MxMIndia

Tag: Nick Waters

  • Advertising spends will reachRs624 billion, reports the mid-year Dentsu Adspends Report 2018

    Dentsu adspend forecast for 2018 down from 12.5% to 10.5%

     

    By A Correspondent

     

    Leading advertising and digital communications group Dentsu Aegis Network released its biannual global forecasts, pointing to a more positive 2018 for Asia Pacific advertising expenditure than previously expected. Adspend growth will rise from 4.0% in 2017 to hit 4.5% in 2018 – higher than the 4.2% forecast in January 2018 and taking total investment to USD 215.95 billion. Regional events such as the 2018 World Cup will be held in Russia, 2018 Winter Olympics South Korea, Asian Games in Indonesia and Australian federal election will play an important role in stimulating growth.

     

    But the growth forecast for India – 12.5% made in January 2018 – is now 10.5%

     

    Speaking on the Indian context, Kartik Iyer, President- Media Brands and Amplifi – Dentsu Aegis Network India said, “India’s ad spend is projected to grow at 10.5% as compared to the beginning of the year when the growth was expected to be over 11%. Digital continues its rapid growth (31.9%) with online video –gaining in share. This has been driven largely by the availability of high speed connectivity across the country, it is only set to grow faster. TV with a projected market share of 39.1 % continues to lead the media share of pie with Print at 29.3%. It wouldn’t be a surprise to see some forward thinking brands trying to use Video Instead of TV  in a few test and learn cases.” [As per the communique we received from DAN in January, the forecast was 12.5% and not 11% as mentioned by Kartik Iyer. The table below – supplied by DAN – does give mention the earlier forecast as 12.5%]

     

    Geographically, Asia Pacific is a major growth region, contributing 41% of the global increase (USD 613.5 billion). Comparatively, North America accounts for 32%, Western Europe accounts for 13% with Latin America at 8% and Eastern Europe 5%.

     

    Commenting on the latest forecasts, Nick Waters, CEO of Dentsu Aegis Network Asia Pacific, said, “The region as a whole displays a positive outlook with increasing growth rates. We are seeing upward revisions in most key markets, with India, the Philippines and Vietnam showing high rates of growth. Spend in China continues to grow at pace, though driven almost entirely by the ecommerce platforms, Alibaba, Tencent and Baidu. Digital remains the dominant growth area with a quarter of Asia Pacific advertising spend expected to be delivered through mobile for the first time. Digital will be the leading form of advertising in half of the markets that we track in the region.”

     

    Key market trends

    :: India: India advertising spend market is expected to grow in 2018 by 10.5% to reach 624 billion rupees. Though there had been a slow start in Q1-2018, the market was picking up from March-April, fueled by a stable recovery post demonetisation/GST/RERA buoyed by the State Elections in Meghalaya, Tripura, Nagaland and Karnataka in April. The India South Africa Match in January, Budget announcement in February, lead to continued expansion and growth of regional newspapers and television. Both social and online video will see growth for the next five years as India continues to evolve their internet, mobile, cloud audience.

     

    :: China: China’s advertising market is predicted to grow 6.5% in 2018, up from the previous forecast of 5.4%, to reach RMB 630 billion – 16.2% of global ad investment. Growth will be driven by digital, which is forecast to command 60% of advertising spend and increase by 14.8%. The online giants Baidu, Alibaba and Tencent (BAT) are projected to contribute around 80% of this growth, underlining their dominance of the marketplace. Mobile payments are also one to watch in the coming years as platforms such as WeChat or Alipay make cash obsolete in large parts of the country.

     

    :: Australia: Australia advertising spend is forecast to show continued growth in 2018, increasing by 2.8% to reach AUD 15.7 billion. The main driver of growth will be election related advertising which includes a boost in advertising by the governments involved as a means to promote the great things they have done during their time in power. In 2018 we expect more than 40% of growth to come from this sector and a further 40% to come from Gambling, Retail and Finance advertising. Digital media is expected to increase by 6.1% in 2018, representing 48% share of the total media spend, which could be a result of brand safety issues where advertisers and media owners look to more autonomy and control of their content.

