| 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: XV |  |
June, 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outdated, we need a source that can keep track of what matters to us.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, 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
1. Interactive online videos emerge as a new medium for advertisers to “talk” to the audience – June 25
With
brands in India having experimented with display ads, search ads and social
networks, marketers now resort to online videos for brand communication.
According to JuxtConsult,
an online
research solutions consultancy, 36% of the 35 million active internet users
share online videos.
The audience represents
an opportunity
for brands to not only
use audiovisual ads on the internet, but also make them more interactive.
The growing interest in the medium is evidenced by the entry of online video
ad agencies in India. The challenge for these agencies is to give marketers
another reason to increase their spending on the internet, touting video ads
as TV commercials, which actually let the viewers interact with the brand on
the spot. Sunil R Nair, director of Nautanki.tv which runs video ads online
through its network of original productions, predicts that in the next two
years if the Indian online ad industry reaches Rs 1,000 crore, videos would
account for approximately 30% of the industry. Unlike television, online
video advertising is extremely focused and guaranteed. An advertiser is only
billed for an ad seen by a viewer as opposed to being billed for the
‘perceived reach’ of a given TV channel. Furthermore, user location and
demographic data are leveraged to provide advertisers an opportunity to
target ads better. As internet advertising increases in value,
advertisers are looking for diverse ways to cut the clutter of banners and
search listings, and ‘talk’ to the audience. Video advertising presents that
opportunity to them, and as video content grows, it will be a right platform
to do so.
Source:
Agencyfaqs
2. Commercials on mobile score over other media for advertising – June 19
The
drop in the average revenue per user has compelled telecom and related
industries to look for newer avenues for growth. As a result the latest on
the block is advertising on the mobile. The mobile ad networks so
formed are similar to the ones on the internet. They comprise a publisher,
an advertiser, agency and a technology platform provider. Companies such as
Mobile2Win, Mauj and mKhoj having created the content for mobile platform
are digressing towards setting up their own mobile networks. Not only this,
internet has also joined the league. Some of the leading players on the
internet, such as Yahoo!, Google, Nokia, AdMob and AOL, are working towards
getting the internet model on to the mobile platform. It is also observed
that with the amount of ad volumes this medium can generate, it is emerging
as a huge opportunity, and holds immense potential if the industry looks
into means beyond the SMS. The innovation holds the interest of the
advertisers for the simple reason that the reach of the medium is vast and
accurate. Moreover, it constantly stays with the consumer. The medium also
scores over other media because of its ability to provide targeted
advertisement.
Source:
Agencyfaqs
3. International websites in Indian online space to go local – May 21
Ever
since the launch of the Indian versions of Microsoft and Yahoo!, foreign
players in the Indian online space have been compelled to go “local”. The
reason behind this is that local content is essential in key markets where
the internet is booming, and with 35 million active internet users, it is
difficult to ignore a market like India. Consequently, a large number of
internet users ensure more eyeballs for advertisers and hence Indian sites
make sense from a local advertising perspective, by providing a distinct
experience tailored to the domestic market. There are technical benefits as
well of having the content developed within the country on local
infrastructure, such as servers. According to Krish Sheshadri, senior
director, programming and product marketing, AOL India, apart from creating
an identity, a local web address helps in creating a local brand, this also
helps the consumers in getting a better experience online because the pages
load faster. Marketers feel that focusing on content relevant to the market
is the strategy that proves to be conducive to international websites. The
next level of localization would be offering regional language versions of
these websites.
Source:
Agencyfaqs
Emerging Trends: Retail
4. The ‘Global Sourcing: Shifting Strategies’ report released by PricewaterhouseCoopers states that, India is expected to be the top sourcing hub in retail and consumer sector globally in the coming years. Cost, quality and the environment would play an increasingly important role as companies seek to achieve competitive advantage from the global sourcing programmes – June 16
Source:
The
Financial Express
5. Retailers adopt new techniques such as tracking shopper behaviour to improve sales -June 07
With
the expansion in the retail domain, domestic retailers
are now resorting to newer techniques to track shopper behaviour. Big
retailers are experimenting with a host of new methods - IT solutions, RFID
(a
wireless barcode that identifies unique items using radio waves),
factory visits for customers, monitoring surveillance system footage,
point-of-sales system and appointing trained researchers for front line
sales positions - to study consumer behaviour. Such data is used to improve
the store layout, merchandise range and service quality, all of which
ultimately translate into improved sales. Some of the retail chains
who have joined the
bandwagon
include
Future
Group, Reliance Retail, Landmark, Shoppers Stop and Koutons Retail among
others.
Source:
The
Economic Times
Emerging Trends: OOH
6. E-kiosks, as the new OOH tool – May 28
India
Transact services, a provider of electronic/ online services to consumers in
the B2C space, has introduced the Wincor Nixdorf high end multimedia kiosks
in India and positioned these as “India’s first multi-convenience e-kiosks”.
Wincor Nixdorf is a global leader in producing kiosks and automated teller
machines (ATMs). Not only do these provide a single touch point for various
utility services, they also provide a
good
advertising opportunity. The advertising opportunities are in the form of
the large 37 inch LCD screens (placed on top of the user interfaces), which
play audiovisual content. The network of e-kiosks can also be used as a lead
generation network, particularly in the case of financial institutions and
banks. These kiosks offer multiple services ranging from travel bookings,
mobile top-ups/ recharge of any service provider, bill payments
(electricity, telephone) of a majority of billers/ service providers, cinema
ticketing and mobile downloads.
Source:
Agencyfaqs
7.
Ad-cabs emerge as a means of “on-the-move” advertising – May 20
Indian taxi companies, such as EasyCabs, Meru, Gold Cabs and Mega Cabs, are offering ad spaces to advertisers ready to invest in this mobile medium. Advertisers can place their communication on the four doors and on translites at the top of the car, which glow at night. Inside the cabs, advertising can be carried on the headrests. LCDs for the same are also in the pipeline. With other OOH media being static, these ad-cabs ensure high visibility.
