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MAR 05, 2014 #033

Media & Ent. industry will be muted in 2014

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n Calendar Year 2013, the Indian Media & Entertainment (M&E) industry registered growth of approximately 12 per cent, according to the FICCIKPMG report (to be released at the inaugural session of FICCI Frames 2014 on March 12 2014). Overall growth remained muted, largely caused by the slowdown of the Indian economy. The economic slowdown impacted advertising revenue dependent sectors such as TV and print the depreciation in the rupee also affected print, cable and DTH companies adversely but helped export oriented sectors such as animation and VFX to some degree. At the same time, this was countered by the impact of continued digitization of media products and services, and growth in regional media. Digitization of cable saw progress of Television industry moving in the right direction, with the mandatory Digital Access System (DAS) rollout almost complete in Phase II cities. The impact was felt to the extent that carriage fees saw a reduction of 15-20 per cent overall, however the anticipated increase in ARPUs and subscription revenues for broadcasters and MSOs (Multi System Operators) is expected to be realized only over the next 2-3 years. r. Other key highlights in 2013 were the inclusion of LC1 (less than class I) markets in TV ratings, the 12 minute

advertising cap ruling and the shift from TRP to TVT ratings. The film industry recorded a double digit growth, albeit slower than in 2012, with multiple movies scoring big on box office collections. Approximately 90-95 per cent movie screens are now digitized in the country, with a shift in focus to tier II and III cities. Going forward, multiplex growth is expected to slow down, in line with the overall delays and future expectations for retail sector and commercial real estate development, impacting box office growth in the short term The Print sector continued to buck the global slowdown trend. The sector grew at a CAGR of 8.5 per cent this year to reach INR 243 billion. Regional markets performed exceedingly well on the back of Steady advertiser spends, state election impact and new launches. However, with the validity of IRS data called into question by the industry majors, the sector in the short term suffers from the lack of a robust measurement system, critical for decisions on media planning and allocations. The total internet user base in India grew to approximately 214 million by end of the year with almost 130 million going online using mobile devices. Mobile Internet users dominated the total internet user base capturing an overall share of 61 percent. Digital media advertising

in India grew faster than any other advertising category. Streaming and download services continued to see growth in the music industry, with the growth in mobiles, in particular smartphones, contributing significantly to increased consumption of music ‘on-the-go’. However, with the continued decline in physical sales, compounded by the significant fall in ringback tone revenues (following the backlash of TRAI guidelines issues in 2012), the sector saw an overall fall in size by 10 per cent in 2013. Going forward, digital revenues are expected to drive growth in the sector. Further, the vibrant live events sector is expected to continue its role as a catalyst for driving growth in artists’ fan-base, and public performance royalties. Mr. Uday Shankar, Chairman, FICCI M&E committee said, “2013 has been an extraordinary year for the media and entertainment sector - a year of challenges and significant change which saw the industry dealing with a host of issues. Television saw the implementation of the 10+2 advertising cap and significant progress in seeding of set top boxes in DAS 1 and II – setting the stage of revenue growth and expansion in genres. The film sector continued to mature on the back of multiplex expansion and a wide variety of content. Radio and print continue to defy global trends and await positive regulatory

Mindshare AsiaPacific promotes Gowthaman to COO, Roy to CCO Mindshare has appointed Gowthaman Ragothaman as Chief Operating Officer and Roy Sudipto as Regional Chief Client Officer for Asia Pacific. Both of them are based in Singapore. Gowthaman takes on the role of COO Asia Pacific after spending a year as Chief Client Officer, APAC / CEO South and South East Asia. \During this time, he was responsible for Mindshare’s key clients across the region and expanding the agency’s services, including the launch of an emerging market activation unit across ASEAN in partnership with Geometry Global. In his new role as COO, Gowthaman will focus on continued development and delivery of Mindshare’s services to marketers, across the marketing value chain - from emerging consumer activation at one end to big data management on the other, and a more effective business model for working with clients. Gowthaman said, “I am extremely delighted to take on this role. I am especially looking forward to designing and rolling out new work streams that provide Mindshare’s clients with great new opportunities and accelerate sustainable growth of our business. Despite our scale and size, we are increasingly behaving more and more like a start-up – provocative, hungry, adaptive, full of energy all underpinned by a promise to be the agency of the future.” Roy takes over from Gowthaman as Chief Client Officer Asia Pacific following a two and a half year stint as Managing Partner of Client Leadership and Partnerships. During this time, his primary responsibility was to run some of Mindshare’s key accounts including Unilever, Kimberly Clark, Lenovo and others.

