'Ad sector will see a double digit growth this year '

Insearchindia.com's interview with Havas Media India & South Asia CEO Anita Nayyar

'Ad sector will see a double digit growth this year '

Posted on 24 July 2010


As the advertising industry prepares to come out of the slowdown
clutter, Havas Media has found proper representation in India's
two high-growth sectors: telecom and automobiles.

While Maxx Mobiles came into the fold in 2009, the big catch this
year has been Hyundai.

Havas has almost 50 per cent of its revenues coming from the top
five clients - Reckitt Benckiser, Jockey, Bank of Baroda,
Max Mobiles and MTS. With Hyundai falling into the net, the top
six are in a position to power the media agency's growth story in
India.

Havas will stay Delhi and Mumbai focussed while posting slow growth
from its three southern offices - Bangalore, Chennai and Hyderabad.

The big push will come from its integrated funtions - sports, digital
and out-of-home.

In an interview with Insearchindia.com's Anindita, Havas Media India
& South Asia CEO Anita Nayyar speaks about her company's growth plans
at large.

Excerpts:


How has the first half of the year fared for MPG India?
We are on track as far as revenues and billings are concerned.
On a percentage basis, we have met out targets quite in line with
last year and the growth has come from both existing and new businesses.
While our existing clients have fared better for us this year, the
new businesses have also helped in pumping up the growth.

But are you implying that 2010 has been similar to 2009 in terms of
growth?
Yes. We won MTS and Maxx Mobiles last year and Hyundai this year,
all large and prestigious clients. And both telecom/handsets and
automobiles are considered as categories doing well with minimal
recessionary impact. We also won Dixcy, News X and M3M this year.

As far as revenues are concerned, which clients and categories are
the largest contributors?
We have a client list that is upwards of 50 and across categories
which include FMCG, telecom, automobiles, banking, mobile hand sets,
beauty and wellness, media and real estate. About 40-50 per cent of
our revenues come from our top five clients - Reckitt Benckiser,
Jockey, Bank of Baroda, Maxx Mobiles and MTS.

What are your expectations for 2010?
We foresee a decent growth in 2010, given that 2009 was a recessionary
year. Percentage growth in our integrated functions - sports, digital,
and out-of-home - will be better as margins in offline business
is pretty low.

But has not out-of-home taken a hit this year?
I don't think so. In fact, out-of-home has been doing very well for
our clients and though it has not increased dramatically, it has surely
not taken a dip.

'About 40-50 per cent of our revenues come from our top five clients
- Reckitt Benckiser, Jockey, Bank of Baroda, Maxx Mobiles and MTS'


Which are the geographical areas that show potential in terms of
advertising?
As far as we are concerned, we have five offices across India -
Delhi, Mumbai, Bangalore, Hyderabad and Chennai and we expect our
growth to come in primarily from Delhi and Mumbai. Growth from
the southern market is slow for us.

Overall, from the consumer's point of view, the potential surely
lies in the semi-urban and rural areas.

How are the other divisions faring - Havas Sports & Ent,
Media Contacts and MPG active?
All three are doing well and on an upswing. Havas Sports took up
interesting projects during IPL like the strategic sponsorship deal
and the Dhoni endorsement with Max. We are in the process of finalising
some more deals. Digital is seeing an interesting growth and Media
Contacts is en cashing on the situation. MPG Active has been in the news for executing interesting campaigns including the one on INQ Mobiles where they executed the country's tallest billboard.

How do you predict the 2010 advertising scenario to be like?
We should hit double digit growth in 2010. It should be somewhere in
the region of 10-12 per cent, though the pace is a bit slow.

According to Tam, the first half of the year has seen a 36 per cent
rise in TV ad volumes. Revenue, however, is not growing at the same
speed. Why?
There is too much of a fragmentation today and this is making it
difficult to attract the consumer. There are multiple touch points
today to capture consumer attention and you never know when and
where the consumer will spot the advertisement. And though the
ad volumes are increasing, we are not seeing much increase in ad rates.