Source:
Agencyfaqs
8. ‘adrickshaws’, a concept designed specifically for small towns and rural areas, are a perfect rural advertising medium. They are similar to normal rickshaws, the difference being that instead of a seat, they have an ad space. The vehicles are meant to provide advertising opportunity and interactivity with the target audience. The ‘adrickshaws’ offer a complete package of sight, sounds, interactivity and taste. – May 19
Source:
Agencyfaqs
Emerging Trends: Others
9. FMCG companies’ transition from branding to consumer engagement is marked by foray into online marketing – June 09
The
websites of most FMCG brands have now incorporated
games,
Facebook applications and entertaining videos, to keep the consumer
engaged. The focus has shifted beyond product push to relationship building
and looking at the entire spectrum of consumer needs that align with their
brand proposition. However, the companies spend approximately Rs 40-50 lakh
on an online campaign (including promotion) and Rs 15-20 lakh on a website
or viral campaign. A small slice, considering they spend nearly 10 times
that amount on mass media. The shift in focus can be attributed to a
transitional change from branding to consumer engagement.
Source:
Agencyfaqs
10. User Generated Content (UGC) looks promising for the future of media –May 28
According
to the 2008 PromaxBDA India conference’s session on 'User Generated Content
- The new media', user generated content (UGC) is the future of media. The
session laid emphasis on the importance of reaching out to consumers. The
growing popularity of blogs can be attributed to this. The conference also
laid stress on the need of existing media houses to adapt to this new means
of communication called UGC.
Source:
Indiantelevision
Emerging Trends: International
11. Olympics 2008 is on a trend setting spree by coming up with a strategy to hold a "green" edition of the Olympic Games. It is deemed that staging the "Green Olympics" is not only an action in Beijing's favour, but it can also push forward the sustainable development of other cities in China and thus bring a positive change to the world – June 24
Source:
Beijing 2008
12. Euro 2008 held promise for sponsors – June 09
The
sponsors of Euro 2008 roped in newer ways to grab the eyeballs of
media-saturated consumers. As a result, Euro 2008 sponsors embraced more
innovative strategies than ever to get their messages across. For many, that
included an internet presence – either through standalone websites or in
conjunction with UEFA's (Union of European Football Association) heavily
trafficked homepage – to offer extra services and promotions to soccer-crazy
fans. Other companies took a more "analogue" approach, providing live
experiences at the games or offline promotions to fans across Europe. The
sponsors looked forward to genuine interaction with the audience.
Source:
Spiegel Online International
13. Brand-subsidized content to drive the US ad funded mobile entertainment market – May 30
According
to a study by the Mobile Entertainment Forum, a global trade organization
the US ad-funded mobile entertainment market is expected to grow to $336
million by 2013, with brand-subsidized content accounting for majority of
the revenues, followed by up selling premium content. Mobile TV and video
would be the major contributor in ad-funded revenues within next five years,
followed by music and gaming.
Source: MediaPost
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
Agencyfaqs
June 25, 2008
Brands in India have done well in adopting the Internet for their branding and marketing activities. So far, they have experimented with display ads, search ads and even social networks. Now, marketers have another avenue opening up for their brand communication – online video.
Who’s watching?
In the US alone, Internet research company comScore reports that 10 billion videos were viewed online by 141 million people in December 2007. Citing ABI Research, eMarketer predicts that ad spending on online video in Asia will be $202 million in 2008 and will grow to $3.3 billion in 2012, scoring over the ad spends in Europe and the US.
According to JuxtConsult, 36 per cent of the 35 million active Internet users in India share videos online. This audience represents an opportunity for brands to not only use audiovisual ads on the Internet, but also make them interactive. The growing interest in this medium is evidenced by the entry of online video ad agencies in India. One of them is Jivox, a US based online video ad agency, which recently received $10.7 million in funding.
Similarly, Vdopia, an online video ad network, has operations in India and the US. Home grown agencies in the category include Monsoon Ads and Nautanki.tv. The challenge for these agencies is to give marketers another reason to increase their spending on the Internet, touting video ads as TV commercials, which actually let the viewers interact with the brand on the spot.
“The online video industry currently is a small fraction of the online ad spends in India, but the volumes are growing in leaps and bounds. What’s interesting is the fact that a lot of small advertisers – the ones who never went online for their requirements – suddenly feel that their TVCs can run (on the Internet) and give them branding opportunities that TV cannot because of the costs,” says Sunil R Nair, director of Nautanki.tv, which runs video ads online through its network of original productions.
Nair predicts that in the next two years if the Indian online ad industry reaches Rs 1,000 crore, videos would account for about 30 per cent. An internal survey conducted by the company suggests that around 670,000 unique visitors watch a video on the network per day.
The broadband penetration in India is 3.5 million (referring to Internet speeds of more than 256 Kbps) and this could be a factor in pushing the consumption of online video. YouTube, which recently launched an India site due to the growing usage in the country, is another indicator of the changing habits of users as Internet connections get faster. Naren Nachiappan, managing director of Jivox India, believes that about 15 million videos are watched online in India every day. He also expects video ads to comprise 15-35 per cent of the online ad industry, which is pegged at around Rs 400 crore.
Is it an online TVC?
Video advertising on the Internet is not simply playing the TVC online. It comes with a range of response mechanisms, which allows customers to interact with their brands. Harsh Nagpal, director of Monsoon Ads, says, “Unlike television, online video advertising is extremely focused and guaranteed. An advertiser is only billed for an ad seen by a viewer as opposed to being billed for the ‘perceived reach’ of a given TV channel. Furthermore, we leverage user location and demographic data to provide advertisers an opportunity to target ads better. For example, advertisers should be able to say ‘Target this ad only at women between the ages of 25 and 35 in the Mumbai region’.”
Online video is also different from search advertising, which is the fastest growing segment in Internet advertising. Saurabh Bhatia, managing director, Vdopia, says, “What distinguishes video advertising from search advertising, which is the major chunk of Internet spending in India, is that search finds who is needy and video ads create that need and desire. Video ads create brand recall... It’s the same difference as between TV advertising and classifieds.”
Some of the common formats of video ads on the Internet are pre-roll and post-roll ads, video overlays and in stream ads. Pre-roll ads play in the form of a short video before the actual video being watched plays, and post-roll ads refer to ads that follow at the end of the main video. Overlay ads work by providing textual information in the form of a banner at the bottom of the screen when the ad is playing. These can be clicked on for more information or turned off if desired. In-stream ads play between the video, similar to how we see ads in TV shows.