Gowthaman Ragothaman

In his role as Chief Client Officer, Roy will focus on growing Mindshare’s relationship with its key clients across Asia Pacific, by creating faster, more agile and adaptive marketing services for them. Roy will also spearhead creation of a stronger open source collaboration model around Mindshare’s key clients, with relevant partners from WPP as well as other independent companies. Roy will report to Gowthaman in this role. Mindshare is forging a number

Sudipto Roy

of partnership programs with ‘hot’ companies coming up in emerging economies, in analytics, media technology, e-commerce, B2B, social media, mobile and more, to complement the current global partnerships already in place with Google, Facebook, Twitter, Microsoft, Yahoo and many others. Roy’s new role focuses on leveraging some of these partnerships to help its clients’ brands be more adaptive to near real time consumer response, and continuously improve the way they use various media platforms to grow their brands. Commenting on his appointment, Roy said, “I am passionate about our clients’ businesses and how we think about them, so this move is exciting as it enables me focus on what I really love. I believe we have a great opportunity to drive cutting edge thinking for Mindshare and our clients and fundamentally reimagine how we think about media services while continually raising the standards for how media agencies can drive ROI. I really look forward to this part of the journey.” Ashutosh Srivastava, Chairman & CEO for APAC & Growth Markets at Mindshare, said “We are privileged to have highly talented people like Gowthaman and Roy stepping into these roles – over the years, they have developed trusted relationships with our clients, by focusing on what they value most. These roles are incredibly crucial for us at this stage and will help Mindshare continue to lead the industry thinking, and shape its development and growth at an exciting time, where understanding of media, technology and effective data usage are becoming more and more central to brand success.” Both Roy and Gowthaman’s roles are effective immediately.

(L-R)-Jehil Thakkar, Uday Shankar, Ramesh Sippy

intervention that will take these sectors to greater heights. I am certain that the insights and findings from this report will provide a comprehensive and useful lens for all of us in the industry”. According to Jehil Thakkar, Head of Media and Entertainment, KPMG in India, “2013 was a year in which many parts of the M&E industry paused and took stock. Focus shifted from top line growth to bottom line growth with companies focusing

on operations and efficiency. Inspite of a very challenging macro environment, the industry grew 12%, a far better performance than many other industries. The structural changes taking place in the industry - especially in television and digital, continued to take the industry down the path of fulfilling its potential” This year, the report also highlights opportunities that could come from tapping international markets such

as the US and Middle East, with a special feature on opportunities in South Africa and Nigeria. Going forward, there is need for continued positive regulatory intervention, such as implementation of Phase III for the radio sector. In an increasingly digitized media world, the ability to create compelling and targeted content across multiple channels, will be the bedrock for creating differentiation in a cluttered market.


