| 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 effective April 15, 2007 : 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India. |
| Volume: I |  |
Apr 02, 2007 |
In these hyper charged times where news comes in as fast as it becomes outdated, we need a source that can keep track of what matters to us.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 devised two products with this is mind. Completing 3 years in India was also reason enough.
Wavelength is our first product to reach you and its objective is to apprise all of us of the happenings in three areas i.e. 1. Trends in Digital, Retail, OOH, BRIC, Consumers and the International Advertising 2. 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.
The second product is Ringside and it will provide us all with an overview of various categories like computers, automobiles, confectionery inter alia. More about this later.
As with all things new, they improve over time with experience and feedback. So do drop in a mail at pchandra@zenithoptimediaindia.com with your suggestions and comments.
Consumer Trends
01. India Tops Online Population Growth Chart; Grows 33 PC – March 06
India is the fastest growing country of Internet users
As of January 2007, India had over 21 million Internet users 15 years and above, compared to 16 million a year ago, according to data compiled by comScore Networks, a Virginia-based Internet usage tracking firm. The United States has the world's biggest online population with over 153 million total Internet users, followed by China (86.8 million users), Japan (53.6 million users), Germany (32 million users) and UK (30 million users).
Source: The Press Trust of India Limited
02. The Shrinking Social Space of a Digital Child – March 04
Technology affects children’s physical and emotional growth
Excessive exposure to digital media such as the Internet and television in daily life is resulting in premature mental growth among children. Excessive media exposure reduces social activity, which leads to poor interpersonal skills among children. Although technology has facilitated connectivity, it has also created an increasingly alienated and fragmented society.
Source: The Hindu
Emerging Trends: Digital
03. Mobile Ads to Go More Interactive – March 20
New trends in mobile advertising
The second generation of mobile advertising in India will wow users with never-seen-before services. From welcoming messages to an offer of test drive of the latest car in the market and pull-based m-coupons, the mobile will bring a new meaning to customer satisfaction and add "stickiness" to brand value, according to industry experts.
Source: The Hindu Business Line
04. Ybrant Bets on Digital Marketing – March 19
Digital marketing to rise
According to Ybrant Technologies Ltd, a Hyderabad-based IT company, ad banners on websites are growing and are expected to continue to do so in the near future. The current size of digital marketing in India is estimated at approximately $40 million (Rs.180 crore), and is expected to grow to $200 million (Rs.900 crore) by 2010. According to Ybrant's global internet advertising network provider, MediosOne, sectors such as banks, financial services, education, telephony, chat and e-mail will enter the digital market space soon.
Source: The Hindu Business Line
05. VC Sees Online Advertising to Attract More Investment – March 15
Venture capitalists eye online advertising business
Venture capitalists (VCs) are looking to invest in the online advertising business as online and mobile markets are growing. In India, revenue from online advertising is less than $100 million. The major share of advertising revenue goes to big portals such as Yahoo!, Rediff, Google. VCs are looking at companies with great content, fast growth in customer base, and experienced management. They believe there are plenty of opportunities in service portals such as specialized shopping portal, women’s portals, online education sites, and so on.
Source: Financial Express
06. Word-of-Mouth Gets New Meaning as Recruiters Take to Blogging – March 11
Indian companies increasingly use digital media – blogs, online communities and forums — for recruitment
An increasing number of Indian recruitment firms and e-solution providers are using digital word-of-mouth initiatives such as blogs, online communities, newsgroups and forums to create awareness about their products or services. Apart from being cost effective, this medium is accessible to customers spread across diverse geographies. Companies such as Frito-Lay frequently blog about work culture to attract employees.
Source: The Indian Express
Emerging Trends: Retail
07. TAG Media Extends Network to Over 200 Stores Nationally – March 13
TAG Media Network partners with Fabmall, Trinethra & Foodworld
TAG Media Network entered into a strategic alliance with Fabmall, Trinethra and Foodworld to provide shoppers the opportunity to view specialized programming, special offers and store promotions. TAG Media Network Inc. is the first and largest national “In-Store Television Network.” With this alliance, TAG Media extends its network to over 200 plus grocery stores, supermarkets, and hypermarkets nationwide with a footfall of over 6 million per month.
Emerging Trends: OOH
08. Hoardings Go Mobile – March 14
Advertisers flaunt hoardings on vehicles
In Chennai, to bypass the law on putting up big boards, advertisers are fixing a board on the loading bay of a truck. The vehicle then goes around the city and parks at places where people gather. A viewer can walk up to the vehicle and seek further information on the product or service advertised. The vehicle can also dispense application forms or brochures.
Source: The Hindu
09. OOH Goes Live – March 02
Live models being used by OOH media
The Out-Of-Home medium is becoming innovative in India. OOH agencies in India are increasing the use of ‘live’ models to catch the attention of passers-by. BBC World recently used live models for their first India campaign ‘What Affects the World, Affects You.’ Sony Ericsson used live models working out on treadmills to promote their new music phones.
Emerging Trends: Others
10. Hello, This is Radio Speaking – March 02
Bollywood uses radio as a narrative tool in films
Radio is featuring as an important part of the story line in a number of movies. In recent releases such as Salaam Namaste, Rang De Basanti, Lage Raho Munnabhai and Honeymoon Travels Pvt Ltd., radio was an integral part of the story. In these movies either the lead character was an RJ or radio was used in the climax or as a narrative medium.
Source: The Times of India
11. Message of the Medium – March 05
Community Radio impacts life across country
Low-power community radio stations in areas such as Bhanaj village near Rishikesh, Budhikote near Bangalore, and the Nizamabad district of Andhra Pradesh are empowering people and changing lives. These elementary, low-cost radio stations were set up with the purpose of reaching out to specific communities. On air, ordinary people discuss issues concerning their lives such as health and civic amenities. They share farming tips and income generation ideas and explore ways to improve education. Although the first such radio was launched in 2001 in Bihar, it received a fresh lease of life with a recent policy directive of the Centre, which allows community radio licenses to non-profit organizations and civil society.
Source: India Today
Emerging Trends: International
12. Ad Dollars Flow into Online Games – March 26
Advertisers are using casual games to advertise
Advertisers are pouring their ad dollars into casual games such as ‘Fate,’ which are expected to attract up to 100 million players in the US in 2007. Marketers spent about $150 million on advertising in casual games in 2006, compared to $124 million in 2005, according to research by DFC Intelligence and the Casual Game Association. Casual-game companies are offering free premium play if consumers agree to watch ads, for which they are paid by advertisers. Traditionally, casual games are offered on a free trial basis.
Source: Adage
13. The Bulk of Web Riches Continue to Go to Few – March 23
'Big Four' to get the two-thirds of all 2007 online ad revenue
According to an eMarketer report issued this week, about $19.5 billion would be spent on
Internet advertising in 2007. Of this, two-third revenue will be placed with the four biggest web companies. Google will have the largest share, with 32.1% of total ad spend, followed by Yahoo with 18.7%, AOL with 9.1% and MSN with 6.8%.
Source: Adage
14. Mobile Marketing Hits its 'Terrible Twos' – March 23
Marketers reluctant to use mobile marketing
Recent surveys have found that 90% of consumers don’t want advertising on their cellphones as they feel it is spam and will cost them more. Text messaging, being the most popular, is used by 35% of mobile subscribers in the US. Only 11% browse the mobile web and a scant 3% watch video on mobile. According to analysts, one of the major challenges is consumer’s adoption and use of underlying technologies beyond voice.
Source: Adage
15. One Third of Internet Users Have Logged on Wirelessly - March 16
34% of Internet users use wireless means to log in to net
According to the Pew Internet and American Life Project, around 34% of internet users surf the net through means such as WiFi broadband or cell phone networks. 27% of people logged on wirelessly from a place other than home or work, 19% have wireless networks in their homes, and 13% with personal digital assistants are able to connect to the internet wirelessly.
Source:Media Post
BRIC Zone - China
16. China's Advertising Spending Expected to Climb 20 Percent This Year – March 23
China’s ad-spend to increase by 20% in 2007
China’s ad-spend is expected to rise by 20% in 2007 over 2006 and even higher in 2008 due to the Beijing Olympic Games, according to a report by CTR Market Research, a leading market information provider in China. The drinks, financial and banking, post and telecommunication, detergent and auto sectors are the top five in terms of advertising spending growth. Among the different media, radio saw the highest growth rate of 24 percent in 2006 though TV has maintained its dominant position with a 76 percent market share in 2006. The growth of outdoor ads slowed to 9 percent from the previous year's 130 percent. Newspaper and magazine ads saw growth of 4 and 10 percent respectively.
Source: Asia Pulse
17. China's Internet Users to Reach 200 Million in 2010 – March 21
Internet users growing at 8% in China
According to the Eleventh Five-Year Plan (2006-2010), the number of China's Internet users is likely to reach 200 million in 2010, with an 8% average annual growth rate and penetration rate reaching 15%. At the end of 2006, China had 137 million users and the penetration rate was 7.5 times more in urban areas.
Source: China Industry Daily News
18. Website with News Broadcasts Shut Down – March 20
Chinese websites broadcasting news to close
China has ordered the closure of websites offering news broadcast over the internet in a move aimed at tightening control over media content. The State Administration of Radio, Film and Television (SARFT) blacklisted eight Web TV companies in December as part of a campaign against unauthorized broadcasts. Authorities criticized the websites for several violations, including showing news broadcasts, setting up news bureaus and reporting on events. China keeps a tight grip over media content, censoring material it deems politically sensitive or pornographic. SARFT also banned television broadcasters and publications from using internet platforms for releasing information.
Source: South China Morning Post
19. Tier Tale: How Marketers Classify Cities in China; Population and Spending Power of Different Areas at Heart of Categorization – March 19
Size, sophistication, purchasing power and company’s own goals among parameters used to grade cities
When marketers enter China, they typically evaluate the country's cities using a four- or five-tier system, although one marketer actually has 10 classification levels. A city is relegated to a tier based on the size, sophistication, purchasing habits, attitudes and disposable income of its population. Tier definitions vary depending on a company's products and goals.
