INTERVIEW
PREM MEHTA
Not prominent in the media, Prem Mehta, MD and CEO of Lintas India appeared briefly in the news this week for being inducted into the Ad Club of Bombay’s Hall of Fame. Earlier this year he was selected for the post of Chairman by the Board of Directors. He gives his first full-length interview to Hindustan Times as he speaks freely on how he evaluates success, the growth of the industry and how he pre-empts the future.
# On being inducted into the Ad Club of Bombay’s Hall of Fame.
It’s nice to be acknowledged and valued. It’s a good feeling for someone like me who’s not salient in the media.
#Evaluating his own performance
For the first four years after coming to the helm in `93 I was fire fighting in the midst of unpredictable growth and high attrition. We were losing two people a day as everyone entering the market picked our talent. This required me to do unprecedented things to survive and keep up growth. For one, I decided not to match the pay packets –up to four times the existing salaries- that competition was offering. I believed that this would be destructive and change relationships forever. Also, I believed that a commitment to a common cause had to keep people back. I instead explained our values to those who wanted to leave. In retrospect it was a good decision. What we got was a competent, well-trained management that sustained the growth and built the Lintas culture. A hard, painful route, but it proved right.
Also, I identified and trained talent within, gave greater responsibility. Training became integral to our culture. In the late `90s this led to effective consolidation and left us stronger.
# Stepping into Alyque Padamsee’s shoes and ‘corporatizing’ advertising.
We are very different people but we complemented each other. Corporatization of agencies started with the increase in scale. When I took over we were 110 people, today we are over 1500. We have grown from one agency to 17 businesses and revenues have grown by 15 times. From depending on 2-3 clients, we today have over 200. From accounting for 80 per cent of our business, HLL now accounts for 20. Twenty clients account for about 70 per cent of the business. We have a more balanced and therefore a less vulnerable portfolio. This was done very consciously as a part of a plan.
The client-agency relationship was also changing. They were no longer comfortable dealing with long-haired people giving them ideas. They needed sound, strategic, brand-building advice. I knew that post liberalization no standard management principles would work. Communication as a business would undergo a complete overhaul, the remuneration structure etc would change. This would have a ripple effect on how agencies would be run. The increasingly fragile nature of relationships with clients, personnel cost and the pressure on the income.
# So where did this stress show up?
Agencies started to fold up or selling off. The successful names of those days don’t ring a bell today. The agency had to upgrade the value of what it brought to the table. It had to come from integrated communication. So we started seeding new businesses. While most large agencies were hiving off media, we invested in it. Our media business today is on par with the best and contributes significantly to our revenues. More importantly, it serves the client. We have today become a one-stop shop. As traditional mass media became more expensive and less effective in its reach clients go for below the line specialists. So our attempt is to develop brand strategy that is media agnostic and then use the media it would require.
# Did you have to change your blueprint for growth anywhere along the line?
There have been course corrections but not in the macro sense.
#Where’s the industry today?
We are at a very critical crossroad. It is important for the industry to re-invent itself, seriously and urgently if it has to play a long –term role. It has to stop thinking of itself as a producer of TV commercials and stop getting its biggest kick from advertising awards.
Second, the quality of talent has been compromised. Good talent has fled from the industry.
(This interview appeared as the lead in Billboard, the weekly ad and marketing page of Hindustan Times in Nov `06)
Wednesday, May 9, 2007
FIRST CUT
INDRA NOOYI ANNOUNCED AS PEPSICO CEO
“Driving them up the wall/ Iron Woman rules them all."
A friend of Indra Nooyi once re-wrote Black Sabbath’s Iron Man only altering the lyrics that bit to honour the electric guitar-loving lady. Prophetic action, it seems now, as Nooyi, 50, has been elected by the PepsiCo Board to take over as chief executive officer. She replaces Steve Reinemund, starting October 1, 2006 who will become executive chairman.
Putting a stamp of approval on her 12-year stint with the corporation, the Pepsico Board said in a statement: "We are exceedingly fortunate to have a leader of her caliber, vision and experience to take the helm. She has been instrumental to PepsiCo's solid direction and ongoing success and has the complete endorsement and support of the board." Reinemund summed up on a conference call with investors saying that "Her record of transforming PepsiCo speaks for itself, and she has been an invaluable partner and ally throughout my time as CEO.”
Nooyi herself said on the same call that she is “very excited and very humbled by her new appointment.” She gives full credit to her colleagues, especially Reinemund and Michael D. White, PepsiCo Vice Chairman and Chairman & CEO of PepsiCo International. She has worked closely with them and describes her relationship where “they complete each other’s sentences.”
Nooyi's current responsibilities will be divided between two PepsiCo veterans: Richard Goodman, 57, currently CFO of PepsiCo International, will assume the position of CFO for the corporation. Hugh F. Johnston, 44, currently Senior Vice President, Transformation, has been promoted to the newly created position of Executive Vice President, Operations with added responsibilities of global procurement and IT. Both will report to her.