How much of a change has recession brought into the functioning
methods of an advertising strategy?
When recession's not around, we tend to work more liberally.
However, recession always teaches businesses
to get more from less and our business is no exception. This time
around, it taught us to keep a tight watch on our purse string.
It told us that we can do with lesser inputs, work, people and
resources. Also, while there was a bit of retrenchment as far as
our industry is concerned, it was more about not giving increments
during the period.

Which advertising platform is expected to show the maximum growth?
Digital for sure. This is because the medium is progressing towards
accountability and efficiency. The platform is seeing about 40 per cent
growth year-on-year as advertisers are increasingly getting into the
digital and media space.

India has 503 registered TV channels till March-end

India has 503 registered TV channels till March-end


Insearchindia.com Team

(24 July 2010 8:20 pm)


NEW DELHI: Even as the Telecom Regulatory Authority of India
has recommended that there should be no cap on the number of
television channels in the country, its quarterly report for January
to March 2010 shows that 18 new television channels were registered
taking the total to 503.

These include 147 pay channels being broadcast or distributed
by 24 broadcasters, according to the Trai Indian Telecom Services
Performance Indicator Report.

During the quarter, three new pay channels were launched and two
channels were converted from FTA to pay by the broadcasters.

S.No Name of the Broadcaster Name of the channel Status
(New /Converted)
Zee Turner Limited Zee Salaam New pay channel
MSM Discovery Discovery Science New pay channel
MSM Discovery Discovery Turbo New pay channel
Asianet Communications Asianet Converted from FTA to Pay channel
Asianet Communications Asianet Plus Converted from FTA to Pay channel

During the quarter, the distribution of following 11 channels changed / shifted :-
S.No Name of the channel Distributed earlier Distributed now
Zee Sports Zee Turner Taj Television India
Ten Sports Zee Turner Taj Television
The Disney Channel Star Den Sun Distribution Services
Disney XD Star Den Sun Distribution Services
Hungama TV Star Den Sun Distribution Services
FX Fox Channels India Star Den
FoX Crime Fox Channels India Star Den
Baby TV Fox Channels India Star Den
Nat Geo Fox Channels India Star Den
Nat Geo Adventure Fox Channels India Star Den
Nat Geo Music Fox Channels India Star Den

During the quarter, Channel Plus (Now Sun Distribution Services) has
reported an increase of 7 per cent in the rates of all their channels
for Non-Cas areas in pursuance of the tariff amendment order - the Telecommunication (Broadcasting and Cable) Services (Second) Tariff
(Ninth Amendment) Order, 2008 for Non-Cas areas. The aim of this
tariff amendment order was to provide inflation linked adjustments
of 7 per cent in the rates of channels for cable TV services.

There are six private Direct-to-Home licensees having a subscriber
base of 21.3 million viewer homes. This is apart from Doordarshan’s
DD Direct Plus which is the only DTH player for free-to-air channels.

The total number of set-top boxes installed in Chennai and the Cas
notified areas of Delhi, Mumbai, Kolkata and Chennai increased from
7,45,953 in December 2009 to 7,62,238 in March 2010.

The maximum number of pay TV channels being carried by any cable
operator is 122 (Up by only two) and the maximum number of FTA
channels is 161 channels (up by six).

The maximum number of TV channels being carried by any of the reported
MSOs is 259, and 100 in the conventional analogue form.

Interestingly, the only one new licence was issued to a Teleport
Service Provider, taking the total to 61

MSM Discovery moves court against Viacom18

Insearchindia.com's Digital Edge

MSM Discovery moves court against Viacom18

Insearchindia.com Team

(17 July 2010 11:40 pm)


MUMBAI: For MSM Discovery, it is a sweet deal gone sour for no
fault of theirs. After getting a termination notice from Viacom18,
the distribution company operating under the OneAlliance brand
has moved the Bombay High Court.

