MxMIndia

Tag: GroupM

  • GroupM ESP Sporting Nation Report 2023 reports a steady y-o-y growth in 2022

    India sports grows 49% to 14kcr

     

     

    By Our Staff

     

    GroupM ESP launched the 10th edition of the Sporting Nation Report 2023 on sports sponsorship in India on Wednesday. The Indian sports industry witnessed a significant growth curve in 2022, with spends crossing over INR 14,000 crore.

     

    Sporting Nation 2023 highlights the growth of sports sponsorship in India, with spends on-ground, team, and franchise rising by INR 3021 Cr, a 105% growth from 2021, making the total sponsorship spends INR 5907 Cr. The overall increase in spends was due to the rise in the number of IPL matches, the addition of two new IPL teams, the ICC T20 World Cup, Asia Cup, FIFA World Cup, and the return of emerging sports events and tournaments like PKL, marquee marathons, Maharashtra Open, and Commonwealth Games 2022. Indian women athletes and women cricketers saw a phenomenal rise, with the Indian women’s cricketers making a name for themselves on the international stage.

     

    The report highlights key aspects of how brands are expected to approach spending on sporting events differently with the rise of OTT, and the sports industry is one of the better-performing sectors in the economy with a 14% CAGR. Two big international racing events, Formula E & Moto GP, are to be held in India for the first time in 2023. The renewal of IPL Sponsorships post the 2023 season, BCCI Home Series Title ad Central Sponsorship along with team India sponsorship, BCCI Home Series Media Rights, and the inaugural season of WPL in March 2023 will be the tipping point for Indian cricket. Overall, the rise of Indian cricket, the performance of Indian athletes and the number of emerging sports leagues have all contributed to India becoming a sporting nation in the last ten years.

     

    The report reveals that cricket continues to dominate the Indian sports sponsorship landscape, contributing to 85% of the sponsorship spends, while emerging sports like football, kabaddi and marathon have seen a massive upsurge in the sponsorship spends, contributing to the remaining 15%.

     

    The growth of cricket sponsorship can be attributed to several reasons, including the Indian cricket team playing almost the double number of matches, as compared to 2021. The Indian Premier League (IPL) contributed the major revenue by adding two new franchises – Gujarat Titans and Lucknow Super Giants, and a full house of central sponsorship.

     

    Said Prasanth Kumar, CEO – GroupM South Asia:  “The Indian sports ecosystem is experiencing a revolutionary transformation, with athletes becoming influential role models for the youth and sports sponsorships gathering immense momentum. In this scenario, brands hold tremendous potential to tap into the passion and loyalty of Indian sports fans. Despite facing unprecedented pandemic challenges, the exceptional performance of the sports industry in 2022 reflects its resilience and unwavering commitment. As we move forward, technology will play an increasingly pivotal role in content management and fan engagement, while opening new and exciting opportunities in sports. Live sports will continue to be highly coveted as monetizable properties, making it a promising sector for investment.”

     

    Commenting on the report’s findings, Vinit Karnik, Head – Sports, Esports and Entertainment, GroupM South Asia, said: “The Sporting Nation report illuminates the explosive growth of sports sponsorship in India, a testament to the nation’s fervent passion for sports and the industry’s enormous potential for brands. With the rise of new sports and leagues alongside the unparalleled popularity of cricket, brands have unprecedented opportunities to connect with fans through sports. The report also highlights the burgeoning trend of sports celebrity endorsement, with cricketing stars blazing the trail. Brands can leverage these insights to tap into the power of sports sponsorship and accomplish their marketing goals with unmatched effectiveness.”

     

    According to the Sporting Nation Report, the sports celebrity endorsement market in India has seen significant growth, with a 20% increase with total value of INR 729 Crore. Out of the 505 brand endorsement deals, 85% of the total brand endorsement value has come from cricketers. The top athletes in sports celebrity brand endorsement include Virat Kohli, MS Dhoni, Rohit Sharma, Sachin Tendulkar, Neeraj Chopra, and PV Sindhu. Cricketers’ endorsement has grown by 18%, with Virat Kohli, MS Dhoni, and Rohit Sharma endorsing over 30 brands each, and adding new brands in 2022. Other cricketers such as Hardik Pandya, Jaspreet Bumrah, KL Rahul, and Surya Kumar Yadav are also scoring big in the endorsement space. Neeraj Chopra and PV Sindhu continue to be leading the non-cricketing athletes leading the endorsement deals.