     

    Global Media trends

     

    Mobile on the go

    The mobile device is steadily becoming our primary point of access to all digital services and content. In 2018, 52.2% of all worldwide online traffic was generated through mobile phones, up from 50.3% in the previous year, according to Statista. People now spend an unprecedented amount of time on their smartphones—more than five hours a day, according to some estimates. This growth in usage is largely driven by the widespread availability of high-quality digital Video. Mobile Video consumption is exploding among all age groups and content categories. 9 in 10 Social media users opt for mobile browsing, with mobile apps accounting for 70% of time spent on Social media.

     

    Reflecting this, mobile is forecast to represent a quarter of global ad spend 25.2% this year exceeding the previous prediction of 24.8%. With Mobile payments forecast to be more popular in the coming years, Mobile is set to continue on a positive growth trajectory a forecast 23.3% in 2018 and 18.8% in 2019.

     

    Digital still calls the tune

    Worldwide Digital media spend is forecast to increase by 12.6% in 2018, more than three times the rate of all media (3.9%), to reach US$230.6 billion—a US$25.7 billion incremental increase year-on-year. Online Video (+24.6%) and Social Media (+21.6%) are particularly strong. Paid Search continues to account for the largest share of digital (39%). As previously predicted, Digital will overtake TV for the first time this year to account for 38.4% share of total ad spend vs. 35.5%. In the US, Digital spend is forecast to overtake TV in 2019. Programmatic ad spend is expected to grow by 23.2% in 2018 and 19.1% in 2019 as the ability to consolidate programmatic buying strategies across formats and devices continues to be an opportunity for advertisers to reach the most valuable audiences at scale.

    :: Traditional media spend is forecast to decline by just -0.5% in 2018 and -0.4% in 2019. Newspapers and magazines are expected to continue their downward trend, with falls of -7.5% and -6.5% respectively. Radio (+2.0%), Out of Home (+2.2%) and Cinema (+5.9%) spend are expected to show steady growth.

    :: TV spend is forecast to move back into growth in 2018 (+1.2%), following a -0.7% decline in 2017, remaining a major medium in the mix with 35.5% of overall investment.

     

    Growth in global ad spend 2017-19 (% y-o-y at current prices)

      2017a 2018f 2019f
    GLOBAL 3.3 (3.1) 3.9 (3.6) 3.8
    NORTH AMERICA 2.5 (2.5) 3.4 (3.1) 3.2
    USA 2.6 (2.6) 3.4 (3.2) 3.1
    CANADA 0.0 (0.0) 2.3 (1.1) 5.1
    W. EUROPE 3.2 (3.3) 2.9 (2.6) 2.9
    UK 4.2 (3.6) 4.2 (3.8) 4.7
    GERMANY 2.3 (2.2) 2.6 (2.6) 2.9
    FRANCE 2.7 (1.7) 2.5 (2.0) 2.8
    ITALY 0.9 (0.9) 1.4 (1.9) 1.1
    SPAIN 2.3 (1.9) 1.5 (1.4) 1.2
    C&EE 8.8 (8.3) 7.8 (7.4) 6.6
    RUSSIA 14.3 (12.9) 11.7 (10.4) 8.5
    ASIA PACIFIC 4.0 (3.5) 4.5 (4.2) 4.4
    AUSTRALIA 2.3 (2.7) 2.8 (2.9) 2.4
    CHINA 6.3 (6.0) 6.5 (5.4) 6.0
    INDIA 8.9 (9.6) 10.5 (12.5) 11.1
    JAPAN 1.6 (1.0) 1.5 (1.6) 1.2
    LATIN AMERICA 8.3 (8.1) 6.9 (8.8) 7.3
    BRAZIL 2.8 (2.1) 2.3 (5.0) 2.6
      Figures in brackets show our previous forecasts from Jan 2018

     

  • Jointly launched white paper – titled “Connectivity and QoL: How digital consumer habits and ubiquitous technology are driving smart city development in Asia Pacific

    Dentsu Aegis Network and MIT shed light on APAC’s Smart City Imperative

    By A Correspondent

     

    Dentsu Aegis Network has launched a new white paper examining the progress of Asia Pacific’s smart cities, including local deep-dives into eight key markets in the region. In its third year, this series on Asia Pacific’s digital disruption aims to deliver thought leadership to arm Dentsu Aegis Network and its agency brands’ clients and partners with the insight they need to succeed in the digital economy.

