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Volume IX Issue 5 | February 2012

SPECIAL ISSUE

After a stupendous 2010, advertising revenue growth slumped in 2011. But what lies ahead...? Pitch | February 2012

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Pitch | August 2011


Pitch Pitch || February February 2012 2012


INSIDE COVER STORY

Pitch Volume IX, Issue-5 February 2012 Publisher & Editor-in-Chief Annurag Batra Editor & Director Amit Agnihotri Director Nawal Ahuja

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Déjà vu ` 50

Consulting Editors

Vinod Behl Noor Fathima Warsia

Deputy Editor

Dhaleta Surender Kumar

Principal Correspondent

Pallavi Srivastava

Correspondent

Neha Goel

Art Director

Jasper Levi

Graphic Designer

Joby Mathew

Photographers

Vilas Kalgutkar (Mumbai) Suresh Gola (Noida)

SPECIAL ISSUE

Volume IX Issue 5 | February 2012

EDITORIAL TEAM

AD SALES

Rohit Sardana Abdulla M Mazumder Sneha Walke Nikhilesh Bariar

9811377592 9871609348 9845541143 8880001123

After a stupendous 2010, advertising revenue growth slumped in 2011. But what lies ahead...? THIS SPECIAL ISSUE IS BROUGHT TO YOU BY

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Advertisers are cautious and it’s a deja vu feeling of 2009. The mood though cannot be termed as ‘pessimistic’. It is more of a ‘protectionist’ approach PRINT REVIEW

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OUTLOOK

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Hammered? Not Yet Rough weather?

On News-stands ` 50 www.pitchonnet.com Printed and published by Annurag Batra on behalf of Adsert Web Solutions Pvt Ltd B-20, I-Floor, Sector-57, Noida, Uttar Pradesh - 201301 Printed at All Time Offset Printers, E-53, Sector-7 Noida, Uttar Pradesh - 201301 An exchange4media Publication

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TV REVIEW

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OUTLOOK

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Sorry for Interruption A blurred view Pitch | February 2012


RADIO REVIEW

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OUTLOOK

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Not a happy tune Bleak signals

The Return of the Fear?

OUTDOOR

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After a fantastic year in 2010, when the ad industry grew at a whopping 27 per cent, in the last six months of 2011, the ad industry slowed down considerably, thus raising fears of a 2009 like slowdown.

OUTLOOK 66

While the situation is not as bad as 2009, marketers and their agencies have drawn the purse strings. ‘Cautious spending’ is the buzz word on the ad-street. And perhaps rightly so.

REVIEW

Deserted? Some hope

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INTERNET

TV remains the largest media platform, followed by press. Not surprisingly, internet was the fastest growing media. The detailed analysis of each platform follows in pages inside.

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REVIEW

High speed

A word of clarification as you read these numbers would be in order here. As in past years, the ad spends we are measuring include only ‘brand advertising’, which means the classic display ads in TV and Print. It does not include classified ads, which is a big revenue earner for print advertising. In case of internet too our ad estimates are based on brand building oriented advertising – banners or or ad format. However, for the first time, we have provided estimates for the Search oriented advertising, which forms a major source of ad spends.

OUTLOOK 72

No speed limit CINEMA REVIEW

How do the ad spends for 2012 look like? Admittedly the visibility for the next 10 months is poor. Macro factors like global economic uncertainly, high inflation, political instability are all adding up to a cautious mood. Our 2012 Outlook too is a caution. We are projecting just 9 per cent growth for 2012. Accordingly, our report puts the industry size in 2012 at Rs 28,000 crore. Internet is expected to emerge as the third largest medium in 2012, beating Radio advertising, and will hence be the big story of 2012.

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Rockstar

OUTLOOK 77

A wider screen OTHER FEATURES Marketing to Presents

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Augmented Reality Delhi Metro

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Interview: Ramesh Chembath Book Review: Darwin’s Brands Columns: Surender Dhaleta Bitan Chakroborty Annurag Batra

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Pitch | February 2012

According to the annual Pitch Madison Media Advertising Outlook, the ad industry grew by just 8 per cent, against our projections of 17 per cent. According to our estimates, the total size of ad industry was Rs 25,600 crore.

I end this note with a warm thank you to our long standing partner – Madison Media. Media industry’s most well respected honcho, Sam Balsara, Madision Media’s CEO, Punitha Arumugam and the entire team has ensured that like past years, our estimates are an accurate reflection of what is happening in the ad and media industry. Finally, hoping 2012 turns out to be a year better than our expectation, and we report higher than 9% growth next year.

Amit Agnihotri

amit@pitchonnet.com

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FEATURE AUGMENTED REALITY

Exclusive

Close to real

While augmented reality is still in its nascent stage and is a costly exercise, yet marketers are not shying away from adopting the tool to provide an experience to the consumer By Neha Goel

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ove over Virtual Reality (VR). It’s time for Augmented Reality (AR) that’s the new buzz word for marketers. As an ‘experience’ tool, while AR gives a more real feel to users/customers, it is an expensive tool that is keeping marketers away from adopting it. So what exactly is AR and how is it different from VR? Putting it simply, VR is all about an ‘experience’ in the digital world. Whereas, AR is about having digital elements in the real world. The simultaneous mix of real and virtual worlds makes the entire gamut of marketing activities come alive. For example, Mahindra used the technology at the Auto Expo in New Delhi this year, to launch its Mahindra XUV500. People could virtually experience a cheetah by their side, including petting the wild animal. By standing on the area marked on the floor, a big screen over the XUV showed a cheetah walking in and standing next to the visitor. It was a visual treat for visitors. When the image was captured, it showed the visitor with the car and the cheetah with a watermark on the image saying ‘Me with the cheetah! XUV500.’ Another example is the Titan HTSE app on Facebook, where users could virtually try out the light-powered watches with the help of real light captured through web cam. According to Somprabh K Singh, Senior Marketing Manager, Titan, “AR enables consumers to get an offline shopping experience in the online medium, or helps to enhance their offline shopping experience.” With a total spend of around ` 25 lakh, the campaign received 50,000 down-

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Not a real cheetah: Mahindra used augmented reality at the Auto Expo for the launch of XUV500

loads of the application over a period of eight weeks, and the cumulative time spent by users on the app amounted to a year.

“An overdose of anything is always bad. An overdose with bad Augmented Reality ideas is worse” Carlton D’Silva

Chief Creative Officer, Hungama Digital Media

Meanwhile, Carlton D’Silva, Chief Executive Officer, Hungama Digital Media, the digital agency behind the Mahindra XUV500 campaign feels that AR allows brands to get an immediate reaction from the audience. The agency has earlier developed an AR campaign (You Click, Allu Arjun Dance) for 7UP too where users could make Telugu movie star Allu Arjun, the then mascot of the beverage brand, dance as per their choice on. McDonald’s is another player, which has tried out AR when it launched McFlurry in India. McDonald’s would video record any customer in the store and load the recording onto a TV screen within the store. The customer could then view himself/herself along with a McFlurry, which gave an impression that the customer was a part of the TVC being played in the store. Rajesh Kumar Maini, General Manager – Corporate Communication, McDonald’s India (North & East), says, “Our

Pitch | February 2012


Pitch | February 2012

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FEATURE AUGMENTED REALITY consumers, especially the younger lot are more inclined towards the total experience they have at McDonald’s. AR was one such innovation that we experimented with, which helped us engage them and create ‘I’m Lovin’ It’ moments.” According to Satwick Saxena, Business Head, Thmbstrk, the mobile marketing division of Indigo Consulting (an interactive marketing and technology agency), AR, because of its novelty factor intrigues the consumers. While AR can be used in conjunction with the users mobile phone, it can simply help find offers in the shop one is passing by or even check out if the television set a consumer is checking out in a store will fit into his/her TV-trolley. “AR based solutions enable simple, easy to use solutions for many common problems,” he says. For a layman, AR is nothing short of magic. It is this freshness that engraves a brand’s identity in the minds of consumers. The buzz that is created also lends to the enforcement of a brand’s presence in the marketplace.

“AR enables consumers to get an offline shopping experience in the online medium, or the vice versa” Somprabh Singh

Marketing Manager, Titan

Will marketers adopt? Even though the concept is new, AR has great future potential. According to Singh of Titan, the brand will use AR in future, if it fits the overall campaign objectives and can be employed in an

Exclusive innovative manner. Maini of McDonald’s too feels that AR can help brands build a better connect with the consumers. In fact, McDonald’s is evaluating the possibility of using AR to highlight and share nutrition information of its products with the customers. Also, with more companies investing in digital media and there being an explosion in smart phone sales, AR will be an important component of the marketing campaigns of brands that are looking to be pioneers in the digital media space and break the clutter in traditional media.

Who should use it? While Singh feels that AR will play a major role for companies in the retail sector, others marketers feel that any brand that wants to innovate and interact with its consumers can use AR. Luxury is another sector, which can use AR to give an experience of its products to consumers without actually handing over the product before a sale.

Any challenges?

AR is about having digital elements in the real world. The simultaneous mix of real and virtual worlds makes the entire gamut of marketing activities come alive 6

While AR still is in its nascent stage, yet there is always a fear of overkill. According to D’Silva, “An overdose of anything is always bad. An overdose with bad Augmented Reality ideas is worse.” Another challenge that is foreseen is the cost involved. Saxena feels, “Typically brands and marketers think of AR too late while planning a campaign and hence timelines and sometimes costs can become a challenge.” He adds, “The cost of an AR project depends on the complexity of the requirement and the amount of platforms it needs to work on.” The cost according to him, could go anything beyond Rs 10 lakh for a static image projection at a single OOH installation. The costs keep increasing as more features and interactions are added. While the stage has been set, it remains to be seen how marketers make use of this technology to leverage their brands. n -neha@pitchonnet.com

Pitch | February 2012


Pitch | February 2012

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FEATURE

Exclusive

Brands as co-passengers The Delhi Metro has consumers from all SECs using the transport system. Yet marketers have failed to use the medium to reach out to them. Why? By Neha Goel

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space-bound crowd of 18 lakh consumers who have the time to listen is nothing less than a luxury for marketers. The Delhi Metro service serves the purpose every day. Yet marketers have failed to lap up the opportunity. What’s stopping them? B Krishna Rao, Group Product Manager, Parle Products, says, “Marketers still seem to be in a trial mode for the medium. Once the medium starts delivering in direct incremental sales, I am sure it will open doors for utilizing this medium for experiential marketing as well.” While some marketers like Flipkart, Pepsi, Parle and Dove have been experimenting with the medium. In 2011, Pepsi wrapped the Metro with its branding for its ‘Change the Game’ campaign. Beyond that the marketing is limited to posters and standies. Marketers and media professionals feel that there are a lot of reasons that restrict innovations. One of them being the policies of DMRC (Delhi Metro Rail Corporation). Gautam Chadha, Managing Director, Broadview Mediacomm says, “The format is fixed by DMRC. Until that doesn’t change, much cannot happen.” Anuj Dayal, spokesperson for DMRC, however, doesn’t agree with Chadha. “We restrict indecent or provocative advertisements. If there is an innovative idea, we are willing to explore it face to face,” he says. Noomi Mehta, Chairman and MD, Selvel One Group, thinks that the Metro is a great place to advertise because “the target audience is clearly defined both in numbers and profile.” However, in the same breath, he feels that beyond policies, “It is tough to combine marketing while keeping the structure of safety, security, convenience and utility in place.” The spends required for impact are another concern for media professionals as

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they feel that they would be huge and clients would need to be convinced that they can get a bigger bang for their buck on the Metro. Beyond restrictions and fears if one comes to think of experiments and innovations that can be done with respect to marketing, the world seems to be the limit. International players offer a lesson or two to be learnt. Johnny Andrean, a salon in Indonesia replaced the handle grabs in the rail with a ponytail. This give a

“It is tough to combine marketing in the Metro, while keeping the structure of security, convenience and utility in place” Noomi Mehta

Chairman and MD, Selvel One Group

An experiential marketing initiative by Johnny Andrean in Indonesia public rail

touch and feel experience of the brand to the consumer. Chadha adds to the wish list saying, “3D and 4D installations can be made, which stir people up and create an experience. Innovative product displays can be another way of engaging consumers.” Mehta says, “If ambient lighting can be controlled, the scope for digital media increases enormously. Large digital panels and even digital walls working seamlessly can provide a new dimension of digital experience in a made to order environment. The effect of combining different forms of OOH to create a memorable experience and interaction with clients will lead to increasing innovations.” Rao suggests, “One can look at getting an act of `flash mob’ in the metro premises – as usually done internationally.” Moreover, with the introduction of the women’s coach, marketers targeting women have their desired audience sifted separately in a space. This provides a lucrative opportunity for marketers to innovate and attract consumers. It seems to be a matter of time for marketers and media persons to start playing and experimenting with the platform.. n -neha@pitchonnet.com

Pitch | February 2012


Pitch | February 2012

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INTERVIEW

Exclusive

“We are not looking at communicating with youth” Vice President, Marketing, Ramesh Chembath | Assistant Godrej Appliances

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on’t be shocked by the headline. Ramesh Chembath, AVP, Marketing, Godrej Appliances, tells Neha Goel of Pitch in an exclusive interview that Godrej is looking at having a dialogue and engagement with the youth. A name synonymous with locks and safes, Godrej has come a long way and increased focus on the youth by adding to its portfolio products like the music refrigerator and the gaming television set. It has come up with a new proposition of “Designed by Curiosity”. With this positioning, its aim is to evolve the Godrej appliances brand from being at home with India’s middle class to also being in step with buyers of the top end appliances. Excerpts: What are the challenges of marketing a brand, which has been in around for the past 118 years to young consumers? Godrej is a known brand. We don’t have to tell people that here is a brand; we don’t need to reinforce it. So that’s an easy bit. The challenge is that when consumers know you for a long time, it becomes ‘ghar ki daal’ like. When we talk about the new generation, it wants something new. Even if it knows that you’re good and you’re reliable, it still wants to try something new and different. So, that’s a challenge for a brand like ours. We constantly have to build that excitement around our brand. So how are you keeping up the excitement in the young circuit?

If you look at the lifestyle today, digital is an important part and so is TV. We are trying to build all of these things into our products and services. For example youngsters today listen music all the time. We tried to converge this with our product. We made a refrigerator which had an inbuilt music player. What are your other marketing initiatives? If you’re targeting youth, they live on the digital medium. On an average, a youth spends three to four hours on the medium. We are spreading our presence online as we have identified it as an important medium to communicate with our target audience. Gojiyo.com is one such effort, which is a virtual world and the youth can interact with our products. Apart from the medium, we need to look at the consumption pattern as well. Today’s generation doesn’t want to be told what to do. They want to understand it themselves and do it themselves. From a larger perspective, we are not looking at communicating anymore; we are looking at a dialogue. That means more engagement. I don’t look at managers as communication managers but engagement managers. We have incorporated this in advertisement, activations and everything else that we do. Can you give us some examples of your initiatives? When we launched our music refrigerator, we tied up with Salman Khan starrer, Ready. We created a website, where bathroom

When consumers know you for a long time, it becomes ‘ghar ki daal’ like. When we talk about the new generation, it wants something new 10

singers could come and become TV singers. People could participate by singing on the platform. Around 800 people participated in the contest. Some people were selected and we brought them on TV. We tied up with Zoom and we had a show where these people got a chance to sing. Apart from this, we have built Facebook as one of the mediums for our communication. We have around two lakh fans and the engagement level is around 38-40 per cent. What are the challenges in targeting youth? I am reminded of this dialogue, “I talk English, I walk English, I sleep English”. Similarly we need to converse with young consumers in their language. There is a particular way in which the youth consumes everything. If we are speaking of online, it shouldn’t just be a buzzword. You have to live in that medium and communicate in that medium. Our engagement managers are thus in the age group of 24-26, are people who know the medium well. We are looking at online as one of the mainstream mediums to communicate. The idea is to identify the message, the medium and the people who’ll be sending that message. The short attention span of youth is also a challenge but if we talk to them about things that matter to them, then attention span doesn’t matter. Continuing our endeavour of spreading on the digital medium we are tying up with indiatimes.com in a big way, which we will be announcing next month. What is your marketing budget for the year 2012? Our marketing budget for 2012 will be around Rs 140 to 150 crore.  -neha@pitchonnet.com

Pitch | February 2012


When I dress up, it’s not for anybody else. It’s for that fun moment. -Rhea Kapoor on her personal style

Photograph By: Bikramjit Bose

Where Fashion Gets Personal

Rhea Kapoor Harper’s Bazaar, Jan-Feb 2010

Pitch | November 2011

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SPECIAL

Being fair to kids India still needs a counter-balancing force from regulation, awareness and active consumer associations while marketing to kids By Pallavi Srivastava

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s the yellow car makes its way through the dusty and bumpy roads of Paragpur in Himachal Pradesh, a girl, hardly 10 years old is all anxious. There are other kids in the village running after the car. The girl’s joy knows no bounds when her father drives the family’s new car home. The car in question here – Tata Nano, is the cheapest car, as of now, in the Indian market and would burn a hole worth Rs 1.5 lakh at least in one’s pocket. The question that is the TVC talking about family bonding or indirectly trying to influence the kids is however, debatable.

The influencing power If code is poetry and numbers tell a story, consider the Cartoon Network New Generations 2011 study, which is an indicator how important kids are for any marketer in India, today. The study reveals that about 63 per cent of Indian parents are involving their kids in car purchase decision making. The number stood at 25 per cent, ten years ago. Similarly, about 48 per cent of parents are likely to consider their child’s opinion while buying a mobile phone. Another report, IMRB Kidscan too tells a familiar story – highest influence of kids is on food and food products, kids products followed by household items. The report suggests that 73 per cent of parents buy the food item that the child asks for. Seventy one per cent of parents feel it’s important to ask for kids’ opinion while purchasing household items.

Broken promises How ethical is it to market to kids? While globally, particularly in the Western countries, there is a growing awareness amongst

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marketers to not feature kids in their communication and not try and influence them, the Indian marketing fraternity is just about starting to wake up to the need. Eight companies – Coca Cola India, General Mills, Kellogg’s, Kraft Foods, Nestle, Mars, PepsiCo and Hindustan Unilever - have together to take the ‘India Pledge’, a commitment to

change food and beverage advertising on TV, print, radio and internet to children under the age of 12 years in India. The promise is that there would be no advertising of products to children under 12 years; and that there would be no communication related to products in primary schools. A good move indeed and something that

Pitch | February 2012


Marketing to Presents

tific evidence and/or applicable national and international dietary guidelines. Wait there’s another clause too: “For the purpose of this initiative, ‘advertising to children under 12 years’ means advertising to media audiences with a minimum of 50 per cent of children under 12 years.” The India Pledge was to be implemented no later than December 31, 2010. For a reality check, see the comparative data from TAM AdEx for the years 2010 and 2011, to figure out the top 10 brands advertising on kids’ channels. Two companies that do not figure out in the list besides Nestle are PepsiCo and Coca Cola. “PepsiCo voluntarily does not use children below 12 years of age in advertising on all products that do not meet its stringent global ‘Good for You’ nutrition criteria,” a PepsiCo spokesperson told Pitch. None of the fizzy drinks from the company use kids in their campaigns or advertise on kids channels. A Coca Cola spokesperson too adds, “We have a global Responsible Marketing Policy that covers all our beverages, and we do not market any products to children under 12.” Meanwhile, Kellogg’s India continues to spend 20 per cent of its marketing budget on all kids’ channels. “In our advertisements, our messages to children, accurately portray our products in a way that is keeping with children’s ability to understand our intent and use language that is appropriate for this audience,” says Sangeeta Pendurkar, MD, Kellogg’s India, adding, “We do not undermine authority, responsibility, or judgement of parents or caregivers in providing valuable guidance to their families.”