     

    The report also notes that apart from cricket leagues, the successful hosting of several other tournaments like Indian Super League, Pro Kabaddi, the Commonwealth Games, Prime Volleyball League, and Ultimate KhoKho, along with the return of marathons and the Women’s Indian Open Golf tournament also helped in building a diverse sports content portfolio in the country bringing in more eyeballs and creating multiple opportunities.

     

  • GroupM, Publicis Media Group, Dentsu International lead Agency Groups

    COMvergence releases New Business Barometer FY 2022 India report

    By Our Staff

     

    COMvergence an independent research and data consultancy, which analyses media spend investments and produces benchmark studies on new business performances, released its latest New Business Barometer for the FY 2022 for India.

     

    India saw a lower number of account moves and retentions this year of 246 with media spends estimated to be around $1.5BN as compared to a higher number of account moves in 2021 which were 332 with media spends estimated to be around $2.3BN

     

    In 2022, 66% of the total pitches held globally were local in nature ( country specific pitches) India was well above this average with 81%  of total pitches being local which is $1286M whereas global and multi- country pitches made up 19% of the pie with  $297M in 2022 for India.

     

    Mondelez ,Pepsico, ITC, Nestlé, Meesho, Lenovo, Hyundai-Kia, NPCI, Abbott Nutrition, Rebel foods, Truecaller were among some of the  account moves that dominated the Indian market in 2022.

     

    The Media Agency Groups were led by GroupM with a total new business value of +$332M, followed by Publicis Media Group at +$289M new business value and dentsu International with a new business value of +$194M respectively.

     

    Zenith from the Publicis Media Group stable and Wavemaker from the GroupM umbrella led the media agencies’ ranking, interestingly the 3rd rank was tied between Initiative,  Havas Media and Spark Foundry ( Publicis Media Group) followed by Madison Media and Carat.

     

  • Also scheduled is the 54th edition of the Abby awards

    So what’s the hottest thing set to happen in Indian media? Goafest 2023, May 24-26.

    By Our Staff

     

    The images you see here give us the weather on May 24, 2023 in Goa and also what it has been in the past. Thirty-odd degrees is nothing. What we see in Mumbai and Delhi is worse. But look at the humidity: 74%. Numbers may not give a good indicator of things, but the fact is that Goa in May can be horribly hot. Or let’s be positive and say: fantastically hot. Except if there is an early onset of the rains, which is also not unlikely (note to Ramu kaka: please remind us to carry chhaata).

     

     

    All of it builds the excitement around the region’s biggest (and hottest) advertising festival: Goafest. Co-hosted by the Advertising Agencies Association of India (AAAI) and the Advertising Club, Goafest 2023 is scheduled to take place on May 24, 25 and 26 in Goa. At the Grand Hyatt in Bambolim. Also scheduled is the 54th edition of the Abby awards. In addition to the awards, there will be presentations and sessions by leading industry experts, plus 10 knowledge-sharing masterclasses.

     

    Announcing Goafest 2023, Prasanth Kumar, CEO, South Asia GroupM and President, Advertising Agencies Association of India: “Goafest has cemented its position as the most admirable creative festival in South Asia that truly brings together the best of creative and marketing professionals. Our goal is to offer our industry colleagues three power-packed days of learning, engagement, interactivity and curiosity. We are confident that this year’s edition will be the biggest and best yet, leaving each attendee with valuable learnings and benefiting the industry as a whole.”

     

    Added Jaideep Gandhi, Chairperson Goafest 2023: “Year after year, Goafest has evolved and innovated, making it the most relevant advertising festival in India. From knowledge-sharing sessions to exclusive speakers, we are certain of having guests from across the globe that will benefit the industry, especially younger professionals, this year as well. For the first time, various committees involving senior industry leaders have been formed thus making the event all-inclusive and broad-based for the entire advertising industry. We look forward to curating a festival that drives participation and empowers the fraternity thus positioning India as a sharper contender in the global advertising landscape.”

     

    Said Partha Sinha, President, The Times of India group and President of The Advertising Club: “We believe it is imperative that we celebrate the industry and Goafest enables us to do exactly this. The festival empowers the industry to push creative boundaries and think beyond existing possibilities. We look forward to another year of firsts at Goafest 2023 and encourage India’s creative economy to participate actively.”