     

    This year, in collaboration with MIT Technology Review, the report argues that increasingly, smart city initiatives in Asia Pacific are being developed and driven to improve quality of life for the region’s citizens and consumers, to manage cities’ growth sustainably, and to maintain their global competitiveness.

     

    The paper – titled “Connectivity and QoL : How digital consumer habits and ubiquitous technology are driving smart city development in Asia Pacific” – consolidates extensive in-market research and nearly two-dozen in-depth interviews with key industry players from India, Singapore, Hong Kong, China, Taiwan, South Korea, Japan, and Australia.

     

    Said Nick Waters, CEO of Dentsu Aegis Network Asia Pacific: “Asia Pacific has enjoyed robust economic expansion in recent years, with cities at the heart of this growth. With development comes challenges, but cities in the region are transforming these challenges into opportunities with the help of technology and innovation. Smart cities in Asia Pacific are quickly becoming pilot markets for the digital economy.

     

    Added Ashish Bhasin, Chairman and CEO South Asia – Dentsu Aegis Network: “India is currently moving towards massive urbanisation. Consequently, its need for building smart cities is far more immediate when compared to many other countries. Home to one of the most populated and diverse demography in the world, India witnesses the migration of 20-30 people every minute from rural regions to urban cities. Yes, India is a complex country and therefore, its infrastructural challenges are huge but so are the opportunities. We have a large consumer base, we are well-connected and mobile-enabled. And these elements will act as huge enablers to create our smart cities and introduce economic transformation.”

     

     

  • With this acquisition, over 35% of Dentsu Aegis Network revenue will come from digital

    Dentsu beefs up digital play. Buys Sokrati to launch Merkle

     

    By A Correspondent

     

    Left to Right: Anubhav Sonthalia, Ashish Bhasin, Ashish Mehta and Santosh Gannavarapu

    The Dentsu Aegis Network (DAN) has announced yet another acquisition, beefing up its digital play in a bigger way. It has informed that it has signed a definitive agreement to acquire Sokrati, a data-driven performance marketing and analytics agency. The network has also announced the launch of Merkle in India and post-acquisition, Sokrati will be rebranded as Merkle Sokrati. Founded in 2009, Sokrati is headquartered in Pune and employs a staff of 120 digital marketing professionals.

    Said Nick Waters, CEO of Dentsu Aegis Network Asia Pacific: “India is the fastest growing large economy in the world. It is on track for 400 million smartphone users, making it second only to China, and has emerged as a major e-commerce market. Sokrati’s strength in mobile, e-commerce, data, analytics and performance media provides an ideal basis from which to launch Merkle in India as we develop the roll-out plan for Asia Pacific. We will develop the unique M1 addressable media platform for India as a next step.”

    Added Ashish Bhasin, Chairman and CEO of Dentsu Aegis Network South Asia: “Sokrati has strong ability in CRM and data to accelerate the launch of Merkle in India and further bolster our data practice, which is becoming increasingly critical in all aspects of our business. It will also give our clients added value as we bring CRM and data into the heart of our digital offering. With Dentsu Aegis Network India already being a leader in performance marketing services, with iProspect and the recent acquisition of SVG, the complementary addition of Sokrati will enable the network to take a clearly dominant position in the rapidly growing Indian digital advertising market. With Sokrati on board, we will now be more than twice the size of any of our competitors in search and performance. Out of 3,500 staff in India, about 1,500 will be digital professionals, and over 35% of our revenue – a market-leading statistic – will come from digital.”

    Added Zhengda Shen, President of Merkle Asia Pacific: “Given Sokrati’s strong credentials and proven capabilities in data & analytics, Sokrati will be in the ideal position to give strong footing to Merkle’s launch in the Indian market, in line with Merkle’s global growth strategy. India is strategic to Dentsu Aegis Network and is one of the fastest-growing markets in the world.”

     

     

  • In India, the new avatar will be headed by Divya Karani as CEO

    Dentsu Media is now dentsu X, in India and elsewhere. Divya Karani to stay as India CEO

    By A Correspondent

     

    Dentsu Aegis Network today announces the launch of dentsuX which will be, as a communique notes, an “integrated agency network combining best-in-class communication and media planning services, content creation, technology, data and behavioural insights, following the rebrand of the Group’s media specialist – Dentsu Media”.