Can they really decide?

will fetch good PR to the companies. But these promises come with disclaimers in the order: Except for products which fulfill specific nutrition criteria based on accepted scientific evidence and/or applicable national and international dietary guidelines; and except for products which fulfill specific nutrition criteria based on accepted scien-

Pitch | February 2012

At the same time, there is a view that if kids are active influencers in a certain consumption by the rest of the family, even the advertising and marketing of products not meant for kids, will have to be allowed for kids. That’s the foundation of informed choice. Having said that there is a need for code of ethics when marketers solicit children’s preferences. “Given the fact that the critical faculties and the cognitive defences take up to ten years of age to develop, it is necessary to restrict unfair means of persuasion,”

“Our ads portray our products in a way that is in keeping with children’s ability to understand our intent” Sangeeta Pendurkar MD, Kellogg’s India

Vidyadhar Wabgaonkar, Senior VP - Strategic Planning, Draftfcb + Ulka says. If an India Pledge is the starting point and the intention is right, the bigger question remains: In a country, which has thousands of brands and ten thousands of marketers taking care of them, only eight advertisers seem to acknowledge responsibility towards kids? A lot of food marketers, both Indian and MNCs don’t even have a separate guideline while marketing to kids.

Shirking responsibility Take for instance McDonalds. In one of its

Top 10 Categories that advertised on Kids’ channels in 2011 Rank

Category

Share %

1 Milk Beverages

10

2 Chocolates

9

3

Noodles/Pasta

5

4 Toys Indoor Games

5

5 Sugar Confectionaries

4

6 Chewing Gum/Bubble Gum 4 7 Biscuits

4

8 Toilet Soaps

4

9 Tooth Pastes

3

10 Toilet/Floor Cleaners

3

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Marketing to

SPECIAL

Presents

Top 20 advertisers on Kids’ channels in 2011 Rank

Company

Share %

1 Cadbury’s India

12

2 Reckitt Benckiser (India)

8

3 Hindustan Unilever

8

4 Perfetti Van Melle India

6

5 Smithkline Beecham

5

6 Nestle India

4

7 Heinz

3

8 Mattel Toys (India)

3

9 ITC Ltd

3

10 Britannia Industries

3

11 Kelloggs

2

12 Nutrine Confectionery Co

2

13 Colgate Palmolive India

2

14 Parle Products

1

15 Agro Tech Foods

1

16 GCMMF

1

17 Flavour Foods

1

18 LG Electronics India

1

19 Dabur India

1

20 Ferrero India

1

latest TVCs, in a role reversal, a kid ipromises his father that if he (the father) takes the injection from the doctor, without crying, he wpould treat him at McDonald’s. In the past too, the QSR brand has featured kids in its campaigns to market burgers and fries, which do not meet any nutritional criteria. The brand doesn’t stop at just that. Its concept of ‘Happy Meal’ where kids get free toys is another example of irresponsible marketing to kids. In fact, the ‘Happy Meals’ programme has come under attack from health practioners and general public around the world. So much so that in San Francisco, lawmakers have banned restaurants giving free toys with certain foods (that don’t meet nutritional criteria).

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When Pitch approached the company for its take on ‘code of ethics in kids marketing’ we got the routine reply that the team is travelling for a very long time. Surprisingly, a couple of the writer’s journalist friends have got inputs from the company during the same period! The parent company, while has guidelines for marketing to kids in some countries, the brand’s official website in India is mum on the issue.

Do we really care? “Kids are very impressionable and one can easily mislead them. Use of cartoon characters to market products to kids that are not good for them, is actually unethical,” feels, Abraham Koshy, Marketing Professor, IIM-A. Kids are protected by law, and if law is protecting the kids, brands too need to practice fair marketing to protect them from harmful products and harmful behavior,” he adds. So are Indian brands oblivious of the issue? KV Sridhar, National Creative Director, Leo Burnett, thinks that “Indian companies follow no rules when it comes to marketing to kids.” While Britannia has a taken the lead to come up with the Britannia Nutrition Foundation to address the issue of child malnutrition, it has no reference to guidelines on marketing to kids on its website. The same is true for other Indian flagship companies like ITC and Dabur. Another point of concern is the depiction of kids in a certain manner in campaigns. Experts are of the opinion that kids shouldn’t be depicted in a way that jeopardises their identity or mocks at them. Complan, is one culprit here, which repeatedly ridicules kids kids with short heights in its TVCs. Alan Collaco, Secretary General, ASCI rightly says, “The key thing is that marketers should not exploit the vulnerability of children in any way.”

The pester power Depiction of ‘pestering parents’ in positive light is another idea, which experts want marketers to avoid. “I feel the marketing concept of ‘Pester Power of kids’ is itself wrong. It suggests use kids to pester the parents… this is not the right thing because

“Use of cartoon characters to market products to kids that are not good for them, is actually un-ethical” Abraham Koshy

Marketing Professor, IIM-Ahmedabad

kids don’t know whether that product is needed or not. I think that’s very unethical thing for any marketer to follow whether for products targeted at kids or for their parents or household use,” says Koshy. Other than that making claims frivolously is another issue that needs to be tackled. Wabgaonkar agrees: “Declaration of contents on food packs and other products is still very basic in India. Content claims are allowed on very flimsy grounds. Even when the product has mere micro-grams of an ingredient, the regulation does not prevent the marketer from claiming its presence prominently in the communication.” While there is a code laid down by the ASCI and even marketers are realising that marketing to kids could get them negative publicity, marketing to kids in India still needs a counter balancing force from regulation and awareness and active consumer associations. Another set of experts feels that regulation or no regulation, marketers will smarten up with time and markets will make them change. “The world is changing and and forcing the marketers to change too and behave themselves. A lot of smart marketers have realised that they cannot make friends with somebody by being rude to them or by not caring about them,” says Sridhar.  -pallavi@pitchonnet.com

Pitch | February 2012


Pitch | February 2012

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Marketing to

COLUMN

Presents

Marketing to kids in the 21st century The new trend in market is about parents reliving their childhood through their children. This is creating a new kind of ‘pester importance’ Naresh Gupta

Head-Brand Strategy, iYogi

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here is an advertising stereotype that exists for kids in advertising. The kids are supposed to be cute, wear a spectacle to add to cute value, they sit and watch TV, and run to parents demanding whatever latest they saw on TV. To appeal to the kids the commercial used to be fast paced, had bright colours and had the right drool value and the kids will respond. This may have been correct years ago, but is it true today? Today’s kids are very different from kids of just a generation ago. For one they have access to a variety of media, which they access from a variety of sources. This means that the content available to them is more eclectic, more varied. To top it there is far more commercialization around them, with even schools not being immune to it. Two they consume far more advertising then the kids of past. The greater consumption of advertising messages is making kids more evaluative and aware. They are clever, imaginative and inventive; they know what the brand is up to and what it wants them to do. This generation of kids is wary of advertising, and that is a true challenge for marketers.

New generation of kids needs new rules of engagements Here are three pointers that can help us target the young consumers and come out winners #1. Pester power is transforming We are living in an age where ‘kids have grown up fast’ syndrome is real. They have more autonomy and greater say in brand decisions. It’s not that kids do not want to show their attitude, or come across as ‘cool’, they do, but they do it with thought and precision. They are clear with what they want and pestering is normally left to products that are low value and are impulse driven. This generation of kids gets bored with ‘brands’ fast and moves on to the next target. So if nagging is all the brand banked on, then it would lose the battle very quickly. #2. Parents are reliving their childhood The new trend in market is about parents reliving their childhood through their children. This is creating a new kind of ‘pester importance’ where the parents want their kid’s critical opinion before they indulge the child. New hobbies, new toys, newer thrills are all driven by parents wanting to

The issue here is to be truthful, honest and completely above board. Because the kids are ‘tribal’ by behaviour, they tend to adopt the rules of tribes very quickly

16

explore things they didn’t do as a child, but never at the cost kids disapproval. This importance of kid’s opinion is something that brands have started to discover. Automobile and fashion brands are creating specific engagement strategies towards this end #3. Kids are the new pressure groups Questioning every set convention is inherent in any child’s psyche. They will always question rules and this questioning can open up completely new avenues for brand marketers. The issue here is to be truthful, honest and completely above board. Because the kids are ‘tribal’ by behaviour, they tend to adopt the rules of tribes very quickly. The sheer multiplication effect of this behavior is enormous. The anti-cracker and anti-plastics campaign took off because the kids adopted them out of their own volition, and forced the elders to change. Imagine what they can do if you involve them in a variety of larger causes. Going forward Increased message clutter is a reality of our times, and Internet is only adding to the clutter. The only way then for the brands to engage their customers will be through open and honest communication. less trickery and an interactive brand environment may be the only way forward. 

Pitch | February 2012


Pitch | February 2012

17


Marketing to

INTERVIEW

Presents

“The dialogue with kids needs to be honest” Executive Director

Benjamin Grubbs | Interactive Media, Turner Broadcasting System (Asia Pacific)

W

hile it would be easier to market a tangible product to kids, but getting an intangible product like a TV programme across to kids would be a challenge. Considering that kids today have a wide array of technology available to them – they are now using tablets and smart phones, and reaching out to them through multi-platforms is making the job of marketers, brand developers and product producers more difficult. But Benjamin Grubbs, Executive Director for Interactive Media, Turner Broadcasting System Asia Pacific, finds the times quite “exciting”. He feels that it was more challenging five years back as brand managers needed to learn and understand about this whole segment. “But it has also been fun for me and the team, because we are also parents,” he says. Grubbs was called in from eBay in 2008, where he was the Marketing Director, to set up the network’s interactive business unit, and take Turner’s brands across genres – kids, animation and entertainment, online for increased consumer engagement and commercial opportunities. Grubbs has also worked with Yahoo. One of the multi feathers in his cap added in the past fours years or so, is launch of the online Pogo ‘Cricket Club’, last year, which Grubbs claims has enabled Pogo achieve 150 per cent growth in the number of its online users. In an exclusive interview with Suraj Ramnath, Grubbs speaks about the network’s online plans. Excerpts:

Why do you think is there a need for popular channels like Cartoon Network and Pogo to be online? One thesis is that since we have our own TV channels, how do we become effective mar-keters on the digital platform through the TV channel route, which any agency would do for its client. We should be on par, if not better, than others. Second thesis is – kids are online and searching for content on search engines, consuming content from Facebook, smart phones and other devices. Hence, we need to be available anytime, anywhere. If others have a good penetration on other platforms, then we too need to be active and need to study if it is effective for us on that platform. We need to know the business models and how to get financial returns on that. So what are some your major initiatives online – PC and mobile? The Pogo ‘Cricket Club’ was a market insight which drove part of the strategy and has done very well. We have a catalogue of over 250 casual flash games and will continue to add to this. Over the years, the focus has been on game development, and this year the focus is more on multi-player games. Currently, the multi-player games segment is small in size, but we are coming out with several games this year related to sports, action, ad-venture and some strategy games. These can be interconnected across platforms – tablets, PC and mobile and people can play together.

Kids are online and consuming content from Facebook, smart phones and other devices. Hence, we need to be available anytime, anywhere 18

How different is the Indian market from the West as far as kids are concerned? The commonalities are the games. Our game plan for America and Asia might differ due to communication layers. For example, in the Philippines, Argentina and Brazil, there is a lot of social communication that is done. If there are platforms like smart phones in Asia, in other markets, the adoption rate might be different, but in the broader trend, it is the same. What are the commonalities in these markets as far as TV content is concerned? Some of the comedy programmes in the US are actually comparable to what we do in India. For example, ‘Ben 10’ has done as well in India as it has done in the US. New shows like ‘Gum Ball’ have joined our comedy franchise, which have done equally well in the US and in India. Additionally, in India, we are developing more animated content for Pogo. So, it is finding a balance between what we make globally and what we get to different markets. In India, we can afford to get local content as we get good returns on that. We might not have the same opportunity in every market in Asia. Since your platforms are used by marketers to reach out to kids, what are the pre-cautions any marketer should take? The dialogue with kids needs to be honest. We cannot push them around with brands and tell them buy this or do that. I think we have entertaining content and we find there is a connection there. This helps build trust with the users.  -feedback@pitchonnet.com

Pitch | February 2012


Pitch | February 2012

19


INTRODUCTION 2012

Déjà éjjà vu é 22%

21

17 %

-10%

YEARLY SPENDS 20

2007 ` 17,690 Cr

2008 ` 20,717 Cr

2009 ` 18,670Cr Pitch | February 2012


Advertisers are cautious and it’s a deja vu feeling of 2009. The mood though cannot be termed as ‘pessimistic’. It is more of a ‘protectionist’ approach

27%

As against our expectations of the media ad revenues growing at a rate of 17%, the industry could manage a growth rate of just 8%, taking the size of the industry to ` 25,594 crore. The outlook too is modest, and the industry may not touch the magical figure of ` 30,000 crore * Projected Growth

9% 8%

I

f 2010 was a sunshine year for the media advertising industry, 2011 reminded the industry of 2009. ‘Slowdown’, while was a dirty word and no one wants to accept it, the fashionable word has been ‘Caution’. As we put the Pitch Madison Media Advertising Outlook 2012 together, and spoke to media marketers, brand managers and media decision makers at Madison, the refrain we got was: The year started on a positive note, yet as global economy saw another churn, inflation rose above 10,

the Rupee weakened against the dollar, advertisers went into a shell, and held back their purses. They’d been badly affected in 2009, hence, only necessary advertising was done. The mood cannot be termed pessimistic. It was more of ‘protectionist approach’ that toppled all our forecasts of a 17 per cent growth. In 2011, there was growth still, but at a mere eight per cent. In 2009, we’d a growth in the negative in fact (-10 per cent). Total ad pie is pegged at ` 25,594

crore. The big surprises were the flat growth of radio, washout of outdoor, the rebirth of cinema and the stupendous rise of internet. But let’s start with the biggest media platform - television. In 2011, TV advertising was at an all time high – ` 11,478 crore. However, while we expected it to grow at a rate of 20 per cent, it managed only nine per cent. Print, where the ad revenue size is pegged at ` 10,791 crore, was expected to grow at 13 per cent, but it grew at just eight per cent.

* Projected Growth

2010 ` 23,646 Cr Pitch | February 2012

2011 ` 25,594 Cr

2012 ` 28,013 Cr 21


INTRODUCTION 2012 5.1% 0.5%

3.8%

3.5%

How the Ad Pie split in 2011 While TV and Press managed to hold on to their share, the surprise was the loss of Outdoor and the rise of Internet

44.8%

Cinema Outdoor

42.2%

Radio TV Internet (excluding search) Press (excluding tenders/appts/classsifieds) We’d expected print to lose its share in the pie to go down to 40.8 per cent. But TV not performing as per expectations, and print losing little ground on growth rate, it managed to hold on to its share. Of course the reasons for decline in growth rates are different for TV and Press... In Press, it was primarily the slowdown in English press advertising that lead to the fall in growth numbers, the reasons are far more complex in TV. For one, the ad revenue potential in many genres like news, sports, music, seem to have saturated, with sagging viewer interest. In print, there were no big IPOs, no big launches, the focus was on regional consolidation. Advertisers while saw a growth of 13 per cent in space con-

sumed in English dailies in Q1 of 2011 as compared to the corresponding period in 2010, in Q4 the growth went into the negative to -13. In comparison, language dailies still saw a 5 per cent growth in space consumed by advertisements. Different product and services’ sectors have shown markedly different behaviour. For instance, the FMCG sector, which is the backbone of TV advertising, was cautious in the second half. Big spending categories like education, BFSI and real estate and a few others reduced their print spends. However, the surprise was the way, the automobile sector spent its money. The industry in its own saw sales tumbling, yet, it kept the buzz going across mediums and take its share in the ad

All pointers indicate that advertisers will be cautious with their spends in the first half of 2012; and there seems to be more optimism for revival in the second half 22

spends pie up. In print, its share went up from 7.1 per cent to 9.8 per cent, to emerge as the second largest spender in print. On TV too, its share went up from 6.7 per cent to 7.6 per cent. And above all this, it’s internet that’s emerged as the cool place to be at. While, we had projected a growth of 35 per cent for display advertising, the growth was an overwhelming 45 per cent, taking its revenue up to ` 985 crore. And if we include Search, the total goes up to ` 1,535 crore, and that could upset shares of all other mediums. To be fair to print, where we haven’t included classifieds and tenders, and there is no metrics to measure that, we have not included internet search in the pie. How does the future look? A lot depends on which way the economy takes a turn and how the government responds to these changes. According to Pitch Madison Media Advertising Outlook report, the projections for 2012 are too not bullish. The industry size is expected to grow to ` 28,013 crore, with a growth rate of just nine per cent. • All pointers indicate that in the first half of 2012, advertisers will be cautious with their spends, and there seems to be a lot more optimism for revival in the second half. • The one common thread that seems to emerge from all feedback is that while 2012 will see a growth in ad spends, the growth per se will be lower than 2011 at the overall level. • Television is expected to maintain a comparable, if not marginally higher growth rate, I.e a 10 per cent growth. • In print, the current cautious sentiment in core print categories in BFSI/ education etc is expected to continue until there are policy changes at the macro level to drive an invest sentiment amongst these categories. Print is expected to grow at six per cent lower than 2011. • Internet will emerge as the third largest medium and will be the big story of 2012. -feedback@pitchonnet.com

Pitch | February 2012


Pitch | February 2012

23


Presented by

PRINT REVIEW 2011

Hammered?

Not Yet 21% 16 %

YEARLY SPENDS 24

2007 ` 8,470 Cr

2008 ` 9,825 Cr Pitch | February 2012


Advertisers, particularly from BFSI and telecom shied away from print in the second half of the year. Amongst magazines, it were the niche publications that performed better

28% As against our expectations of print garnering a revenue of ` 11,291 crore, it could make only ` 10,791 crore, a growth of a mere 8 per cent

8% By Dhaleta Surender Kumar

T

-21% 2009 ` 7,806 Cr Pitch | February 2012

he Pitch Madison Media Advertising Outlook 2011, had predicted an ad revenue growth of 13 per cent for the print industry (newspapers and magazines). The industry was bullish about the growth and had thought the growth will supersede out projections. Sanjay Gupta, CEO, Jagran Group and Editor, Dainik Jagran, thought that “print will go till 17-18 per cent” and he definitely does “not see it slowing down.” However, no one had anticipated another slowdown ahead, though which isn’t as bad as 2009. In 2009 print had grown in the negative (-21 per cent). To look at things positively in 2011, print did grow, but not to our or the industry’s liking. It

2010 ` 9,992 Cr

grew only by eight per cent, taking the total ad revenue for print from ` 9,992 crore to ` 10,791 crore, a well short of ` 500 crore from our projections.

Newspapers vs magazines What is more sad is the depleting share of magazines in the print ad pie. In 2004, when magazines had almost 10 per cent share in the print ad pie, it has come down to 3.5 per cent in 2011, a loss of 0.5 percentage points over 2010. That also means that while in 2010 in the ` 9,992 crore worth print ad pie, magazines commanded about ` 400 crore, in 2011, its value has eroded to about ` 378 crore.

