| 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: XVIV |
 |
January, 2009 |
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outdated, we need a source that can keep track of what matters to us.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, 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.
Environment Watch: Advertising & Media
Regulation
17. Nokia 'takes back' to give back to the
environment – Jan 2
Nokia
has launched a green initiative to make India's environment better. Last
week, the mobile phone supplier announced a Take Back campaign to initiate
an e-waste recycling programme. Under the initiative, the company will
encourage people to dispose of mobile handsets and other accessories such as
chargers once their utility is over. The initiative is valid for all brands
of mobiles. The campaign will be initiated in three cities -- Bengaluru,
Delhi and Gurgaon, and Ludhiana -- for the initial month.The company has
laid out 1,300 recycling bins nationally and it will be working with
qualified recyclers around the world to ensure that the recycling process is
conducted responsibly and effectively. Only 3 per cent of the respondents
said that they had recycled their old mobiles.
Source: Agencyfaqs
18. Henkel launches
new CSR initiative – Jan 27
Henkel India has launched a corporate
social responsibility called, 'Eco-learn' to inculcate environmental concern
and sustainability in the youth. This programme aims at integrating
principles of environment and natural resource management into core business
systems
and practices. Speaking on the occasion, Roland Schroeder, global director -
sustainability laundry and homecare business sector of Henkel said: "Even
against the background of the recent economic crisis sustainability will
stay high on the agenda since there is a constant pressure on the world's
natural resources. Eco-Learn will target the B-schools in the country in the
first stage and engineering colleges in the second stage.
Source: Business Standard
19. Maruti Suzuki
offers lessons to promote safe driving – Dec 30
Maruti
Suzuki celebrated its 25th birthday this year -- the first Maruti 800 rolled
out on Indian roads in December 1983. To celebrate the occasion and
highlight its concerns about road safety, last week, Maruti launched a
corporate social responsibility (CSR) campaign, called National Road Safety
Mission. Of these, around one lakh people will be from the underprivileged
sections of society, who are keen to take up driving as a profession, and
they will be taught free of cost. Maruti already runs two Institutes of
Driving Training and Research (IDTR) in Delhi and 47 Maruti Driving Schools
(MDS) all over the country. Maruti Suzuki has already imparted safe driving
skills to 450,000 people through its training institutes.
Source: Exchange4Media
Retail
20. Centre plans 40 generic drug stores by
March – Jan 25
Mumbai, Jan. 25 The
Government-assisted retail stores to sell unbranded generic medicines have
begun to open across certain States as part of the Centre's
multi-stakeholder
strategy to get affordable medicines to people. The shops will be run by
NGOs, selected in consultation with the respective State governments, and a
two-track supply will be tied up through PSUs and private drug companies to
ensure alternative supply chains and an enhanced basket of products, the
official said. The generics shop, located in Government hospitals or
locations provided by State governments will not be subsidised and will have
to run as self-propelled units, the official added.
Source: The Hindu Business
Radio
21. IndustrySpeak: Digitally
speaking, radio is just on the verge of an explosion – Jan 19
While print and television have gone digital in a big way, radio has
not tapped into the medium in a full-fledged way. In the West, podcasts have
come a long way. In fact, mobile podcast has become a norm and is just a
matter of time for this to pick up in a big way in India. The Mirchi website
is exceedingly popular -- it just got voted the most popular website in the
radio and television category by Metrix-Nielsen in a survey spanning 1.5
million voters." Having a different take, Bhatia said, "Digital radio cannot
become the future of radio because digitalisation will kill the salience of
radio as a mass medium.
Source: Exchange4Media
22. Music royalty issue: ‘Don’t kill the golden goose’, radio industry tells
music industry - Jan 27
The
Indian Performing Rights Society (IPRS) has filed a criminal case against
Radio City President Apurva Purohit and other officials of Radio City for
copyright violation despite the fact that a civil case is already going on
in the Bombay High Court and the matter is sub judice. Though music royalty
has been a contentious issue for quite a while, some headway seemed to have
been made on December 15, 2008, following the meeting called by the I&B
Ministry between the music and radio industries along with the Registrar of
Copyrights and Secretary, HRD, to start a cumulative process for
nationalising music royalties for radio. The first step towards consensus of
royalty between music industry and FM radio has been taken.