     

    The new proposition, “Experience Beyond Exposure”, relays the brand’s strong belief in the power of experience over exposure, the communique adds.

     

    Takaki Hibino

    Takaki Hibino, Global Brand President of dentsuX,will continue to lead the agency globally. He said:  “When Dentsu Media was first launched in 1999, the use of the word ‘media’ had a very limited meaning. For close to two decades, Dentsu Media alongside its creative agencypartners has expanded to offer much more to our clients than that original definition could describe. This is why we evolved its identity to reflect the potential of our brand and selected ‘X’ to represent the importance of delivering unique experiences. By integrating data, technology, creativity and distribution in the dentsu X offering, we can develop these experiences for clients that are truly focused on digital solutions.”

     

    Nick Waters

    Added Nick Waters, CEO of Dentsu Aegis Network Asia Pacific: “Dentsu Media is unique as a scaled Asian agency network. Integrating within Dentsu Aegis Network portfolio of agencies it has propelled its growth so that it currently leads the Campaign new business tables.”

     

    “This change of branding serves to better reflect the agency’s capabilities and further enhance its position as a global agency network,” Waters added.

     

    Divya Karani

    In India, dentsu X will be headed by Divya Karani as CEO. Said Karani: “Dentsu Media has always believed in reaching ahead, anticipating and embracing change. ‘Experience’ is the currency in the brave new world we live in. dentsu X delivers to this.”

     

    The rebrand of Dentsu Media to dentsu X is effective today.

     

    Editor’s Note: As a policy we do not honour the capitalising or various ways in which brands call themselves. Unless of course it’s a change of spelling. For instance, the communique from Dentsu spells Dentsu Media with a lowercased ‘m’ –Dentsu media and not Dentsu Media. But we don’t write it as that. Since it’s a launch press release, we’ve let it be a lowercased dentsu in the name but from now on, it will be: Dentsu X J

     

  • The acquisition marks the network’s expansion in South Asia and entry into the Sri Lankan market with the largest independent agency

    Dentsu Aegis Network ​enters Sri Lanka, to acquire Grant

    By A Correspondent

     

    Neela Marikkar and Ashish Bhasin

    Dentsu Aegis Network today announce​d​ it has signed a definitive agreement to acquire Grant Group, the largest independent creative agency and ​regarded as pioneer of advertising in Sri Lanka. The acquisition of the 59-year-old integrated agency is Dentsu Aegis Network’s first foray into the island nation and one of the largest agency groups to enter the market in nearly two decades.

     

    ​Said ​Nick Waters, CEO of Dentsu Aegis Network APAC: ​“With social and economic stability in the country, Sri Lanka is set to reap the peace dividend. Significant foreign investment is already flowing into the country, and with strong historical ties to Japan, there is a natural opportunity for Dentsu Aegis Network clients to grow. Grant represents a unique opportunity as a top quality advertising and communications group to get into a strong position in a fast-growing market.”

     

    Post-acquisition, Grant Advertising will be known as Dentsu Grant while Grant Media will join Dentsu Aegis’ global media network brand, Carat. Other global agency brands within the network will integrate with their strong local agency counterparts to grow the business further adding value to their clients and their staff. ​Said ​Ashish Bhasin, Chairman and CEO of Dentsu Aegis Network South Asia​: “​The acquisition of Grant Group is a key step in the Dentsu Aegis Network South Asia strategy and will launch our business in a market with significant potential. Through the Grant Group, we have a unique opportunity to enter the market with a bang and will be amongst the largest integrated groups in the country.”
    Steering the Sri Lankan leadership team is Neela Marikkar, Chairperson and Managing Director of the Dentsu Aegis Network Grant Group. She will report to Bhasin​.​

     

    ​Added Marikkar: “Given our long heritage in this market continuously staying ahead of the game, Dentsu Aegis Network’s cultural fit and best-in-class operating model are the right facets of a multinational partner to take our group and most importantly our clients and staff into a very dynamic future. More importantly given the growth in the market and the push towards digital, we need a strongly aligned and committed multinational partner with digital at its heart as brands grapple with the challenges of a changing media landscape. We are very excited to be able to tap on the network’s resources and work with the 38,000 great people at Dentsu Aegis Network. We are beginning a new chapter in the wonderful story of the Grant Group.” The deal is expected to close this week.