2011 ` 10,791 Cr 25


“Our learnings from the 2009 downturn stood us in good stead and we saw the year through successfully”

with some of the largest publishing groups growing by a single digit. But at the same time, almost all publishing groups regional or English, fell short of their revenue target by a huge margin.” The months November and December 2011 have been bad, and the phase is continuing, Peri, corroborates the fact. While he was anticipating a growth of above 15 per cent for 2011 for Outlook group, the growth has been just about 12 per cent. “We go by the financial year, and there are still two more months to go. And if we can clock even eight per cent in this financial year, I will be happy,” he says. He feels that the last two months – December and January have been really bad from the adver-

tisers’ response point of view. Bagga of India Today Group describes 2011 as “a roller coaster year.” The year, for the group, started on a positive note and saw revenue growth at expected levels. But the onset of the second half brought in caution. “However, our learnings from the 2008-2009 downturn stood us in good stead and we saw the year through successfully. This was addressed through innovations and non-traditional revenue and profit initiatives, to enable above average growths,” says Bagga. Similar sentiments are being expressed by Shantanu Bhanja, Vice President, Marketing, HT Media. “The year has been difficult for most media companies. The overall

Ashish Bagga

CEO, India Today Group Ashish Bagga, CEO, India Today Group, feels that general/news genre in terms of advertising growth was slower than the lifestyle segment, even though circulation demonstrated good traction. “Lifestyle, women’s and niche magazines such as Cosmo, Harper’s Bazar, Good Housekeeping, Prevention, Harvard Business Review, Time Magazine and Robb Report are growing extremely well and witness a consistent increase in acceptance among the readers as well as advertisers,” he adds. Maheshwer Peri, President & Publisher Outlook Group and Chairman Pathfinder Publishing, too feels that general interest magazines have suffered a bit, but at the same time, niche magazines have been able to pull more advertisers. The English-Regional divide According to Punitha Arumugam, CEO, Madison Media Group, “While regional publications grew revenue in double digits, English press, however, had a tough year

26

Newspapers 96.5% ` 10,413.3 Crore

Dailies Vs Magazines

Magazines 3.5% ` 377.68 Crore

In 2004, when magazines had almost 10 per cent share in the print ad pie, it has come down to 3.5 per cent in 2011, a loss of 0.5 percentage points over 2010

Pitch | February 2012


Pitch | February 2012

27


PRINT REVIEW 2011 market has not quite behaved according to the bullish forecasts made at the beginning of the year. However, at Hindustan Times, we have managed a double digit growth, which was significantly higher than the market average.” Sanjeev Kotnala, Vice President, Brand Comm & National Head, Dainik Bhaskar Group, adds, “There is a apparent macro economic slowdown. Still we at Dainik Bhaskar group have registered impressive double digit growth among all media companies.” The good news, however, is that print’s share in the ad pie, is more or less the same at 42.2 per cent, an erosion of a meagre 0.1 per cent, against our projections of going down to 40.8 per cent. K Balaji, Managing Director, The Hindu too finds the advertising volumes and revenues in 2011, display an erratic trend. “This is probably largely in tune with how the macro economy has performed with respect to inflation, oil prices, Rupee depreciation and volatility in the stock market. Most newspapers have found it hard to show any growth worth speaking about,” he says.

Kannada 2% Oriya 1% Malayalam 2% Gujarati 2% Bengali 2% Tamil 3% Telugu 4%

Mind Your Language

Marathi 7%

In spite of Hindi having the largest readership in India, English commands a larger share of advertising revenue

English 46%

Hindi 30%

Source : MAP

Not much activity While advertising in print has been affected, it was a dull year for the industry itself, with very few IPO/NPO issues, no major disinvestment opportunities from the government impacting advertising revenues and with no big launches. While Mid-Day closed down its Delhi and Bangalore operations, Outlook Profit too saw its last edition in December 2011. Within four years of its launch, ‘Dare’, the monthly magazine from CyberMedia Group, too dropped its print edition, to

28

go move online. Rest, the focus was more on regional consolidation. Dainik Bhaskar launched the Dhanbad edition, taking the number of editions in Jharkhand to three. The group also ventured into Marathi space, with the launch of Dainik Divya Marathi with the launch of Aurangabad, Jalgaon, Nasik and Ahmednagar editions in Maharashtra. English daily, DNA (Daily News & Anal-

ysis) entered Madhya Pradesh with the launch of its Indore edition in June. Patrika went to Bilaspur, taking its number of editions to three in Chhattisgarh. Business Standard Hindi too made its Chhattisgarh debut with its Raipur edition. Meanwhile, Bihar too saw some action with both Hindustan and Prabhat Khabar launching gaya editions. Hindustan, meanwhile, with its Aligarh edition, took

Pitch | February 2012


Pitch | February 2012

29


PRINT REVIEW 2011 A daily, on average consumed only 4.5 lakh CC in 2011 for advertising

Shrinking room 5

4

Avg CC / Daily (in Lakh)

3.6

3.7

3.8

4.7

4.5

3.9

3

2

1

0

2006

2007

2008

2009

2010

2011 Source : TAM AdEx

the number of editions in Uttar Pradesh to nine. Aaj Samaj went on a launch spree in Haryana, with a special edition for its 21 districts. Navbharat Times, tried to consolidate its NCR presence with the launch of a Greater Noida edition. Jagran, meanwhile, took the number of its Cityplus editions to 35, with the launch of Chembur/Ghatkopar and Malad edii-

tons in Mumbai, taking its number of editions in Mumbai to seven. Deccan Herald, meanwhile, saw a Delhi entry, late in the year in December 2011. If we look at the happenings above, much of this activity is happening in the regional and language space, barring Deccan Herald, which tries to talk to a metro audience. According to TAM AdEx data, if we look at the volumes consumed by advertisers

It was a dull year for the industry itself, with very few IPO/NPO issues, no major disinvestment opportunities from the government impacting advertising revenues

30

10.6%

of print’s ad revenues come from education

across languages, in dailies, there was 16 per cent growth in space consumed in Q1; English, meanwhile saw a 10 per cent growth. Come Q4, the story is totally different. All languages saw a growth of only five per cent in space consumed, and English dailies went in the negative with a growth of -13 per cent. Overall, a daily newspaper consumed less space on average for advertising as compared to last year. As per TAM AdEx, on an average, a daily used 4.5 lakh (column centimetre) for advertising in 2011, as against 4.7 lakh column centimetre in 2010. The figure excludes in-house ads. AS Raghunath, print analyst and independent consultant, feels that the growth for ad revenues in language press as compared to English dailies, is proportional to the readership base of these languages and advertisers know well now, where to put their money. “Despite the popular belief, low on cost, high on pages and content and attractive in design and layout, besides having a pan-India presence, the English daily newspaper segment does not enjoy the largest reader base. As of today, English, in India, has a reader base of 1.75 crore readers, as compared to a Hindi reader base of 6.29 crore. English even doesn’t come second. It comes fourth,

Pitch | February 2012


Pitch | February 2012

31


Categories fond of Print

FMCGs volume growth has been ever increasing

Print

2007

2008

2009

2010

2011

Alcoholic Beverages

0.4

0.3

0.3

0.2

0.2

Auto

8.6

6.8

7.8

7.1

9.8

BFSI

7.8

8.3

7.9

8.7

6.7

Clothing/Fashion/Jewellery

5.9

5.1

5.5

5.3

6.5

Corporate

4.1

3.6

3.0

3.0

2.8

Education

16.5

17.1

17.3

14.6

10.6

FMCG HH

2.4

1.9

2.5

2.6

3.1

FMCG Impulse

0.4

0.3

0.6

0.4

0.3

FMCG PersonalCare

3.8

3.6

4.1

4.4

5.5

with the second and third positions respectively taken by Marathi with a base of 1.89 crore AIR, and Malayalam a reader base of 1.88 crore.”

HH Durables

6.1

6.5

5.3

5.3

5.7

Media

2.4

1.9

2.2

2.2

1.5

Real Estate & Home Improvement 7.1

6.4

6.5

8.0

8.4

Goods moving fast

Retail

5.9

5.5

5.8

5.8

5.6

For six years in a row, education has been the top advertising category in print, increasing its share up to 17.3 per cent in 2009. While, it still is the top spender on print, its share has considerably come down to 10.6 per cent in 2011 from 14.6 per cent in 2010.

Telecom/Internet/DTH

7.3

6.2

5.4

6.3

4.7

Travel&Tourism

4.2

4.3

3.5

2.5

2.8

Others

17.1

22.2

22.5

23.6

25.7

“The year has been difficult for media companies. The market did not behave according to the bullish forecasts” Shantanu Bhanja

Vice President, Marketing, HT Media

9.8%

of print’s ad revenues came from auto

32

Besides, education, the categories that contributed to a lower than projected growth include BFSI, and telecom+ancillaries. BFSI saw a share of its contribution to the print ad pie going down 8.7 per cent to 6.7 per cent. Experts believe that besides the hike in interest rates on personal and home loans, more has to do with new regulatory issue too. Telecom with its ancillaries like internet and DTH, another big spender, in 2010, contributed 6.3 per cent to the print ad

pie. In 2011, its share has gone down to 4.7 per cent. The contribution to the pie may be lower, but in value terms, spends, according to experts may be stagnant for the category. They believe that while the big players haven’t increased the spends, but the number of players shouting has gone up, neutralising the spends. The big surprise in 2011, is the auto sector, which in spite of the industry itself losing out, has managed to keep its share of voice increasing. With a number

Pitch | February 2012


11 Premium Education Fair - May 2011 Lucknow • Kanpur • Varanasi • Allahabad • Meerut

Pitch | February 2012

33


PRINT REVIEW 2011

Top 15 Spendthrift Brands 1

Naaptol Com

2

TVC Skyshop

3

Tata Nano

4

IIPM

5

Maruti Car Range

6

Chevrolet Car Range

7

Tata Car Range

8

Big Bazaar

9

Bharat Nirman

10

State Bank Of India

11

Chevrolet Beat Diesel

12

Tata Indigo Manza

13

Samsung Smart Tv

14

Bajaj Discover 125 Dts-i

15

Kesh King Hair Care Range

of launches, and wooing the consumer with promotions, its contribution to the print ad pie has gone up from 7.1 per cent in 2010 to 9.8 per cent in 2011. FMCG, slowly and steadily is increasing its share to print. From a contribution of mere 5.8 per cent in 2008, FMCG contributed 7.4 per cent to the print advertising in 2010. In 2011, it took its share up to 8.9 per cent. And media marketers believe that FMCG will grow further in 2012. As against popular belief that Real Estate and Home Improvement took a beating in 2011, owing to rising home loan interest rates, the Pitch Madison Media Advertising Outlook 2012, tells a different story. The category saw its share in the print ad pie grow up from eight per cent to 8.4 per cent. Bhanja feels that the other big reason real estate took a hit in Delhi and NCR was the regulatory issues arising from the farmers’ agitation in Noida Extension (in NCR). Peri too feels that there was “zero action” for about four-five months on the real estate front for the group publications. According to him, the categories that saw more spending on magazines include lifestyle and travel, while personal finance and real estate took a slide. For the India Today Group, automobiles, financial services and real estate were relatively slower than 2010. On the other hand, according to Bagga, “Growing categories like education, travel and lifestyle, among others have shown more interest in magazines this year. Readers take action as a result of seeing advertising in magazines. Targeting with precision and without wastage is a key strength of magazines. ” Other categories that have increased their share in the print ad pie include clothing/fashion/jewellery and government/social ads.

The big surprise in 2011, is the auto sector, which in spite of the industry itself losing out, has managed to keep its share of voice increasing

34

“Innovation is a result of brand need, competitive pressure and the message. Innovations will remain need based” Sanjeev Kotnala

Vice President, Brand Comm & National Head, Dainik Bhaskar Group

Tactical? With boom in television, it was being believed lately that print has remained a tactical tool rather than a brand building platform. However, the notion has been short-lived with print willing to innovate and engage the reader. If one thought that Volkswagen’s talking ad and the die-cut ad for Polo, were aberrations, the brand lead from the front in 2011 too to show how, if used innovatively, print could be used for a brand building exercise rather than just for tactical purposes. Painting some of the newspapers blue for its Passat’s Think Blue campaign and having a silver jacket on newspapers for Jetta, Volkswagen kept the buzz alive. According to Lutz Kothe, Head, Marketing and Public Relations, Volkswagen Passenger Cars, Volkswagen Group Sales, the star strategy behind the Volkswagen success story in India is: Hit once hard and big to create awareness and then go very selective. “We start with newspapers and then media wise go only into digital media or do TVCs but on very selective channels. For Jetta we did the silver jacket in print but we also had a TVC; we chose the channels where we knew exactly the TG is,” he says. Besides brand building, brands today are looking at newspapers as a me-

Pitch | February 2012


Pitch | February 2012

35


PRINT REVIEW 2011

Highlights 2011

Innovations Volkswagen led the way in innovations with its Think Blue roadblock and Silver Jacket for its Jetta campaign

Getting digital Many publications had iPad and Android apps to woo the youth. Mint roped in Rolex and Omega to sponsor its apps

Brand ambassadors NaiDunia got Raghu and Rajiv of Roadies fame to promote its youth publication - Yuva; Deccan Chronicle called in Katrina Kaif

dium for brand engagement too, which though till now has been under explored. “TV is good at expressing a brand’s values; however, print is probably much better at bringing them alive for the consumer. Let’s say, Tata Tea stands for the idea of moral awakening (‘Jaago Re’). TV can state this value through a set of commercials, but it can’t really demonstrate the value, or allow a consumer to personally experience it,” says Rahul Kansal, Chief Marketing Officer, Bennett Coleman and Co, adding, “Garnier can stand for environmental concern; but print can help them demonstrate this value through an interactive special edition of a newspaper (made only with recycled paper) on World Earth Day.” When a category matures and overt brand differences erode, marketers, Kansal feels, tend to prefer the nonrational story, telling abilities of TV to create differentiation at a non-rational level. “However, there is a case for coming right back to print when the category threatens to become progressively commoditised – by allowing consumers more centrally into a brand’s life. And by engaging the consumer through twoway interaction and active demonstration,” he adds. Kotnala, meanwhile feels that “Innovations just for creating a buzz will not find many advertisers. Innovation is a result of brand need, competitive pressure and the message, hence innovations as usual will remain need based. There is no reason to believe if a particular type of innovation will find favour.” Centre gatefold, multiple mast heads/ jackets, and multiple flaps are some of the innovations print media has been experimenting with. India Today has experimented with innovations that extend from in-mag initiatives to add-ons such as bookezines and events. However, print media is not just con-

Going forward, revenues for print industry would not be just about display advertising and subscription. Books, summits and events are a big opportunity

36

“There are still two more months to go. And if we can clock 8% growth in this financial year, I will be happy” Maheshwer Peri

President & Publisher Outlook Group; and Chairman, Pathfinder Publishing tended with revenues coming in from display advertising. Companies like HT Media are looking to provide integrated brand solutions. The company has carved a separate team to work with the advertisers to understand their needs and give solutions across platforms. “We are not doing plain vanilla per sq cm offerings for brands. We work with brands to give them integrated solutions. For example, tying with Audi for the Mint Luxury Summit, or a customised app on Facebook for Intel to send out Diwali messages, or Tata Tea’s Soch Badlo campaign integrated with HT’s India Awakening series featuring stories of young achievers, or even Rolex and Omega tying up with Mint for the publication’s iPad app.” He feels that going forward, revenues for print industry or for that matter the media fraternity would not just be about display advertising and subscription. Books, summits and events are a big opportunity for both the media houses and the brands.

Bright future? There’s a slowdown ahead for sure. Will the industry throw caution to the wind and see a higher growth. Flip over to the Outlook section to see what we have to predict. n -surender@pitchonnet.com

Pitch | February 2012


Pitch | February 2012

37


PRINT OUTLOOK 2012

Rough weather? The first half of the year is expected to get flat growth. However, elections, and foreign single retail brands are expected to bring back some cheer By Dhaleta Surender Kumar

T

he year 2012 started on a pessimistic note and print media marketers are already feeling the pressure from over cautious advertisers. Can the print medium hit back? The Pitch Madison Media Advertising Outlook 2012 expects the print industry to grow by six per cent, to clock a revenue of ` 11,438 crore. While, it retained its share in the entire ad pie, print might feel pressure from growing television and internet and see

28%

The print industry is expected to slowdown further and achieve a growth rate of mere 6% in 2012

its share go down to 40.8 per cent in 2012. Punitha Arumugam, CEO, Madison Media Group, sums up the mood for print: “In print, the current cautious sentiment in core print categories in BFSI/ education etc., is expected to continue until there are policy changes at the macro level to drive an invest sentiment amongst these categories.” She expects the durables segment “to see a slow first half including the core summer period on the back of cost increase and financial interest rates.” The upside, she feels “will be the anticipated auto launches and battle for shares, and the assembly elections in some states.” Shantanu Bhanja, Vice President, Marketing, HT Media, feels that the year 2012 will be tough for the print industry in general. Publications which rely only on conventional ways of growth will find the going tough, he says. “With large contributing categories like

real estate and IT & Telecom under pressure, along with the weak Rupee and a global slowdown staring at us, the outlook for 2012 is not hugely positive. At HT, we have already geared up for the situation with increased focus on customised solutions and special projects. We believe that our strong customer-centric approach and the many initiatives lined up in the non-traditional growth areas will see us growing through the year,” he adds. On the other hand, Sanjeev Kotnala, Vice President, Brand Comm & National Head, Dainik Bhaskar Group, is optimistic about the year ahead. “We are optimistic about the next financial year. education, automobile, lifestyle, real estate, government were the major categories in 2010 and were big spenders. Also, a welcome sign has been the return of FMCG in print. We do not see major changes in the top categories for print in 2012. Though if the environment is conducive, insurance and telecom too may comeback with

8% 6% YEARLY SPENDS

2010 ` 9,992 Cr

38

2011 ` 10,791 Cr

2012 ` 11,438 Cr Pitch | February 2012


Pitch | February 2012

39


PRINT OUTLOOK 2012 heavy inputs in print,” he says. Bhanja too feels that more FMCG players will show interest in print. “The solutions route will bring in more FMCG advertisers and brands to the print fold. Also, major web based commercial services, online discounting sites etc will be the new ones entering print,” he says. However, he says that it will be a 360-degree solutions “combining internet, on ground, radio and print along with driving response to RoI-savvy advertisers that will ensure newer categories and advertisers coming to print.” Like last year, when regional press over-powered English, Kotnala, feels that the same will be repeated in 2012 too. “This will be more apparent with the advertisers finally equating media spends with the market potential and response,” he says. Maheswer Peri, President & Publisher, Outlook Group and Chairman, Pathfinder Publishing feels that magazines will greatly benefit from the government’s opening up of FDI in single brand retail stores. “This is a very niche segment and more than newspapers, magazines will benefit from it, as the single brand retail stores will try and target niche audiences,” he says. With literacy rates improving each year and with the expansion of the middle class, Ashish Bagga, CEO, India Today Group, sees a lot of potential and synergy in categories like education, financial services, luxury, real estate and government advertising. “Advertising in 2012-13 looks promising and we believe the second half will witness accelerated growth levels. We will see several new launches in 2012-13 as well.,” he says. Meanwhile, the worry for AS Raghunath, print expert and independent consultant is that print is losing youngsters, despite doing its best to woo them

Publishing houses should also focus on Tier II and Tier III towns where an untapped educated population is in search of quality print content through content customisation – both soft reading material as well as topics of academic and career interest. “The overall teen segment of 12-19 years has seen a drop from 25.6 per cent share of readers in 2005 to 22.5 per cent in 2011, losing thereby 40.61 lakh readers. But if we split this segment into junior teen segment of 12-14 years, the cluster has seen a marginal jump from 8.7 per cent to 9.4 per cent, adding thereby 17.98 lakh new readers,” he says, adding, “The prime youth segment of 20-29 years has also witnessed a fall. It had a share of 28.2 per cent readers in 2005, which has now come down to 25.4 per cent share, losing a chunk of 33.49 lakh precious readers.” The answer, experts feel is to go integrate and go digital. K Balaji, Managing Director, The Hindu, says, “Most of the media houses in the country are preparing to go digital to increase readership especially among youngsters. Publishing houses should also focus on Tier II and Tier III towns where an untapped educated population is in search of quality print content. If the South Indian publishing houses take initiatives in these directions, it is likely that the region will continue to remain one of the strongholds of the printed newspaper.” Another worry for print is the possible weakening of the Rupee against the dollar, which affects newsprint prices and margins and bottomline. “Exchange rate, rising newsprint prices, stagnant spends from large contributing categories, reduced overall media budgets by some large corporate advertisers will be some of the challenges for 2012,” says Bhanja.