     

    So, are we headed to Goa? Of course, we are. As always.

     

  • … though some of the findings of GroupM's TYNY & Madison's PMAR studies are very different

    A Tale of Two Reports

     

     

    By Indrani Sen

     

    Indrani SenIt is time to celebrate as the TYNY (This Year Next Year) 2023 report released by GroupM last week declared that the total value of Indian AdEx in 2022 has crossed the 100K crore mark touching INR 1,09,636 crore and in 2023 is estimated to grow at a healthy rate of 15.5% over 2022 towards another milestone of 150K crore (predicted as INR 146450 crore in 2023). Digital AdEx with an estimated 30% growth rate is expected to power the overall growth. India continues to be the fastest growing advertising market and as per the TYNY report has moved up from 9th position to the 8th position among the Top 10 countries with a share of 2% of the global adspend.

     

     

    As per the tradition set up over the last few years, the PMAR (Pitch Madison Advertising Report) 2023 was also released last week with a prediction that Indian AdEx will cross 100k crore mark in 2023 (predicted as INR 104230 crore) with a growth rate of 16% over 2022. Digital AdEX with an estimated 25% growth rate provide momentum to the growth.

     

    Both the TYNY and PMAR have been predicting in the same line over last few years with the gap between their estimates of the size of Indian AD Industry becoming wider year on year. By 2023 the size of the gap in the two estimates will be 40% of the total Indian ADEX size estimated by PMAR and by 2025 the size of the gap may become 50% of the Indian ADEX estimated by PMAR!! Globally is quite common to have difference in the estimates of the AD Industry size / AdEX estimated by different organisations, but if the difference becomes huge then it causes serious concern.

     

    Six years back, I wrote here an article comparing the estimates of TYNY 2017 and PMA 2017 https://www.mxmindia.com/2017/02/what-is-the-real-size-of-indian-ad-industry/. In that year, the estimates for Digital AdEx by the two agencies were almost the same, INR 7000+ crore in 2016 and INR 9000+ crore in 2017. However, the TV AdEx estimated by TYNY was considerably higher than the TV AdEx estimated by PMAO and hence the total Ad Industry expenditure estimated by TYNY was around INR 6000 crores higher than the that of PMAO.

     

    It is interesting to note that over the last six years, Digital AdEx has increased at a much higher rate in the TYNY reports than in the PMAR reports. In 2022, the Digital AdEx INR 68,642 crore reported by TYNY was double the estimate INR 34,405 crore shown by PMAR.  AS per the TYNY report, Digital ADEX now has more than 50% share of the total AdEx, while in the PMAR report total traditional media is still enjoying around 60% share of the total AdEx as shown in the table below.

     

     

    The various industry websites including www.mxmindia.com and financial/ business publications have already reported on the findings of the two reports. Digital did not suffer during the three waves of Covid-19,  among the traditional media TV was the first to recover its pre pandemic revenue, outdoor recovered in 2022, print, radio and cinema are expected to recover in 2023. On the whole. 2022 was a good year for Indian Advertising and the immediate future looks bright.

     

    In spite of the widening rift between the TYNY and PMAR estimates, their leaders agree on the future directions. Prasanth Kumar, South Asia CEO, GroupM has said “As technology redefines interactions between consumers, brands and businesses the ad industry must navigate thru this changing environment.” Sam Balsara, Chairman and Managing Director, Madison World has advised the advertisers “to take advantage of the evolved digital infrastructure for distribution and advertising to prepare for the future growth and to invest in building their own D2C channels.” Only if the two agencies could stop the widening rift between the two reports, we would be in a happier situation.

     

    Indrani Sen is a veteran industryperson and educator. This is a new season of her Monday column on MxMIndia. Her views here are personal.

     

  • Here are GroupM's trends for the year 2023 presented along with the annual TYNY report

    GroupM’s Trends 2023

     

    With every edition of the annual This Year Next Year report, GroupM also presents its trends for the year. Here’s what it presented to the media and the industry at large on Tuesday.

     

     

    Moving towards attention planning

    With the acceleration of digital media and shifting experiences of consumers, it’s important to understand the impact of attentiveness of the consumer as he engages with media/media assets. We have enhanced our understanding on exactly how many impressions for a single medium or multimedia lead to cross-channel optimisation.