Source: Advertising Age
20. Education Official Hits Out at Chinese TV Culture of Overnight Stardom – March 16
Parents alarmed as children prefer reality shows
China's Ministry of Education has called for more television shows depicting positive role models to counterbalance the wave of reality programs on Chinese screens. According to Wang Xuming, the ministry's spokesman, stardom should not be the only dream of the children. There are more than 500 reality shows on Chinese television.
Source: Xinhua News Agency
21. Chinese Go on Shopping Spree – March 15
Retail sales up by 14.5 percent in China
According to China's National Bureau of Statistics, retail sales in January and February 2007 were up 14.5 percent to $187.5 billion (1.45 trillion yuan). This was due to the rise in disposable incomes of between 10.2 and 12.1 percent across the nation during 2006. Vehicle sales rose by 48 percent, clothes sales by 28 percent and appliances sales rose by more than 21 percent.
Source: The Australian Financial Review
22. China Aims to Grant Telecom Firms Broadcast Rights – Report – March 14
Telecommunication firms to run broadcasting services
The Ministry of Information Industry aims to converge voice, data and cable-television networks into a single Internet platform. This will allow telecommunications firms to run broadcasting services. The Ministry would increase its research and development programs for network convergence and would liaise with other agencies to help develop a policy under the new market.
Source: Xinhua Financial Network (XFN) News
23. New Laws to Control Bloggers – March 14
Red signal for bloggers by the Ministry
China is stepping up efforts to control the growing number of bloggers using the Internet. According to the Director of China's General Administration of Press and Publication, Long Xinmin, the government is forming rules to further regulate Internet publishing, including the millions of bloggers in China. In September 2006, the number of blog sites in China had reached 34 million, a 30-fold increase over the last four years.
Source: China Economic Review - Daily Briefings
BRIC Zone - Russia
24. IT and Communications Market of Russia up 20% – March 22
IT and Communication market rises to $43.8 billion
In 2006, the volume of the Russian IT and Communications market rose by 20%. According to the Communications Minister Leonid Reyman, this included growth of 21% in electric communications services and 27.4% in mail communications. There was a 33% increase in the number of PC users (23 million) and 15% increase in Internet users (25.1 million).
Source: SKRIN Newswire
25. Russia Reports Higher Number of Internet Television Viewers – March 19
Internet television users to reach 1.4 million in 2010
According to Russian IT and Communications Minister Leonid Reyman, there were 100,000 Internet television users in 2006 and the number would increase to 1.4 million by 2010. This was due to the development of Broadband Internet.
Source: Ros Business Consulting
26. AC&M Says Russia's Mobile User Base up to 153.47 Mn on Feb 28 – March 14
Russia’s mobile user base increased by 1.17 million within a month
The number of mobile phone service subscribers in Russia, as measured by the number of valid SIM cards, increased to 153.47 million users (as of February 28) from 152.3 million users (as of January 31), according to a report by Advanced Communication & Media. The SIM card penetration rose to 105.7% as of February 28 from 104.9% as of January 31. Some analysts consider the figures provided by AC&M to be inflated, as many people in Russia use several SIM cards. The statistics also count SIM cards that have not been used for up to three or six months, depending on the policy adopted by individual telecommunications operators.
Source: Prime-TASS News (Russia)
BRIC Zone - Brazil
27. Advertising Market Rises 9% in 2006 – March 26
Advertising market is expected to grow at 8% in 2007
According to a survey by Meio & Mensagem, the advertising industry in Brazil is expected to grow by 8% in 2007. Gross investments in media were R$17,441 billion in 2006 compared to R$15,961billion in 2005.Television was up by 8.91%, and accounted for 59.37% of the media investments.
Source: Gazeta Mercantil
28. Blogs Still a Fledgling Marketing Tool – March 21
Corporates in Brazil do not use Blogs for customer communication
According to a survey by Rapp Collins, very few Brazilian corporations are using blogs as a tool for community relationship or for marketing purposes. Out of 1008 companies surveyed in Aug - Sep 2006, only 0.54% have their own blogs and only 2.62% capture customers data in virtual agendas. Only 5.55% of the sampled companies that engaged in customer relationship initiatives, used community networks.
Source: IT Digest
29. Key Developments: Brazil – March 12
Retail sales increased by 8.5% in January
Retail sales turnover rose by 8.5% in January from a year earlier. Sales volumes at furniture and household appliance stores shot up by 24.1% year on year, while motor vehicle dealers and computer equipment stores posted 14.3% and 13.1% growth respectively. Food and beverage retailers saw sales growth slow to 4.9%, a ten-month low.
Source: Economist Intelligence Unit - Country Monitor
Advertising Research Watch
30. AdEx India Analysis: Banking, Finance and Investment Sector Advertising on TV in the year 2006 – March 13
Study evaluates Ad volumes contribution of Banking, Finance and Investment sectors on TV
The ad volumes of the banking, finance and investment sectors on TV increased by 52% in 2006 over 2005, according to an AdEx India Study. AdEx is a division of TAM Media Research. Advertising skewed towards Business and Hindi News channels. ICICI Bank was the leading advertiser.
31. AdEx India Study: Advertising Trends of IT Sector in Print in the Year 2006 – March issue
8% drop in print ad volumes of IT sector in 2006
Desktops and laptops/notebooks accounted for 42% of ad volumes in print in 2006, according to an AdEx India Study. Hewlett-Packard India led IT sector advertising in Print in 2006. Chips and microprocessors had the highest growth of 94% in print ad volumes in 2006 over 2005.
32. AdEx India Analysis: Automobile Sector Advertising on TV in the Year 2006 – March 06
Increase in ad volumes of automobile sector on TV: Study
TV ad volumes of the automobile sector rose by 37% in 2006 over 2005, according to an AdEx India Study. Cars/jeeps garnered half of the TV ad volumes of the automobile sector. Tata Motors was the biggest advertiser on TV.
33. AdEx India Study: Advertising Trends of the Automobile Sector in Print in the Year 2006 – March issue
Increase in Ad volumes of Automobile sector in Print: Study
Print ad volumes of the automobile sector rose by 10% in 2006 over 2005, according to an AdEx India Study. Cars/jeeps and motorbikes accounted for 78% of the print ad volumes in 2006.
34. CAS-Mandated Zones have 1.63m Cable Homes – March Issue
Around 21% cable homes fall under CAS-mandate zones
According to the TAM Media Research–initiated AC Neilsen report on the Pay TV homes, there are 7.96 million cable homes across Delhi, Mumbai and Kolkata, out of which 1.63 cable homes fall under the CAS-mandated zones. Delhi has 26% CAS homes followed by Kolkata with 20% CAS homes and Mumbai with 17% CAS homes. Around 2.77 lacs, out of 16.33 lacs homes covered across three metros, have taken up direct-to-home (DTH) connections to access ‘pay channels’. In addition to this, there are 1.98 lacs homes that claim to have taken a subscription but are awaiting installation of ‘Pay TV’ services.
Source: Pitch, Volume IV, Issue 5, March, Page – 13
35. Corporate Elite More Tuned to the Radio than TV – March Issue
AC Nielsen Study on the Corporate Elite
According to the latest AC Nielsen Corporate Decision Makers Survey 6, listenership of radio by business managers and senior executives have almost doubled in 2006, with 72% tuning in compared to 38% in 2005. The average number of TV channels watched, declined from six to four, along with the time spent on their preferred news-based programs. In terms of print media, ‘Times of India’ is the highest read news daily with 72% average issue readership. Among business publications, ‘Economic Times’ is the leading publication. The access of this group to the Internet has increased from 81% in 2005 to 98% in 2006.
Source: Pitch, Volume IV, Issue 5, March, page – 15
Environment: Regulation
36. INS May Launch Rs 8 Crore Print Readership Survey – March 24
INS disappointed by IRS findings
The Indian Newspaper Society (INS), a nodal body of all print publications, plans to launch its own readership survey at a cost of Rs 7-8 crore within the next four months. Disappointed by the findings of the Indian Readership Survey (IRS), which showed a decline in readership despite a growing population of literates, INS plans to set up an independent research body to look only at newspaper and magazine readership unlike IRS or NRS that look at the viewership of television channels, time spent, demographics, psychographics and other parameters.
37. Community Radio to Sweep the Nation – March 19
Indian government to establish community radios across nation
The Indian government will establish 4,000 community radios across the nation in 2008. This was announced in consultation with the Indian Institute of Mass Communication in New Delhi on March 6 and 7. Community radio can be a powerful tool, particularly in developing nations, where illiteracy and diversity of languages are barriers to mass communication. Low-cost radios are widely available, and the cost of batteries is often shared. Effective programs include basic advice about health, animal husbandry, and agriculture or recordings of people simply airing their concerns about local issues. However, some officials are wary of community stations, seeing them as potential sources of provocation if left entirely unregulated.
Source: BBC Monitoring Media
38. Ads by Builders under Supreme Court Scanner – March 19
Real estate developers to submit publication papers before advertising
The Supreme Court has directed all states to frame national guidelines for real estate developers and builders issuing public advertisements to protect customers from being cheated by misleading and false information. The court directed developers and property dealers to deposit all property-related papers with the publication through which the advertisements were being published to allow buyers to cross check claims.
Source: Indian Express
39. News on FM Radio under I&B Scanner – March 16
News and current affairs not to be aired on Private FM Radio
The Information and Broadcasting ministry has not taken well to the airing of programs around news and current affairs on private FM channels and is contemplating action to stop the "illegal" practice. News and current affairs programs are not allowed on private FM radio, according to government policy. The government, however, may allow cricket commentary on private FM radio.
Source: Financial Express
40. I&B Secretary Urges More Organizations to Get into the Rating System Business – March 08
More organizations should get into rating business to create competition
The Centre for Media Studies organized a meet in Delhi on March 7 to discuss issues such as TRPs and audience research. The Secretary, Ministry of Information and Broadcasting, S K Arora, the chief of TAM, LV Krishnan and Raviratan Arora of aMap and other industry leaders were present at the meet. The I&B Secretary strongly urged more organizations to get into the rating system business, highlighting the methodology and transparency of the rating system.