Source: Exchange4Media
23. RAM-less Chennai FM players devise ways to keep track of listeners - Jan
27
Perception, top of the mind recall, listerners' initiative, knee jerk
decisions and programming manoeuvres -- all these have evolved as the
various tools at the hands of the Chennai FM players to fight the challenges
imposed by the absence of a common audience measurement system. Taking a
closer look at how the city is fairing as the only metro without RAM, has
thrown some light on the surviving tips of these stations vis-à-vis their
brand building initiatives and monetising processes. Ideating more and more
differentiating content in terms of the RJ quotient or programme format is
what has kept most of the stations busy, and this, in turn, help them build
their own identities before the advertisers.
Source: Exchange4Media
Others
24. New stamp duty rule worries ad industry –
Jan 14
The High Court today
did not give any relief to the advertising industry, which has filed a
petition against new law which levies stamp duty on advertising-related
contracts. Earlier, there was no stamp duty on
contracts
entered into by advertising agencies with their clients, and with the media
companies. But in 2005, state government amended Bombay Stamp Act, and
provided for duty on "all instruments related to advertisements in mass
media for promotion of a product". The main argument against the amendment
is that constitution does not allow state governments to levy tax on
advertisements in newspapers, radio, or TV.
Source: Business Standard
This tracker has been compiled from external sources and
does not necessarily reflect the views of the company.
Links provided will take you to the full articles appended at the end of
the file.
© 2008 Zenith Optimedia.
Full Articles
17. Nokia 'takes back'
to give back to the environment
January 02
Agencyfaqs
Nokia has launched a green initiative to make India’s environment better.
Last week, the mobile phone supplier announced a Take Back campaign to
initiate an e-waste recycling programme.
Under the initiative, the company will encourage people to dispose of mobile
handsets and other accessories such as chargers once their utility is over.
The initiative is valid for all brands of mobiles.
The campaign will be initiated in three cities – Bengaluru, Delhi and
Gurgaon, and Ludhiana – for the initial month. Subsequently, it will be
taken to other parts of the country in a phased manner.
D Shivakumar, vice-president and managing director, Nokia India, says in an
official communiqué, “Nokia is a responsible brand and company. We want to
contribute positively in every associated community and the issues that
concern the community.”
He adds, “Ecology is one of the biggest concerns today and, as an industry
leader, Nokia has designed India's first Take-Back programme for mobile
handsets. This programme covers not just Nokia handsets, but all mobile
phones. That is Nokia's unique contribution.”
For the purpose, Nokia has set up recycling bins across Nokia priority
dealer and Nokia care centres. For every handset received, the company will
plant a tree and also hand out a surprise gift to the donor.
Amrish Bakaya, director, corporate affairs, Nokia India, tells afaqs!, “For
this campaign, we have taken several initiatives such as training our staff
to give useful information to customers and equipped them well to handle the
inquiries on the subject. Apart from this initiative, we have plans to come
out with ecofriendly mobiles as well.”
The company has laid out 1,300 recycling bins nationally and it will be
working with qualified recyclers around the world to ensure that the
recycling process is conducted responsibly and effectively.
The initiative results from a survey that Nokia conducted across 6,500
respondents in 13 countries, including India, which threw up the fact that
though people, on an average, have owned around five mobiles per person,
very few of these have been recycled.
Only 3 per cent of the respondents said that they had recycled their old
mobiles. The majority, 44 per cent, said they simply kept the mobiles at
home. Others said they had given their mobiles a new life by passing them on
to friends and family or selling them.
Bakaya adds, “We realise that it will be a slow-burn process with the
awareness level on e-waste recycling as low as it is in India, but we have
started building up on that and are confident that the movement will gain
momentum as awareness increases.”
