MxMIndia

Tag: MxM Monday

  • MxM Mondays records the sentiment on the timing of Goafest and participation in the creative Abby

    MxM Mondays: Are delegates ready to face the heat at Goafest 2013?

     

    By Johnson Napier and Ananya Saha

     

    The festival that has been hailed as the Cannes of India beckons upon the advertising industry. April 4-6, 2013 are the days when the who’s who from advertising will be joined by a few from the media and marketing domains in keeping with the tradition of making it to the venue every year. The venue this year remains the same – Zuri White Sands in Goa! Like every year, the Goafest committee will be going all out to ensure that the event remains world-class, be it in the quality of speakers or the introduction of new initiatives or simply by bringing about a twist in the awards tale.

     

    But in doing their bit in raising the bar of the festival, what they have not achieved so far is holding the event in some other month in Goa – by now the biggest peeve facing delegates. The Goafest committee led by Nakul Chopra of Publicis this year, has been making attempts to actively bring it forward by a few weeks if not a month or two. But that doesn’t help solve the issue of the torrid heat that delegates have to put up with in order to enjoy a festival that boasts of being the largest of its kind.

     

    MxMIndia speaks to a few committee members and also some members from the ad and marketing fraternity and explores possibilities of whether the delegates can expect the unexpected…

     

    Nakul Chopra, Chairman, Goafest Committee

    There is a logistical issue with doing it in February from a perspective of the location. As one would know, the tourism season here starts from October right until March. The same is the case with Cannes where it is not a vacation season when the awards are held there. But we’ve tried our best by getting the event ahead in the first week of April. We do understand that the heat gets unbearable but we would make provisions to have more cooling areas in the venue.

     

    As for the non-participation dilemma, I don’t think that with Abbys and Goafest in its current avatar, anybody is staying away in protest. Probably some agencies have a principle of not participating in awards or any other personal reason but not because of some issue from our end. These were issues of the past and as an industry we have managed to fairly overcome them in recent years. Due credit should be given to the fact that Goafest is the only award of this size and stature that is being run by industry bodies. This enables us to reach out to as many agencies and delegates as possible and not be limited in our approach towards the industry.

     

    Ajay Kakar, Chief Marketing Officer, Aditya Birla Group – Financial Services

    The heat and passion of advertising industry is stronger than the heat of Goa. Whenever you have it is immaterial. On a serious note, there is an economics of the whole thing. We try to do it away from the peak season, which helps us in two ways. One, of course the economics and second, it helps us with avoiding the crowd and congestion all over.

     

    It is a democratic country but it is too early to think or know who might not be a part of Goafest. So far, we have the support of every agency. And it is too early to think anything to the contrary.

     

    Anant Rangaswami, senior editor at Firstpost.com and author of The Elephants in the Room

    On the timing, all I can say is that April first week is better than April second or third week. That they managed to get it to the first week is not a bad thing. Also, it’s not easy to get an event of this scale to be held in February/March; it could be a logistical nightmare. Whether they should hold the festival at some other venue, I don’t know what’ll be the right thing to say as they had envisaged the festival with a certain concept in mind. I think it is a trap that they are finding difficult to get out of. Goa will continue to remain the venue as long as the name remains Goafest. That is not the case with other awards like Spikes that can be held at Bali, Singapore etc. For me, it looks like a big trap that they cannot get out of.

     

    As for non-participation in the awards, the number has come down significantly. As for McCann Erickson preferring to opt out last year, it  did not opt out of the awards because of any issue with the way it was conducted. Prasoon made it quite clear that he did not think that they had a body of award-winning work. I can understand that, because the awards are an expensive business, and it makes sense not to enter unless you stand a decent chance of winning. In this industry, every sector apart from television is about scam and scam requires investment, time, energy…it’s not easy. There’s serious money that goes in the development of scam. But what the committee has done in the past two years is also noteworthy as they have managed to eradicate issues like bias in judging by the jury, favouritism, leaking of results and other such things involving the awards.

     

    Arvind Sharma, President of the Advertising Agencies Association of India (AAAI)

    The real challenge is getting rooms for so many delegates. With so much international tourists pouring in and domestic travel also seeing a spike it becomes difficult to arrange for rooms for so many delegates. But can it be held in early March, yes it certainly can. We are working towards it.

     

    Any awards show around the world, a few agencies will chose not to participate for a variety of reasons. We should be looking at the fact that the number of participating agencies is increasing every year at Goafest. It also means that the number of winners are increasing every year because part of the purpose of an awards show is to be a beacon of light for excellence and I am particularly excited that we are recognising excellence in more than 119 organisations.