Known to be a determined achiever to anyone who has interacted with her, Nooyi helped engineer over $30 billion worth of deals in the past few years. She has played key roles in the Tricon spin-off, the purchase of Tropicana, the public offering of Pepsi Cola bottling group and the merger with Quaker Foods. In 1997, she prodded Roger Enrico, then CEO, to spin off PepsiCo's fast-food business. Nooyi was ranked #4 on Fortune Magazine's list of "50 Most Powerful Women in Business" in 2005.
This may have been expected but as Nooyi has said often in public forums "It is not easy up there. " Proud of her Indian origin- she is known to wear the traditional sari for several formal functions- Nooyi stands tall as an example for people who imagine they belong to disadvantaged groups.
(This article appeared on the front page of Hindustan Times in Sept `06. It contained the first quotes grabbed from an investors' teleconference by Ms Indra Nooyi after being announced as CEO, PepsiCo)
INDRA NOOYI ANNOUNCED AS PEPSICO CEO
“Driving them up the wall/ Iron Woman rules them all."
A friend of Indra Nooyi once re-wrote Black Sabbath’s Iron Man only altering the lyrics that bit to honour the electric guitar-loving lady. Prophetic action, it seems now, as Nooyi, 50, has been elected by the PepsiCo Board to take over as chief executive officer. She replaces Steve Reinemund, starting October 1, 2006 who will become executive chairman.
Putting a stamp of approval on her 12-year stint with the corporation, the Pepsico Board said in a statement: "We are exceedingly fortunate to have a leader of her caliber, vision and experience to take the helm. She has been instrumental to PepsiCo's solid direction and ongoing success and has the complete endorsement and support of the board." Reinemund summed up on a conference call with investors saying that "Her record of transforming PepsiCo speaks for itself, and she has been an invaluable partner and ally throughout my time as CEO.”
Nooyi herself said on the same call that she is “very excited and very humbled by her new appointment.” She gives full credit to her colleagues, especially Reinemund and Michael D. White, PepsiCo Vice Chairman and Chairman & CEO of PepsiCo International. She has worked closely with them and describes her relationship where “they complete each other’s sentences.”
Nooyi's current responsibilities will be divided between two PepsiCo veterans: Richard Goodman, 57, currently CFO of PepsiCo International, will assume the position of CFO for the corporation. Hugh F. Johnston, 44, currently Senior Vice President, Transformation, has been promoted to the newly created position of Executive Vice President, Operations with added responsibilities of global procurement and IT. Both will report to her.
Known to be a determined achiever to anyone who has interacted with her, Nooyi helped engineer over $30 billion worth of deals in the past few years. She has played key roles in the Tricon spin-off, the purchase of Tropicana, the public offering of Pepsi Cola bottling group and the merger with Quaker Foods. In 1997, she prodded Roger Enrico, then CEO, to spin off PepsiCo's fast-food business. Nooyi was ranked #4 on Fortune Magazine's list of "50 Most Powerful Women in Business" in 2005.
This may have been expected but as Nooyi has said often in public forums "It is not easy up there. " Proud of her Indian origin- she is known to wear the traditional sari for several formal functions- Nooyi stands tall as an example for people who imagine they belong to disadvantaged groups.
(This article appeared on the front page of Hindustan Times in Sept `06. It contained the first quotes grabbed from an investors' teleconference by Ms Indra Nooyi after being announced as CEO, PepsiCo)
MEDIA FUNCTION UNDERGOES CHANGES
CHECK, MATE.
The media function in advertising agencies witnesses increasing consolidation and very safe careers suddenly face unexpected challenges.
"There is fear and apprehension of leaving a place where my equity is high and unquestioned; there is fear of the unknown on my next move…"
Jasmin Sohrabji, president, MediaCom, South Asia, - frontrunner in media research, on leaving MediaCom, the media company of Grey Global after 16 years.
Sohrabjee leaves the place she grew to recognize as home over the years she spent growing into one of the best-recognized media professionals in the country. She however faces a crossroad today as Grey Global was bought over by the WPP. MediaCom, by the sleight of fate now comes under a new management and will operate under WPP's Group M. If Sohrabjee stayed she would have been suddenly propelled into an environment that was entirely new with no one really to blame. She instead has chosen to opt out and discover the world outside that she until now didn't consider an option.
Consolidation in the world of media companies first happened in `88 when WPP brought the media business of JWT and O&M to form Mindshare. Back then Ketaki Gupte and Kalpana Rao, the two respective media heads had found themselves at bay when a junior was named the head of the new entity.
However the process has gathered momentum in the past one year when WPP almost bought out Rediffusion’s Mediaedge CIA. It was aligned under Group M and Divya Gupta, head for years now, faced the same dilemma. Two months back Universal McCann and Lodestar, the FCB Ulka agency merged to form Lodestar Universal. Fortunately perhaps, Universal was headless. And Shashi Sinha, Lodestar chief got the big job.
Even if some seem to lose out this consolidation process has become a necessity. Here's why. In the `90s the trend shot off as the consolidated entity had larger volume of business to negotiate with the media companies and could get negotiate better rates. Today, while the advertising industry is growing by more than 12 per cent annually, the advent of many new companies has led to competitive pressures for existing advertisers. Parallel runs the proliferation of media options and therefore a fragmentation of audiences. For instance more than 250 channels alone force advertisers to take calibrated decisions on their media plans.