MSM Discovery's grouse is that Viacom18 has decided to pull out its
four channels - Colors, MTV, Nick and Vh1 - before the expiry of
a three-year contract effective 1 April 2009.

"We have moved the Bombay High Court. We believe we have a strong
case and will get relief from the court," MSM Discovery president
Rajesh Kaul tells Insearchindia.com.


MSM had entered into a pact to distribute Hindi general entertainment
channel Colors while renewing its contract to distribute the other
three channels. The company had agreed to pay a minimum guarantee
(MG) of Rs 3 billion over the three-year period, according to sources
familiar with the transaction.

Colors was to turn pay from 1 April and decided to align with
TheOneAlliance bouquet. Besides getting a lucrative MG, it also
weighed in the fact that the bouquet would have Max as a driver
channel with its compelling IPL content during the 45-day period
starting 18 April. Colors ran less risk of being blacked out from
cable TV networks as it initiated the process of collecting pay-TV
revenues.

For TheOneAlliance, the inclusion of Colors, the second most-watched
Hindi GEC then, meant more muscle to the bouquet even after the end
of the Indian Premier League (IPL) playing window. It was, in other
words, a deal that best suited each other at that time.

“We have a watertight contract valid till March 2012. We have been
fulfilling all the contractual obligations and there is no way the
Viacom18 channels can walk out of our bouquet. There is no material
breach on our side,” Kaul says.

When contacted, Viacom18 spokesperson refused to comment on the issue.

Viacom18 has decided to shift its channels to Sun18, a newly formed
joint venture between Sun Network and Network18 that hopes to start
with the distribution of 33 channels. Network18 Group has a 50 per cent
stake in Viacom18 (through IBN18), the remaining half being held by
partner Viacom.

Media observers feel Viacom18 will be able to get more than what
it would have got from TheOneAlliance, now that Colors has established
its success. "Colors is an established channel now. The revenue
potential of Viacom18 from subscription is bright," says an analyst
who is tracking the company.

On the other side of the boundary, Star India has plenty of
reasons to be upset as the Network18 group of channels
(including CNBC TV18 and CNN IBN) have demanded exit from Star Den.

Star had formed a 50:50 joint venture with Den Networks
in January 2008 and the Network18 channels had signed a long-term
distribution contract with Star Den.

"This is the first time in the distribution business that a
broadcaster has terminated its contract with the distribution
service provider before the full term is over. This will create a
lot of ill-feeling in the market," says a senior executive of a leading distribution company who did not want his name to be revealed.

Network18 officials did not want to comment on the issue, including
the possibility of material breaches committed by the distribution
partner.

The formation of Sun18 marks the entry of Network18 Group into the
Indian television distribution space. In an official statement
announcing the joint venture, Sun18 had said it would be the
"first truly pan-India distribution company" and aim at
"becoming one of the dominant players in the approximately
Rs 160 billion pay-TV subscription market over the next 2 years."

MSM Discovery is not amused. "Wait and watch. The game is not over yet.
We will fight till the end," says Kaul.

Dish TV ropes in Venkateish as CEO

Dish TV ropes in Venkateish as CEO

Insearchindia.com Team

(19 July 2010 2:10 pm)


NEW DELHI: Dish TV India has roped in ESPN Star Sports India
head RC Venkateish as its chief executive officer.

Venkateish's contract with the sports broadcasting network
recently got over, offering him an option to join a rival media
company. He will be handling the direct-to-home (DTH) business of
the Essel Group which also has two sports channels, Ten Sports
and Zee Sports.


Venkateish was serving as the ESPN Star Sports managing director
for India and South Asia and was responsible for business operations
in these regions.



Says Dish TV India MD Jawahar Goel, “Venkateish has had an excellent
track record while heading leading brands, his experience gives him
a well seasoned perspective which perfectly complements Dish TV’s
needs as a rapidly growing company with the highest market share.
I am confident in his abilities to enable Dish TV to take the next
big leap.”