Elaborating on some of the innovations in video ads, Nachiappan says, “Video advertising itself, and particularly the capability to deliver video ads via existing ad units on a web page (such as banners) and within video streams, is a recent innovation. Other innovations that are particularly relevant in India include the capability to automatically and quickly detect connection speeds, and then serve up the most appropriate ad to that user, based on the ad’s bandwidth needs and the user’s Internet connection.” He explains how ‘bugs’ may be inserted in video ads –animations superimposed on the screen and product placements – where the user can click on a particular portion of the video for more information.
Microsoft rolled out contextual video advertising earlier this year, which is similar to product placements. The company was also the first to launch a simpler form of video advertising in India, Desktop TV, which plays TV ads online. Speaking about the platform, Rajnish, India head of Microsoft Digital Advertising Solutions, says, “The response has been encouraging as it has allowed us to reach out to a large set of advertisers and sample the medium with them as an effective option.” Apart from Desktop TV, Microsoft also offers video ads on its MSN Video site and has recently launched Messenger TV, where videos can be viewed while chatting. It recently tied up with MTV to use Messenger TV to promote its new series.
While regular portals such as Yahoo! India and Rediff have not warmed up too much to video ads, the portals of media companies have been showing the way. NDTV, CNN-IBN, Zoom TV and Network18 have all adopted video ads in association with some of these agencies.
A range of advertisers such as HDFC, Idea, DLF and Jeevansaathi.com are doing video advertising on these portals.
Does it work?
It may be a little early to say whether online video ads are actually delivering results. More so because video ads are seen as a brand building medium as compared to display and search ads, which are more performance driven. Nagpal says, “We have the capabilities to send users to online surveys, direct brand sites and micro sites to obtain a direct response during the ad. Advertisers are guaranteed that the response rate will be higher than on television because every ad played is actually viewed by a user.”
Online videos are usually measured in terms of CTR (click through rate), the parameter used for display advertising. Therefore, if the video is delivered 100 times and one person clicks on it, the CTR is 1 per cent. According to Nachiappan, the average response for an in-stream video ad is between 0.7 per cent and 2 per cent, that for an in-banner video ad (where the video plays within a banner) is between 0.1 per cent and 0.5 per cent, and that for an in-text video ad (where a text link opens up a video) is between 1 per cent and 3 per cent.
The industry average for banner ads in terms of CTR is between 0.5 per cent and 1.5 per cent, so video ads are not far behind. However, CTR may not be a suitable measure at all. Nair says, “Online video ads are normally in the range of 10-30 seconds and the engagement is far greater since the audience knows that the ad is followed by content that is of his choice.
Unfortunately, media agencies are stuck on CPC (cost per click) campaigns, forgetting that the branding that an online video ad provides is far greater than a text or banner ad.” Nautanki.tv recently launched a rating system for video content and is in the process of launching parameters to measure the effectiveness of online video ads. Bhatia agrees, “CTR is just one of the parameters and it is a function of creative and many other factors. It does not mean leads. With video, it means you have generated user interest and engagement.”
As Internet advertising
increases in value (it is expected to be worth Rs 1,000 crore by 2010,
advertisers will look for diverse ways in which to cut the clutter of
banners and search listings and ‘talk’ to the audience. Video advertising
will present that opportunity to them, and as video content (both original
and user generated) grows, it will be the right platform to do so.
2. Commercials on mobiles are a new rage
Agencyfaqs
June 19, 2008
The latest tussle for grabbing maximum eyeballs for advertisement will be fought on the mobile platform. The drop in the average revenue per user is forcing telecom and related industries to find new avenues for growth. The value-added services industry is still fragmented and advertisement within it still remains a small revenue stream. Serious steps, however, are being taken to increase this. One of these is the formation of mobile advertisement networks.
Mobile ad networks are just like ad networks on the internet. They comprise a publisher, an advertiser, agency and a technology platform provider. Consider the case of Mumbai-based mKhoj, a mobile ad network provider, which last week served its advertisement number one billion. On a monthly basis, the company serves 225 million ads on the mobile platform, has 300 partners and has worked with 42-50 brands. All the numbers have been achieved only in the last six months or so.
"These are certainly early days for a mobile ad network in India. Still, people do realize that because of the volumes this medium can generate, it is a huge opportunity," says Naveen Tewari, CEO, mKhoj. mKhoj has developed its own technology platform that, in real time, detects the type of handset that the user has, the type of service provider, the operating system the phone uses, location of the user and what is the user surfing. Based on this the company shows relevant ad to the user.
Tewari notes that the opportunity is huge. Firms such as Mobile2Win, Mauj, and others having worked for brands and created content for the mobile platform are coming up with their own mobile ad networks. The number of Indians using their mobiles to logon to the internet has increased from 16 million in 2006 to 38 million in 2007 (both GSM and CDMA).
For instance, Mobile2win has started talks with potential partners for the network and is entering into tie-ups with publishers and advertisers. "We have worked with over 100 brands. By creating a mobile ad network we would be just moving up the value-chain. Currently we are concentrating on building a technology platform," said Rajiv Hiranandani, country head, Mobile2Win.
Some of the leading players on the internet are working towards getting the internet model on to the mobile platform. Some of the names that are targeting the mobile ad network space are Yahoo, Google, Nokia, AdMob, AOL and others. Of these, Yahoo has already announced the same for India as well.
Ritesh Nair, CEO, Interactive Avenues, says: "Over the last two years mobile advertisement has certainly increased. But providers should move beyond WAP and mobile internet-based advertisement. If the industry looks at other means as well like SMS, it is a huge opportunity."
The other reason why
the advertisers are excited about this medium is the accuracy and reach of
this medium. The medium has the ability to provide targeted advertisement,
which is not possible in any other platform. Another advantage the medium
offers is that is remains constantly with the consumer.
3. Global websites go local in India
Agencyfaqs
May 21, 2008
‘When in Rome, do as the Romans do’ goes the adage, and it would seem that most international Internet companies in India think so, too. Going local has been the strategy of foreign players in the Indian online space ever since global giants such as Microsoft and Yahoo! launched Indian versions of their websites.