41. IAMAI Swings to Action to Protect Online Publishers – March 7
Ad agencies to clear outstandings of online publishers within a fixed time frame
The Internet and Mobile Association of India (IAMAI) has swung into action against defaulting ad agencies in the digital space and announced a credit and accreditation policy to protect the interests of online publishers such as Rediff.com, Yahoo! India, Indiatimes.com, Sify.com, among others. The policy is expected to come into effect from March 28, 2007, before which the agencies have to get accredited with the association. In response, the Advertising Agencies Association of India (AAAI) has announced that no individual member will apply for this accreditation until there is an association-to-association discussion on the subject.
Source: Financial Express
42. Ministry Lifts Ban on AXN TV – March 01
Government lifts ban on AXN TV
The Information and Broadcasting (I&B) ministry has lifted the two-month ban imposed on television channel AXN following the telecast of the program "World's Sexiest Advertisements." The channel was on air again from Thursday, March 1, 2007. The ban was imposed in January 2007 after the channel refused to heed the warnings of the I&B Ministry.
Source: BBC Monitoring Media
Environment Watch: Advertising & Media
43. IRS 2007 R1: Southern Dailies too Suffer Fall in Readership – March 26
Decrease in readership of southern dailies
South Indian language newspapers have seen a fall in readership, according to the Indian Readership Survey round one. Daily Thanthi, a leading Tamil newspaper, witnessed a fall of 10% in its readership. Dinakaran, at second place, showed a surprising increase of 44%. Dinamalar and Kumudam showed a fall of 17% in its readership, Ananda Vikatan’s readership dropped by 14%, Kungumam’s readership fell by 30%. Among Telegu newspapers, the readership of Eenadu, Vartha and Andhra Jyoti has declined by 4%, 14%, and 5% respectively, according to the survey.
44. ICC World Cup ’07: The First Report Card Brings Cheer to MAX, SAB and DD1 – March 26
MAX and SAB show significant rise in TRP ratings
According to the TAM Media Research Data, MAX and SAB have seen a significant boost in performance in the first week of the ICC World Cup 2007. For MAX, the relative share increased by almost 60% in comparison to 30-35% seen in the previous weeks. The share of SAB channel has also doubled.
45. Advertisers Hit for a Huge Six – March 25
Advertisers to re-negotiate deals with media houses as India loses match
With India out of the World Cup, the advertisers are trying to re-negotiate their deals with the official broadcaster SET Max. However, Executive Vice-President Ad Sales, SET Max, said "All deals which have been signed will have to be honored. There will be no negotiations based on India's performance. Advertisers will have to honor their commitments. It is not that we would have asked for higher rates if India were to win.
Source: The Hindu Business Line
46. Broadcasters Want Ad Costs to be Delinked from TVRs – March 25
Broadcasters want rating system to change into “Cost per Thousand”
Broadcasters such as Zee, Star and Sony are in talks with advertisers to convert the present rating system for determining advertisement rates from cost per rating points (CPRP), which is a relative percentage of viewership, to cost per thousand (CPT), which gives the absolute number of viewers. The CPRP is the cost per 1% of a specified audience while buying ad space in a media vehicle whereas the CPT is calculated as cost per 1,000 people reached.
Source: Financial Express
47. Added Attraction on Volvos – March 24
Volvo used as a media vehicle for public-awareness campaigns
The Metropolitan Transport Corporation's swanky Volvo buses will soon have audio-visual advertisement-cum-public awareness campaigns in Bangalore. The 30-inch LCD screens with DVD players have been installed on the Volvo buses and advertisements will be played through storage media such as SD and CF cards.
Source: The Hindu
48. SaharaOne Launches Reality Show ‘Biggest Loser Jeetega’ – March 24
SaharaOne to launch a new reality show on obese people
SaharaOne Television plans to launch a reality show, ‘Biggest Loser Jeetega’ in May. Sixteen obese contestants, over four months, will try to lose weight under the guidance of fitness trainers and nutritionists. The person who sheds most kilos will become the “biggest winner.” The show will be directed by Arun Sheshkumar and hosted by actor Suniel Shetty.
49. Worldspace Launches its Services in Shillong - March 23
Radio satellite to operate in Shillong
Satellite-based digital radio broadcaster WorldSpace will launch its services in Shillong. It will have a 24-hour commercial-free satellite radio, seven days a week. To ensure ready access for
its subscribers, it will be available in over 60% of relevant retail outlets in Shillong. WorldSpace provides more than 40 channels of digital quality programming to the Indian subcontinent, which spans across a wide range of musical genres, news, sports and information.
50. 59 Channels Waiting for Government Approval – March 23
More channels for the Indian audience
Nearly 59 applications are awaiting government clearance for the launch of new channels. These include 38 channels for news and current affairs. Media majors such as NDTV and CNBC have sought permission from the Information and Broadcasting ministry for five channels and three new channels, respectively. The Zee Group, ETC Network, Third Eye Communication are also awaiting clearance.
51. Optimum Media Launching Unit for Advertiser-Funded Programming – March 23
OMS to use AFP for better ad effectiveness
Optimum Media Solutions (OMS), the media arm of the Mudra group, plans to launch a division for advertiser-funded programming soon. According to President OMS, Chandradeep Mitra, OMS Brandcast cell would be spun off into a full-fledged division to make programs whose content would be driven by the advertiser. Brandcast is at present involved in integrating clients' brands into entertainment (product placement) in a creative and non-intrusive way. Advertiser-funded programming (AFP) is the next stage in the evolution of the product placement business.
Source: The Hindu Business Line
52. Goafest '08 to have Afro-Asian Flavor – March 22
GoaFest to have an international feel in 2008
The AAAI plans to give the Goa fest an international touch with the 2008 edition focusing on the Afro-Asian flavor. The event is for youngsters in the advertising field. AAAI has decided to give this a festival format for providing opportunities for greater interaction and networking among agency employees. Creative and media awards are also part of the event.
Source: The Hindu Business Line
53. IRS 2007 R1: Leading Magazines Continue To Lose Readership – March 22
Magazine readership declines in India: Survey
According to IRS round 2, the key trend in the publication industry is a decline in readership, most prominently of magazines. Saras Salil (Hindi), the largest read magazine in India with a readership of 4,760,000 showed a decline of 24% from 2006. Vanitha (Malayalam) is the second player with a drop of 7% with current readership at 3,067,000. India Today (English), at the third position with a readership of 2,786,000, showed an 11% drop from 2006.
54. IRS 2007 R1: Biz Publications Lose Readers; ET, Business Today Lead in Their Segments – March 22
Outlook Money gains in contrast to other biz-publications
According to IRS 2007, The Economic Times and The Hindu Business Line are the leading business publications in the country with readerships of 7,74,000 and 1,07,000 respectively, followed by Financial Express with 38,000 readers. Almost all business publications that IRS has taken into consideration have seen a fall in readership, except for Outlook Money, which has grown by 3.13 percent to 165,000 readers.
55. IRS 2007 R1: Times Of India Beats HT in Delhi; DNA Overtakes Mid-Day in Mumbai – March 22
TOI and Dainik Jagran leading in their segments
According to IRS 2007, readership of dailies in all segments has decreased. Among regional dailies, Dainik Jagran is leading with a readership of 17,114,000, followed by Dainik Bhaskar, with a readership at 12,514,000. At the national level, among English dailies, The Times of India leads and is followed by Hindustan Times. In Delhi, The Times of India has beaten Hindustan Times while in Mumbai, DNA has surged past Mid Day.
56. Radio City, BIG FM Set for Revamped Audience Measurements – March 22
Radio City and BIG FM in talks with TAM to use diary system for audience measurement
According to Radio City’s Apurva Purohit and BIG FM’s Anand Chakravarty, they are in advanced stages of discussions with TAM on an alternative means of audience measurement. They are suggesting “the diary system”, as it removes the shortcomings of Indian Listenership Track (ILT) based on the Day After Recall (DAR) methodology and hence will provide a far more accurate and robust measurement system. The first phase of the diary system will be made available in Delhi, Mumbai and Bangalore around June or July.
Source: India Radio Bulletin & Poll Results
57. India Today To Launch International Women’s Health Magazine ‘Prevention’ – March 21
Health magazine for the 35+ Indian Woman
India Today, in partnership with the US-based Rodale Inc., plans to launch a women’s health magazine ‘Prevention’ in India on March 24 with Sanghamitra Chakraborty as its editor. Prevention, priced at Rs.50, will be distributed monthly and is targeted at women aged 35 years and above. The magazine focuses on six areas: hardcore health, fitness, nutrition, family, beauty and the ‘you’ section. Star World, ZeeCafé and Discovery will broadcast its television commercials from the first week of April.
58. India Shines at Asia PAC Adfest 2007; O&M, McCann Lead the Show – March 20
India bags 18 awards at Asia Pac AdFest held at Thailand
Indian agencies bagged a total of 18 awards at the Asia PAC Fest held at Pattaya, Thailand from March 14-17. Indian agencies bagged eight awards in print, outdoor and direct marketing categories in addition to medals in the film, radio and cyber category.
59. Outdoor Advertising Awards to be Held in June 2007 in Mumbai – March 20
New categories to be added this year
The Outdoor Advertising Awards, India’s only outdoor advertising awards event, will be held on June 9 in Mumbai under the aegis of Outdoor Advertising Convention 2007. The awards will honor outstanding outdoor creatives as well as media owners and printers in the industry. Seven new categories, which include real estate and construction; travel and hospitality; healthcare; clothing, footwear and accessories; education and training; best format innovation; and best print innovation have been added this year.
60. RCOM Won't Drop Sachin Ads – March 20
RCOM will continue to run Sachin Ads during World Cup despite ICC objections
Reliance Communications (RCOM) has decided not to withdraw the ad campaigns featuring Sachin Tendulkar despite objections raised by Hutchison Essar (HEL) and the International Cricket Council (ICC). According to RCOM branding head Sanjay Behl, the campaign will run for its planned duration of three weeks. Though Hutch is one of the official sponsors of the ongoing Cricket World Cup, RCOM has been endorsed by Sachin in TV, outdoor as well as press campaigns, which goes against Hutch's entitlement. Hutch has accused RCOM of ambush marketing.