All this makes the media function critical. And agencies have to measure up. On the one hand, there is a tremendous need to get more and better databases to keep up with changes happening in the country. Agencies need the software and tools which will run these databases and help to arrive at better media decisions. Then there's the growing need for quality people with the ability to analyze all the data and have the experience and good judgment to make evolved decisions. Both these requirements require critical investments.
Further there is a lot of experimentation required with emerging media like digital entertainment, mobile, retail. But they have to yet become self-supporting. "Unfortunately all this has to be funded by media agencies, operating at a revenue stream which for historical reasons, normally is between 2.5 to 3.5 per cent of advertising spends”, explains Sinha. Obviously there is a mismatch between revenues and required investments which can be sorted out with consolidation.
So while many may be losing their positions of strength, for others there have been opportunities. And when one window shuts, a door opens elsewhere for the much sought after media professional. For instance Divya Gupta moved to the ADA Group. And Sohrabjee who has several offers and options popping up says, "In all this there is a growing sense of optimism that there exists a world of opportunities waiting to be explored and exploited."
Consolidation and its effects are not new to the corporate world. But as M. Parameswaran, executive director, FCB Ulka says, "Organizations have to manage egos and mindsets when there is going to be a reshuffle." And the media and advertising industries have not recognized this need enough.
COMMENT:
SHASHI SINHA, CEO, Lodestar Universal
WHAT THE MERGER BROUGHT HOME
The recent merger of Lodestar with Universal -both part of the IPG group- to form Lodestar Universal was a part of the consolidation process that is running through the media function in India today. Both were fine agencies doing well in India. Universal had a host of MNC clients like Microsoft, Intel, Johnson and Johnson to name a few. Lodestar had a slew of Indian clients like the Tata group, Amul, Mahindra and Mahindra amongst others. Now all this business belongs jointly to the new entity.
Besides this, in my mind the biggest gain has been access to each other’s talent. This is critical in an industry plagued by shortage of good people. We have had quality leadership and talent now available across all offices. Universal had historically a strong presence in Delhi and the combined entity has access to better quality talent which was not the case previously. This gain is true for Bangalore too where the agency played a strong role. Conversely Lodestar was very big in Mumbai and will provide tremendous stability to Universal clients too.
Next is our ability to ramp up our digital, entertainment mobile and retail offering. With a larger base in both business and talent, our confidence to make each of these business divisions successful goes up tremendously.
Last, though definitely not the least, Lodestar had a Labcentre which was doing cutting edge work in terms of tool development and analytics especially on Indian databases. Not only will Labcentre be available for all clients in India but also will be a resource internationally for both Universal and FCB global clients. Currently while the individual agencies did get international assignments they were a small contribution to the overall revenue. With the merger, we expect a dramatic increase in international assignments in the analytics area. I am certain that the day is not far off when Labcentre should contribute to more than 25 per cent to our revenues
In sum, in our experience consolidation will only improve our offering, which will benefit our clients. When they see further success they will, in turn, reward us more. As the table for better quality media services goes up, so does the reward and recognition. I think from this it is only natural that the whole industry will benefit.
Sohrabjee introduced the concept of light TV viewing to the Indian media industry. Her research on multi-set TV homes won three awards at the Emvies last year, including the Grand Emvie. She speaks to Billboard in an exclusive interview as she prepares to quit MediaCom that is now being aligned under Group M of the WPP Group, its new owner.
On why she is leaving Grey Global.
I joined Trikaya Grey 16 years ago, grew up in Grey and then helped build MediaCom. However, going forward there will be a change in management, and given that there will no longer be any emotional bond holding me to this place, this is the best time to evaluate all my options before I decide what next, and why.
On being seeing as a victim of the process
Only if my career takes a nosedive downwards from here on! Consolidation has forced me to re-think my options, but not my decision
On what makes a person stay on.
The realization that the people you enjoy working with, the person you admired working for and the culture you believe made you the person you are make you stay. When these things no longer exist, you then look at your work place no differently than any other options out there.
On how the process of consolidation is evolving.
It’s already evolved to a large extent. There are benefits and disadvantages to both clients and our people. Clients benefit from volume power and economies of scale when agencies are part of a larger network and costs of research, training, etc are shared. However, advertisers are well aware of their choice constantly being limited to a few large networks. From the people perspective, it’s the same. While there is more infrastructure and training investments, after a while the options to move within are limiting
On the future.
When I decided to leave, I thought I had two options-another agency or a broadcaster. One plays on my core skills, the other is a natural transition for many in my line. However, I have been introduced to many more options recently in related and unrelated sectors that heavily depend on the skill and experience I have, so now I am doing what I did very little of before…listening!
(This article appeared as the lead in Billboard, the weekly advertising and marketing page in Hindustan Times in Sept `06)
The media function in advertising agencies witnesses increasing consolidation and very safe careers suddenly face unexpected challenges.
"There is fear and apprehension of leaving a place where my equity is high and unquestioned; there is fear of the unknown on my next move…"
Jasmin Sohrabji, president, MediaCom, South Asia, - frontrunner in media research, on leaving MediaCom, the media company of Grey Global after 16 years.