Another worry for print is the possible weakening Rupee against the dollar, which affects newsprint prices and margins and bottomline

40

Newsprint prices affect pagination and overall cost of providing newspaper to the readers. This is a critical cost. The operating model of newspapers in India is advertising based and not circulation revenue driven. “Escalation in newsprint prices normally impact pagination of newspaper, which is manageable in short term. But yes, in markets – states where print prices has forced a higher cover price, it definitely has affected circulation of print companies and in such cases there readership growth has been marginalised,” says Kotnala. So will all the upheaval in the economy and a cautious approach, lead to discounting in ad rates? A definite “no” says Bagga. “There has been an astounding increase in the number of titles originating and being produced in the region, in addition to large-scale investment in retail, fresh marketing tools and increasing standards of production. So, we see an accelerated graph. I don’t think cutting advertising rates is any solutions to making up for lost business. The need of the hour in creating consumer engagements that can command a premium,” he adds. And if there’s a degrowth in readership, that will affect bargaining power and ads. The times ahead could be tough. Bhanja’s feels that the outlook for 2012 is still very fluid and it is prudent only to wait and watch. It will be after the first quarter of 2012-13 that we can predict some trends with conviction. Meanwhile, Bagga is bang on by linking up the growth or degrowth of the industry with the environment in the country. “Decisive leadership at the political and economic front, favourable economic indices that fuel growth, strong consumer sentiment and a liberalised financial framework will work wonders! The challenge will arise if this does not happen,” he declares. n -surender@pitchonnet.com

Pitch | February 2012


Pitch | February 2012

41


TV REVIEW 2011

19% 17%

2% YEARLY SPENDS

2007 ` 7,110 Cr 42

2008 ` 8,319 Cr

2009 ` 8,492 Cr Pitch | February 2012


Sorry for Interruption While lead channels like Star Plus and Sony Entertainment Television performed well, it was the second rung channels and regional like Sun that slowed down the growth of TV By Noor Fathima Warsia

T

24%

As against our expectations of TV achieving a growth of 20%, the medium could grow at 9% only, garnering ` 11,478 crore

2010 ` 10,530 Cr Pitch | February 2012

9%

elevision continued to be a medium of glory in 2011. Everything seemed right about it – the top genres such as general entertainment channels (GECs) and Hindi movies were innovating and competing aggressively. Infotainment was redefined to be factual entertainment and music genre’s experiments moved beyond reality and format shows to appointment viewing. Enough channel launches had happened to create newer genres like Food & Lifestyle. English entertainment genre saw many new players enter the space and increase the overall genre share. Finally, thanks to the ICC Cricket World Cup 2011, the sports genre was more vibrant than ever. Much of this upbeat spirit that dominated the first half of 2011 however, saw restrain in the second half. Increasing concern over inputs costs and growing conversations of the return of slowdown led to caution in the market once again. The growth of the first half seemed to experience a standstill. It was this, coupled with a few other reasons, that pulled television significantly back from its projected growth rate in advertising revenues.

2011 ` 11,478Cr 43


TV REVIEW 2011

Highlights 2011

Pressure on inventories Both Star Gold & SET Max have started with 1- or 2-minute breaks, leading to higher GRPs, but at the same time putting pressure on ad inventories

The No 2 Shows like Kaun Banega Crorepati and Bade Achche Lagte Hain, allowed Sony Entertainment Channel to take the No 2 spot

High expectations Television ensured that in 2011, it had the largest share of the Indian advertising pie, a milestone that it gained in 2009, but its growth from 44.5 per cent of 2010 to 44.8 per cent in 2011 was far lower than the expected mark of 45.7 per cent of the pie. Pitch Madison Media Advertising Outlook 2012 puts TV ad spends at ` 11,478 crore in 2011. In 2010, this number was at ` 10,530 crore, indicating a 9 per cent growth in the medium’s ad revenues. This is lesser than half of what was expected from TV in 2011. Key players of the Indian broadcasting industry indicate that they were expecting anywhere between 14-18 per cent growth in the ad spends on the medium from 2010 to 2011. “I expect television ad revenues in 2011 to grow by a minimum of 14-15 per cent over last year. Various factors have contributed to this growth. While a few genres on television were hit, they were the comparatively smaller genres such as news. The genres that command a lion’s share, which is GECs and cricket, had a great year,” says Kevin Vaz, President, Ad Sales, Star India. Rohit Gupta, President, Multi Screen Media, adds, “Most of the GECs have seen viewership growth, across tiers. Top channels have seen better inventory utilisation and have been able to increase rates as well. For us, it was the best year ever. Even without IPL, we saw 40 per cent growth in our numbers this year. For the medium overall, I would have expected a 15-18 per cent growth.”

Inconsistent GEC growth

Multi platforms More channels are exploring other screens - mobile and desktops - too to reach out to a wider audience with mobile and tablet apps and desktop widgets

44

Vaz admits, “I perhaps see things differently and much more positively, because Star India has done very well in the year and has taken leadership in most genres – whether it is Hindi movies with Star Gold, Hindi GE with Star Plus, youth and music genre with Channel V or even regional domains with

“Top channels have seen better inventory utilisation and have been able to increase rates as well” Rohit Gupta

President, Multi Screen Media Star Jalsa and Star Pravah.” Star Plus steadied its performance to stay on a comfortable and consistent number one position through the year. The efforts undertaken by the channel in 2010 were paying off and gave Star enough confidence to overhaul its second GEC, Star One. Star took the big step of relaunching Star One as Life OK, completely doing away with the Star brand name in the channel. However, the network significantly cut on inventory for Life OK. For competitive reasons, there also were days when Star Plus went break-free. While Sony Entertainment Television added enough relevant content to beat Colors and take the number two spot in GE charts too often in the year, Sony’s climb was not because Colors GRPs were dropping but because Sony had seen growth in numbers. Colors maintained its viewership. Zee TV had seen some drop in numbers but the next tier of channels too maintained viewership. The setback, the Sun Network faced was evident in the course of the year, as they exited 2011 in single digit growth. Another reason why TV ad spends were

Key players of the TV industry indicate that they were expecting anywhere between 14-18 per cent growth in the ad spends on the medium from 2010 to 2011 Pitch | February 2012


and counting....

Pitch | February 2012

45


TV REVIEW 2011 below projected, was because contrary to expectations, some key channels, like Colors, only maintained viewership and others like Sun dropped.

0.03 Urdu

0.17 Bhojpuri

Regional to rescue Regional channels managed a good year. While Mainline Hindi GECs have 16 per cent and second tier cornered 11 per cent, regional commanded 33 per cent of overall (All India, C&S 4+) viewership. Even as various south channels have been a strong contributor to regional channels, the likes of Bengali and Marathi too have been gaining significant ground now. Vaz says, “Regional channels have done very well and this has been a continuing trend. There has been a 25-30 per cent growth in regional channels. One big advantage they have is that they bring the long tail advertisers, who don’t have global pressures and not that badly hit or restricted due to any reasons. They form a steady revenue source.” That turned out to be a strong contributor to the nine per cent growth that television witnessed. Even the language feeds of international channels have had a good year. In the case of Discovery Communication, while the company has maintained momentum of growth, according to Rahul Johri, Senior Vice President and GM, Discovery Net-

“One advantage regional channles have is that they bring long tail advertisers, who don’t have global pressures” Kevin Vaz

President, Ad Sales, Star India

46

0.08 Assamese 3.61 Bengali

7.84 Telugu 9.69 Tamil

0.57 Punjabi

0.34 Oriya

10.27 English

6.03 Others 4.64 Marathi

1.95 Malayalam

0.29 Gujarati

Mind Your Language Hindi, English and Marathi have significantly gained share in the viewership pie; while South Indian languages have lost share

4.21 Kannada 50.28 Hindi Viewership (%) C&S:4+ (All India Markets

works, “The big difference that we felt last year, and expect, we will see even more, is the structure of Discovery Tamil. It has been designed as a separate channel, with its own inventory and not just another language channel. That is where we see future growth.” Explaining his point further, Johri says, “Advertisers buy Hindi speaking markets on the whole but when they look at south, they buy specific regional markets because that is the nature of the viewership patterns there. In the Tamil market, Discovery is now the only international channel of this kind and hence it is gaining significant traction.”

Selective spending One of the most important contributors, according to broadcasters, towards the growth of television ad spends is the increase in FMCG spends. FMCG forms almost 60 per cent of GEC’s ad revenues. Vaz remarks, “The likes of Hindustan Unilever,

Source : TAM

Dabur, Marico, P&G, GSK and many such companies had a very aggressive year because of the increased competition in their sectors and the fact that some of these companies branched out to newer categories. Some advertisers in fact upped their spends in double digits and naturally television benefitted from this.” Pitch Madison Media Advertising Outlook 2012 indicates that FMCG’s share on television has come down in 2011 as compared

52.8%

of TV’s ad revenues came from FMCG, which is lower than last year

Pitch | February 2012


Pitch | February 2012

47


TV REVIEW 2011

Top 20 Spendthrift Brands 1 Vodafone Cellular Phone Service 2 Airtel Cellular Phone Service 3 Complan 4 Colgate Dental Cream 5 Fair & Lovely Multi-Vitamin 6 Idea 3G 7 Dettol Toilet Soaps 8 Vivel Active Fair 9 Cadbury’s Dairy Milk Chocolate 10 Tata Nano 11 Horlicks 12 Cadbury’s Bournvita Plus Plus 13 Tata Docomo 3G GSM

to 2010. In 2011, FMCG contributed 52.8 per cent to the TV’s ad pie, as compared to 55.4 per cent in 2010. Growth in FMCG spends was not as per projected due to caution setting back in the sectors given market sentiments and rising input costs that were seen in the year. But it was the automobile sector that contributed to television too. Lutz Kothe, Head, Marketing & PR, Volkswagen, says, “TV has been our lead media contributing to 42 per cent of our spends in 2011. The Cricket World Cup and the IPL 4 have been key growth drivers for advertising and viewership.” Vaz observes, “Sectors such as automobile that have had a tough year, while pulled back in press in a big way, continued to spend on television. The ratio of automobile ad spends between TV and print may have been 70:30 or 65:35 in the favour of print but in 2011, it could well be 50:50 or even a 55:45 in favour of television.” The telecom sector was another that maintained its share of volume of television advertising at 11.5 per cent. Vodafone and Airtel were the top spenders in the year.

The silent blows The television space is seeing a clear divide in the performance of the various players. While there are examples like Star India and

FCT / Channel (Lakh)

14 Pantene

30

15 Head & Shoulders Anti-Dandruff

25

16 Hero Motocorp

20

17 Sprite

15

18 Idea Cellular

10

19 Surf Excel Matic Range

5

20 Clear Anti-Dandruff Shampoo

0

“Advertisers buy Hindi speaking markets on the whole but when they look at south, they buy specific regional markets” Rahul Johri

Senior Vice President and GM, Discovery Networks Multi Screen Media that are growing well, many other players are still fighting to hold on to ad rates since even as they maintain performance, they have not been able to grow their share. Discounts, make-good and bonus spots are also contributing to a slower than expected growth in television advertising spends. In 2011, due to the increase in the number of channels (623 channels in comparison to 552 of 2010) overall television inventory increased by 15 per cent. FCT per channel,

FCT per channel has remained constant in the last two years

*FCT excludes channel promos

26.6

29

29

2010

2011

23.8 19.9

19.6

2006

2007

2008

2009

Source: TAM AdEx

48

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Pitch | February 2012

49


TV REVIEW 2011 excluding channel promos, remained constant however. And television viewership also was stagnant. Aneesh Khanna, Senior Vice President & Head, Marketing and Product Management, IDBI Federal Life Insurance, explains, “With newer channels and programming genres, viewership is getting further fragmented. The growing competition and clutter for attention in the life insurance sector has made it a challenging task for advertisers to effectively stand out.”

FMCG’s share in the TV ad pie has dropped by 2.6 percentage points

Categories fond of TV TV

2007

2008

2009

2010

2011

Alcoholic Beverages

1.1

0.8

0.4

0.6

0.8

Auto

6.7

5.6

6.7

6.7

7.6

BFSI

6.9

7.7

5.7

5.2

5.5

Clothing/Fashion/Jewellery

4.4

3.2

2.8

3.3

3.6

Corporate

3.2

3.6

2.5

2.7

2.5

More of the same

Education

1.2

1.5

1.5

1.6

1.6

Another concern has been the lack of big advertisers or the opening up of a big category in the year. Rohit Gupta points out that the expectations from retail and financial services, which are very big categories globally, to increase spends, have not become a reality in India yet. Shefali Chhachhi, Director, Marketing, Max Bupa, adds, “The year 2010 was our year of launch, so our marketing spends were higher. In 2011, our spends were in line with our business plans. We have always followed a 360-degree integrated marketing approach. During our launch phase, the focus was more on ATL. Going forward, we will increase the share of BTL in our overall marketing mix.” Johri cites the example of e-commerce websites that had begun advertising in the year. He says, “It opened as a distinct category that had contributed to the overall spends.” Kevin Vaz also draws attention to the fact that there were some new advertisers in the year, and also more of premium advertisers that had come on board television. He says, “Real estate came in a big

FMCG HH

26.5

26.8

30.7

30.0

28.2

FMCG Impulse

8.3

8.2

9.9

8.9

8.2

FMCG PersonalCare

14.0

13.7

15.0

15.6

16.4

HH Durables

6.2

5.3

4.7

5.4

5.5

Media

0.4

0.2

0.1

0.2

0.1

Real Estate & Home Improvement 3.5

3.3

2.8

3.3

3.3

Retail

1.1

1.1

0.6

0.8

0.8

Telecom/Internet/DTH

10.5

13.9

11.8

11.1

11.5

Travel & Tourism

1.3

0.8

0.9

1.5

1.4

Others

4.5

4.2

3.9

3.2

3.1

7.6%

of TV’s ad revenues have come from auto, which is higher than last year

50

way and the likes of India Bulls were advertising on TV. The premium section really opened up in the year, and the likes of the English entertainment genre benefitted with advertisers like TAG Heur, BMW and Merc advertising significantly.” However, not all digital and premium advertisers amounted to big spenders in the year.

Cricket conundrum The expected number for ad spends just between ICC Cricket World Cup and IPL 4 was marked at ` 1,500- ` 1,600 crore according to some industry sources. However, one discussion that gained steam around the World Cup was ESPN Star Sports’ inability to have been able to truly cash on India’s great game and subsequent victory at the World Cup. Whether it was the caution after the previous World Cup experience or the fact that many deals were locked much in advance for ESPN to make any serious

monies out of the good game, ICC Cricket World Cup did not contribute to television advertising spends in the manner that it could have. The second half of the year turned out to be a grim one for cricket, due to a poor India performance in various tournaments. The matches played in India against England and West Indies could have been the bright spots but on the whole, the second half failed to contribute much from cricket as well. The year 2011 was another growth year for TV, but not on the lines of expectations, the industry had set out in the beginning of the year. Despite that, television still continues to be the lead medium for various large advertisers given its nature of a low cost per contact point medium. The expectation of further growth in this medium continues for 2012 as well. Turn the pages to see what’s our Outlook for TV in 2012. n -noor@pitchonnet.com

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51


TV OUTLOOK 2012

A blurred view Advertisers are cautious, yet TV will see a growth just about touching double digits. And the medium is further expected to consolidate its position in the ad pie By Noor Fathima Warsia

T

V is still the most cost effective medium in India” – just about any Indian media observer quotes this statement every time the future of television and its effectiveness as a medium for advertisers is discussed. Industry leaders believe that this continues to be the reason why television would grow further in 2012. The Pitch Madison Media Advertising Outlook 2012 expects TV ad spends to grow by 10 per cent this year. From the current base of ` 11,478 crore, the study states that TV

24%

In a tough year, when the economy is tighter, advertisers might depend more on television than other mediums, and see a shift from press and outdoor ad spends would be in the vicinity of ` 12,626 crore. PMMAO also indicates that television would still be the largest consumer of the advertising pie with a 45.1 per cent share of the overall budget. Aneesh Khanna, Senior Vice President and Head, Marketing and Product Management, IDBI Federal Life Insurance, reiterates this, and says, “We have been active on the television medium nationally, as it ensures reach across the length and breadth of the country. We consider outdoor medium in select markets to create an added impact. This focus on TV has helped us increase our visibility and brand recall in our target markets. We plan to continue to invest in a similar fashion in 2012 to deliver our message in an impactful way to our target audience.”

Slowdown?

With an expected growth of 10%, TV will take its share in the ad pie to 45.1%

One setback that could curtail television’s growth could be an expected tough year due to a slowdown emanat-

ing from global economic conditions. While the industry is still on wait and watch, some believe that the slowdown is not here. Rahul Johri, Senior Vice President and GM, Discovery Networks, says, “We have not felt a slowdown yet and I don’t think we would in 2012 too. But at Discovery, we work with a whole portfolio of advertisers and hence we are not dependent on any one category or advertiser.” On the other hand, others are of the opinion that the slowdown may auger good news for the television industry. Kevin Vaz, President, Ad Sales, Star India explains, “A big reality about the Indian media industry is that television continues to be the most cost effective medium from a cost per contact point of view. In a tough year, when the economy is tighter, people will depend more on television than other mediums for that reason and we will see more shift from press to TV.”

10% YEARLY SPENDS

2010 ` 10,530 Cr 52

9% 2011 ` 11,478 Cr

2012 ` 12,626 Cr Pitch | February 2012


Pitch | February 2012

53


TV OUTLOOK 2012 Lutz Kothe, Head of Marketing & PR, Volkswagen, explains, “We expect that in 2012, the digital media will receive more focus but television and print will continue to have the higher pie of overall spends.” Some industry players are extremely optimistic on the television and expect the medium to grow by 12 per cent this year.

Television in India is expected to head to digitisation with the cabinet ordinance setting a sunset date on analogue distribution ways to attract advertisers and this can play a role in bringing in more monies on key channels.

More competition Even as many media agencies are busy setting up branded entertainment practice with a view to engage media owners, including television, in innovative ways for the benefit of advertisers, media owners are still sceptical about how much of branded content would be seen on television. A key reason pointed for that is the lack of agreement on the kind of monies that should be paid for infusing brand messages in content. At the same time, however, advertisers are already gearing for the challenge of reduced inventory in prime time of general entertainment channels and even on other genres like movies and

Sunset for analogue Finally, television in India is expected to head to digitisation with the cabinet ordinance setting a sunset date on analogue distribution. One expectation from this is a level-playing ground for stand-alone channels. It also is likely to increase extremely specialised content channels, aimed at very select audience, allowing targeted advertising, which could once again play a role in further growing television as a medium. The other aspect that may still be in very nascent stages but has already begun is the efforts from mainline television players to strengthen their presence on the internet and mobile. While news

Advertisers are gearing for the challenge of reduced inventory in prime time of GECs and even on other genres like movies and music music. Star India cut down inventory on its movies and music channel by 33 per cent. Some of Multi Screen Media channels too have followed suit. Vaz elaborates, “From an ad sales viewpoint, one of the biggest things we have done at Star, and a few others have followed, is reduce the inventory. For two of our key channels – Star Gold and Channel V, there has been a 33 per cent drop in inventory. We believe this is a sustainable model in the long run, as it gives more value - the longer the break, the larger the ad drops; this allowed a jump in the overall channel and break performance and people are ready to pay for better value.” The increase in competition in the genre will lead players to innovate in different

54

was amongst the first to launch apps and become available on the web, the likes of Star India have invested significantly in the web medium too. If not in 2012, television players would soon look for ways of creating different revenue models, including advertising, from the web.

Regional growth With Network18 too extending its presence in regional markets, three top networks are already racing against each other in various regional markets. Regional channels had seen growth in 2011 as well. The gone yearhas been a weak one for Sun Network. Some industry observers are watching these markets closely too. While on one hand, Sun would reinvigorate to reclaim lost

ground, the change in competitive dynamics in the South would encourage more players to invest in the south market. Also, while international channels have already been aggressive on language feeds, the likes of Discovery are also experimenting with separate channels for the region that has its own inventory. Johri quotes the example of Discovery Tamil that is expected to add new revenue streams to the Network. Vaz points out that one of the biggest advantages of regional television is the local advertising it attracts, that is usually not dependent on global economic conditions.