     

    Shashi Sinha, President – The Advertising Club and Chairman of the Awards Governing Council, Goafest

    The event is a very low-cost affair and not on the scale of what one gets to see at Cannes. There is no-profit motive behind this event and the effort is to try and accommodate the youngsters by offering them subsidised rates. This whole exercise is designed on the basis of sponsorships. The goal is to ensure that we have the right balance of sponsorships and also encourage more youngsters to come and attend the event. The other point is that October-March happens to be peak season for tourism and therefore the rates are pretty expensive. To accommodate more than 3000 delegates therefore becomes a huge task. We have tried our best to bring it forward by hosting it in the first week of April. But we would be providing more cooling options at the venue like the display area that saw heavy movement last year by the youngsters.

     

    On the issue of non-participation by agencies, we have managed to successfully bring down that number significantly in the past two years. In fact last year there was only agency – McCann Erickson that did not participate. What we have managed to do is that if somebody is not participating we have made it clear that it is not because of the process; it is because of some other reason. Previously it was very convenient to blame the committee etc for the drawback but that is not the case today. One of the biggest reasons why agencies now participate openly is because of the transparency that we managed to bring in the process. That has cleared doubts that existed among agencies.

     

    Prathap Suthan, Managing Partner & Chief Creative Officer, Bang In The Middle

    I personally have not been there too many times and I did find that the heat was a torture. It is actually the old in the industry that are affected by the heat, the younger lot are not. It is a bit of summer blast everywhere in India at that time before summer actually begins. For youngsters, it implies lots of time on the beach, lots of time to run around, lots of beer, hang out in the shacks. It is going to be, let us say, 200 seniors and rest are going to be juniors. From that perspective, it does not really matter. Going to Goa, for youngsters, is the big thing no matter what time of the year. Seniors, anyway, are used to be driven around, staying in air-conditioned homes and offices. So to be outdoors, it is terrible. I am in creative, so I go for shoots, I do not complain. If I am in Goa then, I would prefer to stay in the auditorium or watch and learn rather than go out and stand in the sun. If I were young, say 25, I would be enjoying going everywhere. For organisers, to get hold of amenities is possibly a better deal at this time of the year. Since February and March are tourist seasons, availability of rooms could be a problem for organisers.

     

    For the agencies refraining from participating, I would say that everything is fair. It is all about the money at the end of the day. If I have ‘X’ amount of money and I am sure of winning a metal at international festival, I would rather put my money at Cannes rather than Goa. It is also about the fight of action between two or three groups. Personally, I do not ascribe to any awards. I do not want to be part of any awards. I am very happy doing whatever I am doing. I am not here cutting any favours. My whole responsibility is only towards the clients that I handle, and towards my juniors.

     

    I may or may not go. But boys and girls from my office will definitely go.

     

  • Even as advertisers are yet to take this medium seriously, the industry players are waiting for Phase III with anticipation. MxMIndia finds out what their expectations are

    MxM Monday: Expectations from Phase III FM radio licensing

     

    By Ananya Saha

     

    FM Radio is set for exponential growth. Even as advertisers are yet to take this medium seriously, the industry players are waiting for Phase III with anticipation. The industry is positive that the third phase would result not only in differentiated content but will also interest the advertiser and listener alike.

     

    We speak to private FM players for their expectations from Phase III of licensing.

     

    By Ananya Saha

     

    Harrish M Bhatia, CEO, DB Corp Ltd - Radio Business (94.3 My FM)

    We all want Phase III to happen. It is an industry’s requirement to grow. But it is important for the government to remove hurdles like the issue that happenedinChandigarhor not allowing us to carry news. What is the objective of taking AIR news? If it the issue of keeping tab or administering the news we carry, they can ask us to keep our news recordings for 30 days and they can review it. How does the government control cable telecast? Why cannot they trust us?

     

    From the advertisers’ front, I am sure that the advertising in the medium’ will continue to grow. What is required is proper decisions by the government to ensure that the private FM players also gain.

     

    Asheesh Chatterjee, CFO, Reliance Broadcast Network Ltd (92.7 Big FM)

    The more number of Spectrum licenses in Top A, B cities will only benefit the industry. It will add to content loyalty. Phase III licensing will result in closure of music royalty issues when the tariff rates will resolve the ambiguity issues that exist at the moment. And yes, the FM players will be investing in Category C and D towns. Kozhikode, Chandigarh and the South will make the things uncomparable. Those areas need a bit of correction.