2 Anant Rangaswami

MAR 05, 2014 #033

issues of the day WPPStream Got the Mo-Bills and Mo-Biles Together You could have divided the delegates at WPP Stream in Jaipur into two distinct groups. The first pronounced the word m-o-b-i-l-e as mo-bill and the second pronounced it as mo-bile. The mo-bill guys were giants in the digital ecosystem, the tech start ups and the digital analytics, listening and measurement companies. The mo-bile guys were from the brick-and-mortar creative agencies, the Indian digital agencies, the media agencies and the odd client who found the time and the inclination to be at Jaipur. Why did I find the time to go to Jaipur when I was neither in the mo-bill set nor in the mo-bile set, spending a precious Wednesday, Thursday, Friday and a large part of Saturday away from work? In one word: networking. When I saw the list of delegates on the stream site, it was clear that I would have to spend many more hours to meet these delegates individually rather than make the trek to Jaipur. Anything else that I got would be a bonus; learning something new would be a bonus, an unusual or refreshing point of view would be a bonus, a provocation would be a bonus, meeting someone I hadn't met before would be a bonus. I came back much richer than I was when I arrived at Jaipur. I had hopes, but not expectations, of getting more than just networking thanks to what I read about Stream. "Stream brings WPP clients together with industry leaders to think about our digital future and what that means for communications, what it means for creativity and last, but not least, what it means for business," is what the 'about' page says on the WPP Stream site. The five key words that I took out were: our, digital, future, creativity and business; these were the five elements that I would look for in every session I attended and every conversation that I had. And, as I went about the venue networking, pumping hands and clinking glasses and sharing cigarettes, I discovered that there were many other homogenous aspects to those who said mo-bill and those who said mo-bile. The mo-bill camp was selfish and parsimonious, while the mo-bile camp was so generous that they were almost philanthropists. The mo-billers largely spoke about themselves, their companies and their products. The mo-bilers spoke about the industry at large, about things that they've seen and learnt, including their competition and their rivals in the conversations. It was almost as if the mo-bills were looking for the maximum bang for the buck that they had to spend in getting to Jaipur (or in supporting Stream as a sponsor). In short, the mobills used Stream to, er, sell. I went back to the five key words and tried to tick them: For mo-bills, digital, business and (a bit of) creativity were ticked. 'Our' was nowhere to be seen. It was I, we, myself. For the mo-bile speakers, 'our' was predominant, digital, creativity and business were in abundance. What of 'future', you ask? That's the one that shocked me. The mo-bills spoke of the present and the immediate past. They shared with us case studies which demonstrated what brands could do with them, they shared capabilities that few know of, and so on. Nothing about what the future held for us, nothing about changes in the marketplace, changes in the consumer, trends that revealed insights into what would happen to 'our' business in the future.

My 'future' fix came from mo-bilers from creative, media and Indian digital agencies. One session, for example, frightened me with the thought that, in a digital world, knowledge would increasingly be reduced to a commodity. Another session taught me that the supremacy of the newspaper editor would completely vanish. Not some decades in the future, but becoming less supreme each passing day after today. I would have thought that, being infinitely closer to the legacy industry business than to digital (I'm 53 and my mo-bile device is a BlackBerry) that I would learn a lot more from the mo-bill sessions. I didn't. I attended three sessions by mo-bills before one figured that these sessions were, largely, "for dummies" or "how to" sessions or just unabashed and undisguised sales pitches. It wasn't tough to see the pattern; so, by day two, the mo-bill speakers saw thinning audiences with the mo-bile speakers gaining popularity. That's when one understands the cleverness of the Stream format - which I haven't shared with you yet. Stream is an unconference. Stream begins with no defined content. The content is created by the delegates who have been invited - and there are no dos and don'ts. Speak on whatever you feel like talking about; it's all allowed. On day zero, we're directed to a white board with a blank schedule drawn on it. Delegates can fill in details of whatever it is that they want to discuss or present: the topic, the time, the date and the venue. That's where the cruelty of Stream comes in - and the magic of Stream. There are multiple talks going on simultaneously. Stream challenges prospective speakers to find a topic or subject that captures the imagination of the delegates and gets them to

attend. How could one ensure that you have an audience next year? You decode what happened this year. This year, there was a lot to learn - and almost all of the lessons came from the mo-biles. If you're invited next year, here's what one should do: • Talk about the future • Talk about the consumer • Talk about 'us' • Do not sell • Provoke, challenge the status quo • Do not make extended presentations. • Make short presentation, followed by discussions • Include the audience in the content • Give, don't take • Share • Be generous And, funnily, do not focus on digital and on business. They're both incidental and implicit. It's time for a wrap; it's back to mo-bills and mobiles. It's only when I returned from Stream that I realized what Stream had achieved: Stream got the mo-bills and mo-biles into the same room; made them talk to each other; got them to know each other, got them to understand each other's concerns. In the two weeks prior to stream, I had attended the Content Marketing Summit and the Internet And Mobile Association of India Summit. All I heard at these two events was mo-bill. In the many Advertising Association of India and Ad Club, Mumbai events that one attends, all one hears is mo-bile. It was almost like the twain never meet. Stream got them to meet. That's big.