The trend continues with newer players such as AOL, Reuters and Google planting their Indian flags. While AOL India launched an Indian site in 2007, YouTube recently announced a website with an Indian domain name (youtube.co.in). In the platform which is the World Wide Web, there are no boundaries. So, what is it that makes Internet publishers create region and country specific websites? After all, there are many Indians who go directly to YouTube.com or Yahoo.com.
Krishna Prasad, executive producer, MSN India, suggests, “An international site does not necessarily have all the information that a consumer in a local country would want – for example, local news. In India’s case, India specific news is certainly more useful than US centric news. You can extend this logic to all the other verticals that we manage and run.”
MSN’s website in India is in.msn.com. Most industry professionals agree that local content is essential in key markets where the Internet is booming. No doubt, it’s hard to ignore a market like India, which has 35 million active Internet users.
SN Bhaduri, country manager, Consumer Media, Thomson Reuters India, says, “There cannot be a one site fits all strategy as far as content is concerned. If you go to each of the Reuters sites globally, whether the US, the UK, Japan or China, you will see that there is a subtle variation in the content and how it is presented.” The news organization launched a website for Indian readers, reuters.co.in, in September 2007.
A large number of Internet users also means more eyeballs for advertisers and hence, an Indian site may make sense from a local advertising perspective as well. Gopal Krishna, head of audience at Yahoo! India, says, “By localizing content and feel, we are able to provide a distinct experience tailored to the local market. This indeed provides flexibility to get different experiences, if you so choose. For instance, as an NRI in India, you can continue to experience cultures and news from the UK, India or the US. This kind of mix is definitely a big lure for advertisers as well, as it provides better and more flexibility to them, too.”
A local web address such as Reuters.co.in or AOL.in also creates a sense of identity as the domain is unique to India. There are technical benefits as well, of having the content developed within the country on local infrastructure, such as servers. According to Krish Sheshadri, senior director, programming and product marketing, AOL India, “Apart from creating an identity, a local web address helps in creating a local brand.
It also helps the consumers in getting a better experience online because the pages load faster. Our content and advertising deals are specific to the country.” For a user generated site such as YouTube, it makes all the more sense to have a local version. Sakina Arsiwala, international manager, YouTube, explains, “When a user uploads a video to the YouTube India site, they have the ability to ensure that their videos are tagged as originating from India. Upon searching for content on the site, relevant Indian content will be bubbled up over content from other locations. In addition to this, videos created by Indian
users will be featured on the homepage of YouTube in India.”
So, whether it is to
attract local audiences or advertisers, focusing on content relevant to the
market is a strategy that finds favor with international websites. The next
level of localization, of course, is speaking in local languages and most of
these websites have already started offering regional language versions. MSN
India is available in five versions, besides English, Yahoo! is offered in
nine regional languages and newcomer AOL launched with two regional
versions. However, as the online population in India is largely urban,
investments in local language portals will take a couple of years to gain
traction.
4. India to continue as top retail sourcing hub: PwC
Financial Express
June 16, 2008
China and India are expected to continue as the top sourcing hubs in retail and consumer sector globally in the coming years, even as concerns over rising cost, quality and environmental issues may impact their advantage, a latest PwC report says.
According to report ‘Global Sourcing: Shifting Strategies’ released by PricewaterhouseCoopers (PwC), cost, quality and the environment would play an increasingly important role as Companies seek to achieve new heights of performance and competitive advantage from the global sourcing programmes.
“Our feeling is that China will continue to be the leader in terms of sourcing activities for many years to come, however, concern over rising costs, carbon footprint and other issues may cause Companies to step up purchases in other countries over time,” the PwC report stated.
China is the number one destination for global sourcing activities with 83 per cent of Companies interviewed for the survey naming it as the top sourcing nation, while India follows at the second place with 58 per cent. “Global sourcing is experiencing robust growth with increased globalization. While cost is still the key driver of global sourcing activities, mature Companies are shifting focus to gain greater efficiency in competitive market, with focus on better quality products and collaborative supplier relationships,” PwC India retail and consumer leader N V Sivakumar said.
For success, Companies
need to adapt their organization structure and processes to manage the
supply chain risks, minimize impact on environment, as well as measure and
maximize cost savings, Sivakumar added.
5. Retailers adopt new techniques to improve sales
The Economic Times
June 7, 2008
Anonymous shoppers are becoming passé. As domestic retailers expand, they are adopting newer techniques to unravel the mysteries behind people's buying patterns. As a result, investment on tracking consumer behavior is at an all-time high for almost all the top-line chains, including Future Group, Reliance Retail, Landmark, Raymond, Shoppers Stop and Koutons Retail.
Big retailers are experimenting with a host of newer methods - IT solutions, RFID, factory visits for customers, monitoring surveillance system footage, point-of-sales system and appointing trained researchers for front line sales positions - to tap consumer behavior. Such data is used to improve the store layout, merchandise range and service quality, all of which ultimately translate into improved sales.
Mystery shoppers mainly generate information on service-related issues. But as retailers grow in scale, that alone is not enough. Hence, the need is now felt to initiate a direct touch with consumers through newer methods," says Landmark COO Himanshu Chakrawarti. In Landmark's case, such research has already paid off. Based on consumer feedback, the chain has introduced personal technology products like MP3 and MP4 players, which are doing very well.
Adds Raymond president (retail & FMCG) Aniruddha Deshmukh: "Besides mystery shopping, we use footage from surveillance cameras, which is a very useful indicator for observing customer behavior. We also get useful feedback from our specialized premium circle programme. There's also a point-of-sales system, which captures transactions and billing, and shows us the patterns of purchases by customers."
The chains have undertaken a lot of innovations. "Shoppers Stop, for instance, does a preview of new collections to loyal customers to see their reactions. Similarly, Kirtilals, a jewellery player, flies down a group of customers to its factory units in Coimbatore for a day. Pantaloons does a lot of focus groups, as does Shoppers Stop. A direct interface with key customers elicits information and helps gauge their preferences," Retailers Association of India CEO Gibson Vedamani told ET.