Sohrabjee leaves the place she grew to recognize as home over the years she spent growing into one of the best-recognized media professionals in the country. She however faces a crossroad today as Grey Global was bought over by the WPP. MediaCom, by the sleight of fate now comes under a new management and will operate under WPP's Group M. If Sohrabjee stayed she would have been suddenly propelled into an environment that was entirely new with no one really to blame. She instead has chosen to opt out and discover the world outside that she until now didn't consider an option.
Consolidation in the world of media companies first happened in `88 when WPP brought the media business of JWT and O&M to form Mindshare. Back then Ketaki Gupte and Kalpana Rao, the two respective media heads had found themselves at bay when a junior was named the head of the new entity.
However the process has gathered momentum in the past one year when WPP almost bought out Rediffusion’s Mediaedge CIA. It was aligned under Group M and Divya Gupta, head for years now, faced the same dilemma. Two months back Universal McCann and Lodestar, the FCB Ulka agency merged to form Lodestar Universal. Fortunately perhaps, Universal was headless. And Shashi Sinha, Lodestar chief got the big job.
Even if some seem to lose out this consolidation process has become a necessity. Here's why. In the `90s the trend shot off as the consolidated entity had larger volume of business to negotiate with the media companies and could get negotiate better rates. Today, while the advertising industry is growing by more than 12 per cent annually, the advent of many new companies has led to competitive pressures for existing advertisers. Parallel runs the proliferation of media options and therefore a fragmentation of audiences. For instance more than 250 channels alone force advertisers to take calibrated decisions on their media plans.
All this makes the media function critical. And agencies have to measure up. On the one hand, there is a tremendous need to get more and better databases to keep up with changes happening in the country. Agencies need the software and tools which will run these databases and help to arrive at better media decisions. Then there's the growing need for quality people with the ability to analyze all the data and have the experience and good judgment to make evolved decisions. Both these requirements require critical investments.
Further there is a lot of experimentation required with emerging media like digital entertainment, mobile, retail. But they have to yet become self-supporting. "Unfortunately all this has to be funded by media agencies, operating at a revenue stream which for historical reasons, normally is between 2.5 to 3.5 per cent of advertising spends”, explains Sinha. Obviously there is a mismatch between revenues and required investments which can be sorted out with consolidation.
So while many may be losing their positions of strength, for others there have been opportunities. And when one window shuts, a door opens elsewhere for the much sought after media professional. For instance Divya Gupta moved to the ADA Group. And Sohrabjee who has several offers and options popping up says, "In all this there is a growing sense of optimism that there exists a world of opportunities waiting to be explored and exploited."
Consolidation and its effects are not new to the corporate world. But as M. Parameswaran, executive director, FCB Ulka says, "Organizations have to manage egos and mindsets when there is going to be a reshuffle." And the media and advertising industries have not recognized this need enough.
COMMENT:
SHASHI SINHA, CEO, Lodestar Universal
WHAT THE MERGER BROUGHT HOME
The recent merger of Lodestar with Universal -both part of the IPG group- to form Lodestar Universal was a part of the consolidation process that is running through the media function in India today. Both were fine agencies doing well in India. Universal had a host of MNC clients like Microsoft, Intel, Johnson and Johnson to name a few. Lodestar had a slew of Indian clients like the Tata group, Amul, Mahindra and Mahindra amongst others. Now all this business belongs jointly to the new entity.
Besides this, in my mind the biggest gain has been access to each other’s talent. This is critical in an industry plagued by shortage of good people. We have had quality leadership and talent now available across all offices. Universal had historically a strong presence in Delhi and the combined entity has access to better quality talent which was not the case previously. This gain is true for Bangalore too where the agency played a strong role. Conversely Lodestar was very big in Mumbai and will provide tremendous stability to Universal clients too.
Next is our ability to ramp up our digital, entertainment mobile and retail offering. With a larger base in both business and talent, our confidence to make each of these business divisions successful goes up tremendously.
Last, though definitely not the least, Lodestar had a Labcentre which was doing cutting edge work in terms of tool development and analytics especially on Indian databases. Not only will Labcentre be available for all clients in India but also will be a resource internationally for both Universal and FCB global clients. Currently while the individual agencies did get international assignments they were a small contribution to the overall revenue. With the merger, we expect a dramatic increase in international assignments in the analytics area. I am certain that the day is not far off when Labcentre should contribute to more than 25 per cent to our revenues
In sum, in our experience consolidation will only improve our offering, which will benefit our clients. When they see further success they will, in turn, reward us more. As the table for better quality media services goes up, so does the reward and recognition. I think from this it is only natural that the whole industry will benefit.
Sohrabjee introduced the concept of light TV viewing to the Indian media industry. Her research on multi-set TV homes won three awards at the Emvies last year, including the Grand Emvie. She speaks to Billboard in an exclusive interview as she prepares to quit MediaCom that is now being aligned under Group M of the WPP Group, its new owner.
On why she is leaving Grey Global.
I joined Trikaya Grey 16 years ago, grew up in Grey and then helped build MediaCom. However, going forward there will be a change in management, and given that there will no longer be any emotional bond holding me to this place, this is the best time to evaluate all my options before I decide what next, and why.
On being seeing as a victim of the process
Only if my career takes a nosedive downwards from here on! Consolidation has forced me to re-think my options, but not my decision
On what makes a person stay on.