Approachability is the nessesary way to build brands

Harish Vasudevan

Last Sunday, I was at the Safaricom jazz festival here in Nairobi. Safaricom is the big, dominant telecom company of Kenya and by sheer success and impact probably dominates the corporate landscape of Africa. Their product m-Pesa is the mobile platform of choice in Kenya and is the biggest mobile commerce product in the world. Bob Collymore is the CEO of Safaricom. Not a day passes by without his photograph in the media with a President or a minister or some other corporate bigwig. He’s a bit like THE CEO of Kenya and is the face of Safaricom. So back to the jazz festival.. There were 2 types of tickets available. VIP and ordinary. VIP tickets were more than twice the price of the ordinary ones. I confess, I tried to buy them but they were not available. So we, about 10 of us, ‘settled’ for the ordinary tickets. By good fortune we were right upfront near the stage. And guess who was right beside us? The above mentioned Bob Collymore. Just sitting casually with the everyday people. On noticing him, I went up to him to chat and he was friendly, warm and he had a pleasant conversation about music, the evening and stuff like that. At no point did I think I was talking to a celebrated CEO of a famous company. Through the evening he was right beside us. Whenever a VIP came to the tent, someone from his office would come up to him and take him in, where he’d do his bit, I guess, and come right back. Here’s a pic of him enjoying the show. After the show as we were leaving, I went up to him to thank him and he made it a point to thank all of us individually for coming. I am his fan for life. If he was hiring, I’d join him in a jiffy :-).

Later in the week I was in a meeting with a major financial institution on their brand campaign. There were about 15 of us in the room. Among them the CEO of the company. If someone did not introduce him to me as such, I’d have mistaken him for a senior marketing exec. He was completely understated. Soft spoken. Engaged with us all as equals. And really keen to hear our POV. 1 more person I want to refer to before I conclude. Sir Martin Sorrell. I was at a meeting, years ago with one of our big clients. And the client asked “Do you think Martin Sorrell will come to launch our event’. In a moment of bravado i said let me check. I searched for his emaill address on the WPP site. Sent him an email. In the meeting. 2 minutes later there was his response asking for dates and expectations. Over the next 30 minutes he and I exchanged emails about his presence at an event. I still drop him emails occasionally to update him about either myself or goings on in Africa. He always responds. I mention these examples to make the point that ‘approachability’ is at the core of a strong brand. Be it a personal brand or a marketing brand. Consumers need to feel that they have a relationship with the brand. It is from that relationship that trust emerges. It is not about likes on a facebook page or a viral campaign. It is the relationship. Everything else is a byproduct. Some years ago I was engaged in developing an SME campaign for a large global brand. And the research said that SMEs did not quite relate to the brand because they seemed unapproachable.They advertised in English. In glossy brochures and magazines, Events were held in 5 star hotels etc. So while they had relevant products the TA felt that the brand was out of reach. Lots of conversations later the company figured that the way they needed to reach out to the SMEs was through their distributors.

Kept their ego aside and let the appropriate channel do the talking. Someone from my PR organisation was saying that CEOs of they type I referred to above are the ones journalists seek because they know that they will always get a response, always get a quote and help them look good. That is not just good for the company they lead but good for the corporate brand as well. And every brand in their portfolio. It’s not enough to be good. Need to be good and within reach as well. That is good branding. Harish has 0ver 20 years of solving marketing and branding problems with great success in India, China Singapore and now in Kenya. Experience straddles global and local brands, b2b and b2c.