A survey revealed that India comes lowest in the category of awareness about
e-waste recycling, with a dismal rating of 17 per cent. One useful insight
that came out of the survey is the fact that if every Nokia user recycles
just one unused mobile, nearly 80,000 tonnes of raw material can be
accumulated.
18. Henkel launches new
CSR initiative
January 27
Business Standard
Henkel India has launched a corporate social responsibility called,
‘Eco-learn' to inculcate environmental concern and sustainability in the
youth. Henkel India is developing a CD, capable of making a positive and
profitable difference to the outlook of business students in India. This
programme aims at integrating principles of environment and natural resource
management into core business systems and practices.
Speaking on the occasion, Roland Schroeder, global director - sustainability
laundry and homecare business sector of Henkel said: "Even against the
background of the recent economic crisis sustainability will stay high on
the agenda since there is a constant pressure on the world's natural
resources. It is the key challenge within the concept of sustainability to
foster innovation while keeping the equal balance between i) ecology , ii)
economy/ employment and iii) equity/ equality (the three 'e' s). However,
with regard to future generations 'education' should be taken into account
as well and it might be seen as a fourth 'e'."
Eco-Learn will target the B-schools in the country in the first stage and
engineering colleges in the second stage.
19. Maruti Suzuki
offers lessons to promote safe driving
December 30
Agencyfaqs
Maruti Suzuki celebrated its 25th birthday this year – the first Maruti 800
rolled out on Indian roads in December 1983. To celebrate the occasion and
highlight its concerns about road safety, last week, Maruti launched a
corporate social responsibility (CSR) campaign, called National Road Safety
Mission.
Under the campaign, Maruti will provide driving lessons to five lakh people
in the next three years. Of these, around one lakh people will be from the
underprivileged sections of society, who are keen to take up driving as a
profession, and they will be taught free of cost.
Maruti already runs two Institutes of Driving Training and Research (IDTR)
in Delhi and 47 Maruti Driving Schools (MDS) all over the country. While the
IDTRs have been set up in collaboration with the Delhi government, the MDSes
have been set up with the support of Maruti’s vast dealer network.
Maruti Suzuki has already imparted safe driving skills to 450,000 people
through its training institutes. The National Road Safety Mission will
utilise the services of these institutes.
“We realise that training 500,000 people is a small contribution when you
look at the scale of the problem. We hope to be the catalyst for other
organisations to join the road safety effort,” says Shinzo Nakanishi,
managing director and chief executive officer, Maruti Suzuki India, in a
press statement.
“By involving underprivileged people, we seek to improve their employability
in the market and give them skills that will increase their chances of
landing a job,” a company spokesperson tells afaqs!
Maruti Suzuki has come out with a new logo created specially for the
National Road Safety Mission.
It will promote the initiative through various media and applications will
be accepted on a first come first served basis.
20. Centre plans 40
generic drug stores by March
January 25
The Hindu Business
The Government-assisted retail stores to sell unbranded generic medicines
have begun to open across certain States as part of the Centre’s
multi-stakeholder strategy to get affordable medicines to people.
The plan involves drug-making public sector units, pharmaceutical companies
and non-government organisations . And several State governments, including
that of Maharashtra, Assam, Tamil Nadu, West Bengal, Bihar and Gujarat, are
said to have shown interest in these ‘Jan Aushadhi 24X7 generic drug stores’
(JA).
The Centre’s Expression of Interest call received about 76 responses from
corporates and 60 from NGOs, a Ministry official told Business Line. The
Bureau of Public Sector Enterprises, under the former Chemicals and
Fertilisers Secretary, Ms Satwant Reddy, will streamline the process,
besides coordinating with the PSUs.
The plan is for 20-40 JA stores across States by this March, though a more
definite picture will emerge next month. The shops will be run by NGOs,
selected in consultation with the respective State governments, and a
two-track supply will be tied up through PSUs and private drug companies to
ensure alternative supply chains and an enhanced basket of products, the
official said.
The generics shop, located in Government hospitals or locations provided by
State governments will not be subsidised and will have to run as
self-propelled units, the official added.