Source: Agencyfaqs
61. Europe’s Celebrity Magazine, ‘Hello!’ Launches In India – March 20
European celebrity magazine “Hello!” enters India.
Hello!, Europe’s popular celebrity magazine, has launched its Indian edition. ‘Hello!’ is published in India by Worldwide Media (WWM), a 50:50 joint venture between BBC Worldwide and The Times Group. ‘Hello!’ will be a monthly in India and will cover news with exclusive peeks into the private domain of supercelebs, sports stars, corporate honchos, NRIs and the royalty.
62. Three Agencies in the Race for Rs 30 Crore Makemytrip Business – March 19
Makemytrip to select among three for its ad account.
Three agencies, O&M, Publicis India and FCB-Ulka, are pitching for the Rs.30 crore Makemytrip business. Each agency was asked to present its credentials, specifically of the work done by their Delhi branch. In 2005, Leo Burnett handled the account. The media duties for the business are handled by Starcom. Out of Rs.30 crore, half the spend will be on traditional media such as print, television and outdoor. A hefty Rs 10 crore will be spent on the online medium and the rest on below-the-line activities.
63. Worldspace Adjusts India Plans as FM Booms – March 19
Worldspace to increase reach through services
According to Velu Shankar, Worldspace India Pvt. Ltd.’s senior advisor, content and programming, satellite radio and FM can co-exist in India as both serve different needs within the radio spectrum. US-based satellite radio platform Worldspace has two satellites and aims to reach five billion listeners. It has 62 channels worldwide, out of which 30 are in-house channels including channels such as Farishta (retro Hindi film music), Gandharv (Hindustani classical music) and Radio Tara (traditional music to contemporary Bangla pop) and India’s first 24-hour sports station, Play. Worldspace’s proposed strategy is to get people and retain them through their services. It intends to give them the best value at subscription and plans to extend its retail network across country.
Source: India Radio Bulletin Newsletter, March 19th issue
64. PIX Launches Radio and Outdoor Campaign to Mark First Anniversary – March 19
PIX, from Sony plans to launch anniversary campaign
PIX, the English movie channel from Sony Entertainment Television (SET India), plans to launch a campaign to celebrate its anniversary. Outdoor and radio are the main media of this campaign. According to the Channel, “The main idea behind the outdoor campaign is to create a direct association with the brand. Instead of promoting individual films, it will reflect the dramatic and stylish qualities of PIX with the help of the caricatures of Hollywood personalities.”
65. Media industry to hit 18% CAGR, says report – March 19
M&E industry to grow at 18 percent
The Indian media and entertainment (M&E) industry is expected to grow at an 18% CAGR during 2007-2011, according to a joint study by FICCI and PricewaterhouseCoopers. The industry is predicted to grow from the current Rs 43,700 crore to Rs 1,00,000 crore by 2011-12. The key reasons behind the growth are technological advances, positive government initiatives in terms of policy and foreign investment, and energized initiatives by private media companies coupled with rising income levels and India's robust economic growth-led consumerism.
Source: Financial Express
66. Animation Films Bet on Massive Marketing to Gain Foothold – March 19
Animation movies shift to aggressive marketing to attract audience
Animation movies in India are trying to gain a foothold in the market through marketing and massive brand promotion activities. Industry body NASSCOM expects a 25% annual growth for the animation sector in India. Animation movies provide a relatively uncluttered environment or advertisers. Brands such as HLL, ITC and Camlin have already tied up with the movie Hanuman 2 for co-branding and a few others are in the line.
Source: Financial Express
67. With World Cup Hindi Feed, SAB Sees Surge in Audience Reach – March 16
Targeting the youth
SAB is expecting a 25% increase in viewership post World Cup cricket as they are airing the World Cup's Hindi feed. The channel plans to build on this viewership gain by introducing youth specific programs. Focusing on this target audience, SABis hoping that advertisers would realize the potential of the channel's positioning.
Source: The Hindu Business Line
68. INX Group to Offer Bouquet of Channels – March 16
INX to launch media channels
Inx Media plans to launch a gamut of channels, including a Hindi entertainment, English news, and music channel. "The market will be increasingly fragmented, and advertisers will look out for channels that deliver to niche demographics. English channels in any way cannot win the TRP battles, and will have to focus on an upmarket audience," according to Vir Sanghvi, Head INX News Pvt Ltd.
Source: The Hindu Business Line
69. CAS Conundrum: Free-To-Air Channels Gain – March 16
CAS Implementation resulted in better gains for Free-To-Air Channels
Poor implementation of Conditional Access System (CAS) has made the paid channels lose 70% connectivity from the metros where CAS has been implemented. According to industry experts, with CAS, free-to-air channels have gained, as households that won’t be able to afford a set-top box or a satellite dish will now watch free-to-air channels.
70. Ogilvy Launches New Activation Agency OgilvyAction – March 15
OgilvyAction for ‘Last Mile’ brand communication
The Ogilvy Group announced the launch of a worldwide activation company OgilvyAction, which will specialize in ‘Last Mile’ brand communication. The new unit will provide a full range of last mile activation services globally and will comprise Ogilvy Activation’s existing capabilities such as Ogilvy Live, Ogilvy Outreach, Ogilvy Landscapes, Ogilvy Sport and Ogilvy Signscapes. OgilvyAction plans to reach consumers at the point of purchase as 70% of purchase decisions are made at the retail point.
71. Mudra, O&M, Everest Walk Away With the Young Guns – March 14
Campaigns for Hindustan Motors, Cancer Patients Aid Association and Gillette win
Mudra, O&M and Everest have bagged the creative awards for their work at the Young Guns event held by the Advertising Club of Bombay on March 13, 2007. Everest won the award for its outdoor public and community service campaign for the Cancer Patients Aid Association. Mudra won an award for its radio ad designed for Hindustan Motors, whereas O&M walked away with two awards for its outdoor public and community service advertisements for Gillette and The Indian Association for Promotion and Welfare.
72. Lalu's Trains Will Now Come With 'Brand Baaja' – March 14
Opportunity for brands to tap customers through the railways
The Brand Train, a new concept by the Railways, could add more moolah to the portfolio's burgeoning bottomline and give advertisers a new track to customers. The idea, to be implemented first by south-western Railway, is to associate brand names with summer specials. The brand name will feature along with the train's name in announcements, on reserved tickets, reservation charts, destination boards of the train, coach indication slips and during information dissemination about the train.
Source: The Times of India
73. Red Gets Mandira Bedi – March 14
Ajay Jadeja, Mandira Bedi and Vinod Kambli to host Cricket Masala at Red FM
Red FM has Ajay Jadeja, Mandira Bedi and Vinod Kambli as hosts of their cricket series called Cricket Masala. This makes them the first ever cricket panel on Indian radio. This is an attempt by Red FM to increase their audience during the cricket season.
Source: Indian Radio Bulletin
74. Fropper to woo users with multimedia campaign – March 13
Social networking site launches advertising campaign
Fropper.com, a social networking site from the People Group, launched its new advertising campaigns with a view to spread the message of creating more friends. Orchard, the creative agency behind the campaigns, has created two TVCs ‘Fisherman’ and ‘Parachute’ and two radio spots ‘Airport’ and ‘BPO’ for the website. Fropper’s current initiatives are yet another example of online players using other medias actively to promote their offering.
75. Radio Indigo presents Acoustic Campus – March 12
Radio Indigo’s Acoustic Campus contest begins
Radio Indigo continues to use the competition and contest route to engage with listeners in Bangalore. On March 12, it rolled out Acoustic Campus, a contest open to all the 'unplugged' enthusiasts in pre-university degree colleges, engineering and art colleges as well as MBA and professional colleges.
Source: India Radio Bulletin
76. It's Koffee Time for Spoof Gags – March 12
Spoof gags create new shows and attract advertisers
With every big show on television comes an opportunity for another channel to cash in on its popularity by creating its spoof, some examples being the Semi Girebal Show on MTV, Chai with Charan on Radio One. Though spoofs are easy to market, they could also backfire, as viewers' expectations about them are high. TRPs of both often cannot be compared but interestingly, sometimes the wackiness of the spoof attracts more viewers than the original.
Source: Financial Express
77. OMS Wins Sobha Developers Account – March 10
Sobha Developers appoint OMS as the media agency
Bangalore-based Sobha Developers, one of India's largest real estate companies, has appointed Optimum Media Solutions (OMS) as its media agency. OMS is a specialized media agency of the Mudra Group.
Source: The Hindu Business Line
78. Malayala Manorama to come up with more editions in Kerala – March 10
Malayala Manorama will publish more editions.
Malayala Manorama, the Kerala-based media major is planning to launch more editions in the state. “We will come up with more editions in order to reach the readers in every nook and corner of the state,” said Varghese Chandy, General Manager, Marketing Operations, Malayala Manorama. Priced Rs 3.50, Malayala Manorama currently has 13 editions printed from Kottayam, Calicut, Kochi, Thiruvanandapuram, Palakkad, Kannur, Thrissur, Malappuram, Kollam, Mumbai, Chennai, Bangalore and New Delhi.
79. ‘Outdoor Advertising’ Magazine to Go Monthly From April – March 10
Outdoor Today changes format, frequency and name
‘Outdoor Advertising’ magazine, previously known as ‘Outdoor Today,’ is changing its format and frequency to address industry requirements better. April issue onwards, it will be published every month. The reason for these changes is to keep pace with rapid advances in technologies, practices and innovations.
80. CAS Conundrum Part 2: Rate Reduction Demand is Opportunist, say Broadcasters – March 09
Advertisers want rate reduction to counter losses due to CAS
TAM Media Research indicated a loss in revenue of Rs.100 crores to advertisers due to the introduction of CAS. Players such as Hindustan Unilever Ltd (HUL) and Reliance state that broadcasters should take cognizance of this loss and offer ways of making good. Broadcasters however are not ready to negotiate or revise their rates.