While global biggies like Wal-Mart, Carrefour and Tesco have adopted radio frequency identification RFID), the likes of Future Group and Reliance Retail are in the early stages of RFID adoption. "RFID has high implementation cost. But several Indian retailers have tested such RFID solutions and this will now pick up," said Dharmesh Lamba, country manager, Checkpoint Systems, an US-based retail technology solutions provider.
Till lately, there have
been instances when senior management officials of retail stores used to
frequent shop floor to get a first-hand view of consumer feedback. But with
expansion now becoming the mantra across the sector, the chains are adopting
newer solutions on the lines of their Western counterparts.
Agencyfaqs
May 28, 2008
India Transact Services has introduced the Wincor Nixdorf high end multimedia kiosks in India and positioned these as “India’s first multi-convenience e-kiosks”. Wincor Nixdorf is a global leader in producing kiosks and automated teller machines (ATMs).
The multimedia kiosks not only serve as a single touch point for many utility services, they also offer a great advertising opportunity. The advertising opportunities are in the form of the large 37 inch LCD screens (placed on top of the user interfaces), which play audiovisual content. Each 10 second spot played on these screens can cost an advertiser Rs 25-30. The campaigns could run from a month to a year. The e-kiosks are placed in areas such as petrol pumps and BPO offices.
The user interfaces (touch screens), too, offer opportunities for a marketer to power a consumer service electronically. For example, Yatra fuels the airline ticketing application. This could cost the advertiser Rs 2,000 per kiosk. The network of e-kiosks can also be used as a lead generation network, particularly in the case of financial institutions and banks. The customer assistance personnel who man the e-kiosks can be engaged as sales promoters.
“The product is dynamic and interactive at the same time. We have our digital signage software, where we can schedule content as preferred by advertisers; the same content can be broadcast at multiple locations at different times. We provide flexibility and scalability to advertisers,” says Tandon.
But how effective is advertising on e-kiosks? Tandon says that while there is no syndicated data available that measures the effectiveness of kiosk advertising in India, advertising on kiosks is an accepted medium in mature markets such as North America. For now, of the 100 e-kiosks, 70 are operational at select HPCL petrol pumps in Delhi, Bangalore and Mumbai. The remaining 30 will be set up by the end of May. India Transact has installed e-kiosks at the BPO, Accenture, as well.
The advertisers on India Transact’s e-kiosks include Yatra.com, Airtel, Rediff.com, Club Mahindra, UTV, Reliance Money and IndusInd Bank.
Is India ready for e-kiosks? Tandon says, “India is at a nascent stage for kiosk deployments; however, there has been an appreciable growth of 40 per cent in this segment over the last year. You will find marketers who have used a kiosk as a touch point for their consumers, some such examples are Vodafone and Reliance Money. There is always skepticism when a new concept is introduced, but our endeavor is to ensure loyalty among consumers as a result of their experience on the e-kiosk. It will take us a learning curve of five years as an ‘industry’ to achieve a level of ‘using kiosks as a way of life’.”
While other firms have also launched e-kiosks, they offer only single services. India Transact’s multipurpose kiosks offer multiple services ranging from travel bookings, mobile top-ups/ recharge of any service provider, bill payments (electricity, telephone) of a majority of billers/ service providers, cinema ticketing and mobile downloads. The India Transact e-kiosk uses a web based/ online system. The user interface screen is a touch screen and the user pages are simple and to the point, designed totally for customer convenience. There are multiple payment options for the services. There are customer assistance personnel, who educate consumers on the services available. The kiosks also have a telephone which connects to the customer care centre in case a consumer requires information.
Amit Tandon, business
head, India Transact, says, “India Transact Services was incorporated in
2007 to deliver online/ digital services through various software and
hardware platforms. We have so far invested Rs 10 crore in the business and
have a projected outlay of another Rs 40 crores in the next two years.”
7. Taxi advertising: It’s an ad-cab world
Agencyfaqs
May 20, 2008
The yellow taxis of New York have some tough competition in terms of advertising. Indian taxi companies, such as EasyCabs, Meru, Gold Cabs and Mega Cabs, are offering ad spaces galore to advertisers ready to invest in this mobile medium. EasyCabs of Carzonrent India has recently started providing advertising space on its fleet of cars across the country. The company provides advertising spaces both inside and outside the car, depending on the client’s requirements. It has 50 cabs in Chandigarh, 550 in Delhi, 350 in Hyderabad and 400 in Bangalore. It will soon commence operations in Chennai and Mumbai as well.
An advertiser can put up his communication on the four doors and on translites at the top of the car, which glow at night. Inside the cabs, advertising can be carried on the headrests. In two-three months, it plans to introduce LCDs as well inside its cabs. Permissions from the State Transport Authority and no objection certificates from the traffic police in each location have to be obtained to put up ad cabs. Ashok Vashist, chief operating officer, EasyCabs, says, “If you look at the history of radio taxis globally, it shows that the business was not viable till advertising became part of the revenue model.” He adds that EasyCabs has recently extended its fleet extensively, and this is one reason why they have started offering advertising. Their clients include Vodafone, Vishal Megamart, Emaar MGF and HPCL.
Vashist shares that the rate of advertising in one city for a minimum of four-five months will cost the advertiser around Rs 7,000-10,000. Lesser time frames will not be viable for the advertiser. “Other OOH media are static, while this is moving. It goes to airports and railway stations, ensuring high visibility,” he adds.
While EasyCabs has no fixed ratio of advertising from local and national advertisers, Vashist feels that numbers are critical. “An advertiser should take the entire fleet in a city for six months, rather than spread it thinly over 10-20 cars across the country.”
Another player, Meru Cabs, launched by V-Link Taxis on March 30, 2007, offered advertising right from the beginning. Meru offers the four doors and branding on the seat covers and back pockets. Meru’s clients include BPCL Speed, Radio City, Bharti Axa Life Insurance, Sahara Filmy, Reliance Consumer Finance and P&G’s Pantene.
Meru claims to have been approached by a few international brands, too. On the effectiveness and reach of taxi advertising, Neeraj Gupta, managing director, V-Link Taxis, says, “The more the number of cabs, the higher the visibility. According to World Advertising Research data for 2006, in London, cab advertisements produced around 50 impressions per mile. This comes to 7,500 impressions per cab per day. For the cabs in Mumbai, there are around 500 impressions per kilometer.