The realization that the people you enjoy working with, the person you admired working for and the culture you believe made you the person you are make you stay. When these things no longer exist, you then look at your work place no differently than any other options out there.
On how the process of consolidation is evolving.
It’s already evolved to a large extent. There are benefits and disadvantages to both clients and our people. Clients benefit from volume power and economies of scale when agencies are part of a larger network and costs of research, training, etc are shared. However, advertisers are well aware of their choice constantly being limited to a few large networks. From the people perspective, it’s the same. While there is more infrastructure and training investments, after a while the options to move within are limiting
On the future.
When I decided to leave, I thought I had two options-another agency or a broadcaster. One plays on my core skills, the other is a natural transition for many in my line. However, I have been introduced to many more options recently in related and unrelated sectors that heavily depend on the skill and experience I have, so now I am doing what I did very little of before…listening!
(This article appeared as the lead in Billboard, the weekly advertising and marketing page in Hindustan Times in Sept `06)
THE YOUNG TURKS
Indian ad professionals are in demand to lead businesses in other growing Asian markets.
What is the implication of the one-child policy on the value system of Chinese mothers regarding baby care?
Should we hammer out creative differences in the meeting room or take people aside and discuss it privately?
While Sanjai Srivastava, senior business director, Lowe is figuring out the former in Shanghai, Santosh Menon, general manager, FCB Indonesia is trying to understand what is the most sensitive option for the latter issue. Srivastava and Menon are not alone in learning and savouring the thrill of working in foreign markets.
In fact they represent the growing club of young, Indian ad pros who are being increasingly sent by their global networks to head operations or significant accounts in Asian countries. A trend that has caught significant momentum in the past one year has these managers go to markets ranging from Sri Lanka to Bangladesh and China in the neighbourhood to Vietnam, Indonesia and Hong Kong further east. The move has meant growth, learning and overall upward movement in an exciting format. As the Indian economy booms, the Indian ad pros are in the spotlight for the working ethos and talent they can bring to the table. International recognition for its work at awards has helped immensely as the networks are looking this way for global leaders.
The Indian agency is becoming the rising star of its network and can command such appointments. Lowe India is one of the 11 "lighthouse" agencies of the network and is looked at for showing the way. Lowe India is among the top three agencies in its network on most parameters.
Also, there is clear ‘regionalization’ among clients who are getting out of country -centric marketing models. The agencies are mirroring this change. As Pranesh Misra of Lowe India explains, "As the managers at the client's end move from one market to the other, they seek out the ad professionals they worked with here."
Also, India is the center for advertising creation for specific international brands, for instance Unilever brands like Fair n Lovely, Surf Excel and Clinic Plus. Indian talent is hence being increasingly spotted and perceived as hard working, analytical with enviable adaptability. In India you learn to treat every region as a separate market so the learning is wide."
Not the last or least, they speak English. "We are both strong leaders and yet great learners", observes Vaishali Sarkar of OgilvyOne.
Says Colvyn Harris, CEO, JWT, "Our training exposes them to MNC brands, a wide range of product categories and adapting to different time zones." Adds Kalpana Rao, talent director, O&M, “We see international exposure as a part of the career planning process for these senior employees.”
Credit goes to the senior Indian professionals who are running meritocracies and churning out these well trained young `uns. Harris says that this is akin to outsourcing of talent at a price point beneficial to international players.
However as these professionals are growing in strength this price gap is also closing. And that will be the next significant development.
(This article appeared as the lead in Billboard, the weekly advertising and marketing page of Hindustan Times in Sept `06)
Indian ad professionals are in demand to lead businesses in other growing Asian markets.
What is the implication of the one-child policy on the value system of Chinese mothers regarding baby care?
Should we hammer out creative differences in the meeting room or take people aside and discuss it privately?
While Sanjai Srivastava, senior business director, Lowe is figuring out the former in Shanghai, Santosh Menon, general manager, FCB Indonesia is trying to understand what is the most sensitive option for the latter issue. Srivastava and Menon are not alone in learning and savouring the thrill of working in foreign markets.
In fact they represent the growing club of young, Indian ad pros who are being increasingly sent by their global networks to head operations or significant accounts in Asian countries. A trend that has caught significant momentum in the past one year has these managers go to markets ranging from Sri Lanka to Bangladesh and China in the neighbourhood to Vietnam, Indonesia and Hong Kong further east. The move has meant growth, learning and overall upward movement in an exciting format. As the Indian economy booms, the Indian ad pros are in the spotlight for the working ethos and talent they can bring to the table. International recognition for its work at awards has helped immensely as the networks are looking this way for global leaders.
The Indian agency is becoming the rising star of its network and can command such appointments. Lowe India is one of the 11 "lighthouse" agencies of the network and is looked at for showing the way. Lowe India is among the top three agencies in its network on most parameters.
Also, there is clear ‘regionalization’ among clients who are getting out of country -centric marketing models. The agencies are mirroring this change. As Pranesh Misra of Lowe India explains, "As the managers at the client's end move from one market to the other, they seek out the ad professionals they worked with here."