     

    These three are broadly the issues, apart from smaller issues such as news. Even while protecting the identity of your brand, we will be able to cover news in the same manner or better manner. Otherwise you are too restricted in communicating it in the same manner.

     

    Harshad Jain, Business Head, HT Media (Fever FM)

    The highest bidding of Phase II will becomes the lowest bidding price in Phase III and that is a cause of concern. I hope the government understands the fact that the cost of doing business is high. And I hope they do pay attention to this fact apart from solving the issues such as transmitter and infrastructure.

     

    It is no doubt that the Phase III is going to do better to the industry, but the back-end processes will have to be taken care of and sorted.

     

    Anurradha Prasad

    Anurradha Prasad, President, AROI and CMD, BAG Networks

    We want the processes of Phase III radio licensing to begin as soon as possible. We, as an industry, do not want something that becomes unviable. Hence, we are awaiting the process to begin soon so that industry gains. You cannot compare telecom and radio spectrum together. The consumer does not pay for radio. The medium requirements are different.

     

    It looks like the issue of music royalty will get sorted as Phase III licensing comes into play. However, I am concerned that in Phase III, the bidding prices might go haywire and people will not be able to pay, nor would they be able to make it profitable.

     

     

    Prashant Panday, CEO, Radio Mirchi

    The objective of any policy should be to ensure growth of the sector. In the case of FM radio, Phase-3 policy should attempt to expand FM in a big way.

     

    The Phase-3 policy as it stands today only partially addresses the objective. It does seek to expand geographically into some 250 new towns. However the auction methodology (electronic ascending auctions) and high reserve fees (highest bid received in Phase-2 in a similar category town in the same region) will frustrate this goal. The radio industry believes that FM auctions will be a flop with most new cities not being taken up. The industry prefers electronic tendering, just like done successfully in Phase-2. This would also take care of the problem of reserve fees, since they are set post-auctions (25% of the highest bid).

     

    The policy allows for networking across the network, which should help cut operating costs in small towns. It also allows broadcasters to operate more than one channel in the bigger cities, which should help in consolidation. The policy also allows news broadcast, but limits the content to AIR feeds. This is blatantly unfair, since news without restrictions is allowed to all other media.

     

    However, the biggest problem is conducting auctions under scarcity conditions. There is only 1 channel in Delhi, Bangalore, Chennai, Ahmedabad and Pune and 2 in Mumbai. This will lead to exorbitant “desperate” bidding. Further, this high bidding will become the base for the next round of auctions, which will put the radio industry into a cost spiral. Instead, the government should accept TRAI’s recommendation of halving “channel separation” to 400 KHz and doubling the number of channels. This way, the government will get more overall license fees, the public more programming variety and the broadcasters reasonable license fees.

     

    Suresh Sanyasi, National Sales Director, Radio Indigo

    Our expectation from Indigo are fairly simple: we are looking at larger market space in terms of international quality music available pan India. We current fall into very niche A+ segmentation. We are looking at Mumbai,Delhi as a market and may be a couples of Town A and B where we see potential like the way we got Goa where we can harness our brand and give listeners good music. Invariably connecting them with good brands and advertisers and giving them pan-India reach. Currently, if any advertiser wishes to advertise with us, they have to locally listen to our station in Mumbai and Goa. Once, we get license, the advertisers will be able to connect with our brand pan India. We already have offices in Delhi and Mumbai and once we get license, we will start expanding horizontally. We have, maybe about 20%, of business coming out of Mumbai and Delhi irrespective of the fact that they do not have touch-and-feel of Radio Indigo and they have only heard about our brand.

     

    Once Phase III begins, the market will grow. More radio stations coming in, licensing will become larger, the government is definitely going to get lot of revenues and a lot of employment will be created. There is huge amount of growth that we are looking at.

     

    However, radio in India has not reached maturity yet. By maturity, I imply, consumption of radio is not a very-well accepted norm right now. I say it comparing it to more mature medium like a television. People buy in terms of brand and advertising people do not know how to use radio. Radio is a very tactical medium. Advertisers do not understand the medium since it is not a visual medium, even as it remains the most cost-effective medium to advertise and there is a definite return that comes through. With larger number of stations coming in, people would like to try out and understand the value of radio in itself.

     

    We are looking at Phase III with much positivity and optimism.

     

  • With below-the-line gaining a bigger share of ad budgets, a cross-section of the A&M frat on its efficacy

    MxM Monday: Is BTL gaining acceptance as a must-have in a media plan?

     

    By Ananya Saha

     

    Is Below-the-Line (BTL) advertising gaining bigger share of clients’ advertising budgets over the last few years? How innovative has BTL become, and what are the challenges it still faces?