Bringing with him a wealth of over 27 years’ experience, of which
12 years have been in senior international positions, Venkateish has
worked with global brands like Smithkline Beecham, Nestle India,
Gillette and Kellogg India.

Venkateish holds a Bachelor of Electrical Engineering degree
from IIT – Madras and a Master’s in Business Administration
from the Indian Institute of Management, Calcutta.

IPL-III euphoria: SET Max drives 48% more in viewer ship

IPL-III euphoria: SET Max drives 48% more in viewer ship


Ashish Sinha
Thursday, Apr 29, 2010 at 2316 hrs IST

New Delhi: Giving advertisers a tremendous return on investments,
the Indian Premier League (IPL) as a television property on
SET Max channel recorded a phenomenon 48% jump in reach for
IPL-III semi-final matches compared to the same in its
inaugural edition played in 2008.
When compared year-on-year basis, IPL-3 semi-finals witnessed a
25% jump in the average reach over IPL-II with 46 million viewers
tuning in, 9 million more viewers than the previous IPL edition
played in South Africa. Also, nearly one-third of the overall reach
of IPL-III came from the two semi-final matches this year, in line
with the trend emerged in the previous two IPL editions, the
TAM data showed.
According to the latest rating numbers provided by TAM Media,
overall, IPL-III reached a cumulative of 142 million cable homes
in the country (in the 59 matches played) thereby recording a 40%
jump over the first edition which reached 102 million cable homes.
However, the average tournament ratings for IPL-III stood at 4.5 TVR,
lower than those for IPL-I (4.7 TVR) but higher than IPL-2 (4.1 TVR),
the TAM data said.
“A 40% growth in the reach numbers for IPL-III was anticipated and
that is the reason why advertisers were spending around Rs 15 crore
per IPL match this year, up from an average of Rs 12 crore for
IPL-II,” said a senior media planner involved in the buying of
IPL airtime for its clients.
SET Max is reported to have generated around Rs 750-800 crore in
advertising revenue from IPL-3, around 30-35% more than the
previous
IPL edition, sources said. Most on-air sponsors on SET Max
emerged as the top advertisers in IPL-3, same as the previous
two IPL’s, the TAM data showed.
Telecom emerged as the top advertising category on IPL led by
Vodafone, Bharti Airtel and Tata Teleservices. On-air sponsors
Hyundai and Samsung too figured in the list of top-5 advertisers
on IPL-III.
The recently concluded IPL saw MS Dhoni-led Chennai Super Kings
emerge as the winners beating the top team Mumbai Indians in
Mumbai last Sunday.





No love lost for the IPL game
By ASHWIN PINTO
(28 April 2010 10:10 pm)

MUMBAI: With every passing year, the cash-rich-controvery smitten
Indian Premier League seems to be hitting just the right cord with
the audiences.
The two semi-final matches of the third edition of the Indian
Premier League (IPL) have scored higher ratings than the last
two versions, fetching an average TVR of 6.5.
In the second IPL edition, played away from home in South Africa,
the two semi-finals got an average TVR of 6.3, compared to the
inaugural version's ratings of 6.2.

The match between Mumbai Indians and Royal Challengers Bangalore
managed a TVR of 7.4 on 21 April while the rivalry beween Chenai
Super Kings and Deccan Chargers a day after earned a TVR of 5.8.
48 million viewers tuned in for the first semi-final and 44 million
watched the second contest.
However the third place playoff match between the Deccan Chargers
and Royal Challengers Bangalore on 24 April only got a rating of 3.
The 59 matches this year got an average TVR of 4.5, lower than the
inaugural season's ratings of 4.7, but higher than the 4.1 TVR for the second edition last year.
IPL 3.0 managed a cummulative reach of 142 million, compared with
102 million in the first season and 122 million last year.