Year of expectations In all, 2012 is once again believed to be the year when FMCG players will continue to fight out competition and attract the consumer by advertising in mainline mediums. It is also expected that 2012 will once again see newer categories opening on television and perhaps even the comeback of some categories that had reduced its spends on the medium in 2011. Shefali Chhachhi, Director, Marketing, Max Bupa, summarises, “Traditional mediums such as print and television will continue to drive advertising revenues. Print is expected to be the largest contributor to the overall advertising revenues closely followed by television through 2015. DTH is already witnessing high growth and will continue to grow as DTH bundles the power of TV, Print and Direct Marketing into a single platform.” PMMAO projection of 10 per cent growth is another challenge for the television industry, one that it seems set to meet, at least for now. n -noor@pitchonnet.com

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55


RADIO REVIEW 2011

68%

38%

YEARLY SPENDS 56

2007 ` 480 Cr

2008 ` 662 Cr Pitch | February 2012


Not a happy tune While in 2010, radio saw a stupendous growth of 30%; the growth dipped to a mere 2%

By Neha Goel

T

Growth for radio has been sad. It added only ` 18 crore, in 2011, over its revenues of ` 885 crore, in 2010

he high point of 2011 for the radio industry was the announcement by the government of the Phase III policy. While, this will determine the future of radio to a great extent, the year 2011 wasn’t a year of any great shakeups. Against our prediction of a growth of 15 per cent to clock a revenue of ` 1,018 crore, the medium could grow only by two per cent to get a revenue of ` 903 crore only.

30%

3%

2009 ` 681 Cr Pitch | February 2012

Radio players associate the bleak growth to lack of innovation and understanding of the medium. Ashit Kukian, President and COO, Radio City, says, “The challenge is, that most of the agencies, be it creative or media buying agencies, haven’t really invested enough mindshare to innovatively use the medium. The medium is commoditised and this is hampering the growth.”

2%

2010 ` 885 Cr

2011 ` 903 Cr 57


RADIO REVIEW 2011

Top 20 Spendthrift Categories Properties/Real Estate

7%

TV Channel Promotions

7%

Social Advertisements

6%

Independent Retailers

6%

Cellular Phone Service

5%

Events

4%

Auto - Cars/Jeeps

Jewellery

3% 3%

Educational Institutions

2%

Insurance - Life

2%

Cellular Phones

2%

Corporate/Brand Image

2%

Hospitals/Clinics

1%

Film Trailors

1%

Publications/Books Software

Airlines

1% 1%

1%

Cellular Phones - Smart Phones 1% Travel & Tourism

1%

Banking Services & Products 1%

58

“Innovations bring premiums and contribute about 20 per cent to the company’s revenue” Prashant Panday CEO, Radio Mirchi

Meanwhile, owing to the growth of digital, radio lost its share in the entire media pie from 3.7 per cent in 2010 to 3.5 per cent. Considering that the base is low, even a 0.2 per cent loss is huge. According to Apurva Purohit, CEO, Radio City, the ‘growth’ phenomenon, in the last few years, “has become increasingly contextual and complicated.” “Single digit growth is great, but if you grow in double digits, you are an exception and do not define what is happening to the rest of the industry,” she says.

lessly integrate the advertiser’s brand without compromising on the entertainment quotient. The communication must remain relevant and engaging. Experts feel that somewhere, this understanding is lacking amongst marketers and as well as radio operators. They feel that marketers should insist on innovations and till everyone understands clearly how to use radio effectively, the role of evangelising the medium will remain with the radio operators. Monica Patnaik, Joint Managing Director, Eastern Media Ltd (Radio Choklate) says, “Lack of knowledge of a studio set-up, addressing transmission problems, etc are key challenges for the regional players.” Both experts that marketers realise that using radio for just ‘carpet bombing reach’ across SECs is not resulting in proper ROI, as one cannot really ‘engage a particular TG’ . Hukmani feels that ‘print, TV and internet are able to engage a profiled audience by using English print, TV etc’. He adds, “Media agencies too tend to be helpless and offer simplistic reach solutions with radio and you can’t blame them as radio is not offering any differentiation currently.”

Do we understand radio? While, the functional benefit of the medium reaching the masses remains the core, the lack of proper implementation of ideas seems to be hindering the growth of the medium. Advertisers need to take the medium more seriously and explore its true potential to build their brands. Vineet Singh Hukmani, MD, Radio One says, “Two things marketers complain about are: one, all radio stations sound the same; and two, all of them are catering to lower SECs and therefore sound dumb to an educated audience.” Programming content and innovative promotion concepts must seam-

“Marketers complain that all radio stations sound the same; and all of them are catering to lower SECs” Vineet Singh Hukmani MD, Radio One

Pitch | February 2012


How innovative can you get? While radio operators agree that there is much more scope for ideation, they also feel that the industry is experimenting and innovating with the medium, and it is slowly but surely, detaching itself from the ‘dhaniya’ image of being an add on to the media mix. Hukmani says, “Innovation contributes to over 35 per cent of our revenues. Every campaign we have done has an innovation element that engages audiences better. Some of them being for Visa, Tata Nano, HDFC and the like.” Meanwhile, as according to Prashant Panday, CEO Radio Mirchi, innovations bring premiums and contribute about 20 per cent to the company’s revenue. “The premiums vary from 10-30 per cent over normal FCT rates – but it depends very much on the specific creative developed,” he adds. Players like Radio Mirchi and Radio City have in-house creative services teams that provide innovative solutions to clients.

Media as a saviour? FMCG and media are the two major brand categories that advertise on radio. Apart from these, services is a growing industry that advertises on radio. At the local level, it’s the retail sector that advertises on radio in a big way. Radio uses the human voice in real time providing active sampling opportunities closer to the time of actual purchase for faster conversions, hence delivering results for these categories. However, the real estate sector, which has been witnessing a negative trend, has not picked up well on radio. According to Purohit of Radio City, “The number of advertisers on the medium increased from approxi-

Top 20 Spendthrift Brands 1 Ministry Of Health & Welfare

“Lack of knowledge of a studio set-up, addressing transmission problems, are key challenges for regional players” Monica Patnaik

Joint Managing Director, Eastern Media (Radio Choklate) mately 9,000 to around 12,000. Nearly 3,000 new advertisers tried the medium in this year.” Meanwhile, Harrish M Bhatia, CEO, My FM, feels that slowdown has not affected the advertising spends on radio in Tier-II & III cities. “My FM, on account of its strong retail focus and retail advertising market share, grew at a healthy rate of 22 per cent in Q3,” he says. Until last year the graph of radio for financial product advertising was getting bigger and better. Financial brands that are sticking to radio, are mostly using it for tactical reasons. Shefali Chhachhi, Director Marketing, Max Bupa says, “Radio is a very flexible medium which is very effective for direct and tactical messaging. It is a cost efficient medium for advertising in smaller towns. At Max Bupa, we follow an integrated marketing approach.” One reason for financial services using

Radio uses human voice in real time providing active sampling opportunities closer to the time of actual purchase for faster conversions

Pitch | February 2012

2 Vodafone Cellular Phone Service 3 Airtel Cellular Phone Service 4 Delhi Police 5 Blackberry Smartphone 6 Big Bazaar 7 Maruti Genuine Parts 8 ICICI Lombard Motor Insurance 9 Indiamart.com 10 Tata Indicom Cell Phone Service 11 Max DLF Indian Premier League 12 Uninor Cellular Phone Service 13 Magicbricks.com 14 Indiatimes.com 15 Kaspersky Lab 16 Sony Mirchi Music Awards 17 Hero Motocorp 18 Muthoot Financial Enterprises 19 Uunion Bank Of India 20 Lufthansa

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RADIO REVIEW 2011 handsets, the reach of radio has increased further.”

Local vs national

“Activations become an integral part of clients’ campaigns as they offer listeners a touch and feel experience in real time” Harrish M Bhatia CEO, My FM

this medium is that it reaches out to the service class, the salaried people, and basically to people who would look forward to buying financial products. Telecom is another category that managed to maintain its share in the radio advertising pie. However, this year it has been observed that local advertisers are the ones that have relied on the medium in a big way. There is a decline in the national advertiser categories, which have been the traditional spenders on radio. A reason that is being attributed is the advent of newer and exciting opportunities like the internet. Bhatia from My FM, however, begs to differ about the negative impact of internet on radio. “Internet penetration in India is still quite low. Moreover, power shortage and bandwidth are still big hindrances in smaller markets leading to lower usage of internet medium. On the other hand, with an increased FM consumption on mobile

However he agrees that while global showdown may have impacted the spends of national players on radio, retail marketers still are looking at radio as a viable option. On the other hand, Radio Mirchi has a different tale to tell. For Mirchi, which commands a 35 per cent share in the private FM business, the percentage of local players is 45 per cent and that of national players is 55 per cent. Stations with large networks and a strong presence in metros and big towns state that national advertisers have a larger share in their revenue pie. This difference in the ratio may be because of the fact that local or retail advertisers buy ad spots on stations in a particular geographical area, hence, a local station of that area may appeal more to them. In comparison, national advertisers largely buy on the basis of the network of the radio broadcaster. Hence, stations spread across the country are able to lure more national advertisers.

Getting active Using radio as a medium for advertising is not just limited to on-air announcements and RJ mentions. It stretches beyond just that and enters the domain of activations as well. Panday from Mirchi says, “Activations are different from radio advertising, but have become an integral part of a radio station’s revenue mix. For Mirchi, as much as 12-15 per cent of our revenues come from activations.” Kukian further gives insight into why activations are effective. “Radio is the one medium that is local. It has teams

There is a decline in the national advertiser categories, which have been the traditional spenders on radio. A reason that is being attributed is the advent of internet

60

that understand the dynamics of the town, and the activations teams of a radio station therefore are far more knowledgeable and capable of pulling off on-ground activations. When this activation is amplified adequately on-air, they create a huge buzz,” he says. As more advertisers look for an integrated offering for all their communications, activations will only play a larger role in getting those advertisers on radio and recognising the true potential of the medium. For My FM, activation accounts for around 7-10 per cent of its revenues. Bhatia says, “Activations become an integral part of clients’ campaigns as

“Radio is one medium that is local. It has teams that understand the dynamics of the town” Ashit Kukian

President and COO, Radio City they offer listeners a touch and feel experience in real time along with radio.”

Phase III promise! Will radio be able to hold its current advertisers or will they move away to digital? Or will the Phase III of FM radio breathe in a new life to the medium. Flip over to know more and our projections for 2012. n -neha@pitchonnet.com

Pitch | February 2012


RADIO OUTLOOK 2012

Bleak signals The growth rate for radio in 2012 would be slightly better than 2011, owing to the advent of Phase III of FM By Neha Goel

T

he year 2011 ended on a positive note with the introduction of Phase III policy for radio by the government. As per the Pitch Madison Media Advertising Outlook 2012 projections, the radio industry is expected to clock revenues of ` 948 crore, in the adpie worth ` 28,013 crore. Estimates indicate a growth index of five per cent for the radio industry but the contribution of radio in the ad pie might slip to 3.4 per cent, owing to the base increasing at a far greater rate. Radio players predict a sine 30% curve for the radio industry in the coming year. Prashant Panday, CEO Radio Mirchi says, “I feel the first half of FY13 could be slow on account of the continuing slow-down. The crucial period to look out for will be the Oct-Dec 2012 quarter. If by then, interest rates have started coming down, inflation is under control and the Rupee has stabilised, economic growth will be back and advertising growth should improve.” However, players seem gung-ho about the introduction of Phase III. Harrish M

Bhatia, CEO, My FM, elaborates, “Introduction of Phase III will take radio industry to an all new level by increasing the reach of the medium. As per our estimates, retail market is expected grow by 25 per cent. Overall, 2012 would be a booming year for radio advertising, as most categories will increase their advertising spends to reach the growing consumers in Tier II and III markets, where all the action is happening.” Adds Monica Patnaik, Joint Managing Director, Eastern Media Ltd (Radio Choklate) saying, “Declaration of Phase III expansion has opened up prospects for investors to set up radio stations in smaller regions.” The categories that are predicted to be in the spotlight on radio are online and BFSI. These are the two categories that are predicted to come into the ambit of radio advertising in a big way. Radio offers unique advantage to these categories. Vineet Singh Hukmani, MD, Radio One feels that premium categories and SEC A focussed brands will come in a big way, provided they get a well profiled radio station that caters

The music royalty issue continues to worry FM stations, especially the smaller FM players or those in small towns YEARLY SPENDS 2010 ` 885 Cr Pitch | February 2012

to educated audiences of around five million people who read English newspapers everyday in Delhi and Mumbai alone. Panday feels that the Small and Medium Enterprises (SME) sector is showing great buoyancy in experimenting with radio. “Jewellery has also suddenly taken to radio in a big way,” he adds. At the same time, there are many challenges that are a cause of worry for radio players. The music royalty issue continues to worry FM stations, especially the smaller FM players or those in small towns. Absence of an acceptable radio measurement tool is another challenge that the industry faces. Panday also feels that a major challenge will be the ability to increase prices as the market sentiment improves. The year promises a lot of action. It remains to be seen how marketers take up the medium and make it a major part of their media mix. n -neha@pitchonnet.com

Radio is expected to add merely ` 45 crore, in 2012, to its revenue total of ` 903 crore, in 2011 5%

2%

2011 ` 903 Cr

2012 ` 948 Cr 61


OUTDOOR REVIEW 2011

Deserted? There were very few takers for outdoor in 2011. Most of the hoardings were blank and had messages like: ‘To advertise here, call 98XXXXXXXX’

28%

By Pallavi Srivastava

T

he year 2011 has not been a very good one for the Outdoor medium. Blank hoardings and billboards have been seen more often than before and hence it was no surprise when the ‘Pitch Madison Media Advertising Outlook 2012’ showed a 10 per cent fall in the medium’s overall revenues in 2011. The medium’s revenues in 2011 stood at ` 1,297 crore as against ` 1,441 crore in 2010. Outdoor’s share in the total ad pie has also fallen to 5.1 per cent in 2011. In 2010, the share of the medium was at 6.1 per cent. Noomi Mehta, Chairman and Managing Director of Selvel One Group and Chairman, Indian Outdoor Advertising Association (IOAA) agrees that 2011 has been

YEARLY SPENDS 62

11%

a damp year for Outdoor. He says, “Tightening of belts and cost cutting was the order of the day. No significant new investments have been there barring T3 airport in Delhi. Revenue is down 10 per cent for our company and across the outdoor media landscape it is down by possibly 20 per cent.” Indrajit Sen, Executive Director, IOAA is more optimistic. He says,“We are sure that there has not been any “degrowth”. Opinions in the Outdoor industry about the growth or degrowth is based on kind of categories being handled. For example, for the agency that handles telecom brands mainly, it’s not been a good year. But, if the agency had automobiles and M&E brands,

2007 ` 1,275 Cr

2008 ` 1,419 Cr

With a growth of about 27% in 2010, Outdoor nose-dived again losing about ` 144 crore, in 2011

-20% 2009 ` 1,135 Cr Pitch | February 2012


27%

-10%

2010 ` 1,441 Cr Pitch | February 2012

2011 ` 1,297Cr 63


OUTDOOR REVIEW 2011

Highlights 2011

3D To promote its new show, National Geographic Channel installed 20 feet X 40 feet hoardings featuring a three-dimensional (3D) eye-catching shark plunging out

Street dongles Tata Photon Max, in Kolkata fabricated 30 light poles in the shape of a dongle. In the evening, the dongle lit up in blue, as if the devices were working

Crunched In a bid to promote Titan’s belts and wallets collection, the company created billboards that were shown crunched with belts tied around them

64

they would have been happy! Similarly, agencies with major dependence on consumer durables would be very unhappy.” According to experts, occupancy levels of the medium were down by 25-30 per cent over the past 12 months. No increase in rates, has been another reason for the slowing down of the sector. Interestingly, there has been a rise in spends in Tier II and III locations, while metros and Tier I cities have seen a reduction. The first half of 2011 was really bad for the Outdoor medium, however, it took some pace in the second half of the year.

Where’s the scale? Pawan Bansal, COO, Jagran Engage, points out, “Economic growth for the past year has slowed down directly impacting advertising in general. OOH also suffers on the priority list as there is no way ROI can be measured.” Experts feel that absence of a measurement metrics for OOH makes many evolved categories shy away from outdoor. Abhijit Sengupta, CEO, Outdoor Advertising Professionals (OAP) agrees, “For instance in UK, FMCG is a big user, while in India they are not. And the primary reason being the advertiser is not able to get ROI, or at least a currency where it can be compared to other media.”

The dropouts In 2011, media & entertainment, automobiles, FMCG, & travel & tourism were the largest categories spending on Outdoor. Of these, media & entertainment was the biggest spender on the medium. Telecom, consumer durables and BFSI were the sectors that dropped their spending on Outdoor. Mandeep Malhotra, President & Head, Mudra Max, agrees, “We saw our telecom clients drop spends by as much as 70 per cent. Normally, one of the biggest spending categories, their withdrawal

“There is growth of digital OOH in India, as it is clearly a targeted, high frequency, and a high impact medium” Ishan Raina

CEO & MD, OOH Media from the media for some periods was a cause for concern. However, there were lessons we learnt from these and our client portfolio this year is certainly much more diversified.” Sunder Hemrajani, MD, Times OOH feels, “These industries are most affected by the debt crisis in Europe, a struggling US economy and dampened consumer sentiments in the domestic market led by high inflation and rising interest rates. A deeper analysis reveals that pressure on margins has made advertisers cut back, chiefly on media where quantitatively measuring ROI is difficult, hence radio and out of home have taken a bigger hit, as compared to TV or Print.” Some categories, which were heavy on print are increasing their OOH media exposure like educational institutes, jewellery & lifestyle products, real estate, events & exhibitions etc. OAP’s Sengupta shares an interesting insight here, “Real estate is betting on OOH in a big way, but I doubt how many agencies handle it. Mostly, they take up sites directly from the media owners.” There are a lot of product categories /

Experts feel that absence of a measurement metrics for OOH makes many evolved categories shy away from outdoor Pitch | February 2012


brands which have been fence sitters and provide ample opportunity to the OOH industry for conversion. Experts feel that the factors hindering the growth are lack of the perceived transparency &accountability; measurability in terms of OTS and ROI; standardisation; customisation and quality deliveries on a sustained basis in the OOH sphere.

National rules As far as contribution is concerned, national advertisers still dominate the Outdoor medium on an overall basis with a share of about 60-65 per cent. However, the scenario varies in metros and small cities. In top metros’ the share of national advertisers on Outdoor is as high as 75 per cent. While in mini metros and small cities it goes down to 40-50 per cent. Gautam Chadha, Managing Director, Broadview Mediacom, shares two interesting trends that are emerging: one, the local advertisers, realising the need to reach out to consumers amidst increasing competition and consumer consciousness, are more inclined towards spending in local, regional and even national media to build equity for their brand. This obviously benefits the omniscient OOH industry in terms of increased spends from local advertisers. “The second trend which is quite noticeable is that of the national advertisers increasingly tapping the Tier II and III markets to capitalise on the increasing consumer awareness and purchasing power at the regional level as also to beef up their bottom lines from this avenue, keeping in mind the saturation levels and competition they face in the larger metros and Tier I markets”, he adds. This aids the spread, reach, infrastructure and efficacy of the OOH media and the players involved at a local and regional level. Another noticeable trend was that spends increased significantly in malls (facades) and airports. As air passenger traffic grew in India, airport spends also shot up giving some boost to the Outdoor industry. T3 Airport in New Delhi got a lot of attention from advertisers on the outdoor front. All new car launches had actual car displays at the airports and few key malls.