     

    Anwesh Bose, Senior VP, DDB Mudra Max

    BTL has gained prominence over the years and will continue to do so as advertising communication is evolving from a ATL-BTL model to a Through the Line (TTL) model. The lines have blurred between ATL & BTL giving rise to a new phenomena where a medium can take the form of ATL or BTL depending on the need of the communication. The challenge today is for the communication professionals to justify the Return on Investments on any form of media and the pitch will keep getting higher. It is time for the industry to jointly work on a multimedia optimization model that would justify investments.

     

    Narayan Devanathan, SVP, National Planning Head, Dentsu India Group

    That’s a very broad question, but going by overall trends, the answer is probably yes. The more pertinent question, how much bigger is “bigger?” Who is measuring this? How does it differ by category? What all goes into the definition of BTL? For example, with the expansion of modern trade in retail, you’ll obviously see a lot more BTL money being spent on in-store merchandising, POS and promotional campaigns. A second factor affecting expanding BTL investments will likely be the short attention spans and the myriad of choices and screens that consumers interface with today. TV, radio, web and mobile are probably vying for the consumers’ attention simultaneously at all times. But with definitive metrics, the impact of last-mile tactics and campaigns will be a key differentiator between brand success and business success. All this does factor into the fact that, yes, BTL as a share of clients’ ad budgets is seeing an upsurge.

     

    Innovations can happen on three fronts: technology, measurability and the balancing act between strategic and tactical objectives of the campaign.

     

    On the technology front, something like RFID, for example, can turn walking behind a shopping cart into inputs for a shelf-stacking strategy in-store. A combination of GPS, augmented reality and a promotional scheme can turn a mobile phone into a CRM platform. But innovations like these and others depend on the evolution of both marketers and the retail (and other parts of the brand) environment.

     

    Technology can also be the difference between best-case guesstimates and data-driven strategies that reduce wastage of marketing investments.

     

    Finally, marketers have to find ways to close the gap between strategic and tactical goals. If brand-building is a strategic goal, how do you use BTL not just be a one-off tactic or part of promotions but contribute to brand-building?

     

    All said and done, as with ATL, the point of all communications, regardless of medium, is to create stories, conversations and transactions (not always monetary) that people want to engage in. If that perspective is missed, then we will continue to see a “line” and see “below” and “above” this imaginary line that only marketers – not consumers – see.

     

    Nina Jaipuria, EVP and Business Head, Sonic and Nickelodeon India

    Nickelodeon has always believed in the virtues of experiential marketing through on-ground engagements. While TV helps in reaching out to millions of viewers, it allows for only one way-communication. On the other hand, BTL promotions despite the high cost per contact have the potential of making the engagement truly memorable for consumers. There is nothing that can replace the experience and thrill that kids feel when they meet their favourite Nicktoons Ninja Hattori, Dora, SpongeBob or Keymon in person.

     

    In addition to engaging our young viewers at schools, malls, retail chains etc, we also conduct van activities that helps us reach out to smaller towns and villages in the interiors of India. For example during the launch of Motu-Patlu, we engaged kids in over 30 towns like Lucknow, Kanpur, Allahabad, Varanasi, Agra, Mathura, etc in Uttar Pradesh and Gwalior Khandwa, Indore, Ratlam, Bhopal, Jabalpur, etc in Madhya Pradesh. We often do mall activities to celebrate days and occasions that are important to kids.

     

    At Nickelodeon, we are constantly seeking new and innovative ways of connecting with kids all through the year. In-store promotions and toon visits at retail stores further helps in strengthening our on-ground presence when it comes to merchandize

     

    Brand partnerships also play a very important role in creating unique propositions for designing innovative on-ground programmes. BTL promotions are thus an integral part of our media plan as they enable us to connect with our consumers and give them a ‘Touch. Feel. Play.’ experience. In today’s day and age, it is imperative to be present across multiple touch points and to tangibilize the brand.

     

    Uday Mohan, Executive Director – North, MPG India

    With the increasing fragmentation of the media space it is not enough to just make “contact” with the consumer, but more importantly to “connect” with him. First hand experience of the product/service offering and the customization of it allow this impact extending it to sales as also brand perception. It is here where the relevance of BTL in the overall marketing/media mix is increasingly gaining importance.