Also, on the advertising front, 135 brands advertised this year
compared to 231 brands in 2008 and 178 brands last year.
Vodafone Essar has remained the top advertiser for three years
in a row. This year the other top advertisers were Samsung India
Electronics, Tata Teleservices, Hyundai Motor India and Bharti
Airtel.
Last year the top advertisers were Vodafone Essar, Bharti Airtel Ltd
Hyundai Motor India, LG and Samsung. In the first year, the top
advertisers were Vodafone Essar, Hyundai Motor India, Coca Cola,
Max New York Life Insurance and Havells India.
There were 44 brands who advertised on-screen this year compared
to 116 in 2008 and 121 in 2009. The top advertisers this year
were Ritnand Balved Education Foundation, Jaquar and Hyundai.
The top brands were Amity University, Jaquar, Hero Honda Cbz Extreme,
Vodafone and Artize.

Govt to accept applications for new TV channels

Govt to accept applications for new TV channels

Insearchindia.com Team

(3 April 2010 4:10 pm)


NEW DELHI: Even as the government has decided to lift the ban
on accepting applications for new television channels, it is
learnt that a final license is unlikely to be issued until receipt
of the report of the Telecom Regulatory Authority of India on
availability of spectrum for new channels.

The decision of the government to revise its earlier ban of
18 January this year was taken after Trai informed the Information
and Broadcasting Ministry that it was unlikely to finalise its
report before June or July this year.

The government has decided to accept fresh applications from
1 April 2010 and process the fresh applications as well as the
applications already received under the existing provisions
contained in the Up linking and Down-linking Guidelines of 2005.

The Ministry has, however, said that while considering fresh
applications, it will take into consideration the financial viability
of the proposal as also the level of expertise and experience of
the personnel who will be charged with the responsibility of running
the channels by the promoters.

Meanwhile, it is learnt by insearchindia.com that the government
will wait for the Trai report before issuing a final letter of intent.

I&B Minister Ambika Soni had last year written to Trai on the increasing
number of TV channels in the country and sought to know details like
availability of spectrum and the criteria on which licences can be
given to ensure that only genuine broadcasters get them. Trai had
subsequently issued a consultation paper on the issue.

In its note of 18 January, the Ministry had said that “although
improved technologies
have resulted in better utilisation of the available spectrum and
transponder capacities, the spectrum and transponder capacities
for satellite TV channels are not unlimited.”

The total number of TV channels being beamed into Indian homes
from India and overseas is around 512 and almost 100 applications
are pending clearance.

ESPN Star Sports targets Rs 1.6 bn ad revenue for T20 World Cup

ESPN Star Sports targets Rs 1.6 bn ad revenue for T20 World Cup


By Insearchindia.com Team

(3 April 2010 7:40 pm)


MUMBAI: ESPN Star Sports (ESS) is targeting an advertising revenue
of Rs 1.6 billion from the Twenty20 World Cup that kicks off on
30 April, just after the completion of the cash-rich I
ndian Premier League (IPL) tournament.

ESS has already closed out four co-presenting sponsorship slots,
according to sources. The roster includes Tata Teleservices,
Hero Honda, Spice Telecom and Paras Pharmaceuticals.

Maruti and Intel have come on-board as associate sponsors and
ESS is planning to line up four more associate sponsors.
Reliance Communications, which is an official partner of the
International Cricket Council (ICC), is in advanced discussions
with ESS to come on board as a sponsor.

“We hope to close the deal shortly. Despite the fact that India
exited early, we were satisfied with the delivery of the event
last year. At the end of the day we look at TVRs and not
necessarily whether India has advanced or not”,
the ESS spokesperson said, while refusing to comment on any
commercial details.

ESS, industry sources say, has been asking for Rs 120-140
million for a co-presenting sponsor and Rs 80-100 million for
an associate sponsor.