81. News and Current Affairs Channels Get Together to Form News Broadcasters Association – March 08
News Broadcasters Association to be headquartered in Delhi
The leading television news and current affairs channels of the country have come together to form the News Broadcasters Association (NBA), headquartered in Delhi. The founder members of the NBA include Global Broadcast News Ltd., TV Today Network Ltd., New Delhi Television Ltd., Times Global Broadcasting Company Ltd (Times Now), Media Content & Communication Services (India) Pvt. Ltd., Zee News Ltd, and Independent News Service Pvt Ltd. The vision of NBA is to create an environment in which news broadcasters can best serve audiences and contribute to the development and diversity of the country.
82. Pampering the Right Customer – March 08
India’s Luxury Segment catches the fancy of media and research agencies
The presence of various global luxury brands in India, buoyant personal income trends and growing consumer eagerness to spend are some factors attracting leading media and research agencies to this segment. Agencies such as retail consultancy Technopak, Starcom MediaVest Group's lifestyle marketing and communication consulting unit, C; Group M's marketing communications consultancy division, m Consult, audience rating agency TAM Media Research and Hansa Research are conducting customized surveys and studies to gain insights into this target segment.
Source: The Hindu Business Line
83. Times Media Bags Ad Rights for Mumbai Airport – March 08
Mumbai Airport gives advertising license to TIMPL
Mumbai International Airport Private Ltd (MIAL) has awarded the advertising license to Times Innovative Media Pvt Ltd (TIMPL), a wholly-owned subsidiary of Entertainment Network (India) Ltd (ENIL), which operates the Radio Mirchi network. TIMPL operates its OOH media business under the brand Times OOH Media. The license involves designing, establishing, developing and maintaining advertising opportunities for three years. It covers more than 7,000 display opportunities ranging from hoardings around terminals, approach roads to terminals, terminal buildings and aerobridges.
Source: The Economic Times
84. Advertisers Spending Khokhas to Cut Clutter – March 07
Ads crossing one crore budget barrier have become common
On an average about 20 ads cross the Rs 1 crore mark every year. In the last year-and-a-half, ad films such as Happydent, Thums Up (Akshay Kumar), Bajaj Discover (petrol pumps chasing the bike rider), Mahindra Scorpio (Snow) and Xbox 360 have been pegged in the Rs 1 crore range. New ads such as Nike, Fevicol, DTC and the yet to be released Pepsi Gold and Mountain Dew also fall in that bracket. Special effects/computer graphics/animation, exotic or multiple locations and large canvas cinematography are factors that make these ads expensive. Technicians from abroad also increase the costs.
Source: The Economic Times
85. Advertisers Bet Rs.1900 Cr on Cricket This Year – March 06
30% of TV Advertising to be on cricket
According to industry experts, of the Rs.7,000 crores to be spent on TV advertising, advertisers are expected to spend over Rs.1,900 crore on cricket. In the first two months of 2007, advertisers spent approximately Rs.80 crore on Neo Sports for the West Indies and Sri Lanka series. Another Rs. 900-1,000 crores worth of ad spots were booked on SET MAX, the official broadcaster for the World Cup, while Doordarshan is expected to get over Rs.80 to 100 crores for the India matches held in the World Cup.
Source: Business Standard
86. Catch University of Mumbai on Air Soon – March 06
Radio MUST, FM channel floated by Mumbai University, to go on air by March end
Scheduled to start by March end, this community-oriented FM radio channel will feature a range of programs such as discussions on academic issues, the admission process, results and course details. It will also involve the participation of citizens, students, teaching and non-teaching staff from university-affiliated educational institutions. Developed with the capacity of 50 watts, the channel will be transmitted within 5-7 km radius of the Kalina campus and will be broadcast for two hours in the morning and evening initially.
Source: DNA - Daily News & Analysis
87. Ha! Just Kidding – March 06
Hungama Channel regains its no. 1 position
TAM ratings reveal that Hungama became the Number 1 channel in the kids’ entertainment segment in the first week of March. Programs such as Hero, Doraemon and Shin Chan and John Aur Kaun’s seven-month on-ground activity contributed to this success according to Aparna Bhosle, VP, programming and production of Hungama. The channel launched four animation programs in March – Lunar Jim, Fifi and the Flower Tots, Pororo, The Little Penguin and I'm An Animal.
Source: Hindustan Times
88. Eros Signs Deal with Sony TV – March 06
Sony Entertainment Television signs exclusive deal with Eros International
Sony Entertainment Television and Eros International have signed a deal that gives Sony TV exclusive global satellite broadcasting rights to the original version of select titles for five years. Recently released films such as Salaam-E-Ishq, Lage Raho Munnabhai and forthcoming releases like Namastey London would be part of this deal.
Source: The Hindu Business Line
89. Fortune Communications Bags Advertising Duties for Radio Today Broadcasting – March 06
Fortune wins Radio Today account
Radio Today Broadcasting, a 100% subsidiary of the India Today Group, selected Fortune, JWT's second agency, for the communication needs of the venture. Fortune will provide a 360-degree communication plan, which will include a television and a print campaign. Fortune won the pitch over competitors such as Grey Worldwide and Contract, also part of the JWT Group.
90. Special unit, DDB Mudra, for Johnson & Johnson – March 06
Mudra Group launches DDB Mudra
The Mudra Group has formed a dedicated unit, DDB Mudra, to service its Johnson & Johnson business in India. DDB Mudra would work on the two Johnson & Johnson skincare brands, Neutrogena and Clean & Clear. The new unit will be headed by Bhairavi Naik as Group
Business Director.
91. Demonstrating a BIG heart Nationwide – March 06
BIG 92.7 FM leads the way to help the needy
BIG 92.7 FM is using its reach and interactivity to help the needy. In recent months, the channel initiated special fund-raising on-air programs/events to help terminally ill patients in cities such as Delhi, Chennai and Mumbai.
Source: India Radio Bulletin
92. Sony Sells Advertisement Inventory for World Cup (At Rs 4 Lakh Per 10-Second Spot on its SET Max Channel) – March 06
Sony covered its World Cup telecasting cost through its advertisement time inventory.
Sony Entertainment Television has claimed to cover the costs of acquiring the 2007 ICC World Cup by selling 100% of its advertising time inventory. The average advertisement rates are estimated at Rs1.5 lakh per 10-second spot across the 7 hours of programming during the matches. SET's premium packages for the 12 India-specific and the Super Eight matches have received advertisement rates of Rs 2.75 lakh per 10-second spot.
Source: Indian Business Insight
93. O&M All The Way at Abbys – March 05
O&M bags the highest number of awards
O&M bagged the Abbys Agency of the Year award for the 8th consecutive year. This is the tenth time it has won the award in the last 11 years. This year O&M won 20 gold Abbys, two special additional gold Abbys, 47 silver Abbys and a total of 425 points. The other agencies who won awards are Grey Worldwide and Everest Brand Solutions. Some agencies who boycotted the event were JWT, Leo Burnett, McCann Erickson, Lowe, TBWA, Contract, Publicis, Ambience and Mudra.
Source: The Economic Times
94. Word of Mouth – March 05
India Today to launch a “talk format” radio station
India Today is launching its own radio station by March end. The new radio venture will mostly have a talk-format. According to industry experts, talk radio is generally be hosted by personalities and is mostly interactive with the the listeners. Debates on ethics and morality, forums for relationships, health and medicine will be winners feature on the radio shows. The talk format is likely to be cost-effective with no payment for music royalties, but the marketing cost maybe high.
Source: India Radio Bulletin Newsletter
95. Star Cleared to Invest in Radio City – March 05
Star to take 20% stake in MBPL
The Foreign Investment Promotion Board (FIPB) has given News Corp’s Star the go-ahead to take a 20% stake in Music Broadcast Private Limited (MBPL), which operates Radio City. Mauritius-based Asiatic Investments Limited will make the investment. Star won’t be involved in the day-to-day operations, management or direction of the radio station.
Source: India Radio Bulletin Newsletter
96. Cricket Bowls Radio over – March 05
Radio stations banking on the World Cup to increase listeners
Radio stations are boosting their profiles and marketing goals through the Cricket World Cup. Shekhar Suman and Harsha Bhogle will host shows based on World Cup in BIG FM. Programs such as “Dhoom Machale Cup Uthale” and a trivia–loaded Memon Minute hosted by Ayaz Memon will be air on Radio One. All the radio stations have scheduled programs to cash on the World Cup fever.
Source: India Radio Bulletin Newsletter
97. Saints & Warriors bags the creative duties for Frankfinn – March 05
Frankfinn Institute of Air Hostess Training signs new creative agency
The Frankfinn Institute of Air Hostess Training (FIAT) has signed on Saints & Warriors as its creative agency. The media duties will be handled internally by FIAT. According to industry sources, the advertising spend will be approximately Rs 8-9 crores. Saints and Warriors has to position FIAT as one of the best air hostess training institutes.
98. Fever Soft Launches in Bangalore – March 05
Fever radio channel in Bangalore goes on air
Radio channel Fever has begun operations in Bangalore with the playing of back-to-back music. The commercial launch is expected to take place later, when radio jockeys make their debut. The channel is positioning itself as a non-stop music station.
Source: India Radio Bulletin Results
99. SET Ropes In Eight Sponsors for ICC World Cup 2007 – March 05
Eight sponsors for ICC World Cup
Sony Entertainment Television roped in eight sponsors for the forthcoming ICC Cricket World Cup. Pepsi and Nokia would be the presenting sponsors. The other six sponsors include Maruti Udyog, ITC Foods, Videocon, Hero Honda, LG and Aditya Birla Group.
100. Sports Broadcasting Signals Bill Introduced – March 03
I&B Minister introduced new sports broadcasting bill
I&B Minister Priyaranjan Dasmunsi introduced the Sports Broadcasting Signals Bill, 2007, providing for compulsory sharing of advertisement-free live sports broadcasting signals with all platforms of the public broadcaster on a revenue-sharing basis. Once the Bill enters the law books, sporting events of national importance can be accessed on All India Radio and Doordarshan’s National Network. Besides DD1 and AIR’s national hook-up, matches will also be available on DD’s direct-to-home platform.