     

    BTL is now moving from its earlier perception of basic activation to being an integral part of the consideration set at the media strategy formulation stage itself. FMCG for the mass audience spends even up to 25 percent of their advertising budget, luxury would spend more. Auto, telecom, food outlets also see the merits of BTL as we see more spends and ideas. It is getting very innovative using insights and planning; 3M Scotch-Brite came up with Wash your Bill, where you had the choice of washing dishes over paying the bill, adding a fun twist to the old adage of ‘pay your bill or wash the dishes’. The activation connected with a younger audience, made them use the product, gave immediate gratification, put it up on YouTube and created word-of mouth.

     

    Lack of quality data is a major challenge that BTL faces as there are as yet no set parameters for evaluation. Another challenge is the infrastructure and operational co-ordination required from global and nationalized brands of mass appeal where delivery to target audience becomes an issue. For example even Pepsi in its ‘Open Happiness’ campaign could create the reach because of the use of digital and social, else the cost would go out of hand. BTL activation for a mass brand would require innovative use of the media mix to get the desired effect.

     

    Ambika Sharma, MD & CEO, Pulp Strategy Communications

    There is a definitive shift in perception, below-the-line is media that barrier is fading, it is new media which adds the rich creamy layer to the traditional media plan. Inclusion of BTL in a plan has increased steadily but has seen a stronger spike in the last 2-3 years. It is not in the perfect place that it could be in the consideration set but it is no longer ignored like it used to be a decade ago.

     

    BTL is now increasingly being evaluated and included when developing the mix, for the simple reason that it cannot be ignored, as it is the only media that allows people to experience the product outside of the retail format. Below-the-line activations can be great when done cleverly. The medium provides the freedom to engage with your core consumers and almost always has the potential if designed wisely to be quirky and attention-grabbing.

     

    BTL needs to be carefully considered in the planning process and not as an after thought. A well-thought-out, through-the-line campaign (or 360-degree approach), will always have more impact than one curtailed to a limited approach. This is perhaps the most positive change where in some marketers are consciously choosing BTL within their plan with specific deliverables in mind. This way the plan is tighter knit, and the ROI is richer. This change has reflected in a higher share of voice for activation in the media budget.

     

    Other factors have also contributed, one is what we call the “Ego” slice in the media plan, prominent some time back its the forced fit into the prominent / upmarket ATL mediums because “presence there was a must” at times this ate into the working budget which would have been considered for new media including activation. This is no longer the case. Activation / BTL is holding its own in media plans and gaining its due in media budgets.

     

    Samar Singh Sheikhawat, Senior Vice President - Marketing, United Breweries Ltd

    We do not call it BTL, but refer to it as activation or leveraging. I would say that activation has always been an important part in the UB Group’s marketing intervention. And today it is almost equal to our sponsorship amount. So if we are involved with an event, property or platform, and suppose Rs 50 lakhs as sponsor, we will spend an equal amount in leveraging it or BTL. I would say, it is practically 1:1 for UBL and our portfolio of brands when it comes to the ad pie division of BTL with other media.

     

    I think a lot of things are happening apart from the display being used in this medium. The kind of consumer touchpoints being used, digital and social media is becoming a big thing and is being used increasingly as activation by us. Video mapping, production technologies have improved a lot. There are new techniques we are using from overseas in terms of projections, holograms, video mapping on walls etc. the ways to reaching out to consumer is getting innovative whether it be direct mailers that we do or CRM or get-togethers. The kind of media being used in activations is seeing innovation and substance that is being used in production is getting innovative.

     

    This medium faces challenges in terms of credibility and execution capability. Anything that you do in BTL needs to be relevant to your product, your target audience and to your brands’ positioning. A large part of differentiation in BTL goes towards execution.

     

    Raghu B Viswanath, Founder & Managing Director at Vertebrand Management Consulting

    Media today is fraught with many challenges. While the overall ADEX spends has been growing at a much higher rate than GDP increasingly clients are questioning whether they are getting enough bang for buck they have spent by advertising in media.

     

    Earlier brands focused on getting more eyeballs translating to more awareness on the brand. Since the competition intensity was earlier relatively low mere awareness got translated to purchase. That is not the case today. With increasing competition and very little differentiation, it is important for brands to not just enhance the brand – building efforts on awareness creation, but to go beyond and engage their customers meaningfully. This in turn means that brands need to connect with their customers through as many touch points as possible. So, non-traditional (BTL) lends itself to this two-way communication. The rules of the game is not about seeing or hearing. It is about experiencing the brand with all the senses. Hence, touch feel and other sensorial connects with the brand, is the need of the hour.

     

    For many brands, BTL is becoming a more significant component of their marketing spends (almost equal to ATL). I believe this trend is expected to grow, as brands pursue serious efforts to engage better with their customers.