    What we haven’t been able to capture is the viewability impact of each impression on intent & purchase. The way forward is an “attention response curve”, which allows for new planning and pricing discussions. New measures like quality cost per thousand [qCPM] are beginning to be explored and traded. We need to ensure q is measured in a way that represents real quality.

     

    Content breaks boundaries and creates new opportunities

    OTT platforms themselves are becoming popular enough to be licensed into products and promotions. From a marketing and promotion standpoint, brands are looking at leveraging platform like Netflix and Prime Video across their portfolio to create campaigns using multiple shows, movie library and even popular music from some shows. Today we see audience embracing content from multiple geographies and language. A Kashmiri from Srinagar is watching and appreciating Malayalam or Telugu content. We all have seen the audience pan-India celebrate RRR, Pushpa or KGF. We have content in abundance to suite consumption patterns for eclectic/niche audiences as well as the masses.

    Likes of Post Malone (Feeding India), Russ (India Tour), Imagine Dragons & Jackson Wang (Lollapalooza) have come to India in the last 12 months; and on the other end we’ve Diljit Dosanjh performing at Coachella 2023 as part of the festival’s expanded global line up. We will more of this in 2023.

    The myth that’s getting broken is the belief that typically Indians don’t pay for content & experiences. As mentioned above, we see that Indians actually do pay and they are willing to pay premium for some curated experiences.

    From an advertiser POV, these are highly engaged, high-spending audiences, making these events a perfect platform to capitalise on.

     

    Rise in retail media

    Retail media in India is expected to double by 2027.

    With demand for accountability on every single rupee of ad-spend, retail media offers an end-to-end solution from discovery to shopping, with the ability to connect data between consumer, the online marketplace and brands.

    For publishers, monetisation via retail media amplification with the fusion of data and power of programmatic will be growing demand channel.

    In India, the rise of adspends on digital retail media will depend on how the retail media networks are able to demonstrate the value by complementing search efforts and not competing with them.

    Usage of effective hyper-localised and personalised creative at each stage of the funnel of retail media will be critical in realising the full potential.

    While retail media will be used primarily for CPG, it will also be leveraged by non-endemic clients to find audiences with relevant category usage.

    Challenges will continue to exist on measurability beyond end level attribution.

    At GroupM, we have launched our retail media product named Discovery Commerce. It connects all dots from marketplace insights, media, creative, programmatic to purchase in one funnel.

     

    Visual search goes mainstream

    Visual Search delivers instant relevance to a consumer search. It allows users to get exactly what they want rather than a lookalike.

    Visual search also allows for conversion of interest in one specific product (e.g. apparel) to the entire collection – expanding the shopping cart It leads to a huge edge on SEO and how we enhance our marketing ROI. While tagging for search typically needed real people to tag individual products, with Visual search the images are SEO ready and increase the chances of discoverability More importantly, marketers can tap into consumers’ state of “What I didn’t know I want” and increase the ARPU.

     

    New dimensions of omnichannel

    The dramatic shifts in consumer behaviour during the pandemic saw most agile brands shift to multichannel retail, with ecommerce getting a huge surge.

    Post the Pandemic, we are seeing further shifts in consumer behaviour. While ecommerce continues to grow, the rate of growth is slowing down. We are witnessing re-emergence of physical trade, with high street rentals moving up and consumers opting for the joy of physical shopping, touch & feel, etc. We see a rise in “Experience centers” across both traditional and new age brands. The emergence of Metaverse and the growth in AR/VR will power new shopping experiences for consumers.

    Brands will go beyond multichannel to deliver a true omnichannel experience. The first step is to recognize consumers across Physical & Online environments and then give them a seamless, consistent and rewarding brand experience at every touchpoint.

     

    Democratisation of commerce with ONDC

    ONDC is promising to be the new jewel from the India Stack. What UPI did to payments, ONDC is expected to do to Commerce.

    The momentum gained in 2022 will lead to larger participation from brands and marketplaces to be enabled on the ONDC network.

    Currently over 22,000+ sellers are on this open network.

    With transparency and level playing field for all partners at the core, ONDC will help businesses have more choices, larger demand spectrum and avoidance of search bias.

    To build trust in an unbundled and democratic environment, setting up key elements such as Issue and Grievance Resolution, Scoring and Badging, Reconciliation and Settlement, Cataloguing Services will become important.

    In 2023, we will see emergence of hyperlocal marketplaces. Your nearest Kirana shop can possibly be enabled on the ONDC protocols.