Companies will be allowed margins between 18 and 25 per cent, the official
said, and yet, the cost of generic medicines sold at JA shops will be lower
than other retailers, he said. For instance, a 10-tablet strip of a new
generation antibiotic, priced around Rs 150 in the retail market, sells
around Rs 30 in Amritsar’s generic shop, the official said.
Amritsar saw the country’s first JA store open last November, and the unit
clocks credit sales, including Government hospitals, of about Rs 90,000 a
week, the official said.
Retail sales average about Rs 20,000 a week, he added. The Punjab and
Haryana Governments are powering ahead with plans to open more stores,
besides sourcing from JA for Government-funded programmes.
New Delhi will see its first store in early February, even as Punjab will
see its second store at Mohali and Haryana will open stores at Gurgaon and
Panchkula in close succession. Plans are afoot for stores in Guwahati and
Jorhat in Assam. The Centre’s National Informatics Centre has also been
roped in for customised software so the shops can go online and monitor
supplies, bills etc, the official said.
Pitfalls
Private pharma retailers caution that the roll-out needs to be thorough to
prevent it from getting mired in red-tape or bureaucratic processes. Also,
said a drug-company representative, doctors need to be encouraged to
prescribe unbranded generic drugs or medicines that are chemically similar
to an original branded drug, but much less expensive. To address such
issues, the recently formed Department of Pharmaceuticals is planning to
bring out an index publication of generic medicines that will be circulated
possibly next month, the Ministry source said.
21. IndustrySpeak:
Digitally speaking, radio is just on the verge of an explosion
January 19
Exchange4Media
While print and television have gone digital in a big way, radio has not
tapped into the medium in a full-fledged way. The opportunities are there,
in fact, quite a few FM players are going the Internet way with websites,
blogs, social networking, and virals. However, it will be a while before
Internet radio makes its appearance. The digital medium is still a young
medium and is a mere 2 per cent of the media spends. Radio industry’s share
of the advertising pie stands at 3.5 per cent.
Government laws as of now do not permit Internet radio, therefore, FM
stations cannot exploit this medium. However, some FM stations like Big FM
and My FM have gone the podcast way and are airing popular shows like
breakfast shows or humorous capsules. After the Bangalore launch, Big FM
plans to take the podcasting fever to other cities as well.
In the West, podcasts have come a long way. In fact, mobile podcast has
become a norm and is just a matter of time for this to pick up in a big way
in India. Most FM stations have their own websites, which are interactive,
informative and even feature music and video clips.
exchange4media takes an indepth look at the scope and roadblocks in the way
of radio going digital in India.
Making the most of digital
Prashant Panday, CEO, Radio Mirchi, pointed out, “At present, unfortunately,
no one in India is making any use of Internet at all, at least from the
radio streaming point of view. All broadcasters have reasonably
well-developed websites. The websites are mostly used for networking, blogs,
and information, and so on. The Mirchi website is exceedingly popular – it
just got voted the most popular website in the radio and television category
by Metrix-Nielsen in a survey spanning 1.5 million voters.”
Abraham Thomas, COO, Red FM, stated, “It has been Red FM’s endeavour to
extend itself beyond radio to offer its content and properties across
platforms. We have been using digital as a means to build listener
interactivity and promote our various properties through dedicated social
networks, specially created content, engagement through online contests,
blogs, and virals, to name a few.”
Anand Chakravarthy, Senior Vice President - Marketing, Big FM, told
exchange4media, “We have a specialised division called Big Digital in Big
FM, which offers clients digital solutions. It also offers VAS products for
mobile service products. Mobile VAS is a great source of income for digital
platform in radio, where we offer content to cellular service providers,
which they can monetise and we get the benefit. First and second source of
revenue being SMS and mobile VAS, the third source of revenue is creating
solutions for clients – radio services for all kinds of clients. We use our
website, where we create online solutions for clients as they want not only
radio solutions, but online solutions too. We use digital solutions to
create value for clients and give them radio plus digital (mobile solutions
or online solutions) and this is just the tip of the iceberg.”