Also, India is the center for advertising creation for specific international brands, for instance Unilever brands like Fair n Lovely, Surf Excel and Clinic Plus. Indian talent is hence being increasingly spotted and perceived as hard working, analytical with enviable adaptability. In India you learn to treat every region as a separate market so the learning is wide."
Not the last or least, they speak English. "We are both strong leaders and yet great learners", observes Vaishali Sarkar of OgilvyOne.
Says Colvyn Harris, CEO, JWT, "Our training exposes them to MNC brands, a wide range of product categories and adapting to different time zones." Adds Kalpana Rao, talent director, O&M, “We see international exposure as a part of the career planning process for these senior employees.”
Credit goes to the senior Indian professionals who are running meritocracies and churning out these well trained young `uns. Harris says that this is akin to outsourcing of talent at a price point beneficial to international players.
However as these professionals are growing in strength this price gap is also closing. And that will be the next significant development.
(This article appeared as the lead in Billboard, the weekly advertising and marketing page of Hindustan Times in Sept `06)
ASCI’S WORD, ADVERTISING LAW NOW- FINAL REPORT
It’s a dream come true for the Advertising Standards Council of India (ASCI) that has been seeking legal recognition for the role it plays in regulating advertising in the country. A notification from the Ministry of Information and Broadcasting has passed an amendment in the Cable Television Networks (Regulation) Act that now formally gives the ASCI the legal right to decide whether an advertisement is fair to be aired or not on television.
The amendment reads: “No advertisement which violates the Code for self-regulation in advertising, as adopted by the ASCI, Mumbai for public exhibition in India, from time to time, shall be carried in the cable service.”
As first reported in Hindustan Times, ASCI had been asking for recognition of role. It proved with data its effectiveness in getting compliance from its members and wanted legislative powers to be able to enforce rules in cases of errant behaviour.
Says Ram Poddar, chairman, ASCI, "This has been a long standing request of ASCI and this ruling will help to make the advertising self-regulatory movement in India stronger and more effective."
The new-found powers place ASCI on par with its counterparts in the U.S., U.K. and EU that have powers to penalize a non-compliant offender. ASCI has now sought the support of the concerned associations such as Indian Broadcasting Foundation (IBF) to persuade the TV channels to adhere to ASCI's Code as well as implement the decisions of its CCC in this regard.
A voluntary and non-profit organization, ASCI was set up by a group of advertisers, advertising agencies, media etc., in 1985, with the objective of ensuring that all advertising should be legal, decent, honest and truthful. All public complaints that come to ASCI are evaluated by its independent Consumer Complaints Council (CCC) that has 21 members,12 from civil society and nine from advertising practitioners.
“Advertising issues need such a body as no statutory regulation can legislate on the soft issues that come up in assessing advertising that is the product of strategic and creative inputs of a large number of people from the agency and the advertiser”, says Bharat Patel, chairman P&G.
ADVERTISING COURTS - NEWS BREAK
Gimme more. That’s what the Advertising Standards Council of India is asking of the central government. What it wants is the status of an “advertising court” where it will have legislative powers. And with the ministries of Information and Broadcasting and Consumer Affairs behind it all the way, this will probably be a matter of just some time.
As it stands, the ASCI is a self regulatory, ad industry body. It has 240 members that account for two-thirds of all the advertising done in India. Any complaint against an ad being offensive or making false claims is processed. If upheld, the advertiser is asked to withdraw or make amends. While advertisers are not obliged to comply, so far, of the 1011 complaints upheld, 785 have.
The Mumbai Grahak Panchayat, a consumer body recently used an ASCI ruling to get a favourable ruling in a consumer court against UB McDowell’s no 1. This indicates the status that ASCI enjoys. On its part, it upholds its lack of bias and ensures objectivity by having the biggest lot of members on its complaint adjudication board from civil society as compared to any other self-regulatory body (SRO) like the bar, medical or press council.
“Advertising issues need such a body as no statutory regulation can legislate on the soft issues that come up in assessing advertising that is the product of strategic and creative inputs of a large number of people from the agency and the advertiser”, says Bharat Patel, chairman P&G.
In India, there are three legal routes for the consumer: the consumer court for product and service related complaints, the common court and the MRTP court for marketers. It is also felt world over that no judicial system could cope with the issues arising in the matter of administering or regulating advertising. If so, it would simply delay justice by when the particular ad campaign may be over. An ASCI complaint is typically handled within six to eight weeks.
This is why SROs in the developed countries have legislative powers. In many countries, media and marketing companies have to be members and their advertising can be penalized. Non-compliance can mean referral to a higher, governmental body.
Now ASCI is asking for similar legislative powers on the line of the US-UK-EU model so that it has the claws to penalize a non-compliant offender. It suggests pre-vetting of ads for products or service categories that can cause serious health or financial loss like lotteries, liquor and tobacco.
Such an additional power will bring the Indian system on track with international trends and the consumer can rest assured that his genuine complaint will definitely have to be addressed. And that would be a cause worth advertising about.
It’s a dream come true for the Advertising Standards Council of India (ASCI) that has been seeking legal recognition for the role it plays in regulating advertising in the country. A notification from the Ministry of Information and Broadcasting has passed an amendment in the Cable Television Networks (Regulation) Act that now formally gives the ASCI the legal right to decide whether an advertisement is fair to be aired or not on television.