    Birth of ecommerce services companies will increase as India’s share of GMV online increases across categories.

    We see exciting times ahead with screen-to-door commerce enabled by ONDC.

     

    Sporting nation in the making

    We see a strong move towards localisation of sports, encouraging local/ regional players and providing opportunities for the nation to become a playing nation rather than just a “watching” one.

    While top dollars are being committed at the top of the funnel with IPL and ICC Media Rights, we see apps/platforms democratising sports broadcast space at an amateur level by providing streaming platforms to local sports tournaments and amateur games. It’s essentially developing smaller cohorts of sports enthusiasts who play, watch, support and enjoy their friends and family performing on-field at local, community events. With more Indians becoming fitness conscious and participating in active sports, we see this medium developing further, creating and catering to a niche audience and corresponding set of advertisers

     

    Inclusivity becoming mainstream

    Indian sports ecosystem went through a metamorphosis in 2008 with the advent of IPL. Cut to 2022, IPL hit an unprecedented high with media rights crossing 100 Cr. per match! While that’s been the headline for the sporting industry, diversity, equality and inclusion has been slowly making its presence felt in the Indian sports arena. We saw early signs of it with Women’s Kabaddi Challenge as a part of Pro-Kabaddi OR Women’s T20 Challenge towards the fag end of regular IPL season. Come Mar 2023, India is ready to host a full-fledged Women’s Premier League with 5 franchises (sold at a whopping total 4670 Cr.) and matches broadcast on Viacom18 network. We expect more of these in days to come.

     

    Docuseries leading to more immersive sports

    GenZ is greatly interested knowing the “inside scoop” when it comes to the sports world and that explains the plethora of sports docuseries making its way into our television sets. We expect this to go a notch up with the shift in content happening from the production house perspective to the athlete themselves reliving the moment to their own fans on their preferred platforms. From an advertiser’s lens, as LIVE sports keeps getting more expensive, docuseries and ancillary content in sports becomes a great asset to leverage and engage with passionate fans in a different context.

     

  • According to the TYNY report, GroupM estimates 56% of adspends 2023 to be on digital

    GroupM estimates adspends to grow 15.5% in 2023

     

     

    By Our Staff

     

    GroupM India released its TYNY report on Tuesday, highlighting the advertising expenditure forecast for 2023. GroupM predicts INR 20,000 crores of incremental adspends in 2023 compared to 2022.

     

    This, according to a communique, highlights the continued growth and potential of the Indian advertising industry and the opportunities it presents for advertisers. The report highlights a 15.5% increase in ad spends in India, reaching INR 1,46,450 crore in 2023.

     

    India moves up to the 8th position globally in ad spends and continues to be the fastest-growing
    market in the top 10 markets worldwide.

     

    Prasanth Kumar
    Prasanth Kumar

    Said Prasanth Kumar, South Asia CEO, GroupM: “As technology redefines interactions between consumers, brands and businesses the ad industry must navigate thru this changing environment. The past 3 years have been marked by macroeconomic volatility and global events that have impacted advertisers’ businesses and ad spending. The Indian economy though is expected to weather these challenges and is poised to grow in the coming years.”

     

    Ashwin Padmanabhan
    Ashwin Padmanabhan

    Added Ashwin Padmanabhan, President – Investments, Trading, and Partnerships, GroupM – India: “Indian Adex will be the fastest growing globally at 15.5% supported by robust macroeconomic conditions. Digital at 56% of all advertising spends and growing at 20% over last year is driving the growth of Adex. India stands out globally with all mediums expected to grow with TV, Print and Radio growing at high single digits! We see 2023 panning out stronger as we move into the second half of the year and are confident of the Indian Adex staying on course to grow as projected.”

     

    Said Parveen Sheik, Head of Business Intelligence, GroupM India: “The growth of SMEs in the Adex has been a feature for the past few years, this year too we see the same trend. We also anticipate the revival of the rural economy as well as improved funding for the start-up ecosystem. Additionally, Telecom, BFSI, Retail, Fintech, Gaming as well as Travel & Tourism are expected to drive ad spending.”

     

    The launch and expansion of 5G services beyond top metros, combined with affordable
    smartphones, is also expected to drive ad spend growth, GroupM adds.