MAR 05, 2014 #033

the world’s top auto brands

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The car in front is still a Toyota The Brand Finance Auto 100, released today, is an annual study conducted by leading brand valuation consultancy Brand Finance. As the world’s biggest auto brands showcase their latest creations in Geneva, we put to them to the test to determine which are the most powerful and most valuable. Toyota has solidified its status as the world’s most valuable auto brand. Impressive growth of 34% means Toyota’s brand is now worth US $34.9 billion ahead of BMW (US$29bn) and Volkswagen (US$27bn). Looking ahead, Toyota must negotiate the potential pothole of a 1.9 million unit recall of its Hybrid Prius model and the resulting loss of consumer confidence. Toyota has faced similar challenges in recent years. While brand value took a hit in the short term, it also rebounded quickly, suggesting that Toyota’s brand is powerful and resilient enough to see it through the latest issue. Those already causing a stir in Geneva include Audi, which has just revealed its new TT. Its brand value is up 30% to US$7 billion. Jeep’s latest crossover model, whose name is yet to be confirmed, was leaked online recently. Its brand value is up to over US$2.5 billion. Brands valued for the first time include Maserati (US$693m), which presented its Alfieri coupe concept, Lamborghini (US$677m) which unveiled the Huracan, which will replace the outgoing Gallardo and Tesla (US$1.2bn) whose share price is soaring as it forges a reputation as perhaps the only credible electric car brand. Ferrari is again the world’s most powerful auto brand, in fact the most powerful brand from any industry. It scores highly on a wide variety of measures on Brand Finance’s Brand Strength Index, from desirability, loyalty and consumer sentiment to visual identity, online presence and employee satisfaction. The exceptional AAA+ brand rating has been preserved thanks to the strategic decision to cap production at 7000, maintaining the brand’s exclusivity. As a result, despite a 4% fall in production last year, brand value rose 12% to US$4 billion. Ferrari’s latest branding coup is its involvement in the launch of the ‘CarPlay’ system, which integrates a user’s iPhone into

an onboard display. This collaboration between Apple, the world’s most valuable brand (worth US$105bn) and Ferrari, the world’s most powerful, could be the start of the ultimate brand partnership. Unsurprisingly, German, Japanese and American owned brands dominate the table, accounting for 74% of the total US$388 billion brand value. France and Italy’s share of brand ownership is increasingly threatened by rising Asian manufacturers based in India, South Korean and China. Notable by its absence is the UK. The UK may be a leader in automotive technology, the base for eight Formula1 teams and the original home of brands now worth US$13.6 billion, but none of the world’s 100 auto brands are now British owned. Though foreign ownership may be a blow to national pride, much of the manufacturing, marketing and branding infrastructure has remained in the UK. Many auto brands of British origin are thriving. Land Rover (whose brand value is up 43% to US$4.3bn) Jaguar (up 58%) Mini (up 42%) and Bentley (up 27%) are finding huge success as aspirational brands in emerging markets and the US. Their success has boosted British industry, with production rising over 3% in 2013 and thousands of new jobs being created. Overall, the auto industry performed strongly last year, thanks to a combination of global economic recovery and increased demand in both the United States and Asia. The brand value of the top 50 brands rose by $55 billion to $346 billion, and the gross margins of the five biggest manufacturers are the highest they have been for 10 years. Brand Finance Chief Executive David Haigh commented, “The increasing market share of the biggest manufacturers coupled with a trend for joint ventures and alliances has resulted in vehicles that are mechanically more homogeneous. Consequently, brand will play an increasingly important role in shaping consumer preference over the coming years, not just for the likes of Ferrari, Lamborghini or Porsche but for mass market manufacturers too.”

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MAR 05, 2014 #033

the back of the book

3 powerful emotions that won Sochi for brands

2014 has kept brands busy as they stepped out of the Super Bowl, straight into the Winter Olympics at Sochi. While the Super Bowl was a single event with a specific (albeit large) number of ad spots, the month long Olympics allows sponsors the chance to have more well-rounded campaigns than a single 30 second spot. Unmetric takes a look at how they leveraged their involvement across Facebook, Twitter and YouTube. P&G Pulls At Our Heartstrings With Unconditional Love Widely hailed as the Gold medalist amongst Olympic advertisers, Procter & Gamble has been a consistent winner through previous Olympics, and continues to be one in Sochi. Their ‘Pick Them Back Up’ advert, released around the same time as the Super Bowl ad blitzkrieg, has received more views than all but three Super Bowl commercials.