  • DAN acquires Fountainhead Entertainment to further bossman Ashish Bhasin's quest to be #2 agency network

    Biggest ever Experiential Media buy as Dentsu Aegis acquires Fountainhead

     

    By A Correspondent

     

    It’s being touted as the biggest ever buy of an experiential agency in India. Okay, okay, there was Encompass bought by WPP not long ago, but that was in a different era. If all milestones are achieved, the deal size could get the six Fountainhead owners richer by some 400 crore. In INR.

     

    So here’s the news: Dentsu Aegis Network has announced the acquisition of Fountainhead Entertainment Pvt.Ltd, one of India’s leading event and experiential agencies.

     

    Established in 1994 and now with more than 205 experiential specialists, Fountainhead is headquartered in Mumbai and has offices in Delhi and Bengaluru. Founded by Chairman Brian Tellis, Managing Director Neale Murray and Director Otis D’Souza and  later joined by co-directors, media honcho Pradeep Guha, V G Jairam and Owen Roncon,

     

    Post-acquisition, Fountainhead will continue to be led by co-founder and CEO Brian Tellis. The current management team will also continue as is. Tellis will report into Ashish Bhasin, Chairman and CEO of Dentsu Aegis Network South Asia. Some time next year (2016), the existing experiential offering of psLIVE, with 86 people in India, will be merged with Fountainhead, making the combined agency India’s largest experiential and activation agency business.

     

    Nick Waters, CEO of Dentsu Aegis Network Asia Pacific said, “Fountainhead’s reputation in the event and activation market, and their extensive experience in both music and sports marketing, complements and strengthens our experiential offering in one of the region’s most exciting markets. This move represents a further step in our continued investment programme in the Indian market.We welcome Brian and the wider team to the network.”

     

    Ashish Bhasin, Chairman and CEO of Dentsu Aegis Network South Asia said, “As the fastest growing network in India, we are continuing to expand our portfolio of diverse specialisations available to our growing client base. Fountainhead’s creative quality and reputation in the market make it the perfect addition to Dentsu Aegis Network India. Our unique ‘One P & L’ philosophy will help us bring their expertise to all Dentsu Aegis Network clients. This is another big step forward in helping us achieve our mission of being the second largest agency group by end 2017 in India, overturning for the first time the existing ranking which has historically been in place for over 80 years in India.”

     

    Brian Tellis, Co-founder and CEO of Fountainhead said, “Our vision is to deliver world class experiences to our stake holders. To set benchmarks in delivery through cutting-edge creativity, innovation, value pricing and practices and processes.  We are thrilled to join Dentsu Aegis Network. The sheer dynamism of the group will open up opportunities for us. Our values are well aligned and the potentially combined entity of Fountainhead and psLIVE will become the most comprehensive experiential offering in India. We are very excited about this opportunity and the growth potential it offers. Fountainhead, a full service experiential agency, will now start to align with an enviable spectrum of brands through the Dentsu Aegis Network.”

     

    Fountainhead boasts a client base of more than a hundred on all types of events, digital initiatives, product launches, brand activation and meetings, incentives, conferences and exhibitions. The five brands within the growing business are: Fountainhead Events, Oranjuice Entertainment, Fountainhead Activations, Fountainhead Corporate Journeys and Fountainhead Digital. Together, they deliver in excess of 350 events annually, a communiqué noted

     

    Fountainhead will retain its identity and branding, working alongside the other specialist Dentsu Aegis Network brands locally: Carat, iProspect, Isobar, Posterscope, Vizeum, Amnet, Dentsu media, Dentsu branded agencies (Dentsu Creative Impact, Dentsu Marcom, Dentsu Communications, Taproot Dentsu, Dentsu Webchutney), WATConsult and Milestone Brandcom.

     

  • Rohit Ohri is appointed CEO Dentsu Asia Pacific (excluding Japan) and will relocated to Singapore

    Ashish Bhasin takes overall charge of Dentsu Aegis in India

     

    By A Correspondent

     

    His designation is already rather long. It goes: Chairman & CEO – South Asia, Dentsu Aegis Network, Chairman, Posterscope and psLive – Asia Pacific. And now there may be another two: Executive Chairman, Dentsu India and CEO, Dentsu Asia Pacific (South).