101. Zee, Too, Taps Cricket Fever With Zeecric.Com – March 03
Zee launches website on cricket
Zee News has launched a cricket news site, Zeecric.com, from cricketers Maninder Singh, Nikhil Chopra and Vinod Kambli, who along with Zaheer Abbas and Steve Waugh, will be regular contributors to various columns on the website. The website claims to cover every aspect of the game. Along with comprehensive information on the game, the site’s visitors can enjoy easy navigation and real time updates about happenings on the field.
102. Mirchi Bowls with Gillette on the Gully Cricket Pitch – March 02
Radio Mirchi starts “Gully Gully Mein Cricket Ka Jashn” tournament
Radio Mirchi 98.3 FM, in partnership with Gillette Vector Plus, launched the “Gully Gully Mein Cricket Ka Jashn” tournament in Mumbai. This contest is a gully cricket tournament with a cash prize of Rs.10,000 for each winning team member. Hitesh Sharma, Radio Mirchi's vice president and station director, says the campaign is "yet another way through which we not only connect with our listeners, but also recognize the immense talent in the city.”
Source: India Radio Bulletin
103. Reliance ADAG Withdraws Sponsorship from SET for Cricket World Cup Matches – March 01
Reliance withdraws World Cup sponsorship
Reliance ADAG has withdrawn its sponsorship from SET MAX, which holds the telecast rights for the Cup. However, the group is present on the property in spot buys. RADAG had bought an estimated 10 percent of the advertising airtime.
104. Saffola Gold Tops Survey of Best TV Commercial in Jan 2007 – March 01
Saffola Gold topped the survey of best TVC
Saffola Gold’s latest television commercial has topped the best Indian television commercial survey in January 2007 conducted by Synovate Research and TV-Ad-Indx. McCann Erickson is the creative agency and Madison Media is the media agency for Saffola Gold. For Saffola Gold, the objective was to continue the preventive heart care platform journey.
105. Media Action Hots Up – March Issue
Media space getting hotter with tabloids, e-papers and compact dailies
Media experts say that the print media market is ready for new kinds of products as reflected in the launch of Mint, the new compact business newspaper published by HT Media in association with The Wall Street Journal and Metro Now, NCR’s first morning tabloid. The Mid-Day Group of Mumbai has acquired the Delhi Mid-Day title from the Bharat Hotels group. In Bangalore, the Times group is planning to launch Bangalore Mirror to counter the launch of Mid-Day in Bangalore in April. The Bhaskar group has launched e-papers for its newspapers, Dainik Bhaskar, Divya Bhaskar and the Daily News & Analysis.
Source: Pitch, Volume IV, Issue 5, March, Page – 11
106. Media Biggies Come to Town– March Issue
Impact of OMD and IMX launch on domestic media and advertising business
The launch of Omnicom’ OMD and the creation of Publicis’s new entity India Media Exchange (IMX) will change the face of the domestic media and advertising business. However, industry experts differ in their opinion. Sam Balsara, Chairman, Madison Communications, believes that this consolidation would have no effect either on Indian media or the marketers. However, Charles Berley Jenarius, Group CEO, Carat Media is of opinion that consolidation moves like these would increase operational efficiency in the market.
Source: Pitch, Volume IV, Issue 5, March, page – 29
107. An Offer You Cannot Refuse– March Issue
Sales promotion yet to become the major marketing tool for Indian firms
According to industry sources, the sales promotion industry was estimated at Rs.1000 crores in 2005 and is poised to grow to Rs.8000 crores by 2010. In India, promo-marketing is still at a nascent age and is used most often in categories where there is little or no product or service differentiation, or a product is purchased on impulse. Sectors such as airlines, banks, telecom, food and beverage sector and FMCG, use promo campaigns extensively. Sampling, coupons, cash refund offers, price-off offers, frequency programs, contests, sweepstakes, free trials, product warranties, tie-in promotions are some of the common promo tools.
Source: Pitch, Volume IV, Issue 5, March, page – 65
ZO Zone
109. Rocketing Internet Advertising to Overtake Radio a Year Early
- ZenithOptimedia predicts internet adspend to overtake radio in 2008, a year earlier than forecast in December
- The internet will grow six times faster than traditional media between 2006 and 2009 and increase its share of the ad market from 5.8% to 8.7%
- All of the fastest-growing ad markets are in the Middle East and Central & Eastern Europe
- These regions are growing at double-digit rates, compensating for an underperforming North America
- World adspend to grow 5.2% in 2007, on par with long-term trend
- Olympics, elections and football to lift growth to 6.2% in 2008
Global advertising expenditure by medium
US$ million, current prices Currency conversion at 2005 average rates.
| 2005 | 2006 | 2007 | 2008 | 2009 | |
| Newspapers | 119,269 | 123,405 | 126,191 | 130,231 | 133,719 |
| Magazines | 52,772 | 54,604 | 56,445 | 58,626 | 61,154 |
| Television | 150,881 | 160,670 | 167,823 | 178,735 | 186,412 |
| Radio | 34,382 | 35,334 | 36,347 | 37,503 | 39,105 |
| Cinema | 1,740 | 1,836 | 1,950 | 2,135 | 2,356 |
| Outdoor | 21,806 | 23,775 | 25,483 | 27,396 | 29,487 |
| Internet | 18,727 | 24,385 | 31,271 | 37,910 | 42,912 |
| Total | 399,577 | 424,008 | 445,511 | 472,536 | 495,145 |
Share of total adspend by medium 2005-2009 (%)
| 2005 | 2006 | 2007 | 2008 | 2009 | |
| Newspapers | 29.8 | 29.1 | 28.3 | 27.6 | 27.0 |
| Magazines | 13.2 | 12.9 | 12.7 | 12.4 | 12.4 |
| Television | 37.8 | 37.9 | 37.7 | 37.8 | 37.6 |
| Radio | 8.6 | 8.3 | 8.2 | 7.9 | 7.9 |
| Cinema | 0.4 | 0.4 | 0.4 | 0.5 | 0.5 |
| Outdoor | 5.5 | 5.6 | 5.7 | 5.8 | 6.0 |
| Internet | 4.7 | 5.8 | 7.0 | 8.0 | 8.7 |
ZenithOptimedia predicts that internet adspend will grow 28.2% in 2007, while the rest of the market grows 3.7%. We now expect the internet to overtake radio in 2008, a year earlier than in our last forecast. We forecast the internet to account for nearly 9% of global adspend by 2009, and its share should reach double digits early next decade. The internet already attracts more than 10% of adspend in three markets (Norway, Sweden and the UK), and by 2009 we expect it to do so in eleven markets (Australia, Canada, Denmark, Israel, Japan, Norway, South Korea, Sweden, Taiwan, the UK and USA). The internet has its highest share in the UK, where it will attract 16.6% of adspend this year and 22.6% in 2009.
Apart from the internet, only cinema and outdoor are forecast to grow faster than the market to 2009. Cinema is new and growing quickly in the US, while outdoor continues to gain share as contractors invest in better displays and better research.
Last December we voiced concerns that television was about to enter its first ever sustained period of market-share loss at the global level. Demand has picked up since then, and we have revised our forecasts for television expenditure upwards. We now expect television’s share of global ad expenditure to be just 0.2 percentage points lower in 2009 than it was in 2005.
We have downgraded our forecasts for newspapers and magazines as publishers – eyeing the growth rate of internet advertising – have decided to invest more in their online products and less in print. Ad expenditure is still growing in both media, in nominal terms at least, but after adjusting for inflation newspaper expenditure is essentially stagnant, as readers and advertisers migrate to the internet.
Advertising expenditure by region
Major media (newspapers, magazines, television, radio, cinema, outdoor, internet) US$ million, current prices. Currency conversion at 2005 average rates.
| 2005 | 2006 | 2007 | 2008 | 2009 | |
| North America | 174,072 | 183,182 | 189,551 | 198,103 | 204,192 |
| Western Europe | 98,425 | 102,319 | 106,123 | 110,336 | 114,744 |
| Asia Pacific | 85,511 | 90,332 | 95,878 | 103,267 | 108,297 |
| Central & Eastern Europe | 19,160 | 22,310 | 25,702 | 29,596 | 33,428 |
| Latin America | 18,403 | 20,346 | 21,578 | 23,043 | 24,462 |
| Africa/M. East/ROW | 10,682 | 13,072 | 15,097 | 17,792 | 21,001 |
| World* | 406,254 | 431,562 | 453,928 | 482,137 | 506,123 |
| Source: ZenithOptimedia * The totals here are higher than the totals in the ‘Global advertising expenditure by medium’ table above, since this table includes total adspend figures for a few countries for which spend is not itemised by medium |
|||||
Major media (newspapers, magazines, television, radio, cinema, outdoor, internet)
Year-on-year change (%)
| 2005 v 04 | 2006 v 05 | 2007 v 06 | 2008 v 07 | 2009 v 08 | |
| North America | 3.0 | 5.2 | 3.5 | 4.5 | 3.1 |
| of which USA | 2.9 | 5.2 | 3.4 | 4.5 | 3.0 |
| Western Europe | 3.9 | 4.0 | 3.7 | 4.0 | 4.0 |
| Asia Pacific | 5.4 | 5.6 | 6.1 | 7.7 | 4.9 |
| Central & Eastern Europe | 3.5 | 16.4 | 15.2 | 15.2 | 12.9 |
| Latin America | 19.0 | 10.6 | 6.1 | 6.8 | 6.2 |
| Africa/M. East/ROW | 16.6 | 22.4 | 15.5 | 17.8 | 18.0 |
| World | 4.7 | 6.2 | 5.2 | 6.2 | 5.0 |
| Source: ZenithOptimedia | |||||
ZenithOptimedia predicts the world ad market will grow fractionally above its trend rate in 2007 after a stronger-than-average year in 2006. Over the last ten years ad expenditure has grown at an average rate of 5.0% a year. It grew by 6.2% in 2006 – thanks partly to the Winter Olympics and the football World Cup – and we expect it to grow by 5.2% in 2007. 2008 is a quadrennial year – that is, it will contain the summer Olympics, presidential elections in the US, and the European football championship, all of which are traditionally strong stimulants of advertising. We therefore expect growth to rise by one percentage point to 6.2% in 2008 before falling back to 5.0% in 2009.