On Facebook, the official P&G page – ‘Thank You, Mom by P&G’ was filled with Sochi related posts and the two posts with Engagement Scores* of 1000 were links to the video they had released. Hashtag Analysis: P&G kept it simple but effective with their hashtags which were either related to Sochi, or to their ‘Thank You Mom’ campaign. Their four tweets with Engagement Scores** of 1000 celebrated gold medals at the Sochi Olympics with each of these tweets including quotes from the athletes’ moms. Their #ThankYouMom and #BecauseOfMom hashtags have a sentiment trigger that resulted in a higher rate of usage and retweets. Visa Lets Us Share In The Joy And Glory Of The Olympics Another Olympic Sponsor with a well rounded strategy across platforms was Visa. Their YouTube channel contains a Sochi related playlist comprising of 35 videos featuring various Visa sponsored athletes, like the one with Olympic Ski-Jumper Sarah Hendrickson which received more than 2.8 million views. On Facebook, their Olympics related posts received great engagement with two of the posts, including the one below, achieving Engagement Scores of 1000.

In fact, their Facebook page received an Engagement Score of 781 which is more than twice the Engagement Score of the average Banking & Finance sector from North America. As well as it did on Facebook and Youtube, Visa’s #everywhere campaign really found its legs on Twitter. The brand involved fans in mosaic collages of different athletes, included live updates and congratulated winners via Twitter, in a bid to increase engagement.Their tweets were favorited 114 times more than the average Banking & Finance Twitter account from North America and retweeted almost 70 times more, in the time period analysed.

Hashtag Analysis: Apart from the generic #teamUSA and #Sochi2014 hashtags, the brand and campaign specific hashtags – #TeamVisa and #Everywhere, received engagement scores of 892 and 989 respectively. Visa has invested considerable time and effort in ensuring that their Olympics campaign gains the most bang for its buck. And it seems to have worked. With a growth rate of 16%, Visa enjoyed the highest follower growth rate among the official Twitter accounts of all the Worldwide Official Sponsors. Coca Cola Proves That ‘America’ Triggers Engagement Coca Cola had sizeable investments in both the Super Bowl and in Sochi, and in a cost-effective move, released a single commercial which captures the spirit and patriotism necessary for both events. Their “AmericaIsBeautiful” commercial had already gained about 8 million views in the week between the Super Bowl and Sochi, and since the beginning of the Games, has added about 2 million more views. On Facebook, their Sochi related updates received fair engagement but the highest engagement still came from their Super Bowl related posts. Hashtag Analysis: On Twitter, the use of the hashtag #AmericaIsBeautiful dropped significantly after the Super Bowl, with a small spike visible at the start of the Games. Perhaps a new hashtag exclusively used for the Olympics would have encouraged a fresh wave of audience participation. The Final Tally The Olympics bring out a shared sense of pride and patriotism in people and the brands that have capitalized on these emotions, like P&G, Visa and Coca Cola had very engaging campaigns. By efficiently using all three platforms, these brands made the most of their association with the Olympics. Methodology Unmetric compiled the report by sourcing data from its own social media benchmarking platform. Data and Insights on Facebook, Twitter and YouTube were analyzed for the period of Jan 1st –Feb 24th,2014. *[The Engagement Score on Facebook is calculated based on the number of Likes, Comments, Shares and Audience Reception Rate that each post receives in the range of 1 – 1000] **[The Engagement Score on Twitter is calculated based on the number of Favorites, Replies, Retweets and Audience Reception Rate that each post receives in the range of 1 – 1000]

tv tracker

The What's-ON report is based on millions of observations seen across multiple platforms


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