     

  • To strengthen creative team

    Wavemaker India appoints George Kovoor as CCO

    By Our Staff

     

    Wavemaker India, the agency from GroupM, today announced the appointment of George Kovoor as the Chief Creative Officer (CCO). Kovoor will report to Ajay Gupte, CEO – South Asia, Wavemaker and will be based out of Bengaluru. He joins Wavemaker after his eight year long stint with Ogilvy where he was Digital Lead – Mumbai and South operations.

     

    Speaking about the appointment, Ajay Gupte said: “We are witnessing an exciting phase of transformation in the media industry where traditional methods are challenged at every step. Data, Content and Technology have always been the three key pillars at Wavemaker and we have all experienced the magic when these three ingredients are used in the right proportion. In his previous roles, George has played an instrumental role in integrating mainline and digital creative teams. He enjoys an incredible reputation in the creative industry for his impressive work which has been recognised at local and global platforms. With George coming in as the Chief Creative Officer, I am quite confident about taking our creative offerings a notch higher.”

     

  • To pay tribute to India's contribution to the world

    GroupM teams up with Optimum Television for new show

    By Our Staff

     

    GroupM’s Motion Content Group, in partnership with Google and Meta, announces the launch of a new show, “Jai Ho! Bharat Ki Anant Yatra,” in collaboration with Optimum Television. The show, a tribute to the contribution that the Indian Civilization has made to the world, takes viewers on a journey through India’s past, present, and future.

     

    The show which will be available on Zee Network and can also be streamed on Google and Meta’s platforms is narrated by Sharad Kelkar and scripted by Prasoon Joshi.

     

    Ashwin Padmanabhan, President – Investments, Trading, and Partnerships, GroupM – India, said: “We are thrilled to announce the launch of Jai Ho! Bharat Ki Anant Yatra. This show is a celebration of the stupendous journey of Indian Civilization and its contribution to the world. The show also looks into what the future holds for India as an economic and cultural world leader. We are proud to collaborate with Google Cloud and Meta to tell this inspiring story of India on the cusp of our Republic Day on Jan 26th.”

     

  • These numbers are part of GroupM’s This Year Next Year 2022 Global End of Year Forecast

    2022: 15.8%, 2023: 16.8%

     

     

     

    By Our Staff

     

    India’s advertising revenue growth forecast for 2022 is 15.8%, with that figure further accelerating to 16.8% in 2023, reports GroupM in its much-awaited This Year Next Year 2022 Global End of Year Forecast.This growth is led by pure-play digital advertising, which accounts for the largest share (48.8%) in 2022 and is expected to continue rising above pre-pandemic levels. Retail media in India is forecast at $551 million in 2022 and is expected to nearly double by 2027. TV advertising, representing 36% of advertising market share, is expected to grow 10.8% this year and continue growing double digits, driven by strong growth in both traditional and connected TV.

     

    Here are some of the highlights of the report, published as is from the GroupM communique:

    :: We now expect global advertising to grow 5.9% in 2023, behind the IMF’s expectation for global inflation of 6.5% and a downgrade from our 6.4% June estimate.

     

    :: Retail media, one of the fastest growing segments of the advertising industry, is now estimated to reach $110.7 billion dollars in 2022, an upgrade from our September forecast of $101 billion.

     

    :: Television continues its recovery to pre-pandemic levels, albeit more slowly in 2022, with an expected global growth rate of 1.7% (excluding U.S. political advertising).

     

    :: Growth in global OOH this year will amount to 2.2% globally (excluding U.S. political spending), or 18.1% on an excluding-China basis.

     

    :: Audio is projected to grow 3.8% globally in 2022 (excluding U.S. political advertising) and decelerate to 1.3% growth in 2023

     

    :: After a brief respite in 2021, traditional print continues its decline of 7.4% in 2022. Print-based media will decline by 3.7% when including digital extensions, which are forecast to make up nearly half of total revenue this year and more than three-quarters of revenue by 2026.

     

    Top 10 Market Highlights (other than India):

    United States: Advertising on pure-play digital platforms, despite decelerating growth in 2022, continues to increase its share and will account for two-thirds of total ad revenue within the next two years.

     

    China: China has seen far greater economic impact from the COVID-19 pandemic in 2022 than was expected at the outset of the year. This acted as a drag on consumption and ultimately led to our lowered forecast of -0.6% growth of advertising revenue in 2022.