Pitch | February 2012

“OOH suffered because teleocm, and BFSI struggled due to dampened consumer sentiments” Sunder Hemrajani MD, Times OOH

Regulations: Will spurt growth Speaking of trends, experts feel one key thing that was prominent in 2011 was self regulation in Outdoor. Prompted by the change in government policies at the start of the financial year, it nonetheless aided in crystallising consensus amongst the industry on the criticality of self-regulation and the urgent formalisation of pan India industry Standard Operating Procedures (SOPs). Various bodies including IOAA renewed the efforts to bring concerned players to the table towards this end, leading to the framing and circulation of the SOPs to all stakeholders. Broadcom’s Chadha says, “While nitty gritties on procedures, governance, enforcement, audit and review remain to be sorted out, nonetheless this impetus in 2011 will go a long way inculcating the trust of advertisers and other stakeholders and thereby, their much greater participation and spends in the OOH medium.”

Digital: The way ahead? Digital OOH is in its very early stages in the country. It holds the important position of being the cutting edge technological breakthrough, however, its contribution in the OOH pie is very low. According to industry experts it accounts for hardly 2-5 per cent of the total OOH pie. Jagran Engage’s Bansal feels, “Digital OOH at best can only

supplement them. As a standalone driver, it seems very unlikely. Digital OOH in our view is a misnomer as it is still ‘inside’ residential complexes or business complexes.” Alok Jalan, MD, Laqshya Media feels, “Digital OOH is still a very small part of the OOH Media but since everything is going digital & it has its own advantage, going forward we will see more and more digital happening in controlled environments like malls and airports.” However Ishan Raina, CEO & MD, OOH Media, seems more optimistic about digital OOH. He feels that OOH TV being an SEC ‘A’ focused medium, adds dynamism to the existing media plan of the clients for their brands. He feels, “There is growth of digital OOH in India, as it is clearly a targeted, high frequency, high impact medium; thereby ensuring a very high recall. Digital OOH advertising is emerging as an integral part of the media mix for advertisers.” It’s also national brands who are experimenting more with digital OOH, while local players stick to the traditional way. A lot of interesting formats like in-taxi digital advertising have also showed up in 2011… but these are all in a very nascent stage. En Route Media, a digital in-taxi entertainment and advertising has only national brands in its clientele. “I see the same ratio applying in the coming years in the traditional OOH,” says the company spokesperson. The bottom line is that digital screens placed in captive environments can better bring across brand and product messages, while being more updated and calling the audience to action immediately.

No money, no innovation As far as innovations in Outdoor are concerned, there has not been too much scope in 2010 with shrinking budgets. However, there is very less premium that agencies drive from innovation in this medium, unlike Print. OOH Media’s Raina says, “Innovation helps to increase the overall budget, as well as belief in the medium through excellent feedback.” Will the medium be able to bounce back in 2012 and regain its strength, read the Outlook section to find out. n -pallavi@pitchonnet.com

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OUTDOOR OUTLOOK 2012

Some hope Even though Outdoor might see some recovery in 2012, but it still won’t be able to match revenue figures of 2010 By Pallavi Srivastava

T

he year 2012 is expected to be more of a year of recovery for the Outdoor medium. As per Pitch Madison Media Advertising Outlook 2012, Outdoor is expected to grow by five per cent to ` 1,362 crore in 2012. The share of the medium in the total ad-pie is expected to fall to 4.9 per cent than the 2011 level of 5.1 per cent. Noomi Mehta, Chairman and Managing Director, Selvel One Group; & Chairman, Indian Outdoor Advertising Association (IOAA), puts it, “The year 2012 will be a year of recovery. In many ways, we are the bellwether for the Indian economy. We are the first to be affected and the first to recover.” Some feel that 2012 will either be too good or too bad. One worrisome factor is the likely regulation by external authorities. “The industry has to be careful and safeguard its interest. Self-regulation by the industry body and also representing itself strongly to the government authorities has to be done. It should not be the other way round,” says Abhijit Sengupta, CEO, Outdoor Advertising Professionals (OAP). While urban markets will still lead spends, Tier II & III markets will also drive higher revenues commensurate with con27% sumption. Going forward, the biggest challenge for the Outdoor industry will be twofold: to increase the spending from the existing categories and to bring new categories on board. FMCG, Retail, Media and BFSI are expected to increase their spends in 2012. Ishan Raina, CEO & MD, OOH Media, says, “The industry is still budding and there is immense scope for new clients, categories and growth. Every category can get its share of audience it is looking for.” Raina also feels that the biggest challenge will be in growing the

YEARLY SPENDS 66

2010 ` 1,441 Cr

Experts are of the view that one thing that can make a big change in the industry and help brands trust Outdoor more, is a strong measurement matrix clients’ categories like the IPO category, and healthcare. Experts are of the view that one thing that can make a big change in the industry and help brands trust Outdoor more, is a strong measurement matrix. There is a firm trend amongst large spenders to seek quantifiable justification for ad spends – and spends in OOH are increasingly on the radar. The IOAA is also engaging with clients to understand their expectations and look at bridging the gap. There is also the issue of benchmarking costs for sites within a cluster – currently there is no logic and clients find it difficult to accept huge variations in cost. Rural OOH can bring some good news too. Sunder Hemrajani, MD, Times OOH, says, “It is expected that there will be increased share of OOH in rural advertising on the back of integrated advertising cum activation by key categories like FMCG and telecom, and rapid consumption shifts from the top six metros to other Tier II & III cities.”

Another challenge for OOH players will be on adopting technology-led innovations and execution on a larger scale than one or two isolated executions, which has largely been the case till now. Younger audiences and easily affordable smart gadgets are changing expectations and perceptions rapidly. If OOH has to engage, rather than be only seen, then there is no option but to adopt of technology. If the industry is able to harness the key growth drivers and formalise self regulation / Standard Operating Procedures for itself, there is no doubt that it can increase its share in the ad pie. The larger share of the pie would come from both - an increase in the overall media capitalisation, as well as marginal shift from ATL media. Understanding the potential of new technology and using it correctly will also spur advertisers to invest more in OOH. Also, the performance of the medium will depend a lot on how quickly and effectively IOAA is able to implement its plans. n -pallavi@pitchonnet.com

Owing to the growth of internet, Outdoor’s share in the ad-pie is expected to fall to 4.9% in 2012

5%

-10% 2011 ` 1,297 Cr

2012 ` 1,362 Cr Pitch | February 2012


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67


` 985 Cr

INTERNET REVIEW 2011

` 680 Cr GROWTH 50%

52% 45%

45%

` 453 Cr

` 363 Cr

Internet, excluding Search, grew at a healthy rate of 45%, as against our expectations of a mere 35% , to clock a revenue of ` 985 Crore

25%

` 250 Cr

2007

2008

2009

2010

2011

Display ` 985 Crore Search ` 550 Crore

68

Pitch | February 2012


High Speed Being a measurable medium, marketers are looking at internet as a viable medium to reach out to the consumer. Unobtrusive, real time engagement is an added bonus By Pallavi Srivasatva

E

ver expanding penetration and improving understanding of the medium by agencies and marketers has been driving the growth of the internet medium in the past 12 months. According to Pitch Madison Media Advertising Outlook 2012, internet saw a whopping growth of 45 per cent in 2011 scoring advertising revenues of ` 985 crore as against ` 680 crore in 2010. This does not include search advertising. Search advertising grew by 57 per cent and reached a figure of ` 550 crore in 2011, while in 2010 it was ` 350 crore. The total size of internet advertising including search component is ` 1,535 crore. The medium’s share in the total ad pie (excluding search advertising component) has also gone up to 3.8 per cent in 2011, this was 2.9 per cent in the year 2010. If we add the search advertising component too, the medium’s share in the total ad pie will be even higher. Looking at these numbers, the year 2011 can easily be earmarked as the year where internet as the medium came of age.

Marketers’ new love Though internet, currently accounts for 3.8

Pitch | February 2012

per cent of the total advertising spends but is the fastest growing media of all. Online advertising is finally picking up pace, thanks to growth of internet users in India, which has now crossed 100 million users. At over 100 million internet users and growing, advertisers have started to take the medium much more seriously. Newer segments like telecom, FMCG, automobiles, education and media & entertainment apart from BFSI and IT marketers have increased their spends on the medium. Shefali Chhachhi, Director Marketing, Max Bupa says, “Biggest online ad spenders in 2011 were the travel, BFSI, auto and telecom sectors. FMCG sector, a large advertiser on traditional media platforms, is only now increasing spending on online advertising.” A lot of automobile companies have increased their spends on the digital medium. Take for instance Volkswagen Passenger Cars, which has doubled its spends on the digital medium in 2011 and currently the medium accounts for about 8 per cent of the company’s total media mix. The company plans to increase this further in 2012. Praveen Sharma, Head of Media Sales, Google India feels, “There is better understanding of the medium by agencies and

marketers and they’re increasingly investing time to understand how they can create more value from the digital medium in their marketing mix. Currently, digital advertising spends in India are pegged around ` 1,500 crore and we expect that to grow significantly in the next few years to reach a billion dollars.” Sharma also believes that internet is well positioned to bring a new set of advertisers on board and India will be internet & mobile first advertising market. “More than ever, marketers are looking for ROI”, says Nitin Mathur, Senior Director Marketing, Yahoo! India. “Internet is the most cost-effective and measurable medium¸ and consumers are spending more time on it. More ad dollars will migrate online and market will consolidate as advertisers spend money in fewer places. Online video ad spending across the globe is projected to quadruple in 2011 to $1.9 billion,” he adds.

What’s on display? In display advertising, the rise of the video on the web has brought in newer set of advertisers on board. “We’re seeing increasing amount of traction and willingness to do more amongst traditional advertising heavy weights from the FMCG companies,” shares

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INTERNET REVIEW 2011 Sharma from Google India. Highly engaging rich multimedia ads and various new video ad formats ruled the roost in the display advertising space in 2011. Multimedia ad formats are getting greater acceptance on the web as it involves the users to engage with the ads and help the advertiser in building brand. Yahoo! India’s Mathur agrees, “Online video viewing is becoming increasingly popular, with increasing demand for high-quality engaging videos across Movies, TV shows, News, Sports amongst others. As markets get organised, we are seeing lot of demand for premium video content, and content producers are coming forward to put their content online. This will drive the revenues of the medium further.”

What are you searching for? As long as search is concerned, users search habits are evolving very quickly. Newer set of customers are logging online to do their research before they decide on a product. Overall, online searches are growing by leaps and bound across the verticals. Sample this: According to Google India, there was over 40 per cent growth in overall searches from desktop and over 90 per cent growth in searches coming from mobile phones. Also, there is a very interesting trend emerging on the online medium: ‘Research Online Purchase Offline’ (ROPO). Sectors that increased their online spends especially in search were e-commerce (a lot of deals sites), auto, tech, telecom and education. Also, higher adoption from the small and medium business segments has driven the growth of search.

National or Local As of now, internet advertising is largely driven by national advertisers but the participation from small and medium business segments has been increasing fast. As Google’s Sharma says, “In absolute dollar terms, we continue to see high spends from the top

“There is better understanding of internet as a medium by agencies and marketers than ever before” Praveen Sharma

Head, Media Sales, Google India national advertisers but having said that the local small medium business market is opening up and a significant part of growth has been fuelled by our success with the small and medium business segments and we are confident of maintaining this strong growth over the next few years.” According to Google India, small and medium business segment companies have benefitted because internet offers them focused targeting of their audiences, and as a result they have been able to increase their revenues by 30-40 per cent by being online. Google India has launched a number of initiatives in India to help small and medium businesses gain from the internet medium and increase their participation on the medium. One such initiative is building websites free of cost, which would otherwise cost them about ` 25,000. “We plan to get at least 5,00,000 Indian businesses online with a website that is quick, easy and free to set up in the next three years”, says Sharma.

The social quotient We have already seen emergence of social on the web. As per IMRB report, the number of internet users in India stood at 112 million

Sectors that increased their online spends especially in search were e-commerce (a lot of deals sites), auto, tech, telecom and education 70

as of September 2011. Off this, about 71 per cent of users in urban cities were social media users. No wonder, marketers are flocking over to social media sites like Twitter and Facebook. Take for instance the Volkswagen Jetta’s Twitter campaign launched in mid 2011. Lutz Kothe, Head Marketing and PR, Volkswagen Passenger Cars, Volkswagen India shares, “We ran the world’s largest Twitter campaign during the launch phase of the new Jetta. Following this, we launched Planet Volkswagen – an interactive portal that opens up the world of Volkswagen not only for customers but also to anyone who loves cars and especially children. Planet Volkswagen has been established to connect, educate and create interest in the brand with this large audience – an audience without the barrier of time and distance.” Max Bupa’s Chhachhi feels that emerging gaming platforms and innovative technological devices such as tablets will further pave the way for growth of social media. However, Mathur sees social media as an enabler and not always as a destination. “It should be part of everything we do,” he says, adding, “Social is not merely a set of relationships between people, it’s a means by which people get things done – sharing conversation, consuming content, asking questions. Our social strategy is about one-to-few as opposed to one-to-many. We believe that creating meaningful social relationships around interest is far more powerful than large social groups with no character.” Experts feel that while social networking platforms allow marketers to leverage the free elements of their platform - what matters is the scale which can be obtained through a paid model. So while advertisers are including various elements of social media in their brand building initiative, it’s still a very small segment of the total advertising market. Google’s Sharma says, “I don’t think that the free element of social media will eat into the advertising. It’s like comparing the PR industry to the traditional advertising industry. Both have their different space and scope in the industry. Similarly, social media will continue to be adopted by companies to drive various agendas and objectives.”

Pitch | February 2012


Time to strike the deal! The deals website or ‘online Coupon category as it is called in India, has been another key trend on the online medium and has seen huge growth in the past twelve months. According to a report by comScore Media Metrix report, in India, 4.6 million internet users, aged 15 and older accessed the Coupons category from a home or work computer in June 2011, reaching 10.4 per cent of the entire online population. Snapdeal.com, which has tripled its audience in the past year, led the category with 1.5 million visitors during the month, followed by Dealsandyou. com with 9,90,000 visitors and MyDala.com with 9,52,000 visitors. Kedar Gavane, comScore Director for India, says, “The convenience of the online channel coupled with enticing deals has attracted a growing number of visitors to the Coupon category and to daily deal sites, in particular. Consumer adoption of these types of deal sites could be an important step in the overall growth of e-commerce in India.” The demographic analysis of the audience for Coupon and daily deal sites revealed that males made up a significantly larger percentage of category audience at 61.8 per cent compared to 38.2 percent females, although this is largely in line with India’s total internet population. Persons between the ages of 25-34 accounted for the largest percentage of the Coupon category audience

“Social is not merely a set of relationships between people, it’s a means by which people get things done” Nitin Mathur

Senior Director, Marketing, Yahoo India

Pitch | February 2012

at 43 percent and were five per cent more likely to access a Coupon site compared to an average internet user. Aneesh Khanna, Senior Vice President, Head - Marketing and Product Management, IDBI Federal Life Insurance, rightly points out, “Online advertisement along with social networking give consumers 24/7 access to targeted brands, offers and discounts. Hence online medium today is utilised not only to communicate but to reach out to target audiences to solicit and undertake business transactions, making it a far more effective and measurable medium.”

Innovation The digital platform today offers a variety of options to advertisers to achieve their objectives. In terms of innovation from creative execution standpoint, there is no limit to what is possible on the web - 2011 saw a lot of innovative campaigns that were designed and executed only for the online medium. Google India introduced some new ad formats on the medium in 2011 viz. Remarketing, True View Ads, Click to call ads and Media ads (check box for details on these. Undoubtedly the world wide web is the new cool place to be for the consumers and for the marketers but there are challenges too. The biggest challenge according to experts is that marketers today realise the power of the digital medium and want to do a lot of things but most of them are not clear on how to utilise the medium to maximise the benefit for the brand. Also, they don’t know what to do with it in the long run. A case in point was Aircel’s fantastic campaign: Save the Tigers got thousands of ‘Likes’, but what do you do with the property? How can you keep the audience engaged? And what do you do with these ‘Likes’? Sharma answers, “Internet continues to be the fastest growing medium in the country and we’re investing in skill building initiatives for partners and agencies to create an ecosystem to support and execute campaigns online for both large and small businesses.” So the big question remains the same: will internet be able to sustain the growth and expand its share in the total ad pie? To find out, head to the Outlook section.  -pallavi@pitchonnet.com

Some Google Innovations

Remarketing Remarketing allows marketers to communicate with people who’ve previously visited key pages on their website - a powerful way to match the right people with the right message

TrueView Video Ads TrueView Video Ads are a family of formats that give viewers choice and control over which advertisers’ messages they want to see and when

Media Ads When someone enters a search on Google, the search engine automatically displays the marketers video ad at the top of the search results page

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INTERNET OUTLOOK 2012

No speed limit Internet is the fastest growing medium and it is expected to upset shares of other mediums in the ad pie in the coming years By Pallavi Srivastava

I

nternet as a medium seems to be on a high ride. In percentage terms, it continues to be the fastest growing medium and will be on the same track in 2012 also, though the base is still small. But looking at its growth, that too is expected to go up very fast in the next few years. According to the Pitch Madison Media Advertising Outlook 2012, the internet revenues are expected to shoot up to ` 1,478 crore (excluding search advertising) as against ` 985 crore in 2011. The growth rate of the medium in the next twelve months is expected to be a whopping 50 per cent, reaching a pie share of 5.3 per cent. This does not include the search advertising component. The search advertising in itself is expected to grow by another 5o per cent to ` 825 crore in 2012 as compared to ` 550 crore in 2011. Including search, the over all internet pie is expected to grow up to ` 2,303 crore. Praveen Sharma, Head, Media Sales, Google India, says, “I think the overall ad pie will increase, as advertisers and marketers will realise the benefit of each medium.” As smartphones and tablets became a

50%

YEARLY SPENDS

2010 ` 680 Cr 72

People are increasingly depending on internet to find information around their home and workplace, be it for shopping, deals, movies, travel, etc part of our everyday lives, business owners’ conversations shifted from ‘Why should I advertise on mobile or build a mobile website?’ to ‘How do I get started?’. Specific ad campaigns and mobile applications have been devised by marketers to scale up reach by engaging customers in their choice of focused medium. This shift will see a significant rise in the coming year based on improvised systems, products and technologies that marketers will use to build, serve and measure mobile ads. Going forward, local content and local languages will be the biggest drivers for this medium. Nitin Mathur, Senior Director & Head of Marketing at Yahoo! India, agrees, “People are increasingly depending on internet to find information around their home and workplace, be it for shopping, deals, movies, travel etc, Additionally, a lot of new users coming on internet are seeking information in the language of their choice. We are going to see many more language destinations in times to come.” So it is local content and local language destinations that are expected to bring in

45% 2011 ` 985 Cr

the next set of 100-200 million users online. Sharma says, “Today, most of our services are available in local languages. We have developed tools, which can translate the websites to Indian languages. There is another tool called the translator tool kit, which basically helps translators to translate the content in Indian languages - this is based on machine translation and is very effective.” But, there is definitely scope to do more and publishers, app developers, hardware manufacturers all need to come together to bring in the next set of internet users. One challenge that the internet industry faces is the lack of strong presence of local businesses online. Experts feel, it’s the small businesses who need to get online with a website and that will truly move the needle for internet advertising in the country.  -pallavi@pitchonnet.com

50%

Internet, excluding Search, is expected to grow at a healthy rate of 50%, in 2012 2012 ` 1,478 Cr Pitch | February 2012


EXCLUSIVE!