The amendment reads: “No advertisement which violates the Code for self-regulation in advertising, as adopted by the ASCI, Mumbai for public exhibition in India, from time to time, shall be carried in the cable service.”
As first reported in Hindustan Times, ASCI had been asking for recognition of role. It proved with data its effectiveness in getting compliance from its members and wanted legislative powers to be able to enforce rules in cases of errant behaviour.
Says Ram Poddar, chairman, ASCI, "This has been a long standing request of ASCI and this ruling will help to make the advertising self-regulatory movement in India stronger and more effective."
The new-found powers place ASCI on par with its counterparts in the U.S., U.K. and EU that have powers to penalize a non-compliant offender. ASCI has now sought the support of the concerned associations such as Indian Broadcasting Foundation (IBF) to persuade the TV channels to adhere to ASCI's Code as well as implement the decisions of its CCC in this regard.
A voluntary and non-profit organization, ASCI was set up by a group of advertisers, advertising agencies, media etc., in 1985, with the objective of ensuring that all advertising should be legal, decent, honest and truthful. All public complaints that come to ASCI are evaluated by its independent Consumer Complaints Council (CCC) that has 21 members,12 from civil society and nine from advertising practitioners.
“Advertising issues need such a body as no statutory regulation can legislate on the soft issues that come up in assessing advertising that is the product of strategic and creative inputs of a large number of people from the agency and the advertiser”, says Bharat Patel, chairman P&G.
ADVERTISING COURTS - NEWS BREAK
Gimme more. That’s what the Advertising Standards Council of India is asking of the central government. What it wants is the status of an “advertising court” where it will have legislative powers. And with the ministries of Information and Broadcasting and Consumer Affairs behind it all the way, this will probably be a matter of just some time.
As it stands, the ASCI is a self regulatory, ad industry body. It has 240 members that account for two-thirds of all the advertising done in India. Any complaint against an ad being offensive or making false claims is processed. If upheld, the advertiser is asked to withdraw or make amends. While advertisers are not obliged to comply, so far, of the 1011 complaints upheld, 785 have.
The Mumbai Grahak Panchayat, a consumer body recently used an ASCI ruling to get a favourable ruling in a consumer court against UB McDowell’s no 1. This indicates the status that ASCI enjoys. On its part, it upholds its lack of bias and ensures objectivity by having the biggest lot of members on its complaint adjudication board from civil society as compared to any other self-regulatory body (SRO) like the bar, medical or press council.
“Advertising issues need such a body as no statutory regulation can legislate on the soft issues that come up in assessing advertising that is the product of strategic and creative inputs of a large number of people from the agency and the advertiser”, says Bharat Patel, chairman P&G.
In India, there are three legal routes for the consumer: the consumer court for product and service related complaints, the common court and the MRTP court for marketers. It is also felt world over that no judicial system could cope with the issues arising in the matter of administering or regulating advertising. If so, it would simply delay justice by when the particular ad campaign may be over. An ASCI complaint is typically handled within six to eight weeks.
This is why SROs in the developed countries have legislative powers. In many countries, media and marketing companies have to be members and their advertising can be penalized. Non-compliance can mean referral to a higher, governmental body.
Now ASCI is asking for similar legislative powers on the line of the US-UK-EU model so that it has the claws to penalize a non-compliant offender. It suggests pre-vetting of ads for products or service categories that can cause serious health or financial loss like lotteries, liquor and tobacco.
Such an additional power will bring the Indian system on track with international trends and the consumer can rest assured that his genuine complaint will definitely have to be addressed. And that would be a cause worth advertising about.
(These articles appeared in the business section of Hindustan Times in July `06)
LANDS OF THE RISING AD DOLLAR
CHARUBALA ANNUNCIO (with inputs from Anusha Subramanian)
As India and China witness a steep growth in ad spends, the voice of the Indian ad agency rises in global pitches.
“Speak to your guys at Grey India…” This at first may seem like a routine statement made by an international client to his agency in China. But it covers a vast paradigm shift for the Indian agency and the Indian advertising industry. For this was a client telling the Chinese agency to follow the Indian template of the brand’s global strategy instead of shipping it from its American headquarters.
The world’s attention is riveted towards India and China, especially after the famed BRIC Report by Goldman Sachs. And advertising budgets are growing furiously in keeping with the economies. In India advertising already stands over Rs 11,000 crore growing at 10 per cent every year. China is much larger as estimated ad spends totaled over $15 billion (Rs 67,000 crore). By the end of the decade, Nielsen Media Research forecasts that China’s advertising market will become the second largest in the world, surpassing Japan. It was in the top five in 2002, around the same size as Germany and the United Kingdom.
It is imperative for every brand now to get the communication right in these markets. So no longer does it suffice to ensure a ‘local representation’. The Indian or Chinese agency has to be a strong, independent entity with international capabilities. Says Nirvik Singh, CEO, Grey India, “India & China are very much a significant part of a global pitch process today and global agencies need an equally strong agency representation in India and China that are aligned in culture, creativity, leadership and talent.”
Indian agencies have over the past three to four years witnessed an increased demand for their work, opinion, insight into their local markets. A few years ago, global clients would dictate their global campaigns. Today, these very clients respect the Indian agency’s local insights.