That comes to one lakh
impressions per day per cab and approximately 90 lakh impressions per
quarter.” Meru keeps a track of
the total kilometers run by the vehicles on a daily basis, as well as the
number of trips per day. This database is combined at the end of the month
and shared with the client as an ad effectiveness report. This gives the
client a complete idea of the exposure his ad must have received through the
month. Gupta adds, “Advertising on our cabs is like advertising on a mobile
hoarding running across the city which
gives good mass visibility.” Other locations that see a lot of taxi
advertising are London, New York, Singapore, Thailand and Dubai.
8. Rickshaws: No longer just a transport option
Agencyfaqs
May 19, 2008
The out of home industry in India is picking up speed. Innovations and new technologies are driving the industry today. The new addition in the list of innovations are ‘adrickshaws’, launched by specialist agency Rajat Advertising in Chattisgarh.
Rickshaws conjure up the picture of zooming three wheelers with no shock absorbers, blaring Hindi film music, adorned with garish stickers, colorful mirrors and pictures of Bollywood heroines. Adrickshaws are nowhere close to these, cannot be used for transportation and are mainly for outdoor advertising.
Rajat Gupta, owner and promoter, Rajat Advertising, came up with the concept of adrickshaws designed specifically for small towns and rural areas. Adrickshaws are similar to normal rickshaws, the difference being that instead of a seat, they have an ad space. Each adrickshaw has a 6 feet x 6 feet backlit double sided display for ads.
On why these were introduced in Chattisgarh, Gupta says, “I am originally from Chattisgarh, but lived and worked in Mumbai for some time. Initially, I took the concept to Navi Mumbai Corp., but I faced a lot of politics and regionalism, and was not given a chance. Tired and frustrated, I decided to launch the concept in my home town, Raipur. My determination to implement my concept brought me back here.”
Gupta has set up the project with an initial investment of Rs 5 lakh. Ten adrickshaws have been launched in Raipur, Bhilai and Durg. The number will be increased to 30 to cover all of Chattisgarh, including the rural areas.
Adrickshaws began their journey with Reliance Mobile Smart GSM in Raipur, and went on to cover all of Chattisgarh. Other local clients include Vishal Megamart, Apna Bazaar and Kishore Mall. “While local players will form a big part of the client base, it doesn’t stop national players from reaching out and tapping small towns and rural areas,” says Gupta.
The campaigns can run for between 15 days and two months. The cost of advertising is Rs 500 per day per adrickshaw. It takes about an hour to stretch a flex on an adrickshaw. The rickshaw rider can also wear the brand message or uniform, and be trained to give out information.
“Such vehicles will provide advertising and interactivity with the target audience. The adrickshaws offer a complete package of sight, sound, interactivity and taste. Let me tell you how each of these elements come into play,” says Gupta. “Sight in the form of the backlit ad, which provides an excellent view to both a mobile and standing audience. Sound in the form of recorded audio delivered on DVD/MP3 format, which provides clarity.”
Interactivity is the third element. All rickshaw riders are promoters in the client’s uniforms and interact with the target group. Gupta adds, “The eligibility standard for rickshaw riders is that they must have passed Class 10, and have some knowledge of English as well as the local language. They are trained to be well informed about the product or service being advertised. They distribute flyers and brochures, and can fill up short response forms or contest forms.”
Gupta adds, “The fourth element is taste or experience. For example, a telecom company can install a GPRS/ GSM modem inside the rickshaw, which sends free ring tones/ SMS offers to anyone within a range of three metres of the rickshaw. Sampling of products can be done for an FMCG company.” After covering Chattisgarh, Gupta plans to introduce the adrickshaws in the Vidarbha region. “Our effort is to provide advertisers a combination of OOH and BTL (below-the-line), a perfect rural advertising medium.”
The adrickshaws
were launched on April 19. Gupta claims that the response has been
fantastic. “While people are used to seeing rickshaws making announcements,
they never expect to see a backlit display, clear sound, well dressed and
presentable rickshaw riders distributing flyers. Everyone who has seen the
images or adrickshaws in person has appreciated it,” he says. The
agency also plans to launch e-rickshaws or electric rickshaws in October.
These come with battery fitted motors, which, once charged, can cover
distances of about 80km. This will help in covering more ground. Gupta has
more than a decade of experience with agencies such as TDI India (airport
advertising), MOMS, Madison Retail Paradigm, Hansa Outsell (the OOH division
of RK Swamy) and Network Media Solutions.
9. FMCGs step up the pace on online marketing
Agencyfaqs
June 09, 2008
FMCG brands have always been accused of being slow in adopting the online medium. However, the online presence of FMCG brands is no longer confined to brochure like web pages. Most of these brands are actively engaging their consumers by creating interactive online campaigns using micro sites, games and social media sites.
Evolving online
The websites of most FMCG brands now lead consumers to games, Facebook applications and entertaining videos, which is keeping digital agencies quite busy.
Hindustan Unilever Ltd (HUL) is reportedly one of the biggest FMCG companies to spend on Internet marketing. It has a website for most of its popular brands and some of these sites are quite engaging. The best known example, of course, is Sunsilk Gang of Girls, which has become a case study for Indian marketers on how to use the online medium. HUL’s latest campaign online was for the Lux Provocateur limited edition soap, for which the company created a fantasy themed site and a Facebook application. BC Web Wise created the Sunsilk Gang of Girls site for HUL.
The agency has created online campaigns for other FMCG companies, too, such as Lifebuoy, Sunfeast, Kelloggs, Horlicks and Pepsi. Chaya Brian Carvalho, managing director and chief executive officer of BC Web Wise, says, “These companies are definitely moving towards consumer engagement and long term strategies. The focus is on relationship building and looking at the entire spectrum of consumer needs that align with their brand proposition. They have gone so much beyond product push.”
PepsiCo is another brand which has a dynamic online strategy. The latest campaign by the beverage brand is about a non-existent place called Youngistaan. The Internet is the only medium which could give real shape to the concept. So, BC Web Wise created a virtual Youngistaan for Pepsi, complete with a movie theatre, a pizza joint and a canteen.
