| From the desk
of Strategic Resources For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address: 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India. |
| Volume: X |  |
January, 2008 |
In these hyper charged times where news comes in as fast as it becomes
outdated, we need a source that can keep track of what matters to us. At
ZenithOptimedia we have created Wavelength to apprise all of us of the happenings
in three areas i.e. 1. Trends in Digital, Retail, OOH, BRIC, Consumers and
the International Advertising 2. Media & Advertising Research 3. Environment
Also included here are innovations and news that ZenithOptimedia is making
across its network globally, under three sections 1. ZO Zone 2. Fast Forward
3. Touchpoints.
Simply click on any of the sections on our snazzy control panel and you
will have the latest updates at your fingertips. Wavelength will reach you
in the first week of every month so that you have information that leads
to insights.
Drop in a mail at pchandra@zenithoptimediaindia.com with your suggestions
and comments.
Emerging Trends: Digital
01. Indian television households to adapt digital platforms by 2010 – Dec 20
According to Ernst & Young report - "India Digital Revolution: Impact on
Film & Television", 28% of the estimated 100 million pay TV households in
India will switch to digital pay TV platforms such as digital cable, DTH
(direct-to-home) and IPTV (internet protocol TV) by 2010. Within the Digital
platforms, DTH will lead. IPTV is expected to have a low growth because of
low
penetration of broadband. The report further
revealed that the Indian television advertising market will grow by 14%
annually from 2008 to 2011.
Source:
Agencyfaqs
Emerging Trends: Retail
02. Indian Franchising and Retailing Summit – (Nov 30-Dec 01)
The two day 'Indian Franchising and Retailing Summit 2007-08 highlighted the following points:
· Franchising as a business model grew at a rate of 30-35% from 2003-04; it is at a nascent stage, comprising nearly 50% of retailing in India. It provides employment to thousands of people and business opportunities to budding entrepreneurs.
· Tier II and Tier III cities hold the maximum potential for growth.
· For completion of a franchising model, brand name is important along with ambience and advertising of one's franchise.
Source:
Exchange4media
Emerging Trends: Others
03. Future ad spend in social networking to grow – Dec 03
The social networking industry in India is growing and is showing a promising future. National social networking sites such as Fropper.com, Desimartini.com, Yo4ya.com, and others are already striving to grab a larger share of the online user base in India. These websites are focusing on providing user-friendly applications. Fropper.com features ‘easy blogs’ to attract new users and build communities around them. On the advertising front, Microsoft launched ‘Sponsored Spaces’ on Windows Live Spaces as one of its new ad platforms. However, the social network advertising faces few roadblocks such as frequent user shift within the sites, which makes advertising to specific target users difficult for advertisers, and existence of very few professional bloggers, who blog for a living in India.
Source:
Exchange4media
04. Online search engine portals tying up with telcos to hit maximum consumers – Nov 28
With mobile phone users outnumbering PC-users in India by a factor of almost seven, the online search engine portals are tying up with mobile operators to reach maximum consumers. For example, Yahoo!, in India has tied up with Idea Cellular, BSNL, BPL Mobile and Aircel, and has a target audience of 60 million subscribers. Google has tied up with Airtel and can reach about 15 million potential customers per month on cost per click basis. With these tie-ups with telcos, the search giants are offering content from a variety of sources, including news, financial information, weather conditions, Flickr photos, Yahoo! Answers, movies, flight status, Wikipedia, currency converters, among others.
Source:
Economic Times
Emerging Trends: International
05. Viewers more engaged in ads that run with TV programs they watch online than those watched on TV-set – Dec 24
According to a cross-media study by Simmons, a unit of Experian Research Services, consumers are 47% more engaged in ads that run with television programs they view online than those watched on a TV set. The research also found that viewers are 25% more engaged in the content of TV shows that they watch online than that on a TV. The study found that people are 18% more engaged in ads online, as opposed to print versions, and that they are also 15% more engaged in magazine articles online than in print. In demographic terms, women and younger consumers were shown to have higher levels of engagement online than men and older users.
Source:
MediaPost Publication
06. Online reviews proving vital for purchase decisions – Dec 18, Dec 10
· According to an online survey of over 1300 product reviewers, conducted by Bazaarvoice to find out what influenced them to share their opinions, 90% write reviews in order to help others make better buying decisions, while 70% want to help companies improve the products they build and carry.
· A study conducted by comScore and the Kelsey Group revealed that nearly one of every four Internet users read online reviews prior to paying for a service delivered offline by restaurants, hotels, travel agencies, etc.
Source:
Centre for media research
07. Ad spend on social networking to double in 2008 – Dec 17
According to an eMarketer study, ad spending on online social networks worldwide will nearly double, to $2.2 billion in 2008 from $1.2 billion in 2007. US is expected to contribute the highest in the ad spend share as US social network advertising is projected to grow to $1.6 billion in 2008 from $920 million in 2007. The US social networking is dominated by MySpace and Facebook with a 70% share of the ad spend. The study further forecasts that global social network ad spend will reach $4.1 billion by 2011.
