Source: www.vikasdutt.com
Thursday, January 17, 2008
India’s ad spends grew 3.5 pc at Rs 17,356 crore in 2007
Lintas Media Guide 2008
exchange4media Mumbai Bureau
Snippets from the article...
While print continued to hold major share with 50 per cent of the total media spends with Rs 8,591 crore, Internet as a means of advertising saw an increase in ad spends of 43 per cent compared to last year, reaching Rs 215 crore. Radio, cinema, and outdoors, on the other hand, capitalised on innovations and saw an increase of 28 per cent, 16 per cent and 17 per cent, respectively, reaching figures of Rs 529 crore, Rs 194 crore and Rs 1,062 crore, respectively. TV ad revenues showed a decline of 0.8 per cent at Rs 6,766 crore as a result of competitive pricing offered by GECs to retain their market share.
Lynn de Souza, Director, Media Services, Lintas Media Group, said, “There are some surprises in store – ad spends have grown by a mere 3.5 per cent in 2007 over 2006, reaching a figure of Rs 17,356 crore, largely due to a fall of 1 per cent in TV expenditure, with large advertisers moving into more cost effective channels, slots and durations. With increasing media reach amongst the rural masses and the urban youth shying away from mass media, 2008 is set to offer enormous advertising opportunities as well as tremendous challenges.”
In television, with the number of channels likely to touch as many as 500 in the next two years, television as an industry is growing at a dynamic pace. Though the direct impact of this is going to be greater ad avoidance, but the time spent on watching any channel has moved up. Also, with this burgeoning increase in the number of channels, the distribution of these channels is rapidly changing. As of now, India is Asia’s second largest pay TV market after Japan. By 2015, it is expected to be the largest pay TV market surpassing the current leader.
In print, with literacy levels rising to 551 million people in India, more people in rural and urban areas are reading newspapers and magazines today. Current estimates reveal that the reach of print media in India has increased to 316 million people. Print media is also the favourite segment for global investors with maximum foreign investment in this segment. 2007 saw launches of many niche magazines like the ‘Vogue’, ‘Economist’ and others. The print media industry still has the potential to grow as 236 million literate people in India are still not tapped by any publication.
Of the total amount spent on ads in India, radio is estimated to have a share of 3 per cent in 2007. This share is expected to rise to 5 per cent during 2008-09. As per a FICCI-PricewaterhouseCoopers report, the opening of new radio channels has provided a boost to creative content. The demand can be estimated to as much as 1.5 million hours of content annually for around 300 channels.
Source: © exchange4media 2008
exchange4media Mumbai Bureau
Snippets from the article...
While print continued to hold major share with 50 per cent of the total media spends with Rs 8,591 crore, Internet as a means of advertising saw an increase in ad spends of 43 per cent compared to last year, reaching Rs 215 crore. Radio, cinema, and outdoors, on the other hand, capitalised on innovations and saw an increase of 28 per cent, 16 per cent and 17 per cent, respectively, reaching figures of Rs 529 crore, Rs 194 crore and Rs 1,062 crore, respectively. TV ad revenues showed a decline of 0.8 per cent at Rs 6,766 crore as a result of competitive pricing offered by GECs to retain their market share.
Lynn de Souza, Director, Media Services, Lintas Media Group, said, “There are some surprises in store – ad spends have grown by a mere 3.5 per cent in 2007 over 2006, reaching a figure of Rs 17,356 crore, largely due to a fall of 1 per cent in TV expenditure, with large advertisers moving into more cost effective channels, slots and durations. With increasing media reach amongst the rural masses and the urban youth shying away from mass media, 2008 is set to offer enormous advertising opportunities as well as tremendous challenges.”
In television, with the number of channels likely to touch as many as 500 in the next two years, television as an industry is growing at a dynamic pace. Though the direct impact of this is going to be greater ad avoidance, but the time spent on watching any channel has moved up. Also, with this burgeoning increase in the number of channels, the distribution of these channels is rapidly changing. As of now, India is Asia’s second largest pay TV market after Japan. By 2015, it is expected to be the largest pay TV market surpassing the current leader.
In print, with literacy levels rising to 551 million people in India, more people in rural and urban areas are reading newspapers and magazines today. Current estimates reveal that the reach of print media in India has increased to 316 million people. Print media is also the favourite segment for global investors with maximum foreign investment in this segment. 2007 saw launches of many niche magazines like the ‘Vogue’, ‘Economist’ and others. The print media industry still has the potential to grow as 236 million literate people in India are still not tapped by any publication.
Of the total amount spent on ads in India, radio is estimated to have a share of 3 per cent in 2007. This share is expected to rise to 5 per cent during 2008-09. As per a FICCI-PricewaterhouseCoopers report, the opening of new radio channels has provided a boost to creative content. The demand can be estimated to as much as 1.5 million hours of content annually for around 300 channels.