     

    Japan: For 2022, we estimate Japanese advertising revenue will grow 7%, with that figure decelerating to 4.4% in 2023. This growth is led by pure-play digital advertising, which accounts for the largest share (57.9%) in 2022 and is expected to continue rising above pre-pandemic levels.

     

    United Kingdom: Digital pure-play platforms, a medium set to account for 80% of total ad revenue this year will grow 11%, outpaced by retail media (a subset of digital), which we forecast will reach £6.5bn by 2027.

     

    Germany: Within digital advertising budgets, retail media will play an increasingly important role in 2023, with growth forecasts of 13% in line with the broader digital channel, while search will grow slightly faster at 15%.

     

    France: We anticipate a deceleration of growth in 2023 to 6.3% with a focus on media that delivers short term efficiency and return on investment. As a result, 100% of the estimated growth is expected to be in digital media, particularly performance-based media and retail.

     

    Canada: Advertising revenue in Canada is forecasted to grow 5.8% during 2022, with that figure further accelerating to 8% in 2023. This growth is led by pure-play digital advertising, which accounts for the largest share (72.8%) in 2022 and is expected to continue rising above pre-pandemic levels.

     

    Brazil: Retail media, a subset of digital revenue, is forecast at more than $170 million in 2022 and is expected to grow 18% in 2023, following 25% growth in 2022.

     

    Australia: TV will grow 3.7% in 2022 driven by connected TV. While linear TV will increase in 2022, it may be the last year of expansion as connected TV takes over a larger share TV revenue. Total TV in 2023 is expected to record a small overall decline of 0.2%.

     

  • South Asia of GroupM, was elected President of the AAAI

    Prasanth Kumar is President of AAAI

    By Our Staff

     

    Prasanth Kumar
    Prasanth Kumar

    Prasanth Kumar, CEO – South Asia of GroupM, was elected President of the Advertising Agencies Association of India (AAAI) for the year 2022-23. Rana Barua, Group CEO of Havas Group India, was unanimously elected Vice President of the Association.

     

    Other elected members of the Board in alphabetical order are:

     

    :: Vishandas Hardasani: Matrix Publicities and Media India Pvt Ltd

    :: Kunal Lalani: Crayons Advertising Pvt Ltd

    :: Rohan Mehta: Kinnect Pvt Ltd

    :: Chandramouli Muthu: Maitri Advertising Works Pvt Ltd, Kochi

    :: Sridhar Ramasubramanian: Beehive Communications Pvt Ltd

    :: Shashidhar Sinha: Initiative Media India Pvt Ltd

    :: K Srinivas: Sloka Advertising Pvt Ltd, Hyderabad

    :: Vivek Srivastava: Innocean Worldwide Communications Pvt Ltd

     

    Immediate Past President, Anupriya Acharya will be ex-officio member of the AAAI Board for 2022-23.

     

    On this occasion, Kumar said: “I’m extremely honoured to be elected President of this prestigious association. Advertising is, in my opinion, a dynamic and idea-driven industry. Collaboration with industry organizations will allow us to shape the industry in a progressive way that benefits everybody. I look forward to building synergies with like-minded people and organisations and I believe that we will be able to achieve our goals if we work together. As always, I expect lots of support from my peers and colleagues within AAAI as well as from the broader ecosystem as well.”

     

    PK, as he is popularly called, is a GroupM veteran with over 25 years of experience having worked across the industry. He has worked at Pepsi, The Hindu, The Media Edge and McCann Erickson before joining GroupM. He has also been Vice President of AAAI from 2020-22.

     

    Added outgoing President Anupriya Acharya: “It has been a privilege to hold the office of President and take on the responsibilities that come with it for the last two years. We transitioned AAAI from a Society to a Section 8 Company, returned with our key events as the nation moved out of covid restrictions, relaunched the iconic Goafest and Abbys in partnership with The One Show, refreshed the AAAI logo in step with the times. But most importantly, we furthered our agenda on inclusion as we partnered with UN Women backed Unstereotype Alliance and brought more digital agencies into the fold and continued strong partnerships with other industry bodies. I would like to take this opportunity to thank my fellow Board members for giving their energy, expertise, and time when most needed. I would also like to congratulate Prasanth Kumar on his election as President. He has been a key member of the Indian media and advertising industry for a long time. I’m sure he will take the Association from strength to strength.”