     

    Okay, it’s been spoken about much over wine and single malts over the months. First soon after the general elections. We interviewed Rohit Ohri last year and asked him this, which he laughed at. We asked him about the entire structure at Dentsu Aegis and who reported to whom, and he explained what appeared to be a complex structure. We were a shade too lazy to detail it and just deleted the question.

     

    The rumours of Ohri relocating to Singapore have been doing the rounds for a few months. In fact a shade too long for us to start dismissing them. But now it’s confirmed, lah.

     

    He may as well start getting used to the Singaporean style of suffixing everything with a lah.

     

    So here’s the communiqué which we received from the communications office which until yesterday only serviced the business head quartered out of Bhasin’s office:

    Dentsu Aegis Network today announces the geographic expansion of Rohit Ohri’s role. Having previously led Dentsu in India and Asia Pacific South, Rohit is now appointed CEO Dentsu Asia Pacific (ex Japan) covering all markets in the region outside of Dentsu’s home territory. In doing so Rohit relocates from Delhi to Singapore.

     

    Nick Waters CEO Dentsu Aegis Network Asia Pacific said: “Rohit has done a fabulous job transforming Dentsu in India. Across Asia, Dentsu has an extraordinary track record of innovation and as the largest agency in the region has an unmatched depth and breadth of capabilities. Sano-san and myself are really looking forward to working more closely with Rohit to unleash the full potential of the business.”

     

    Commenting on the move, Hiroaki Charlie Sano, Executive Officer of Dentsu Inc. and CEO of the Dentsu Branded Agencies within Dentsu Aegis Network said: “Dentsu is an agency network with a long standing history and a strong footprint in Asia Pacific. Rohit shares our creative ambition and strong vision for Dentsu and the way we work with our clients. I’m delighted he will be taking on a more central position within the network to help guide the business outside of Japan”.

     

    The release we received didn’t mention about who’s taking charge from Ohri. But our sources at Densu Aegis Network India tell us that Bhasin took charge from June 1. Guess we’ll hear the official version soon.

  • Dentsu Aegis Network acquires majority share in leading integrated Out-of-Home agency Milestone Brandcom

    Dentsu OOH firm Milestone Brandcom

    By A Correspondent

     

    Dentsu Aegis Network has announced the acquisition of Milestone Brandcom, the leading Out-of-Home (OOH) agency by taking a majority share in the firm. With the acquisition of Milestone Brandcom, combined with Posterscope – Dentsu Aegis Network’s global outdoor media agency – Dentsu Aegis Network gains much clout in the Indian OOH space in terms of quality and volume.

     

    Founded in October 2009 and led by founder and managing director Nabendu Bhattacharyya, Milestone Brandcom has more than 100 active clients across a wide range of industries, and provide a full service comprehensive OOH offering which includes an event promotion activation division, rural OOH activation, retail and digital OOH division. Milestone Brandcom recently launched the ‘Milestone Optimizer’, a powerful tool which optimises OOH media plans by tracking 25,000 sites across India and providing Gross Impression Points of an OOH campaign, a first in India.

     

    Nabendu Bhattacharyya will continue as CEO and Managing Director of Milestone Brandcom, reporting to Ashish Bhasin, Chairman and CEO of Dentsu Aegis Network South Asia.

     

    Said Mr Bhattacharyya: “We are thrilled to join hands with the Dentsu Aegis Network and my entire team and I are looking forward to taking Milestone Brandcom to even greater heights. Being a part of a dynamic global group like Dentsu Aegis Network will help us be stronger together. OOH will become more and more important in India and we are confident that as market leaders we will be at the forefront of this progress.”

     

    Said Nick Waters, CEO of Dentsu Aegis Network Asia Pacific: “Milestone Brandcom is a highly awarded and well respected agency in India. This acquisition marks another significant step as we build a high quality and scaled group in India.  We welcome Nabendu and the team to the company.”

     

    Added Mr Bhasin: “Milestone Brandcom is not only a market leader but also a pioneer of several developments in the OOH industry in India. Posterscope was already amongst India’s fastest growing brands. This investment now establishes clear leadership for us in this very important medium, making us the leader in the OOH and OOH Retail space in India. We believe that OOH will play an increasingly important role for clients in years to come so we are delighted to be able to offer clients a market leading service.”