All of the fastest-growing markets are in the Middle East and Central & Eastern Europe. Media markets in both regions are maturing rapidly, and advertising is playing a growing role in local economies. High, if erratic, oil prices are providing a boost to several countries in both regions. We expect growth in our Africa/Middle East/Rest of World region (which is mainly driven by the Middle East) and in Central & Eastern Europe to remain comfortably in double digits over our forecast period.
The ten fastest-growing ad markets
| Growth (%) | |
| 2009 v 05 | |
| Qatar | 304.2 |
| Egypt | 220.7 |
| Moldova | 185.7 |
| Romania | 160.4 |
| UAE | 154.8 |
| Pan Arab | 146.8 |
| Russia | 143.2 |
| Saudi Arabia | 113.5 |
| Kuwait | 113.2 |
| Slovakia | 106.4 |
| Source: ZenithOptimedia | |
Ad expenditure in Asia Pacific is accelerating in the run-up to the Beijing Olympics in 2008, when growth should reach 7.7%; we then expect growth to slip to 4.9% in 2009 when the one-off Olympics activity drops out. China, India, Indonesia and Vietnam all continue to grow at double-digit rates and should continue to do so.
We have revised downwards our forecasts for both North America and Western Europe.
The shift in publishers’ investment from print to the internet now leads us to expect no growth from newspapers in the US this year, and less growth from magazines than we forecast in December. Over the last ten years the North American ad market has grown at an average rate of 5.3%, so its current performance is disappointing, with average growth in 2006 and below-average growth forecast for 2007 to 2009.
The UK ad market is starting to recover from stagnation in 2006, though not to the extent that continued economic growth and low media prices led us to expect in December, so we have downgraded our forecasts for UK ad expenditure. Continued signs of improvement in Germany have encouraged us to raise our forecasts for German ad growth slightly, but we still expect Germany to remain the slowest-growing market in the region. The ad market in Western Europe is however still growing at about its long-term average rate of 3.9%.
We have upgraded our forecasts for Latin America from 4%-5% annual growth to 6%-7%, mainly because Argentina has demonstrated continued growth in ad volumes despite high media inflation. This is well above the 3% long-term annual growth rate of the Latin American ad market.
Advertising Expenditure Forecasts is published quarterly priced £395. It may be ordered in hard or soft copy from www.zenithoptimedia.com
For further information, please contact:
Jonathan Barnard
Head of Publications
Tel: +44 20 7961 1192
Fax: +44 20 7291 1199
E-mail: jonathan.barnard@zenithoptimedia.com
110. Zed digital wins Yahoo! across Europe
Zed digital, ZenithOptimedia’s specialist digital unit, has been appointed to manage the global performance-based buying of Yahoo! brands: Yahoo! media, Kelkoo and Yahoo! search marketing across Europe.The campaign will roll out from Q2 starting with France and the UK, then Germany, Spain, Italy and Scandinavia. Frédéric Joseph, CEO of Zed digital Europe, says: “I’ve been working for the past 12 months on the reorganisation of our search engine marketing units across Europe, with one key target: to ready ourselves to win Yahoo! Yahoo! is the most symbolic internet brand and convincing them that we had the skills and tools to work with them to optimize their traffic and ROI shows that we have achieved this objective”.
111. Publicis Groupe – Annual Results 2006
Strong performance in all areas
Commenting on the results, Publicis Groupe Chairman and CEO Maurice Lévy said,
“Publicis Groupe teams have not only kept all their commitments, but —once again—
surpassed them.
Source: Publicis Groupe Press Release
Fast Forward
112. Forward Issue 3 – The death of the 30 second spot?
Introduction
Welcome to issue three of Fast Forward, ZenithOptimedia's marketing newsletter. In this issue we discuss the alleged death of the 30 second spot, the traditional unit of television advertising. We brought experts in sponsorship (from Sponsorship Intelligence), product placement (Propaganda), production (Coast) and broadcasting (Discovery Networks) to talk to us about the subject. Among other topics, we discussed how effective the 30 second spot is now, how to
make better use of it and combine it with other forms of marketing, the reality of ad avoidance and what can be done about it, and how to get brands into television programmes. This newsletter contains only the highlights of the wide-ranging conversation we had.
Jonathan Barnard (ZenithOptimedia)
Mick Brown (Coast)
Jonathan Gladwin (Propaganda)
Andy Kowalczyk (Sponsorship Intelligence)
Nick Lawrie (Sponsorship Intelligence)
Rupert McPetrie (ZenithOptimedia)
Jules Robinson (Discovery Networks)
Is the 30 second spot dying?
Television is changing. Digital television has greatly expanded the number of television channels available to viewers; technology like the Personal Video Recorder (PVR) has allowed viewers to take more control over their viewing experience; and the internet has very quickly become a strong competitor for consumers' time. Several commentators have suggested that these developments have made the 30 second spot much less effective, and may even be killing it. It is too early to talk of the death of the spot, which retains a lot of its power, but agencies have to work harder to get the most out of it.
Jonathan Barnard (ZenithOptimedia): So, do we think the 30 second spot is dying?
Rupert McPetrie (ZenithOptimedia): Absolutely not. I think it's a great question for us to address. The TV landscape is changing so much and the fact that we have such a diverse range of people in the room is testament to that. The challenge for us all is how to use TV effectively. The 30 second spot used to be the only answer, but there are so many more opportunities. You can argue that the effectiveness of the 30 second spot in isolation has diminished, but the 30 second spot still plays an important role as part of an overall communications plan in television. In fact, as technology progresses and the areas in which we can behave commercially expand, the 30 second spot will probably make the plan much more effective.
Jules Robinson (Discovery): I think creativity is important. The 30 second spot is all about creativity and the message. Marketers are having to work harder now and be cleverer to gain impact. The 30 second spot is not dying, but marketers have to think more about how to use it, and how it works with other forms of marketing.
Andy Kowalczyk (Sponsorship Intelligence): Sport plays an important role in mass TV because it's one thing that people will all converge to watch. It will help keep the 30 second spot powerful. When the World Cup is on, people want to go to a trusted broadcaster and hear their favourite pundits, so you'll always get big audiences watching that coverage.
“Marketers are having to work harder now and be cleverer to gain impact. The 30 second spot is not dying, but marketers have to think more about how to use it, and how it works with other forms of marketing.” Jules Robinson (Discovery)
Jonathan Barnard (ZenithOptimedia): And watching it live, as well.
Nick Lawrie (Sponsorship Intelligence): Look at the Super Bowl, for instance. It's the one event that can draw the whole of America together, and advertisers pay millions for their 30 seconds.
Jules Robinson (Discovery): It's the biggest live showcase of advertising, possibly in the world. They are traditional ads.
Jonathan Barnard (ZenithOptimedia): In the Super Bowl the ads are an event in themselves. The next day they'll be analysed in newspapers around the world. It's a great example of how ads are still a form of entertainment.
Jules Robinson (Discovery): When I do focus groups, everyone starts off saying, 'As soon as I see the ads I get up and walk out'. Twenty minutes later, they're saying, 'I love that ad', and they relay it word for word. I think people like advertising more than they'll ever admit.
Making better use of the 30 second spot
Television advertising works better when it is relevant to the viewer. Advertising can be made relevant by forging a relationship between the spot and the programme that surrounds it: either a direct relationship (such as a car ad in Formula 1 coverage), or an indirect one (such as a beer ad with a rugby theme in rugby coverage). Ads can also be tailored to the channel in which they appear, particularly if the channel serves a special interest.
Rupert McPetrie (ZenithOptimedia): Agencies - both creative and media - have tried to make the traditional spot that bit more effective. They are looking to the future, but still using the foundation of the 30 second spot. Think of interactive ads, which have been around for a while now. More recently, think of live ads – a beer ad in the Rugby World Cup, for example, which showed the score at half time. That to me is brilliant because, one, this is the right brand for the programme and, two, you're exploiting the technology, making the ad that much more relevant and engaging.
If you have a time sensitive message you need to pick a programme that consumers will watch live. Some people may record a match and watch it a weekl ater, but it's old news by then. It's the same with reality TV. You don't want to be a week behind when you're talking at the water-cooler.
Jules Robinson (Discovery): I think it's all about relevance.
Mick Brown (Coast): You need to look at the 30 second spot through its relationship with the editorial, which is the reason why the consumer is there in the first place. The challenge is to contextualise the message. The media and the creative should come together to reflect the particular interests of the consumer. You want to get your message to the consumer through an interest that you demonstrate you both share. But in mass TV, you don't normally make your ad to work around a particular programme, because you don't know where it's going to go. The media buyer can put it in the context of the target audience, but not of the editorial, unless you have very specifically set out to make an ad that is around that programme. That does happen, but it's not common.
Jules Robinson (Discovery): I think fundamentally people are still making ads to appeal to a specific audience. You then have to find the right environment.
Mick Brown (Coast): You take the consumer through a shared interest, which is the hook, to a message about your brand. That way necessitates multiple creative executions.
Rupert McPetrie (ZenithOptimedia): The onus is always on the buyer to get the most appropriate placement. The TV buyer will always look for a creative buy; even if you have a fairly generic mass market ad, you can find resonance with programmes that are relevant. Or you say, 'OK, we know there are four things that are relevant for the brand. Let's say, Formula 1, football, high quality drama and adventure programming. Let's get four bits of copy that work with all those programmes.' The media buyer would love to have that at his disposal.
Jules Robinson (Discovery): We have lots of clients taking their 30 second ad, which is used across many channels, and adding to that a vignette piece that localises it to each channel. They're using that 30 seconds for broad messaging and then adding on a bit that fits it into the environment.
“The challenge is to contextualise the message. The media and the creative should come together to reflect the particular interests of the consumer. You want to get your message to the consumer through an interest that you demonstrate you both share.” Mick Brown (Coast)
Jules Robinson (Discovery):We have lots of clients taking their 30 second ad, which is used across many channels, and adding to that a vignette piece that localises it to each channel. They're using that 30 seconds for broad messaging and then adding on a bit that fits it into the environment.