Source:
MediaPost Publication
08. TV to remain major medium for viewing video content – Nov 28
A survey of media executives predicts that the TV will be the major medium of watching video content; however, broadband will continue to make significant inroads into this domain for the next five years. According to the Digital Video Barometer survey, 90% of the survey takers believed that the Internet distribution will account for at least 40% of all video content by 2012, while 23% said that the Internet will account for 60% of content; 9% think that the Internet will have 80% of the video share. Nevertheless, almost two-thirds thought that TV would have at least 60% of all video consumption in the next five years.
Source:
The Reporter
09. Advertising expenditure on newspaper websites rising – Nov 27
According to preliminary estimates of The Newspaper Association of America, the advertising expenditures for newspaper websites increased to $773 million in Q3 ’07, a 21.1% over Q3 ’06. This is the fourteenth consecutive quarter of double-digit growth for online newspaper advertising since 2004. Newspaper website advertising accounted for 7.1% of total newspaper ad spending in Q3 ’07, compared to 5.4 % in Q3 ’06.
Source: Centre for media research
10. ‘Family Man’ position in men’s market is eroding – Nov 27
According to a report ‘US Men's Market’, by Packaged Facts, market research firm, companies should focus their future marketing efforts on men who are single rather than married. The study also suggests that even though women control family purchases of a range of products, men, especially single and divorced men, might constitute the primary demographic growth market, especially for discretionary products that include gadgets and feel-good foods. According to the study, men between the ages of 18 and 34 are likely to try new styles, new electronic equipment and health food. In addition, they watch out for special offers and shop for bargains.
Source:
MediaPost Publication
BRIC Zone - China
11. Advertising industry to benefit from Beijing Olympics – Dec 20
The Chinese advertising market may post increases of 29% in 2008, boosted by marketing campaigns for the Beijing Olympic Games. According to media agent Group M, growth in 2008 would beat the estimated 19% increase of 2007 because of the international event. The increase would also stem from rate hikes by mainland media firms, as major television stations such as China Central Television, Beijing Television and Shanghai Media Group might lift rates by 15% in 2008. Nielsen Media China said that advertising spending on traditional media such as television, newspapers and magazines grew by 14% in the third quarter to 115.7 billion yuan.
Source:
South China Morning Post
12. China’s retail sales reach 810.5 billion yuan – Dec 12-13
According to National Bureau of Statistics, China’s November retail sales rose by 16.4% year-on-year to 810.5 billion yuan in 2007. For the same period, spending in urban areas increased by 19.2% to 542.6 billion yuan while that in rural areas increased by 18% to 267.8 billion yuan. However, the spending rise is attributed to surging prices and not consumer demand.
Source: Xinhua Financial Network (XFN) News; Shanghai Daily0020
13. Chinese show buying preference for cell phones with web browser – Nov 30
In a survey of 31,668 people by CCID Consulting, 37% respondents said that they preferred buying a cell phone that could be used for online surfing; 33% hoped they could get one with the GPS function, which is a helpful tool to China's increasing car owners. More than 20%, primarily comprising the young generation who use cell phones as a music player, opted for a cell phone having a large storage disk. CCID Vice President Lu Guoying stated that the Chinese mobile phone market is expected to witness a boom from 2008 to 2010.
Source: Xinhua News Agency
BRIC Zone - Brazil
14. Brazil’s e-commerce industry expected to grow – Dec 19
According to the latest forecast by the Brazilian e-commerce Chamber, Brazil's e-commerce is expected to post a revenue of R$6.4 billion in 2007 against R$4.4 billion in 2006, and to end the year with 9.5 million clients. Revenues in 2008 are forecasted to increase by almost 50% to R$10 billion. The sector's Christmas sales are expected to grow by 45% over those in 2006 to R$1 billion.
Source: Gazeta
Mercantil News (Real Time)
15. Brazil’s retail sales on the rise – Dec 11
Brazilian retail sales grew by 9.6% in Jan-Nov ‘07 compared with those in Jan-Nov ‘06, according to local consumer credit rating service Serasa. The main boost came from a 12.1% growth in specialized retail, which includes electronic goods, vehicles and construction material outlets. Sales from supermarkets, hypermarkets, and food and drink outlets rose by 7%.
Source: AE
Brazil
BRIC Zone - Russia
16. Russia’s retail sales grew 15% year-on-year in Jan-Nov 2007 – Dec 21
According to the Federal State Statistics Service, Russia's retail sales rose 15% year-on-year to 9.529 trillion rubles during Jan-Nov 2007. In November, retail sales grew 15.6% year-on-year and 0.6% month-each-month to 1.013 trillion rubles.
Source: Prime-TASS News (Russia)
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