COLUMN

Consumers want love

By understanding consumers, brands can cultivate loyal relationships

W

Milen Mahadevan

Senior VP-Client Solutions, Dunnhumby USA

inning with customers requires that businesses move beyond building preference for a brand, even beyond building loyalty. Consumers don’t want to consume, they want to love. They want to engage on an emotional level, in a way that is relevant. Most marketers accept the idea that personalization is the future of brand-consumer communications. That requires a fundamental change in how marketers think about their consumers and how they measure success. By understanding what is unique to them and leveraging that knowledge to build constructive dialogue, brands can cultivate a relationship that engenders loyalty. Many marketers already have the tools they need to realize the benefits of personalization, but most insist on using the same tired techniques when examining “average” consumer behavior. The myth persists that consumers within the same demographic will behave in identical ways. For example, the “average 32-year-old female” evokes a snapshot image of a married mother of two in a middle-income household of four. Picture this: Anna is 32, single and earns $90,000 a year. Her grocery trips tend to be frequent and quick, and Anna spends little time meandering through the

aisles. Instead, she moves deliberately, straight from fresh produce, to cheese and wine, to frozen meals, stopping for a few items in the personal-care section as she checks off her list. Now another picture: Julia is 32. She and her husband both pool an annual income of about $150,000. Their schedules are packed with extracurricular activities for their four children. Julia grocery shops just a few times a month. She scours aisles for new convenient but healthy products, browses the magazine aisle, and, as a treat, grabs a latte at the Starbucks kiosk. In reality, the commonly held view of a 32-year-old female can be wildly different from how actual people in that demographic engage with a brand. Not only do Anna and Julia’s lifestyles diverge from that of the “average” 32-yearold woman, but their behavior is much different. Consumer research often reveals a frustrating disconnect between perception and reality -- what consumers claim to want and what they actually purchase. Even if they are demographically similar, consumer needs and preferences for engagement can vary dramatically. For instance, one segment might appreciate convenient options and prefer to print digital coupons; another could seek healthier solutions and find value in health-related arti-

Consumer research often reveals a frustrating disconnect between perception and reality -- what consumers claim to want and what they actually purchase Pitch | February 2012

cles, while others may seek meal solutions through dish-pairing suggestions and recipes. By looking at the differences and similarities in purchases and online conduct, behavioral-driven segments let communications focus on the lifestyle of the household as a conduit for delivering value and rewards. Appealing to consumers’ unique needs and concerns enables brands to differentiate their message from irrelevant offers targeting the same demographic. It gives their audience a reason to open an email, engage with the brand and build constructive dialogue that rewards them for engaging. Segmenting groups of subscribers according to their behavior lends itself naturally to customizing and delivering pertinent messages, and consequently, forging meaningful and enduring relationships with consumers. When businesses turn to behavior-driven strategies, they are wisely shifting gears, moving away from relying on their communications to retain consumers and towards providing content consumers want to see. Understanding consumers through their behaviors will more clearly separate the winners from the losers in the near future. Brands now have the power to interact directly with their consumers, and personalization can increase engagement, helping to add to a single, intimate view. Consumers are telling us what they want. It’s our turn to show them we’re listening. 

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CINEMA REVIEW 2011

ROCKSTAR The year 2012, was one of the best for Cinema, which had blockbusters like Bodyguard and Ready. The year ended on a high note with Rockstar By Neha Goel

90%

T

he year 2011 was action packed with Bollywood Blockbusters and cinema crazy Andhra Pradesh and Tamil Nadu producing mega Blockbusters. The blockbusters were the bait for advertisers and thus cinema fared well in 2011. It clocked a whopping revenue of ` 140 crore as against ` 118 crore in 2010. The projected growth rate for the medium was 10 per cent but it grew at 18 per cent in 2011. The star power is the major reason for the pull of advertisers to the theatres. Sumant Bhargava, Managing Director, Stargaze Entertainment (Glitz Cinemas) says, “The bigger the film, more the advertising. Advertisers are now linking star endorsements into cinema advertising like with Shah Rukh Khan in Ra.One and Don 2 or Salman Khan based ads with Bodyguard.” While Ra.One, Don 2 and Bodyguard did the trick for Bollywood, 7 Aum Arivu starring Tamil actors Suriya and Shruti Hasan and Panjaa starring Pawan Kalyan and Sarah-Jane attracted advertisers down south. Another grosser was Rockstar which is estimated to have collected ` 36-40 crore from theatres in the first weekend of its release. “Around four to five films crossed the

YEARLY SPENDS 74

24%

Rs 100 crore mark. The advertisers were not expecting this to happen. But patrons walked into theatres in huge numbers,” says Arun Tyagi, Business Head, Big Cinemas. The medium continued to hold its ad pie share of 0.5 per cent vis-à-vis year 2010. There are various reasons that are being associated with marketers taking the medium more seriously. The basic

2007 ` 104.5 Cr

2008 ` 129 Cr

If 2009 was bad for Cinema, and 2010 was recovery, Cinema consolodiated its ad revenues in 2010, bringing in ` 140 crore, a growth of 18%

-20% 2009 ` 103 Cr Pitch | February 2012


18% 15%

2010 ` 118 Cr Pitch | February 2012

2011 ` 140 Cr 75


CINEMA REVIEW 2011

Highlights 2011

Tech savvy Ra.One not only tied up with multiple brands, had a 3D version, a customised PlayStation game; and a custom built movie channel on Youtube

Hero of the masses Salman Khan, the hero of the masses, had two releases in 2011, and both hits, ensured not only audience interest but advertisers’ interest too

Southern interest While the Khans did the trick for Bollywood, 7 Aum Arivu starring Suriya and Shruti Hasan and Panjaa starring Pawan Kalyan attracted advertisers down south

76

reason is the nature of the medium. It catches the audience when it is completely dedicated to the medium. Ad films get screened exactly at the position advertisers want them, be it just before the censor rating certificate or right into the interval. Having paid a price for the experience, the attention of audience remains undiluted. The scale of the medium results in cinema players becoming effective in selling cinema advertising than agencies like Dimples and Salvos. Devang Sampat, Chief Strategy Officer, Cinepolis India adds, “Our clients include HDFC, TATA Docomo, Star TV and Tupperware among the rest and we directly touched base with them.” Further he suggests, “Cinema advertising can now be clubbed with group bookings, displays and some interactive tools.” Another major reason is that there is a start towards aggregating ‘metrics’ for cinema advertising. This will also enable market research agencies like Nielsen and digital content providers like Real Image to offer advertisers evaluation of effectiveness of cinema advertising. Because of the medium witnessing a number of on-ground activities, it is being noticed that the number of active advertiser screens are also increasing. Sampat elaborates on the point saying, “Apart from onscreen, advertisers are viewing cinema as a medium to engage with consumers. It starts from the brand’s website, moves to the box-office and later also includes the entry of the hall as the brand’s touchpoint. Brands also place promoters on the exit of the halls so that the feedback on the product can be taken.” A lot is happening in Tier II and III cities. They are being seen as emerging markets. Every hall receives a footfall of 6 lakh to 9 lakh in a year. Advertisers can no more afford to avoid this chunk of potential consumers. In 2010, it was foreseen that the trend of customising the marketing and advertising strategies was emerging. The need of treating each film as a separate brand was felt. There was a huge sum allotted to the marketing of films alone. This created more buzz and in turn attracted

“Apart from onscreen, advertisers are engaging consumers on the brand’s website and at the halls too” Devang Sampat

Chief Strategy Officer, Cinepolis India more audience. The domino effect to this was more advertisers using the medium as a platform for advertising. Take for example Ra.One whose budget was approximately ` 150 crore in terms of making and ` 45-50 crore in terms of marketing and publicity. An upcoming trend is also that of brand associations and tie-ups which prove to be a good source of revenue for films. The growth of Cinema in terms of being a preferred medium for advertisers is funded by national players like Samsung, Hero, L’Oreal and the like and not much by local players. In terms of categories, Bhargava points out that real estate, automobile and infrastructure (cement & steel) were the top three advertising categories comprising almost 70 per cent of the revenues. However, Sampat also brings to light the other side of the story saying, “There are classified packages for local players and depend more on standies. Local jewellers, institutes and garment shops are big spenders in the local circuit.” Throwing light on the cinema advertising scene down south Tyagi says, “Andhra Pradesh and Tamil Nadu are driven by retail markets. Jewellers and institutes are another set of big spenders.” The cinema scene was sunny and bright in 2011. It, however, remains to be seen what 2012 has in store for the medium.  -neha@pitchonnet.com

Pitch | February 2012


CINEMA OUTLOOK 2012

A wider screen With big budget movies lined up starring, Aamir Khan and Akshay Kumar, Cinema is expected to continue its good run in 2012 too By Neha Goel

W

ith the big-budget and multistarrer movies like Aamir Khan starrer Talaash, Akshay Kumar starrer Rowdy Rathore and the untitled SRK project scheduled for release in 2012, the year looks promising for the medium and cinema advertisers. The ad revenue on the medium is all set to grow by over 15 per cent during the year 2012. According to the Pitch Madison Media Advertising Outlook 2012, the medium will be able to increase its share to 0.6 per cent in the ad pie, with a revenue of ` 161 crore, up from ` 140 crore in 2011. The year already seems promising with ‘Ek main aur ek tu’ and ‘Agent Vinod’ releasing. “Last year advertisers were surprised to see so many films crossing the ` 100 crore mark. Advertisers were not sure if films like Singham, Zindagi Na Milegi Dobara or Dirty Picture will do well. But now these hits have set the

tone for 2012,” says Arun Tyagi, Business Head, Big cinemas. Also, filmmakers who were reluctant of slotting their releases in the months of April, May and June due to IPL are no more following the trend. This is mainly because gradually IPL is losing its sheen and cinema is emerging as the clear winner. Another positive sign for the industry is the expansion of multiplexes in Tier II and Tier III cities. Sumant Bhargava Managing Director, Stargaze Entertainment (Glitz Cinemas) says, “With advertising now realizing the low CPT (Cost Per Thousand) to reach audiences in emerging Indian cities coupled with a higher growth for consumer goods companies and introduction of quality cinema exhibition infrastructure in these cities, they are now keen to allocate a higher share of the cinema advertising pie.”

Filmmakers who were reluctant of slotting their releases in the months of April-June due to IPL, are no more shying from releasing the movies in these months

The constant use of the medium as a way of engaging with consumers is further attracting advertisers. Devang Sampat, Chief Strategy Officer, Cinepolis India seems optimistic. “Advertisers have started taking the medium seriously. They have started allocating funds specifically for cinema and that is encouraging.” At the same time, multiplex owners are realising that they have an uphill task ahead in terms of innovation. They are realizing that innovation will be the key to drive ad revenues in the coming year. With increasing innovations on one-onone marketing with cinema goers, the advertiser today has an option to establish multiple layers of communication with them. Above all, the driving force will be the blockbusters that are slated for release this year.  -neha@pitchonnet.com

18%

15% YEARLY SPENDS

2010 ` 118 Cr Pitch | February 2012

While the growth rate may stabilise a bit for Cinema, it is expected to add about ` 21 crore more to its ad revenue total of 2011 2011 ` 140 Cr

15%

2012 ` 161 Cr 77


CMO VIEWPOINTS

Online is the way forward TV is getting fragmented and print is used mainly for tactical reasons. The way forward for marketers is online, which is engaging and measurable at the same time

“More than being experimental, marketers are using emerging mediums” Aneesh Khanna

Senior Vice President & Head, Marketing and Product Management, IDBI Federal Life Insurance

Advertising trends that emerged in 2011 While most life insurance brands communicate, using an emotional tone of voice to reach out to their target audience, we at IDBI Federal chose the tone of humour to communicate a rational differentiation. Online media was a game changer in the last year. Online advertising gave consumers 24/7 access to targeted brands, offers and discounts. Hence online medium today is utilised to reach out to target audiences to solicit and undertake business transactions, making it a far more effective and measureable medium. On media mix in 2011 and 2012 Over the past two-three years, we have been active in the television medium nationally, as it ensures reach across the length and breadth of the country. We also consider outdoor medium in select markets, to create an added impact.

On experimenting with new media More than experimental, marketers are conceptually utilising emerging mediums in media that have today shown effective reach and penetration to connect with the desired target groups. Although the new media, which largely consists of online medium still comprises of barely 10-15 per cent of the marketing budgets, it is growing fast. Financial products and services today are far more approachable with the help of online space, consciously developed by brands across the sector. More and more life insurers are making their products available online. Since, most products in the sector need solicitation to make an informed decision, the simpler term plans are gaining popularity in the online medium. On scope for innovation At IDBI Federal, we look at innovation differently, by ensuring that we gain higher

Online medium today is utilised not only to communicate but to reach out to target audiences to solicit and undertake business transactions 78

impact through any medium selected within the given budget. This is possible with innovative messaging and concepts that not only grab attention but also ensure lasting impression in the minds of the consumer. On advertising trends in 2012 Online advertising took significant leaps forward in 2011, and, riding a wave of technological advancements and savvy companies looking at not just clickthrough rates but actual visitor engagement, should continue to generate positive brand awareness in 2012. As smartphones and tablets became a part of our everyday lives, business owners’ conversations shifted from ‘Why should I advertise on mobile or build a mobile website?’ to ‘How do I get started?’. Specific ad campaigns and mobile applications have been devised by marketers to scale up reach by engaging customers in their choice of focused medium. This shift will see a rise in the coming year based on improvised systems, products and technologies that marketers will use to build, serve and measure mobile ads. 

Pitch | February 2012


“Slowdown fear will continue for a while” Tarun Khanna

Head, Marketing, Fiat India

On advertising trends in 2011 Internet has in reality come of age in 2011. A lot of brands have actually increased their spends on the medium and it has in reality started to pick up. Many automobile brands have even had launches over internet. On media mix in 2011 and 2012 Currently, 80 per cent of our marketing budgets are focused on TV and Print. TV is very crucial for us, because it is a key medium to build the brand for. Print is

more for the tactical purposes. Internet is also an important medium for us also because our audience is very active on this platform. For a brand like us, we will be active on digital throughout the year, but we will not be active on TV the entire year, still the spends on TV wll be much higher than on internet. In 2012, our spends on internet will grow significantly. We expect our internet spends togrow up by 50 per cent if not 100 per cent in 2012.

On advertising trends in 2012 As far as media spends are concerned, it will get more and more targeted. Markets are evolving a lot and advertising will vary a lot from market to market. Slowdown fear will continue for a while. Internet will get really big in 2012. A lot of brands are using internet now for the sake of being there but it will become more important to have the right digital strategy in place in terms of what internet does to your brand. 

“The pressure would be to engage consumers more and more” Sameer Suneja

Managing Director, Perfetti Van Melle

On advertising trends in 2011 There has been lot of confusion between marketers and media owners on the social media front. More companies are becoming aware about the importance of internet media but they are still not sure about how to utilize the medium for the benefit of the brand. On marketing budget in 2011 We spent about 10 per cent of our revenues on advertising in 2011. Percentage wise it was the same in as 2010, but obviously

Pitch | February 2012

since the revenues in 2011 were higher so were the ad spends in absolute terms. On media mix in 2011 and 2012 I don’t think there is too much change in the media mix for the FMCG sector. I do think that more people are ready to use radio a little bit more than they used to earlier. We are still largely driven by television about 90 per cent of the total ad spends. But we have started to focus more on the internet and radio. In the coming few years we will slowly evolve

with more spends on radio and internet. On advertising trends in 2012 Looking at the way media is consumed now, the pressure from the marketers’ end will be to engage consumers more and more on each platform, yet at an affordable cost and in an impactful way. A lot of going back to table will happen. In the last two years, marketing has been stuck to the formula like this much of TV and Print and then a bit of Radio and Outdoor. That style of thinking is going to change in this year. 

79


CMO VIEWPOINTS

“There will be more focus on emerging media such as mobile” Shefali Chhachhi

Director, Marketing, Max Bupa

On advertising trends in 2011 • Biggest online ad spenders were the travel, BFSI, auto and telecom sectors. FMCG sector, a large advertiser on traditional media platforms, is only now increasing spending on online advertising. • Low media penetration particularly across SEC B, C and D segments offers significant headroom for growth. • Discretionary spends are expected to grow and entertainment and leisure platforms are likely to become beneficiaries of this trend. • As metros and tier 1 markets near saturation, media companies are looking to penetrate the tier 2 - tier 3 towns and rural markets. For e.g. multiplexes have expanded across tier 2 towns, while DTH players have helped achieve greater C&S penetration across rural India. On marketing budget in 2011 The year 2010 was our year of launch, so our marketing spends were higher. In 2011 our spends were in line with our business plan. Last year, our focus was on TV, radio and outdoors followed by print. On media mix in 2011 and 2012 We have always followed a 360-degree integrated marketing approach. During our launch phase, the focus was more on ATL. Going forward we will increase the share of BTL in our overall marketing mix.

On experimenting with new media With increasing mobile and internet penetration, these are emerging as more efficient and impactful media for reaching consumers. More and more people are accessing information on the go and these mediums provide ample room for innovation. So yes new media like online and mobile advertising are attracting attention of many marketers. We have recently introduced our mobile heath application HealthFirst to help our customers’ health information on the go. This application enables our customers to access information on hospitals or emergency numbers, at their fingertips. Last year, we launched a new health website to support the ‘health promise’ movement www.YourHealthFirst.in. The website gives people actionable tips, health advice, health information which would enable them to keep their promise and seek any help if need be. Over 50, 000 people across India have taken a health promise so far. On scope for innovations If you have a big marketing idea, any medium can be used to innovate. For one on one conversations and quick optimization social media is a powerful tool. Radio is a very flexible medium which is very effective for direct and tactical messaging. It also helps in building brand salience and is a cost efficient medium for advertising

The health insurance category calls for customer education as the awareness levels are low. Hence, most of the players will focus on building category awareness 80

in smaller towns. At Max Bupa, we follow an integrated marketing approach. Marketing budget in 2012 In 2011, we focused more on tactical and BTL routes to expand our reach and this will continue in 2012. On advertising trends in 2012 • Advertising efforts will reflect the marketing task. The health insurance category calls for customer education as the awareness levels are low. Hence, most of the players will focus on building category awareness. At Max Bupa, we will maintain a balance in building brand and category awareness. • Social media become the key influencer. In India, social medial reaches 84 per cent of the online user base. Emerging gaming platforms and innovative technological devices such as tablets will further pave the way for growth of social media. • DTH is already witnessing high growth and will continue to grow as DTH bundles the power of TV, Print, Direct Marketing bundled into a single platform. • There will be more focus on Emerging Media such as Mobile. This is because of the following reasons: 750+ million mobile users in India; Easier & cheaper access to Mobile Internet; India is the second largest mobile internet market in the world; and Rise of Apps & App Stores • However, traditional mediums like Print and Television will continue to drive advertising revenues. Print is expected to be the largest contributor to the overall advertising revenues closely followed by television through 2015. 

Pitch | February 2012


“We have doubled our digital spends as compared to 2010” Lutz Kothe

Head, Marketing & PR, Volkswagen

On advertising trends in 2011 The digital media has emerged as a success story for the year 2011, however advertisement volume continues to be driven by the television medium with double digit growth witnessed. The World Cup and the IPL 4 have been the key growth drivers for advertising and viewership. We expect a similar trend to continue in the current year as well wherein the digital media will receive more focus while television and print will continue to have the higher pie of overall spends. On media mix in 2011 and 2012 Print and TV has been the lead media with print contributing 34 per cent and TV 42 per cent of our overall spends in 2011. As for the digital media we have doubled our spends as compared to 2010, currently contributing eight per cent of overall spends. In 2012, we focus will be on digital media, while we continue to be present on print and television too. On experimenting with new media Participation in the new media has definitely increased e.g. we ran the world’s largest Twitter campaign during the launch phase of the new Jetta mid of last year. Following this, we launched Planet Volkswagen – an interactive portal that opens up twhe world of Volkswagen not only for customers but also to anyone who loves cars and especiallychildren. It is a known fact that new media is growing at a very fast pace. In September 2011 as per IMRB report the claimed number of internet users in India stood

Pitch | February 2012

at 112 million. Off this about 71 per cent of users in urban cities were social media users – what better media than a twitter campaign for a carline like the Jetta. Similarly, Planet Volkswagen has been established to connect, educate and create interest in the brand with this large audience – an audience without the bar-

rier of time and distance. On scope for innovations Though we at Volkswagen have been delving mainly in print innovations, a well thought out innovation without losing the key communication objective can work very well in any other media as well. 