Extending the 30 second spot
Agencies have to make better use of the spot because viewers have more choice and power over what they watch. However, the technology that gives viewers this choice and power also allows agencies to understand more about viewers and assess the effect of television advertising more accurately. It allows agencies to extend campaigns that are based on the 30 second spot into other forms of media and marketing. These work together with the spot to engage the viewer and forge a stronger relationship between the viewer and the brand.
Nick Lawrie (Sponsorship Intelligence): Media owners are now offering much more diverse platforms, so a marketer can come in with creative ideas for a 30 second spot but also link into all sorts of other media elements.
Rupert McPetrie (ZenithOptimedia): I think that creativity comes in two forms; there's the actual creative of the commercial, but there's also the creative way in which we use media and all the means of reaching the target market. Part of the bigger question is, given the choice and power that viewers now have, how do we move from just exposure, which a 30 second prime-time spot gives us, to engagement? We really need to communicate, almost on a personal basis, with the viewer. The viewer can now choose to watch programmes through a TV, through a PC or on a mobile phone. There are so many different points for viewing the message that our job as an agency has become that much more complicated. But if we conduct research and gain insight from media owners, then the effectiveness can be that much greater.
Andy Kowalczyk (Sponsorship Intelligence): It used to be very much a case of push; you used to push these 30 second ads out to a mass of people, hoping that a certain number would pick up that ad, recall it and then go out and buy that product. Now it's a lot more about pulling people toward you and your brand and your product, through TV, internet and all the different platforms.
Jules Robinson (Discovery): We have a very media-savvy audience. People know when they're being sold to. This means we have to be clever, and expand beyond the 30 second spot, rather than see the death of it. This would then mean extending campaigns online and introducing competitions to increase exposure, as well as putting them into context within the programmes they air in.
Rupert McPetrie (ZenithOptimedia): The good news about the way the market is evolving is that everyone has to think more, not just because there's choice, but because new technologies help us understand more about viewing and purchasing behaviour in digital homes. It's only once you have the proof of that relationship between exposure and engagement that we can then really understand how well the 30 second spot works, and how it interacts with the surrounding content and other points of contact.
Jules Robinson (Discovery): Taking a step back, the heart of a campaign is the client's creative, the way they want to be presented and the message they want to get across. We are asked how we can take our shows and use them to make the creative more relevant. We can then create online content and hold special events. For instance, we put together a massive, global package for a tourism office, where we used relevant shows and created vignettes, competitions and websites. We were involved in tourism events so the client could communicate with travel agents and not just the consumer. The media owner became part of their marketing department, working with their agency to produce a campaign on a global scale, in many languages. We've had to develop part of our business to make it possible to fully sponsor a proper multimedia platform,
rather than just negotiating an ad spot. For years TV has been about awareness; there's no better medium for building awareness and understanding of a product. Now TV can do more and that's exciting.
“...given the choice and power that viewers now have, how do we move from just exposure, which a 30 second prime-time spot gives us, to engagement? We really need to communicate, almost on a personal basis, with the viewer.” Rupert McPetrie (ZenithOptimedia)
Ad avoidance, relevance and incentives
PVRs and internet video make it easier for viewers to avoid ads, though by no means all those who have the ability to avoid ads actually do. Still, the spread of ad-avoidance technology makes it important to ensure that ads are relevant to viewers, and to give viewers reasons to pay attention to them.
Rupert McPetrie (ZenithOptimedia): The conventional wisdom is that traditional media is suffering as technology develops. To a degree that's true, but people actually watch more television when they have more choice. We have to be a bit smarter about where we try to reach these people because the audience is more fragmented, but more choice does mean more viewing. When you look at early audience data from homes with PVRs, a lot of programmes were being recorded and a lot of the playback was being fast forwarded through the ads. That gave us a problem. But the people who bought this equipment were the early adopters, who don't have traditional viewing habits anyway and have a high understanding of the kit. In fact, as the universe of those who have PVRs increases, the ad avoidance data suggests that we're not missing all that much commercial viewing. Ad avoidance is a challenge and we'd be foolish not to think about how we can deal with that in the future, but there are already some great examples of a more creative approach being used to try and negate that effect.
Mick Brown (Coast): But don't people still flick through the ads?
Rupert McPetrie (ZenithOptimedia): You're right that when people record programmes, a proportion of them do fast forward the ads. But those who don't are more attentive to the advertising, because they have selected that programme and taken the time to sit down and watch it.
Andy Kowlaczyk (Sponsorship Intelligence): Internet penetration is high and broadband speeds are getting to the level where we can actually watch high-quality coverage on our PCs. At that point you can avoid the ads.
“...broadband speeds are getting to the level where we can actually watch high-quality coverage on our PCs. At that point you can avoid the ads.”Andy Kowlaczyk (Sponsorship Intelligence)
Rupert McPetrie (ZenithOptimedia): There are ways of signposting the ads that are about to come on air. Look at the listing pages in your newspaper on your way home; there will be some signposting for an ad that will be on later tonight. You can signpost on air. We did it for one of our clients; we got the channel to say at the end of the programme, 'Stay tuned to this break to see this exciting development about your credit card'. Looking to the future, are there ways that we can use this technology, which we perceive as a threat, to force engagement? Can we make people watch an ad? Or do we incentivise them? The broadcaster can let viewers earn reward points by watching ads, for example.
Andy Kowlaczyk (Sponsorship Intelligence): You have to give people reasons to watch ads.
Mick Brown (Coast): Consumers are asking why the advertiser is there. Advertisers need to ask how they can be relevant.
Jules Robinson (Discovery): I think it's still fundamentally about programmes, and entertaining people or informing people in the right way. You've got to be careful about forcing someone to do something that then ruins their experience. We shouldn't put more barriers between viewers and programmes, because what the internet has done is told consumers, 'You can go anywhere'.
Getting brands into programmes
Even if viewers start avoiding ads in large numbers, they won't be able to avoid brands that appear in the programmes they watch, hence the growing interest in sponsorship and product placement. Product placement rules vary from country to country; it is common in the Americas and Asia, but banned (at least in most forms) in much of Europe. Even in countries where it is banned, brands can often be placed in programmes where their appearance is editorially justified, as long as there is no editorial interference. Wherever it takes place, product placement needs to be conducted carefully, to avoid alienating the viewer and ensure the broadcaster retains its credibility. In the future, technology is likely to make product placement more powerful, by allowing viewers to find information about the products they see on screen, or even buy
them, with a touch of a button or click of a mouse. This technology should also do the same for the 30 second spot, by helping advertisers interact and engage with viewers more closely.
Andy Kowalczyk (Sponsorship Intelligence): Product placement and sponsorship - having brands exposed within coverage - are becoming so important now, because you can't avoid them. Break sponsorship is very good because it tells viewers who are fast forwarding the ads when the programme will start again.
Mick Brown (Coast): Because it's a signpost.
Jonathan Barnard (ZenithOptimedia): Clearly, we have to be very sensitive about how we get brands into content.
Jonathan Gladwin (Propaganda): It's about making sure that the programmes we're working on fit with the brand, and making that fit right and relevant for the audience. We've got to make sure the audience feels comfortable with the brand being there. And audiences expect to see the brands in programmes. They don't expect to see no brands in a programme, because that doesn't feel right. We're “We’ve got to make sure the audience feels comfortable with the brand being there. And audiences expect to see the brands in programmes.” Jonathan Gladwin (Propaganda).
Jonathan Barnard (ZenithOptimedia): Clearly, we have to be very sensitive about how we get brands into content.
Jonathan Gladwin (Propaganda): It's about making sure that the programmes we're working on fit with the brand, and making that fit right and relevant for the audience. We've got to make sure the audience feels comfortable with the brand being there. And audiences expect to see the brands in programmes. They don't expect to see no brands in a programme, because that doesn't feel right. We're all surrounded by brands every day. The day it becomes uncomfortable is when viewers feels a brand has been shoehorned into a show where it doesn't fit.
Mick Brown (Coast): The problem is when you want to make the product the hero and you focus in too much on it; nobody wants that.
Jonathan Gladwin (Propaganda): It's the difference between the product being the hero and being just part and parcel of the action. But you want it to be natural; you don't want it to jar. Leave the production company to naturalise the products in the shows, then let the 30 second ad do all the sales pitch in that controlled space.
Andy Kowlaczyk (Sponsorship Intelligence): I don't think brands have to be too sensitive about product placement, because people are savvy now; they understand what's going on. They understand that these programmes need investment. We've done a lot of research that shows people don't mind sponsors being there any more, as long as they don't get too intrusive and the sponsorship is relevant and in context.
Jules Robinson (Discovery): The main point I've picked up from this is the question of how to bring brands into programmes and how to pull down the walls, without affecting the credibility of the broadcaster. Fundamentally, I think broadcasters need to retain the responsibility for the quality of their programming.
Andy Kowalczyk (Sponsorship Intelligence): There will be more options in the future. I saw Microsoft give a presentation on new technology, using Friends as an example. You clicked on Rachel's jacket and the television took you to a shop where you could actually buy that jacket. It stopped the programme coverage, allowed you to buy the jacket and, when you'd finished, carried on from where it left off.
Jonathan Gladwin (Propaganda): I think that's the key, getting products into the content and allowing people to adapt to that. As technology develops we will be able to go from seeing a product in a programme to buying it, and to click on onscreen text to go to a website.
Jules Robinson (Discovery): We have interactive TV now, so there is already a twoway process in TV. Now video creators and broadcasters are exploring this online.
Jonathan Barnard (ZenithOptimedia): Going back to the 30 second spot, we already have interactive ads, but the scope of interaction is still quite limited. As this sort of technology becomes more common, it will allow us to do so much more with television ads: to take consumers directly from ad to website to purchase, for example, or engage them with personalised content.
“...people don't mind sponsors being there any more, as long as they don't get too intrusive and the sponsorship is relevant.” Andy Kowlaczyk (Sponsorship Intelligence)
This tracker has been compiled from external sources and does not necessarily reflect the views of the company.
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