Harrish M Bhatia, VP - Northern Region, AROI, and COO, My FM (Synergy Media
Entertainment Ltd), said, “My FM launched its website simultaneously during
the launch phase of the radio station and we have on-air links available on
the website. The online portal is also very interactive, allowing listeners
and users to connect with My FM and express their opinions and thoughts.
There are several properties on the website that allow My FM’s listeners to
participate in the My FM family through My Blog, My Poll, My Downloads, My
Song Request, and My Podcasts, to name a few.”
Jayyant Bhokare, COO, Radio Indigo, informed, “Today, we cater to half a
million users on our website on a monthly average, thereby creating a base
for people to interact with the station, getting feedbacks. This has
benefited us a lot and helped us do a much better job. As we get larger in
this network, you can also get into options like giving movie tickets or
even ordering a pizza through our website, and there are so many things that
are possible and we can provide our consumers.”
So, is digital the future?
According to Panday, “Generally speaking, yes. Digital in the larger context
is also the way that radio will go. Internet radio will grow in India as
Internet penetration increases. Music royalty issue and Internet streaming
also need to be sorted out. Apart from the Net, I look at telecom models
emerging as well as methods of digital broadcasting like DAB or DRM. Many
things will change as the move towards digital gains pace. Consumers will
get more choice; broadcasters newer streams of revenues. The exact shape of
this new world is not well defined yet.”
According to Thomas, “The FM industry will be able to truly use the digital
platform once it is able to offer FM on a digital platform. Currently, that
is not allowed by the Government and until that time, all digital efforts
are directed towards brand promotional activities like online marketing,
social networking, SEO, mobile marketing, etc.”
According to Chakravarthy of Big FM, “The opportunity is big because one of
the biggest USPs of radio is interactivity. Secondly, in India a large
number of listenership happens on mobile phones and, therefore, there is
already a close relationship between the FM station and mobile phones. The
other important aspect is that fairly decent revenue streams come to radio
through SMS. Currently, Internet radio cannot be exploited because
Government laws do not allow it. Music royalty issues are yet to be sorted
out, and once that happens, opportunities are certainly high.”
Having a different take, Bhatia said, “Digital radio cannot become the
future of radio because digitalisation will kill the salience of radio as a
mass medium. Although technology can enhance the penetration of radio, its
essence lies in being an easily accessible, cheap and common medium of
communication. The current model of FM radio is providing increased
employment opportunities, digitalisation would kill employment generation.”
Bhokare opined, “Digital is the future of radio, in fact, the two can be
integrated very well. Website is an extention of the station outside, since
we are allowed to podcast on the web. It has a lot of potential and throws a
lot of value for us. From the mobile aspect, too, it is another extension
since we are on a move, and through the mobile it enhances the quality of
listenership. I think digital is an immediate future in radio.”
Radhieka, Corporate Ad Manager, Tomato FM, noted, “It’s always good to
progress technologically, but not on a weak foundation and uneconomical
operations. These are the basic problems faced by the broadcasters, which
need to be addressed before the country takes the next leap to digital
radio. Digital radio will surely offer the consumers more choice with better
quality. But quality costs money and broadcasters are under pressure to make
savings. They must balance the importance of sound quality against the cost
of providing new services.”
How to reap the benefits?
Radio Mirchi’s Panday said, “The first thing we need is critical mass. We
have that with mobile phones, but not with Internet penetration. The second
thing is to remove all forms of barriers – music royalty, regulatory issues.
The third thing is to make it affordable – music royalty. And then we must
have some unique and engaging content. In many ways, this is the most
challenging. What is it that listeners will want from their ‘converged’
devices? A lot of effort is on – not only from the broadcasters, but from
many others as well. I don’t have anything specific to offer at this stage.
Mirchi is also making its efforts.”