Other companies negotiating with the broadcaster include LG,
HP and Nokia. ESS, it has been learnt, has also roped in around
10 companies who have taken spots for the event.Philips, meanwhile,
will sponsor the broadcaster’s wraparound shows for the event,
branding it as Philips Cricketxtra.

ESS is also offering advertisers the freedom to choose packages
for the Twenty20 World Cup, Champions Twenty20 League and the
soccer World Cup. A media buyer notes that ESS has already signed
four sponsorship deals for the Champions Twenty20 League.
“Even though the ratings were low last year, there are clients
who have faith in cricket. They feel that the event will do better
this year. There is also an incremental benefit for advertisers who
take multiple properties”.

As had been reported earlier by Indiantelevision.com Hero Honda
had come on board ESPN Star Sports as a sponsor for the soccer
World Cup. Tata Teleservices will now join that list, taking a
package deal.

Makarand Palekar quits ESS, joins One Alliance as SVP sales and affiliate services

Insearchindia.com's Digital Edge


Makarand Palekar quits ESS, joins One Alliance as
SVP sales and affiliate services

Insearchindia.com Team

(17 March 2010 1:15 pm)


MUMBAI: MSM Discovery, the distribution company that
operates under the One Alliance brand, has appointed
Makarand Palekar as senior vice president -
sales and affiliate relations.

As a key member of the senior management team, Palekar
will be responsible for the all-India sales and affiliate
relations.


Prior to MSM Discovery, Palekar was with ESPN Star Sports
where he was heading sales.

“We are delighted that Makarand has joined us. He brings
with him a rich experience of distribution and is a man
behind many success stories in the past,”
says MSM Discovery president Rajesh Kaul.
“I am thrilled that he has joined us at a time when we are
poised to achieve an explosive growth. He has excellent
team management skills and the right combination of experience
and expertise to guide the team to achieve greater heights.”


Palekar comes with over Years of experience. “TheOneAlliance
is the next logical step in my career. I look forward to working
with the team to drive the business to another level.”

Facebook, Twitter give viral marketing a pulse

Insearchindia.com's Media, Advertising, Marketing Watch

Facebook, Twitter give viral marketing a pulse


Insearchindia.com Team

(8 February 2010 10:45 pm)


MUMBAI: Social networking sites like Facebook and Twitter
are increasingly helping brands to create a viral impact on
consumer purchase choices through word of mouth (WoM).

Citing an example while speaking at the The Mindshare Brand
Equity Compass 2010 here today, Perfetti Van Melle India CEO
Sameer Suneja said that a particular telecom company wasn't
entertaining my friend's complaint. Irritated, he set his
status message on Facebook against the telecom company.
This was followed by some friends spreading similar status
messages and the viral impact led the telecom firm to act
in haste.

"In an hour's time, the telecom operator agreed to help
and requested in changing the status message. Such is the
power of social networking," he said.

According to marketers, WoM is fast catching up via the
social networking sites with 70 per cent of Indians
aged 15-34 age group. Also, about 60 per cent consumers
trust and take purchasing decisions based on online
discussions.

According to Suneja, WoM works for rational purchases,
there are different categories of rational purchases including
food. "Buying food products are high on impulse and in such
cases WoM plays the catalyst," he says.

Author Chetan Bhagat is also of the opinion that WoM does
the trick when there aren't sufficient marketing budgets.
"If one is to attract a crowd for an event in a short notice,
WoM is a very effective medium. But, it's effective when the
news is fresh and 'awesome'. A marketing budget of
Rs 500,000-7, 00,000 can buy a lot of space on the internet
which can be effectively used."

So how does WoM work as a marketing tool?
Says FritoLay India CEO foods division & Pepsico India
region president Gautham Mukkavilli, "A stressed consumer
looks in for simplified choices. Before zeroing in on what
to buy, the consumer makes sure he accesses his personal
space that can be anything from dance class to a blog."