Another brand of PepsiCo, 7-Up, has an animated site on the soft drink’s latest campaign, Bheja Fry. As animated nuisances bother the character on the site, a bottle of 7-Up makes them all disappear, aptly demonstrating the campaign’s message. People visiting the site have been invited to upload videos, audios, pictures and SMS messages of their own Bheja Fry situations.
Webchutney is the agency behind the 7-Up site and it is also creating campaigns for brands such as Mirinda, Mountain Dew, Happydent and Orbit. Commenting on the changing attitudes of FMCG companies, Siddharth Rao, co-founder and CEO of Webchutney, says, “The focus on user generated content (UGC) has increased, and in fact, brands insist on creating a platform to encourage their consumers to contribute to the brand story per se. A more aware breed of brands and agencies are willing to experiment with the medium through social media and entertaining and engaging content. Marketing online is shifting towards creating conversations which range from UGC to feedback.”
The agency has also developed viral campaigns for these companies, another medium which has caught the fancy of the category. Brands such as Sunsilk, Happydent and Bingo have experimented with virals or animated videos which are usually humorous.
Social experiments
Social media is still a new realm for Indian advertisers, though brands such as Lux, 5 Star and Bournvita are experimenting with the medium through Facebook applications.
Some brands have taken the next step in interactivity. Cadbury’s site for 5 Star, www.lostin5star.com, has a section where people can create a Missing video of their friends and send it to them as a prank. Something similar has been developed on Perfetti’s site for Center Shock, where a fake news bulletin can be created using a friend’s name. ITC created a virtual campus on its site for chips brand Bingo, and has plans to evolve it into a Second Life type of world.
Though HUL, PepsiCo, Coca-Cola, Perfetti Van Melle and ITC are the usual suspects with big budgets, there are other FMCG companies, which were not seen as Net friendly in India, but are now pulling up their socks. So, now we have companies such as Godrej, Marico, CavinKare, Procter & Gamble and Colgate-Palmolive, which have joined the bandwagon for their brands, which include Cinthol, Saffola, Spinz, Whisper and Colgate Max Fresh.
“We are moving fast – from ‘How can you take this TVC forward online’ to ‘What are the interesting things I can do online in the next three years?’. FMCG clients are increasingly looking at online as an effective marketing tool, and it makes sense as their target audience is all here, especially the youth,” says Subhomoy Sengupta, creative director, Interactive Avenues. The independent digital agency has developed an interactive site for Godrej’s personal care brand, Cinthol, where people can play games on the freshness theme. The agency also works with John Players, Colgate and Coca-Cola for their online campaigns.
Despite the positivity, many still believe that with their spending power and brand muscle, FMCG brands could still do better in exploiting the online medium.
CVS Sharma, senior vice-president and director, Arc Worldwide, says, “There are some who still believe in ending a TV ad with a log on to www.abcd.com and participate in ‘khelo’ and ‘jeeto’, which serves no purpose. The 3,000 entries that happen do not merit the ad space wasted.
Neither are they using their TV spot effectively, nor are they maximizing their online presence. Our advice to FMCG marketers is to treat online as no different from the TV medium. No one is going to buy a 50 paisa candy by logging on to a website. Maximize campaign visibility using interesting creative hooks at various digital media touch points. If you have a target of 5,000,000 views for a TV ad, similarly, see how many views your banner ad/ micro site can generate.”
Arc Worldwide, the integrated marketing arm of Leo Burnett, recently won the account for the Indian version of P&G’s community site for its brand Whisper, Beinggirl.com. Besides P&G, the agency also works with Heinz, Tata Salt and Perfetti.
Again, while the spending by FMCG companies online may appear large in volume, their budgets are still only up to 5 per cent of the total ad spend, according to industry sources. These companies spend about Rs 40-50 lakh on an online campaign (including promotion) and Rs 15-20 lakh on a website or viral. A small slice, considering they spend about 10 times that amount on mass media.
Some major companies don’t even have their online strategy in place. Dabur, which has brands such as Dabur Honey, Vatika, Real and Hajmola, only has a basic corporate website. When contacted, a Dabur spokesperson said the company had no immediate plans for their brands on the Internet. Other brands which are still in the fancy website era are Nestle (Maggi, KitKat, Nescafe), Britannia, Emami and Parle Agro.
The reason is probably a lack of faith in online media, according to Krishna Kumar, CEO of interactive agency Media2win. “There is a lack of authenticated data about the online media. Traditional media has enough third party authenticated data and hence, the belief is obviously higher,” he says.
Kumar also feels that Internet advertising does not work as well for regional companies, “In India, there are many regional FMCG brands that do exceedingly well in their respective regions. Here, TV plays a dominant role. The Internet does well when you need to cover the entire country, and region level targeting is not yet accurate.”
Media2win recently developed a game for Garnier’s sunscreen. Aimed at women, the online game is called Miss in the City and players are required to go around a virtual town without getting sun burnt. The agency has also created campaigns for Domino’s Pizza and Colgate Max Fresh.
One thing is certain –
most FMCG companies have changed their goals in online marketing from
branding to consumer engagement. As Sengupta puts it, “The strategy was Test
matches, now things are headed in the Twenty20 direction!”
10. Indian broadcasters need to embrace user generated content
Indiantelevision
May 28, 2008
User generated content (UGC) is the future of media, said Mouthshut.com CEO Faisal Farooqui while speaking at the Promax/BDA India conference in the session on 'User Generated Content - The new media'. Farooqui emphasized that the need of the hour is to reach out to the consumers. User generated content like play a profound source of information in daily life.
“With blogs becoming popular day by day, the virtual wall of editor between the publisher and the reader has vanished. There is much more transparency for the readers and are free to express themselves,” said Farooqui. Farooqui urged the need of existing media houses to adapt to this new means of communication called UGC.
Referring to Google’s acquisition of YouTube Farooqui said, “It is important for all the media houses to secure a supply chain of content for them. The existing players will have to assimilate new mediums to avoid their competition from taking them over.” Farooqui said that the Indian broadcasters should learn a lesson that 75,000 videos with an average duration of six minutes each are being downloaded daily on YouTube. This shows that there is more content on YouTube than what any of the big media houses have.
Citing the example of
CNN iReporter, Farooqui said: “CNN cut short its man power and spent Rs 7
billion to launch iReporter, an initiative wherein the viewers can post
videos and blog on the CNN.”