According to Red FM’s Thomas, “All new technology is designed keeping in
mind media convergence. The technology on offer today allows radio content
to become platform independent, the ultimate benefit is of convenience and
choice to the consumer. We look at radio as a medium; our business is
creating Red as a media brand offering content across multiple platforms. In
India, Internet on mobile is what is poised to really expand. Already,
mobile phones are the preferred mode of listening to radio and it won’t be
long before the line between mobile, Internet and radio disappears for the
consumer.”
Radio by 2010-12
Big FM’s
Chakravarthy hoped that by then radio would surpass by large amount and
hopefully even surpass television. “It’s a challenge, and not necessarily
impossible. Over a period of time, the category will grow more, and more
consumers will come into this category, it will become far more powerful
even in terms of advertisers. You will find the content more exciting and
not only relevant, but using newer formats and new kinds of stations. If the
Phase III opens up, it will be an advantage and help spread our networks. If
multiple frequencies open up, that will be another development and news and
current affairs will again grow the category,” he added.
On an optimistic note, Bhokare of Radio Indigo said, “The future of radio is
really bright, and we are already getting there. As a medium, it is a really
fantastic medium to reach out to people..”
22. Music royalty
issue: ‘Don’t kill the golden goose’, radio industry tells music industry
January 27
Exchange4Media
The Indian Performing Rights Society (IPRS) has filed a criminal case
against Radio City President Apurva Purohit and other officials of Radio
City for copyright violation despite the fact that a civil case is already
going on in the Bombay High Court and the matter is sub judice.
Reacting sharply to this, Uday Chawla, Secretary General, Association of
Radio Operators of India (AROI), told exchange4media that the radio industry
was very hurt by the intermediating attitude of the music industry towards
the radio industry and towards its President, Apurva Purohit.
He added, “Our approach has always been that the radio and music industries
are interdependent on each other and hence, the growth of one industry will
lead to growth of the other.”
He informed that AROI had called two expert lawyers from EU, one of whom
advised the music and broadcast industry, so as to enable the radio industry
to understand international norms and follow it with detailed discussions
with music industry. “The music industry should not kill the goose that lays
the golden eggs, but take an egg every day. The unreasonable demand of the
music industry is killing the radio industry,” he alleged.
Chawla further said, “We have also strongly objected to this intermediating
attitude. We request the music industry to preferably unite and sit across
the table to resolve all issues. The music industry’s approach has been very
unreasonable, and now they are trying to hit the radio industry below the
belt by using intimidating techniques, which will have no effect except for
damaging the relations between the two interdependent industries. We request
the saner views in the music industry to prevail upon the IPRS and the other
numerous bodies claiming to represent the music industry to sit across the
table with AROI and resolve all long standing issues, and if required, using
services of independent international neutral experts.”
Though music royalty has been a contentious issue for quite a while, some
headway seemed to have been made on December 15, 2008, following the meeting
called by the I&B Ministry between the music and radio industries along with
the Registrar of Copyrights and Secretary, HRD, to start a cumulative
process for nationalising music royalties for radio. The first step towards
consensus of royalty between music industry and FM radio has been taken.
Set up in August 1969, IPRS is a non-profit body representing owners of
music – composers, lyricists, publishers, etc. IPRS is also registered under
Section 33 of the Copyright Act, 1957 as the only Copyright Society in the
country to do business of issuing licences for usage of music and collect
royalties from them, for and on behalf of its members, that is, the owners
of music and distribute this royalty amongst them after deducting its
administrative costs.
23. RAM-less Chennai FM
players devise ways to keep track of listeners
January 27
Exchange4Media
Perception, top of the mind recall, listerners’ initiative, knee jerk
decisions and programming manoeuvres – all these have evolved as the various
tools at the hands of the Chennai FM players to fight the challenges imposed
by the absence of a common audience measurement system. Taking a closer look
at how the city is fairing as the only metro without RAM, has thrown some
light on the surviving tips of these stations vis-à-vis their brand building
initiatives and monetising processes.
The Methods
Talking about the listenership measurement methods used by the FM stations,
PB Ramaswamy, Cluster Director, Big FM, Tamil Nadu, said, “We do research
every quarter on listenership. Top of mind recall and all other parameters
required are used through a research agency and we use this data for
Chennai.”
