JWT, and Ogilvy has, without a doubt, occupied the number one creative agency spot in India.

     

    Kapur, I would argue, saw the future and bet on it. It could not have been easy, at that time, to buck the trend and allow and encourage a creative to become the face of the agency. In hindsight, some of the most memorable advertising work in the past two decades have been on brands handled by Ogilvy – Cadbury, Fevicol, all the avatars of what is now Vodafone, and so on. All these resulted in glory for Pandey and a small amount of reflected glory for Kapur.

     

    But that was a small price to pay – the success of the agency, as far as Kapur’s boss Sir Martin Sorrell was concerned, was due to Kapur.

     

    Today, Lowe is run, whether you like it or not, by Balki. JWT is still run by a suit.

     

    It’s important, for many reasons, for the agency to be run by a creative. The foremost is that when it is apparent that a creative runs the agency, and is not just the head of the creative department, it sends a signal that the ‘environment’ will be more creative-friendly. It makes it easier to recruit and retain creative talent for the creative-led agency than for the suit-led one.

     

    It’s not that the only solution is to insist that a creative heads the agency. It could be in the form of the Piyush-Rane partnership (which was defined by Kapur’s formula), where the creative is the face of the agency. In Rane’s case, he has defined his job as one that will ensure that the environment allows Piyush and his team to focus on the creative product, while he looks after the mundane essential tasks such as finance, accounting and general administration.

     

    But make no mistake about it – the suit-led and the suit-as-the-face agency is a creature of the past. For a moment, let me get back to Salt, which is a new agency headed by a suit, Mahesh Chauhan. Why is Salt doing well, defeating my entire premise? Because, while Chauhan calls himself and sees himself as a suit, his clients and his creative colleagues see him as a creative. Chew on that.

     

    Take a look around you – at all the agencies headed by suits – and at all the agencies headed by creatives. Look at who is winning. Look at who is struggling.

     

    It’s not a surprise. As Sir Hegarty said, I’ll repeat, “How can we not have a creative person at the top of a creative business?”

     

    It’s time for the suits to actively push their creative heads forward and actively recede into the backgrounds. The creatives must be the faces of the agencies – otherwise the creatives will begin leaving.

     

    So will the businesses, as many have sadly learned.

     

    It’s not going to be easy, but it has to be dealt with, sooner rather than later. I told you, it’s an elephant in the room.

     

    A few days ago, my brother, JP Rangaswami, wrote in his blog: “Business is personal. It’s about relationships. It has always been so. Until we tried to forget it and concentrated on making money, not shoes. [As Peter Drucker said, people make shoes, not money]. Then, for a short while, business became not-personal.”

     

    In India, the entire advertising industry is about relationships. It’s personal. And, to paraphrase Drucker, in this business, you create communication, not money.

     

    ****

     

    The AAAI, in the current form, has become an elephant – a white elephant. Unless they change, there is no reason for them to exist.

     

    Which brings me to another elephant. The AAAI has given birth to it and, by some accident and aided and abetted by some office bearers (almost all heads of large creative and media agencies who convince their friends in media houses to sponsor it) it is still alive. The elephant is called Goafest.

     

    Speak to any event manager and tell him you want to do a major event in Goa in April – and he’ll tell you that you’re nuts. It is, verifiably, the hottest month of the year in Goa, with the average temperature being around 33 degrees C (high) and 27 degrees C (low). I’ve checked historic data to save you the time.

     

    Yet, from the time that Goafest was created, it’s been held in the first fortnight of April. Never earlier, never later.

     

    If you live in Mumbai, you’re tempted, every month, to run away to Goa and get away from the pressures of living in the megapolis. Every month except April – because not only is it hot, it doesn’t rain. March is alright, because it is cooler. May is alright, because it begins raining. April is a bummer, because it’s hot and humid.

     

    Yet Goafest is held every goddamned year in April.

     

    Why? Why? Why? When I first thought of the question, I was reminded of a lecture I attended when The Times of India, my then employer, sent me to a course at IIM Ahmedabad. The lecture was on the Toyota system, where ‘Seven whys’ would help Toyota employees on the assembly line arrive at the root cause of problems.

     

    Hazel Rogers from Australia makes the 7 Whys easy to understand.

     

    “The 7 whys is a technique that I believe was developed as part of the Toyota factory quality push, back in the mists of time. It’s since been taken from the manufacturing paradigm and used in IT quality theories. It’s a great method for getting to the root cause or at least one of the root causes of any problem. So it’s a great tool to use with EFT!

     

    What is it? Start with a problem. Keep asking “why?”, until you’ve gotten to where you can’t go any further, or you’ve found some interesting “hidden” thinking! You don’t HAVE to ask why 7 times precisely.

     

    For example:

    I’m procrastinating…

     

    Q Why do I procrastinate?

    Because I’m stuck on using the tools I have here (on the computer)

     

    Q Why am I stuck, when there people available to help me?

    Because I haven’t asked for help

     

    Q Why haven’t I asked for help?

    Because they will think I’m stupid, I should be able to figure it out.”

     

    I’m not going to the 7th question, as much as I didn’t need to when trying to figure out the answer to why Goafest is held in April.

     

    It’s held in April because the planning is appalling, so there’s little time to raise the money to afford Goa hotels in months with better weather.