11. UN official lauds Beijing's 'Green Olympics' strategy
Beijing 2008
Beijing's strategy to hold a "green" edition of the Olympic Games sets a good example for the many countries around the world, the United Nations' top climate change official said on Wednesday.
While attending the United Nations Climate Change Conference in Bali, Indonesia, Yvo de Boer, executive secretary of the UN Framework Convention on Climate Change, told Xinhua News Agency that Beijing's efforts to make the 2008 Olympic Games environmentally-friendly will also have a positive influence outside of China. He said that if China can successfully implement an urban sustainable development strategy, then many countries could follow her lead.
He deemed that staging the "Green Olympics" is not only an action in Beijing's favor, but it can also push forward the sustainable development of other cities in China and thus bring a new, positive change to the world.
The 2007 United Nations
Climate Change Conference opened on December 3 and will end on December 14,
with representatives of over 180 countries and observers from
intergovernmental and nongovernmental organizations as well as the media.
According to the agenda, the two-week period includes sessions of the
Conference of the Parties to the UNFCCC and its subsidiary bodies as well as
the Meeting of the Parties of the Kyoto Protocol, which was adopted at the
third Conference of the Parties to the UNFCCC in Kyoto, Japan, on December
11, 1997.
12. Sponsors Bet Big on Euro Soccer Series
Spiegel Online International
June 09, 2008
Advertisers including Coke and McDonalds are spending major-league dollars on multimedia campaigns at the UEFA Championship games. As the players take to the field during Euro 2008, a larger and perhaps even more cutthroat competition also will be sweeping the tournament. The prize? The attention and spending power of the more than 1 billion fans worldwide expected to tune into the three week sporting event. That's the goal for the sponsors of UEFA European Soccer Championship; among them some of the worlds top companies -- McDonald's, Coca Cola, and Adidas.
With the opportunity to reach so many customers, they're using a host of sophisticated techniques to raise awareness and increase revenue for their brands. The complexity of sports event sponsorship coincides with the changing interests of fans. Long gone are the days when a company could plaster a stadium with banners and sit back while consumers flocked to its products. Now, media-saturated customers barely register such "one-dimensional" product placements, forcing sponsors to seek new, more interactive ways to grab their attention.
At the same time, the stakes are higher than ever because buying into event sponsorship has gotten a lot more expensive. Analysts figure sponsors paid up to $29 million each for rights to Euro 2008 -- about 40 percent more than eight years ago -- and will likely spend twice that via ancillary events and exposure. That makes executives keen to ensure return on their investment.
As a result, Euro 2008 sponsors are embracing more innovative strategies than ever to get their messages across. For many, that includes an Internet presence -- either through standalone Web sites or in conjunction with UEFA's heavily trafficked homepage -- to offer extra services and promotions to soccer-crazy fans. Other companies are taking a more "analog" approach, providing live experiences at the games or offline promotions to fans across Europe.
No matter the strategy, creating a dialogue with consumers has become the name of the game. "Sponsors are looking for genuine interaction with audiences," says Andy Sutherden, managing director for sports marketing and sponsorship at London media consultant Hill & Knowlton "Brands are desperately trying to create their perspective for fans during Euro 2008."
At the same time, analysts say, sponsors must be careful not to act too aggressively. Brand overexposure can be harmful if fans react negatively to commercialization of sporting events. That was a major criticism of the 1996 summer Olympic Games in Atlanta, and it has forced companies to walk a finer line between boosting brand awareness and turning people off.
The extra revenue and brand awareness to be gained from Euro 2008 sponsorship far outweigh these risks, though. Paul Meulendijk, head of sponsorship at MasterCard Europe, says the company's link with the previous European championship in Portugal four years ago resulted in triple-digit growth in card activation there after the tournament. While he won't predict the impact of this summer’s event, Meulendijk expects Euro 2008 to lift MasterCard's European business. "Sponsorship is a critical component for us. It drives both profitability and recognition of the brand," he says.
McDonald's is also looking for a boost from Euro 2008. The fast food chain has launched an online fantasy soccer league on the UEFA homepage to attract the highly lucrative 18-to-24 age bracket. The virtual game already has 20 percent more participants than it had during the last tournament, says Johan Jervoe, McDonald's corporate vice-president for global marketing, and is expected to create more interaction between fans and the company. "If you are not part of the media habit of young people, you won't be there in the future," Jervoe says.
Other companies are following suit. Coca Cola has launched an online soccer trading-card game in conjunction with Italy's Panini that allows fans to collect and swap information about their favorite players. Castrol sponsors a digital performance index for the Euro 2008 teams that gives supporters online access to up-to-date stats and profiles of the tournament's stars. Using Online and Offline Techniques Not that high tech is the only weapon in a sponsor's arsenal. Canon is combining its online presence with more traditional techniques, such as providing photo booths for fans throughout host cities and assistance for professional photographers covering the tournament. "There's a trend towards interaction through the Internet, but there's still room for people to associate with brands offline," says James Leipnik, Canon's chief of communications and corporate relations for Europe, the Middle East, and Africa.
Despite their multi-pronged tactics, sponsors find it difficult to quantify the economic impact of supporting events like Euro 2008. Iain Ellwood, head of consulting at Interbrand in London, says it's almost impossible to correlate specific sponsorship deals with extra revenue because the events represent only one element in a company's overall marketing strategy. "The key is to leverage [the deals] into extra brand recognition," he says.
To do that, interacting
with fans will be sponsors' top priority. While the soccer teams may grab
the headlines over the next three weeks, the economic competition off the
field will play a huge role in the financial success of Euro 2008.
13. Ad-Funded Mobile Entertainment Market To Grow
MediaPost
May 30, 2008
The U.S. market for
ad-funded mobile entertainment will grow to $336 million by 2013, expanding
the overall mobile media market by 4.6%, according to a new forecast. The
study by the Mobile Entertainment Forum, a global trade organization,
predicts that brand-subsidized content will account for the majority of
revenue at almost $263 million, while the balance will come from up selling
premium content. Mobile video and TV are expected to represent 41.4% of
ad-funded revenues within five years, followed by music at 34.5% and gaming
at 24.1%.