Speaking of the methods, Rajeev Nambiar, CEO, Hello FM, said, “Currently, we
are working with a research agency. It is our belief that those listeners
who take the initiative to interact with a station and its RJs also sample
the whole spectrum and hence, a better critic to gauge show popularity and
the complete nuance of the medium.”
According to an experienced media planner from Chennai, “Most of the FM
stations are caught up in their brand building stage and a lot of their
focus goes into creating an USP for the station. Ideating more and more
differentiating content in terms of the RJ quotient or programme format is
what has kept most of the stations busy, and this, in turn, help them build
their own identities before the advertisers.”
Ashok Sankethi, CEO, Kaybase, a Chennai-based market research company, said,
“The method we use for our client is very random, with emphasis on the
previous day recall. Since we provide a monthly report, it gives the station
the advantage of more continuous tracking. We use similar methods for our
clients in Kerala. And often the radio station clients happen to be our
independent clients and that makes it easier for the advertisers to depend
on our reports.”
The Challenges
Commenting on the challenges faced by the FM stations, Ramaswamy said, “When
we have a measurement system, it becomes easier to go to an advertiser and
justify our position. In Chennai, it is really a challenge because almost
all the radio stations will have to initiate their own research to study the
market.”
According to Nambiar, “In the absence of measurement, every decision maker
in the advertising fraternity are preview to various facts and figures.
Hence, one needs to facilitate sampling, and it is the measure of response
that makes final judgment of the station to drive further communication.
Also, the factor that plays in is the popularity by hearsay and the station
what your kith and kin hear on their radio sets. What they consume is what
they buy, from the perspective of a local advertiser.”
The stations are thus trying to sell mostly on the USPs and the results
earned by their pan-India counterparts in other markets. But what has left
the industry players complaining is the fact that process oriented approach
to brand building is not resorted to. Rate wars, freebies, value packs are
all that rule to fill ad breaks. Just as RAM is highly welcomed among the FM
players in Chennai, it is also felt by some that RAM should look at a more
friendly costing for its services.
24. New stamp duty rule
worries ad industry
January 14
Business Standard
The High Court today did not give any relief to the advertising industry,
which has filed a petition against new law which levies stamp duty on
advertising-related contracts.
The division bench of Chief Justice Swatanter Kumar and Justice Dhananjay
Chandrachud made it clear that advertising firms will have to furnish the
information regarding such contracts, as required by collector, stamps.
Earlier, there was no stamp duty on contracts entered into by advertising
agencies with their clients, and with the media companies.
But in 2005, state government amended Bombay Stamp Act, and provided for
duty on "all instruments related to advertisements in mass media for
promotion of a product".
Advertising Agencies Association Of India, Indian Society of Advertisers and
Indian Newspaper Society alongwith a few others then filed the present
petition, saying that amendment was unconstitutional.
The main argument against the amendment is that constitution does not allow
state governments to levy tax on advertisements in newspapers, radio, or TV.
It falls in union government's domain.
However, additional government pleader Niranjan Pandit said that word mass
media covered other media like hoardings, mobile vans, neon signs, etc too.
State has no plan to levy stamp duty on advertisments in newspapers, radio
and TV, Pandit told the court.
According to Pandit, the contracts between clients and agencies would
attract stamp duty.
Moreover, he said, the advertisements in magazines too would attract duty,
as magazines do not fall in the 'newspaper' category.
The petitioners, on the other hand, are contending that the amendment
violates the spirit of article 19, which guarantees freedom of speech, and
freedom of press.
"Right to advertise is a facet of right to free speech," the petition says,
adding that even Supreme Court has accepted in previous cases that there is
a link between "unhindered" advertising and freedom of press.
Pandit said that as of now, the government can collect stamp duty with
regard to advertising in other forms of media -- save newspapers, radio and
TV as court has passed no restraining order.
Petition will come up for hearing in due course.
Source: Business Standard