Source: © exchange4media 2008
Wednesday, January 16, 2008
Brand valuation is in...
Brand valuation measures mainly two criteria - the potential profitability of the brand and non-financial factors like brand recall as compared with competitors.
In India, such exercises have been undertaken mostly by large conglomerates, such as Tata, since it is easier to quantify the royalty to be charged from group companies using the corporate brand name.
However, of late, companies across sectors, especially fast-moving consumer goods and telecommunications, have been valuing their individual brands.
In the FMCG sector, brand valuation used to be popular mainly among multinational companies. However, sources say a clutch of home-grown entities are taking the route.
Disclosing the value of brands enables companies to have better investor relations and consumer perception. It also helps in tackling corporate litigations considering the rise in trademark cases, say companies.
For Surya Foods, the maker of Priyagold biscuits, this exercise was a precursor to the initial public offering. The value ascertained by the company for its brands was Rs 1,200 crore.
“We undertook the exercise to give a better picture to our potential consumers, distributors and retailers about the value of our brands,” said B P Agrawal, the company’s managing director. The company will use insight from the exercise to implement expansion plans nationwide.
Experts say brand valuation is more than a mere marketing tool: it has become a key management application.
For multinational companies such as Coca-Cola and PepsiCo, brand valuation is central to the strategy, which determines their marketing spend for each brand and gives them a competitive advantage. It is also a significant contributor to enterprise value.
“For Indian companies to partner the International Financial Reporting Standards (IFRS), brand valuation is crucial,” says Sanjiv Agrawal, partner, Ernst & Young.
“It helps companies to take key corporate decisions like selling a brand, setting up a joint venture, an acquisition, or towards improving brand performance. It’s also a check on the performance of their brand managers,”
“With more companies getting listed, or heading abroad to raise capital, and a flurry of mergers and acquisitions, global accounting standards expect companies to be transparent about their business operations, which includes listing brand valuation figures in financial statements,” said Unni Krishnan, managing director of Brand Finance India, a global brand consultancy company.
“There is also a growing realisation among companies that cutting costs is not the only way to create value. While brands are intangible assets, they are central to businesses like in the FMCG sector and, therefore, cannot be left unaccounted for,” he said.
© 2008 Business Standard
Source: agencyfaqs.com
In India, such exercises have been undertaken mostly by large conglomerates, such as Tata, since it is easier to quantify the royalty to be charged from group companies using the corporate brand name.
However, of late, companies across sectors, especially fast-moving consumer goods and telecommunications, have been valuing their individual brands.
In the FMCG sector, brand valuation used to be popular mainly among multinational companies. However, sources say a clutch of home-grown entities are taking the route.
Disclosing the value of brands enables companies to have better investor relations and consumer perception. It also helps in tackling corporate litigations considering the rise in trademark cases, say companies.
For Surya Foods, the maker of Priyagold biscuits, this exercise was a precursor to the initial public offering. The value ascertained by the company for its brands was Rs 1,200 crore.
“We undertook the exercise to give a better picture to our potential consumers, distributors and retailers about the value of our brands,” said B P Agrawal, the company’s managing director. The company will use insight from the exercise to implement expansion plans nationwide.
Experts say brand valuation is more than a mere marketing tool: it has become a key management application.
For multinational companies such as Coca-Cola and PepsiCo, brand valuation is central to the strategy, which determines their marketing spend for each brand and gives them a competitive advantage. It is also a significant contributor to enterprise value.
“For Indian companies to partner the International Financial Reporting Standards (IFRS), brand valuation is crucial,” says Sanjiv Agrawal, partner, Ernst & Young.
“It helps companies to take key corporate decisions like selling a brand, setting up a joint venture, an acquisition, or towards improving brand performance. It’s also a check on the performance of their brand managers,”
“With more companies getting listed, or heading abroad to raise capital, and a flurry of mergers and acquisitions, global accounting standards expect companies to be transparent about their business operations, which includes listing brand valuation figures in financial statements,” said Unni Krishnan, managing director of Brand Finance India, a global brand consultancy company.
“There is also a growing realisation among companies that cutting costs is not the only way to create value. While brands are intangible assets, they are central to businesses like in the FMCG sector and, therefore, cannot be left unaccounted for,” he said.
© 2008 Business Standard
Source: agencyfaqs.com
Tuesday, January 15, 2008
Bates David Enterprise, Chennai gets a new address
Bates David Enterprise, Chennai has shifted to a new location from January 7. The agency’s new address now is Golden Towers, Royapettah High Road, Chennai.
Source: http://www.exchange4media.com
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