     

  • This is part of the e-commerce and retail media forecast released by GroupM

    Global retail media to touch $101bn in 2022

     

     

    By Our Staff

     

    GroupM has released its e-commerce and retail media forecast that details the socio-economic factors contributing to the state of this space that will see it reach $101 billion in annual revenue this year, a 15% increase over 2021. The report has been penned down by Kate Scott-Dawkins, GroupM’s global director of business intelligence.

     

    Here are some of the highlights of the report:

    • 2022: Global retail media is likely to reach $101 billion in 2022 (15% higher than a year ago) and will surpass $160 billion in annual revenue in five years’ time.

    • We estimate global e-commerce to make up 19% of global retail sales in 2022, growing to 25% by 2027.

    • Retail media ad revenue represented 18% of global digital advertising revenue in 2021 and 11% of total global ad revenue.

    • Twenty of the top global e-commerce companies accounted for 67% of global e-commerce sales in 2021.

    • We estimate global e-commerce sales of $5.4 trillion dollars this year

    • China and the U.S. alone will make up 52% of that figure

    • Nearly 61% of the total, $3.3 trillion, can be attributed to just seven markets: the U.S., China, Japan, Germany, the U.K., Canada and Australia.

     

    Here are the Top 7 country e-commerce figures:

    1. China – Estimated e-commerce market growth in 2022 of 5.6%, slower than last year’s growth of 10%.

    2. S. – Estimated e-commerce market growth in 2022 of 25%.

    3. K. – Estimated e-commerce market decline in 2022 of 3.6%, a reversal from last year’s growth of 15%.

    4. Germany – Estimated e-commerce market growth in 2022 of 14%, slightly faster than last year’s growth of 12% and above the three-year pre-pandemic average of 10%.

    5. Japan – Estimated e-commerce market growth in 2022 of 12%, above last year’s growth of 8.9%.

    6. Canada – Estimated e-commerce market growth of 10.1%, below last year’s growth of 17.3%.

    7. Australia – Estimated e-commerce market growth of 8.4%, below last year’s growth of 24%.

     

  • Sidharth Parashar will be joining the APAC Mindshare leadership team as Chief Investment Officer, Mindshare APAC

    Sidharth Parashar, Ashwin Padmanabhan elevated @ GroupM

    By Our Staff

    GroupM India has announced that Ashwin Padmanabhan will be taking on an elevated role as President – Investments, Trading & Partnerships, GroupM India. Padmanabhan, who earlier led ‘Trading’ and ‘Partnerships’, will now be also taking on the ‘Investments’ portfolio from Sidharth Parashar. Parashar will be joining the APAC Mindshare leadership team as Chief Investment Officer, Mindshare APAC and will now be based out of Singapore.

    Said Prasanth Kumar, GroupM South Asia CEO: “Sidharth has had a phenomenal career journey where the organization has witnessed his evolution from a practice expert to a leader over the last 18 years with GroupM. He has successfully led the investment mandates across all media and has elevated the practice through innovative products and delivering exceptional value for our clients. I would like to wish him the very best and will continue to work closely with him as he drives regional investment strategy for Mindshare,” adding: “I am also excited to see Ashwin taking over this additional role. He has a deep understanding of the business, and we continue to benefit from his knowledge of the media ecosystem. Focusing on cutting-edge innovation backed by his solid process orientation is a value add for clients. His ‘start up’ mindset has helped GroupM venture into new practices, deploying creativity to our Products and Solutions keeping client delight at the helm.”

    Parashan will report to Helen McRae, Chief Executive Officer, Mindshare APAC, and work on enhancing Mindshare’s local market investment strategy and driving thinking and the opportunity of Good Growth and Intentional Investment for the region.

    Added Helen McRae, Chief Executive Officer, Mindshare APAC: “I am very pleased that Sid will be joining our regional team. He brings a tremendous depth of expertise and will be a great champion of Good Growth for our clients.”

    Said Parashar: “It has been an amazing journey at GroupM, and I am delighted to now take over this new Mindshare APAC investments role. I look forward to this opportunity in new markets to build value for our client’s business.”

     Added Padmanabhan: “GroupM, has been a fertile ground for innovation and creating value in a highly entrepreneurial environment. This expanded remit motivates me to renew my focus on the GroupM value proposition for our clients, media partners, and technology partners. We want to keep the momentum up with these relentless efforts toward improving today for a better tomorrow.”

    Padmanabhan will continue to report to Prasanth Kumar and be based out of the Gurugram office.