     

    To give you an idea of what can be done with better planning, you need to look no further than another event held annually in Goa, Kyoorius Designyatra. Their 2012 edition was held in September; they’ve already announced that their 2013 edition will be held in August.

     

    As I write this, I’m certain that speakers are being spoken to, that hotel room prices are being negotiated and sponsors being contacted.

     

    Compare this with Goafest. Going by the history of Goafest that I can claim to be associated with (which is from the 2008 edition), it’ll be sometime in January 2013 before the AAAI management committee discusses the April 2013 event. Once they meet, and they decide on possible dates, they need to talk to The Advertising Club, the owners of the Abbys, the awards which are held at Goafest. Once The Advertising Club agrees, they will begin the process of contacting possible speakers – for whom, unlike Designyatra, they have no budget for. (They do pay for airfares when requested and for the accommodation within India). Ideally, they look for speakers who are happy to come to India at their cost – and that shrinks the pool of prospective speakers dramatically.

     

    It doesn’t help that speakers get notice of less than two months from the day the request is made.

     

    So this, then, is the product that is Goafest:

    1. On the Thursday, a meaningless Conclave ( I use the capital C to emphasise how AAAI views it), where the entry is by invitation only to CXOs and to the handful of marketers who are bullied into attending by their agency partners

     

    2. On Friday, the event is open to the public, and the bar is open as well. Kids loll around drinking and flirting (as I would if I was their age), while speakers like Dan Wieden, Sir Martin Sorrell, Sir John Hegarty, to name a few, are besieged by trade media for interviews in the burning April Goa sun.

     

    3. Speaker sessions start by around 4. Most of the kids are too drunk to attend; some have success with their flirting. It’s difficult to fill the seminar hall. All kinds of devices have been attempted, including a chance to win an iPod if you attend. So Scott Goodson of StrawberryFrog has an audience of less than 300, of the 3000 who are attending the fest.

     

    4. Friday evening sees the Media Abbys. Those from the creative agencies don’t care and they’re off to Martin’s for a piss up. The youngsters from the creative agencies continue to flirt. The media agencies win and lose, and there’s a piss up as soon as the bars open (inexplicably, they close during the awards presentation ceremony).

     

    5. Saturday morning sees most of the media agency executives leave. The bar is open, those who remain do the same as described in points 2 and 3 above.

     

    6. Saturday evening sees the Creative Abbys (during the presentation of which the bar is still closed).

     

    7. Losers bitch about the judging (admittedly, it was the least in 2012) but head for the bars once they’re opened.

     

    8. Some of the lucky delegates have sex with partners they’ve met for the first time in Goa.

     

    9. International visitors tell Indian trade media that they’re very happy with how their Indian offices are doing, even if their Indian offices are doing terribly.

     

    10. Sunday morning, all fall down.

     

    This is absolute rubbish. What the AAAI demonstrates, first by scheduling the event in April, and then by the content they create, is an absolute contempt for the intelligence of the average advertising professional in India. They have the temerity and the arrogance to call it the “Cannes of India”, much in the same spirit that Maharashtra’s chief ministers compare Mumbai to Shanghai.

     

    Unless the AAAI reinvents Goafest, it’s a downhill ride from here.

     

    The AAAI needs to re-focus on the premise of Goafest. To begin with, they’re trapped, by the very name of the festival, to hold the event in Goa. Goa has become, over the years, a very expensive destination – except if you live in Mumbai or Pune. To someone from Kolkata , Singapore and Bangkok are cheaper. At short notice, even in April, it could cost you a small fortune to fly to or from Goa at short notice. Ask Lodestar’s Shashi Sinha, who had to make a last minute change a few years ago and ended up spending Rs.18000 on a one-way ticket from Goa to Delhi on the Sunday after Goafest.

     

    Forcing the event to stay at Goa makes the festival exclusive and not inclusive. It is slowly becoming an annual ritual for the industry from Mumbai to take a few days off. We see a few hundred each from Delhi and Bangalore; from the rest of India, the number will be in the low double digits. Perhaps 10-15 from Kolkata, and another 10-15 from Chennai.

     

    It’s time to become truly inclusive, and start moving the festival around the country. That’s why Goafest traps you. For God’s sake, if the entire advertising industry cannot come up with a new name for an advertising festival, it’s a little sad.

     

    (In the short term, you can be sure that next year’s attendance will take a beating, thanks to the sluggish market and the pressure on margins).

     

    Learn from Designyatra that content is King, not the entertainment. I’ve attended two editions of Designyatra in Goa and one in Mumbai – and all three have had superlative content. Content that keeps you riveted to your seats and taking notes. Speakers you want to walk up to and hug once they’ve finished. Conference halls that are packed to the rafters.

     

    And there’s no free alcohol, no parasailing, no tattoos. Designyatra is serious business – and the delegates seem to profit from it – there are more attending every year. There are no major costs in event management, as all the sessions are held in hotel banquet halls. Sponsors are happy to support the event, because they’ve seen, over the years, the quality of the delegates and the level of involvement.

     

    The old adage goes, if it ain’t broke, don’t fix it. On the other hand, if it is broke, fix it. Goafest is broke. Fix it.

     

    Extracted with permission of the author Anant Rangaswami

    from The Elephants in The Room – The Future of Advertising, 2016.

    Pages 152, self-published.

    The book is also available as a free download from Firstpost.com.

    More information and interactions at facebook.com/theelephantsintheroom