Form IV Place of Publication

: Noida

Periodicity of this Publication

: Monthly

Printer

: All Time Offset Printers, E-53, Sector-7, NOIDA – 201301, UP

Nationality

: Indian

Address

: B-20, Sector-57, NOIDA – 201301, UP

Publisher

: Mr. Annurag Batra

Nationality

: Indian

Editor

: Mr Amit Agnihotri

Nationality

: Indian

Address

: B-20, Sector-57, NOIDA – 201301, UP

Name and address of individuals who own the Publication and partners or shareholders holding more than one percent of the total capital: Owner: M/S Adsert Web Solutions Pvt. Ltd. B-20, Sector-57, NOIDA – 201301, UP. Shareholders Holding More Than One Percent of the total Capital of the owner Company: 1. Mr Anurag Batra, R-282, GK-I, New Delhi - 110 048 2. Mr Nawal Ahuja, C-2/2533, Vasant Kunj, New Delhi-110 070 3. Mr Amit Agnihotri, 505, Plam Grove Appartments, Sector-50, Noida, UP 4. Mr Shushil Pandit, 1A/49, Ashok Vihar, Phase-I, New Delhi-110 052 5. Ms Mona Jain, E-159, GK-III, Masjid Moth, New Delhi-110 048 6. Hive Communications Pvt. Ltd, 1, Nizamuddin East, New Delhi-110 014 I, Anurag Batra, hereby declare that the particulars given above are true to the best of my knowledge and belief. Sd Anurag Batra

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CMO VIEWPOINTS

“TV as a lead medium has become very fragmented” Harneet Singh Rajpal

Vice President, Marketing, Domino’s Pizza India

On advertising trends in 2011 TV as a lead medium has become very fragmented. So the TVRs that we used to get are not there anymore. From that perspective doing an effective media planning and achieve the target reach is becoming more and more difficult due to the fragmentation of the medium. Also, consumers are spoilt for choice today, with so many programmes and so many channels. So, then it becomes the case of how right you get the mix of genres. Second big thing that we have noticed is the advent of the digital medium. No marketer can ignore the digital medium now. Unfortunately there are not many agencies that have depth of knowledge, which can help us on digital marketing. So there are a lot of trials and experimentation happening and experimentation is not always efficient. So a lot of money goes but it does not go in a scientific and efficient way. So, right now, that medium is kind of flux. While you try to work with the best in the industry, they also have limited knowledge due to the medium being new. Another trend is that, mobile has started to take a lot of consumer mind space. With the coming of smart phones, people are spending very less time on TV. So, firstly there is a fragmentation hap-

Fragmentation of consumer mind space is another challenge due to the presence of so many media channels pening on TV, secondly there is a drop in the viewership. So, that makes the task of reaching the consumer much tougher. So fragmentation of consumer mind space is another challenge due to the presence of so many media channels. As a marketer, you have to be present where the consumer is. So, it becomes more and more difficult to track consumers and decide the strategy that should be taken. Mobile is another new medium but again, the knowledge of the medium in people driving this industry is very limited. Most of them are trying to follow what global trends are. But what happens globally does not happen in India. Indians have a unique way of understanding and digesting media. The leaders of the media will have to decide the way of going forward. Last are the social networks. Social sites like Facebook have become really big. But I would see this as a two-edged sword. I love this medium because I am in touch with my consumers. But it is

No marketer can ignore the digital medium now. Unfortunately, there are not many agencies that have indepth of knowledge of digital 82

equally risky because, if something goes wrong, it spreads like wild fire. But the good part of the medium is that it always keeps you on your toes. You know that people are always watching you. So you have to be careful about the product you are providing, the services you are providing, about the interactions you are having. On advertising trends in 2012 Social media is going to be big, digital marketing is going to be big. TV will remain the lead medium, however the format might change, consumption might change- instead of consuming it through the idiot box that you have at home you will start consuming it on your laptops and desktops. Marketing budget for 2011 4-5 per cent of our revenue. It’s been in this range for the past 2-3 years. Media mix in 2011 and 2012 This financial year, for the first time, we have started investing in digital marketing. Till last year we were only using TV as a lean medium and tactically we were using radio and outdoor. So this year a large chunk of our marketing budget is going into digital marketing.

Pitch | February 2012


BOOK REVIEW

Exclusive

Simple but not simplistic The author focuses the reader’s attention on the fact that despite digital becoming the preferred media for advertising, print and TV are still the media of choice to reach out to large numbers By Neha Goel

T

here are certain brands in the marketplace that have stood the test of time and have emerged as winners in the perception of consumers. ‘Darwin’s Brands’ by Anand Halve traces the journey of such brands that have made their presence felt due to their ever evolving and time-relevant communication. Going by Darwin’s theory of ‘survival of the fittest’ the book enlists brands which have managed to stay fresh and alive. With a total of 168 pages, the book explores the journey of brands such as Thums Up, Cadbury, Amul, Titan, Femina and Airtel. Divided in four main parts, the book looks at the interplay of forces that created the environment in which the brands operated and the strategies they adopted. The first section of the book covers six brands under the category of consumer goods; the second section takes into account four brands under the category of home improvement and durables and the last two sections look at the categories of media and services. Halve focuses the reader’s attention on the fact that despite digital becoming the preferred media for advertising, ‘print and TV are still the media of choice to reach out and touch large numbers of consumers and prospects.’ His observation about the changing scenario of the Indian society becomes clear when he writes, ‘Slowly but surely, Indians were learning to live well. And not feel guilty about it.’ He related such changes to the subsequent modifications in the communication strategies of brands. Despite being the author’s personal choice, the brands taken up fulfill the criteria of longevity, flexibility to adapt to changes and brands that have proven to be game-changers. Each of the case-

Pitch | February 2012

Darwin’s Brands By Anand Halve Publication: Sage Pages: 168, Price: Rs 395 studies shares a common thread running through the evolution of the brands’ strategies and actions. The case-study of Thums Up throws light on what made the brand face challenges that came into being due to the coming in of players like Pepsi. Halve’s interview with Ashok Kurien, the MD of Ambience Advertising, the agency handling the Thums Up account gives insights into the positioning and communication of the brand. ‘Kurien says, “We knew Pepsi wouldn’t do anything out of the box… or book! Since Pepsi’s basic platform was ‘the choicest of the new generation’, we looked for someone who could meet the criterion…”’ It was then that the brand brought Salman Khan on-board as it brand endorser. The story behind the ‘Taste the thunder’ punch line is another one that a reader wouldn’t want to miss. The Asian Paints case-study is one which would immediately capture the reader’s attention. The opening

paragraph does the trick. ‘It was said that the company used to put a one rupee coin inside every tin of Asian Paints. Painters got to know this through word of mouth, and would extol the virtues of the brand to householders who were unsure about which brand paint to use, and sought the painter’s advice.’ The style of writing makes the strategies simple but not simplistic. Halve, who is the co-founder and director of chlorophyll brand and communications consultancy has taken great effort in chronologically weaving together the brand strategies with the product category’s progress and status. The author has made sure that he gives the reader a complete overview about the category in which the brand functions. In the case-study on Hero Honda, he also talks about what was happening with Bajaj as a brand. He speaks about the ‘family approach’ that Hero Honda took up as against Bajaj’s strategy of keeping names at the ‘umbrella Bajaj level.’ The inquisitive minds who would want to know the why and how behind their favorite campaigns would be captivated by every word written. Further, the colloquial style of writing seasoned with the author’s personal anecdotes makes it an easy and interesting read. The in-depth research gone behind the book seems evident when one’s presumptions turn out to be myths while reading the case-studies. The book proves the point that it is the capacity to adapt to changes and formulate effective strategies that determines who survives in the hyper-competitive marketplace. It is a good read for people it has been targeted at - brand practitioners, students and business managers. n -neha@pitchonnet.com

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Jobs From Post: PR Head Company: Ferns n Petals Profile: A person should be full time MBA (Marketing) having 4-6 years of marketing experience in events/ activations/ marcom. Should have prior experience in Retail & Lifestyle sector. Exp: 4-6 Location: Delhi Email: tripti.sharma@fnp.com Post: Account Manager Company: Flags Communications Pvt Ltd

Profile: Should be passionate about advertising. In-depth understanding of ATL/ BTL communication is essential. Exp: 5-8 Location: Delhi Email: careers@flagscommunications.com Post: Floor Manager Company: India Exposition Mart Ltd. Profile: Should be having experience in Hospitality Management with minimum 1 Year of experienced/Fresher are also invited.

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yellow pages, space selling, insurance, etc. Should have a good idea of online sales/ marketing. Exp: 1-6 Location: Jaipur Email: impact.sales@rediffmail.com

agency background with 2-5 years of relevant experience of advertising sales, space selling or conc Exp: 2-5 Location: Noida Email: hr@elets.in

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Post: Manager- Ad Sales Company: IDC Technologies INC Profile: Minimum of 4-6 years of experience including 1-2 years should be within television. MBA, preferably. Exp: 4-6 Location: Mumbai Email: urvashi.arya@idctechnologies.com Post: Marketing- Sr.Executive/ Asst.Manager Company: Teamworks Soft-tech Pvt. Ltd Profile: Candidate from an Advertising Background is preffered. Exp: 2-4 Location: Hyderabad / Secunderabad Email: jayita@eteamworks.com Post: Brand Manager Company: Kisan Group of Companies Profile: Must have sound knowledge of Brand promotion through various media. Must be well versed with various types of media available, the right target media for the correct target audience. Exp: 5-7 Location: Mumbai Email: hrd.ho@kisangroup.com Post: Assistant Manager - Business Development Company: Elets Technomedia Pvt. Ltd Profile: Management Graduate with good communication and presentation skills. The ideal candidate should come from online/ media industry either from media sales or

Post: Account Director - Business Development Company: RC&M Pvt Ltd Profile: Experiential marketing / Rural marketing Business Development, client acquisition in BTL agency. Must possess activations knowledge BTL background must. Exp: 6-11 Location: Mumbai Email: hrd@rcmindia.com Post: Head - Digital Sales Company: ValueFirst Messaging Pvt Ltd Profile: Must have experience in Media or must be dealing with media agencies. Excellent time management and organizational skills. Exp: 10-15 Location: Gurgaon Email: careers@vfirst.com Post: Manager - Ad Campaign Company: Jasper Info tech Pvt Ltd. Profile: Any Graduate or Post Graduate with an experience of 2 years to 5 years. Exp: 2-5 Location: Delhi Email: careers@snapdeal.com Post: Manager- Public Relations Company: JCB Salons Pvt. Ltd. Profile: Excellent communication skills, organizational and decision making skills, detail oriented. Exp: 4-6

Pitch | February 2012 For Advertising Contact Us Landline: 91-120-4041700,India Toll Free: 1860 500 5558, Email: support@naukri.com


COLUMN

Realty bites While builders build a house, it is people who live in them, make them homes. What if real estate developers fail to deliver on their promises?

I Dhaleta Surender Kumar Deputy Editor, Pitch surender@pitchonnet.com

I am remembering the ad from one of the financial institutions – featuring a couple, standing on a half constucted building, and the husband ruing: Kab se che mahine mein banega, bol rahe hain... 86

had heard from my parents and elders that it takes a life time to build up your home, and a lifetime of savings to own it. I put my dad’s entire retirement provident fund and gratuity along with a home loan from DHFL at an interest rate of 11.75 per cent to book a house with Amrapali – that would be my home – in Noida. Amrapali had sent the Indian cricket captain MS Dhoni after me. He was on hoardings, on false covers of newspapers, enticing me to the Heartbeat City – The Sky Bungalows in Noida. It was June 2011, when I went to the view the site, an open wasteland in Sector – 107 in Noida. The deal was struck and a downpayment made and we were told that an agreement would be signed within a month. After a couple of days of making the downpayment, the Noida Extension problem started and me and my father’s anxiety levels were on a peak. Father dear had put his life long savings into it so that his dear son could own a house in Delhi. We were assured repeatedly that Sector – 107 wasn’t affected, and it wasn’t affected for sure. Yet all queries to sign the agreement, were being answered as – in a couple of days, next week, or a month. Why weren’t they signing the agreement? Amrapali was putting the blame on the Noida authorities. A call to the Marketing Director of Amrapali too referred me to some other senior person in Amrapali who assured me that the deal would be signed in August. We got a call to sign an agreement finally in October. Finally, the big day arrived and me and my father (who is the co-owner) dressed up for the occasion. At the dingy basement of Amrapali’s headquarters in Noida, we were told that there was another cheque to be signed – Service Tax, which Amrapali told us, would go to the government and not to the company. Why the hell we weren’t told that before? We had signed

cheques for downpayment, with quotations given by the company initially. I was ready for a fight, but dad calmed me down and hence another cheque towards the arrears – service tax was signed. Meanwhile, I had been told that I should arrange for next installment soon, so I should get in touch with banks for loans – institutions on Amrapali’s panel. DHFL cleared the loan in a week, and DHFL kept calling me to send them the demand letter. It’s been February, and I haven’t got any demand letter for next instalment from Amrapali. DHFL kept threatening me, my approval of loan would lapse within six months. Queries with Amrapali only got answers – we are sending the demand soon. Meanwhile, one of my colleague, who too had invested with Amrapali too received a letter for pending arrears of about Rs 35,000 for service tax. My colleague’s question was the same – why didn’t Amrapali quote prices or demand initial cheques added with service tax? A visit to Amrapali turned to be a nightmare. The Accounts’ Head was uncooperative, rude and washed his hands of the entire affair, stating that it was a matter between us and the ‘broker’. But wasn’t the broker on Amrapali’s panel? Amrapali certainly wasn’t dealing directly with customers. At this moment, I am remembering the ad from one of the financial institutions – featuring a couple, standing on a half constucted building, and the husband ruing: Kab se che mahine mein banega, bol rahe hain... The VO says: Bharosa kare usika jo de guarantee. I was told that Amrapali is reliable. But they seem to be conning and miscommunicating at every step. Can their marketing heads please stand up to their promise. n The views expressed here are of the author alone, and do not necessarily reflect the views of Pitch

Pitch | February 2012


COLUMN

The greatest Indian marketing campaign The Indian Freedom Movement seems to have all the ingredients that one employs to design a comprehensive marketing campaign Bitan Chakraborty

Marketing Head - Hiland Group, Kolkata

I

f we were to scan across our collective memories to recollect the great marketing campaigns that India has seen, we would find our mindscape strewn with innumerable brands hailing from categories as diverse as social awareness to commodities to consumer products to films to elections. All these would qualify to be called great for the impact they created on our minds and the resultant behavioural change we submitted ourselves to. However, there is one that stands tall amongst all these – The Indian Freedom Movement. It seems to have all the ingredients, tools and strategies that one employs to design a comprehensive marketing campaign and style it as a 360-degree strategy. Of the 4Ps of marketing, ‘Freedom from the British’ was the first P, i.e., the ‘product’ or concept that was being marketed, the second P of ‘price’ was the ‘utmost sacrifice’ that the seekers of this product wished to offer, the third P of ‘promotion’ involved any media we can think of from ATL, BTL, PR to viral, the fourth P of ‘place’ i.e., the distribution for this concept or product was spread across every corner of this entire nation. This marketing campaign had within

it various advertising campaigns to convey thoughts, ideals or philosophy to the masses. To fathom in this 21st century of the internet, that ideals or philosophies like satyagraha, swadeshi, civil disobedience, non-cooperation or Quit India espoused at some singl e location in this vast country would spread across this entire nation in no time without any formal mass media is just baffling and awe inspiring. The theory of every single philosophy would first be articulated by the national leaders who were at the helm and then gradually the same would trickle down to the farthest corner of the nation through discourses by local leaders at gatherings. Each of these theories would then have a BTL side to it to demonstrate the practical result that the philosophy intends to achieve and enable everybody to participate in the process and experience the outcome. All the activities like burning of foreign goods, adoption of indigenously developed goods, ‘jail bharo’, ‘gherao’ of administrative units leading up to the Dandi March are the BTL manifestations. The various local newspapers and publications did the PR job while other communication

To fathom in times of internet, that philosophies like satyagraha, would spread across this entire nation in no time without any formal mass media is just baffling Pitch | February 2012

collaterals like pamphlets, posters, banners, wall paintings were widely used. The radio was the most modern ATL media communication. However, it was viral (word-of-mouth) that was the most effective in terms of reach. The campaign for every philosophy had a national brand endorser as in the national leader espousing the thought and it also had the various local brand endorsers as in the local leaders who would build up local support for the cause and target the British administration across the country. Here was a marketing campaign which promoted the product or concept of ‘Freedom from the British’ to an entire national population without considering any SEC parameter. The medium and the message used to be the same whatever be the SEC of the target audience, and needless to say, no one ever got the communication wrong because of that. Yes, even at that time we had language translations of the national campaign for the various regions, and communicated by the local brand endorser of the region! The manner in which an entire nation was stirred to take up the cause of ‘Freedom from the British’ and fight for it has no parallel in any marketing history. Which is why, perhaps we should start taking lessons in marketing from the Indian Freedom Movement – The Greatest Marketing Campaign in India, ever. 

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COLUMN ANNURAG BATRA

The future of uncertainity The first six months of the year would be a test. Industry leaders would once again be challenged with tough decisions

Annurag Batra Chairman & Editor-in-Chief, Pitch Magazine abatra@exchange4media.com

O

n and off, I keep hearing conversations that the slowdown is back and 2012 will be another tough year. From the first signs or the way 2011 has ended, this may well be true. One cannot help but compare, what probably lies ahead to what was witnessed in 2008. Whether it was kneejerk reactions or pure caution, 2008 was a harsh year, and it taught quite a few lessons in survival to the Indian media and advertising industry. The silver lining of that cloud was that companies emerged stronger, and I do believe that that is what 2012 will also be about. I agree that the first six months of the year would be a test. Industry leaders would once again be challenged with tough decisions and where needed, they would need to make the tough calls as well. There would be some pleasant breathers also. The news industry, that has been a difficult 2011, should benefit in the first quarter. Political advertising revenues should fuel the industry in the first quarter of 2012. The likes of main-

line Hindi news channels are likely to benefit here the most. The month of March would mean good news for business news channels and regional language newspapers along with the Union Budget coverage. But if we take away these aberrations, as the Pitch Madison Media Advertising Outlook 2012 puts it, the industry is headed only for a nine per cent overall growth this year. There is no surprise that the study expects internet to grow at 50 per cent. Even in 2011, internet had over-delivered on expectations. One of the key reasons, to which this growth can be attributed, is the increase in internet users last year. Many traditional media players are also keen to participate in the growth that digital, as an enabler, is expected to bring and we can see newspapers, magazines and leading channels increasing their digital offer. In my view, some have a long way to go before they can truly comprehend the web medium but the likes of India Today Group and Star

The best thing about the Indian advertising and media industry is its unpredictable nature like the Indian policy. So I am open to welcoming surprises, when we do a review again, around this time in 2013 88

India are already doing some trendsetting work. Cinema seems to be the surprise package given that it grew more than expected in 2011, and is also expected to grow well in 2012 -- well, maybe not so surprising given the work that we are seeing brands do with new movie releases. Television is expected to grow at 10 per cent. A clear learning from television in 2011 was that some players have done exceptionally well but some very key players like Sun Network have had a tough year, and this has impacted the television industry on the whole. Print, radio and outdoor are also expected to grow in single digits. May be that means that these industries must look at ways of innovating and working out of the ordinary to attract the advertiser dollar. But on the whole, a nine per cent growth is respectable and means good news for the industry. The best thing about the Indian advertising and media industry is its unpredictable nature like the Indian policy. So I am open to welcoming surprises, when we do a review again, around this time in 2013. While we would like to be prepared for anything, I pray for pleasant surprises. ď Ž

Pitch | February 2012


Pitch || February February 2012 2012 Pitch


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Pitch | August 2011 rni regn.no.:deleng/03/11/11487

Pitch Madison Media Advertising Outlook 2012  

The media advertising outlook and review for India for the year 2012

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