Says M.G. Parameswaran, executive director, FCB Ulka says that “Till now the importance of India and China depended on the product category being considered. This is now seen across most product categories.” Most global clients have now moved to looking at the brand’s core promise at the global level, leaving the communication to the local level. And since India and China are becoming increasingly important, these two countries are allowed to drive the regional campaigns. FCB Ulka is working on several such campaigns.
For instance, it did a film for the Compaq Presario campaign to push the brand into the home PC market. As the American home market is near saturation, the agency had to evolve its own strategy around the brand guidelines. The film was good enough for the client to take it to several south and south-east Asian countries.
Advertising may be made for the Indian market specifically, sometimes there’s an Asian strategy and at other times a single, global campaign. Some brands like say L’Oreal and Nokia use both local and global commercials in a market. “But the entire concept of global communication strategy is today based on a) a central think tank working closely with marketing think tank of the client no matter located in which country and b) a strong network to give local implementation capabilities”, says Subhash Kamath, CEO, Bates Enterprise,
This however spells caution also for Indian agencies after the initial euphoria. Local agencies cannot any longer rely on getting business because of their international alignment. Also, as Asia is critical to the global pitch, the network can lose the account completely if the agencies in India and China do not represent themselves well independently.
Also, in dollar terms ad budgets in India are still small though growing fast. For some electronics and telecom brands, India could account for over 15 per cent of the global ad budgets but is yet “a rounding error for most international companies, less than a month’s turnover for Microsoft” as Anil Ambani, chairman, Anil Dhirubhai Ambani Group, pointed out at the golden jubilee talk of The Ad club of Bombay in 2004. Though the dollar yet goes a long way in India, the participation in the global business has to grow rapidly for the Indian industry to win a permanent place in the hall of recognition.
(This article appeared as the lead in Billboard, the weekly advertising and marketing page of Hindustan Times in Sept `06)
CHARUBALA ANNUNCIO (with inputs from Anusha Subramanian)
As India and China witness a steep growth in ad spends, the voice of the Indian ad agency rises in global pitches.
“Speak to your guys at Grey India…” This at first may seem like a routine statement made by an international client to his agency in China. But it covers a vast paradigm shift for the Indian agency and the Indian advertising industry. For this was a client telling the Chinese agency to follow the Indian template of the brand’s global strategy instead of shipping it from its American headquarters.
The world’s attention is riveted towards India and China, especially after the famed BRIC Report by Goldman Sachs. And advertising budgets are growing furiously in keeping with the economies. In India advertising already stands over Rs 11,000 crore growing at 10 per cent every year. China is much larger as estimated ad spends totaled over $15 billion (Rs 67,000 crore). By the end of the decade, Nielsen Media Research forecasts that China’s advertising market will become the second largest in the world, surpassing Japan. It was in the top five in 2002, around the same size as Germany and the United Kingdom.
It is imperative for every brand now to get the communication right in these markets. So no longer does it suffice to ensure a ‘local representation’. The Indian or Chinese agency has to be a strong, independent entity with international capabilities. Says Nirvik Singh, CEO, Grey India, “India & China are very much a significant part of a global pitch process today and global agencies need an equally strong agency representation in India and China that are aligned in culture, creativity, leadership and talent.”
Indian agencies have over the past three to four years witnessed an increased demand for their work, opinion, insight into their local markets. A few years ago, global clients would dictate their global campaigns. Today, these very clients respect the Indian agency’s local insights.
Says M.G. Parameswaran, executive director, FCB Ulka says that “Till now the importance of India and China depended on the product category being considered. This is now seen across most product categories.” Most global clients have now moved to looking at the brand’s core promise at the global level, leaving the communication to the local level. And since India and China are becoming increasingly important, these two countries are allowed to drive the regional campaigns. FCB Ulka is working on several such campaigns.
For instance, it did a film for the Compaq Presario campaign to push the brand into the home PC market. As the American home market is near saturation, the agency had to evolve its own strategy around the brand guidelines. The film was good enough for the client to take it to several south and south-east Asian countries.
Advertising may be made for the Indian market specifically, sometimes there’s an Asian strategy and at other times a single, global campaign. Some brands like say L’Oreal and Nokia use both local and global commercials in a market. “But the entire concept of global communication strategy is today based on a) a central think tank working closely with marketing think tank of the client no matter located in which country and b) a strong network to give local implementation capabilities”, says Subhash Kamath, CEO, Bates Enterprise,
This however spells caution also for Indian agencies after the initial euphoria. Local agencies cannot any longer rely on getting business because of their international alignment. Also, as Asia is critical to the global pitch, the network can lose the account completely if the agencies in India and China do not represent themselves well independently.
Also, in dollar terms ad budgets in India are still small though growing fast. For some electronics and telecom brands, India could account for over 15 per cent of the global ad budgets but is yet “a rounding error for most international companies, less than a month’s turnover for Microsoft” as Anil Ambani, chairman, Anil Dhirubhai Ambani Group, pointed out at the golden jubilee talk of The Ad club of Bombay in 2004. Though the dollar yet goes a long way in India, the participation in the global business has to grow rapidly for the Indian industry to win a permanent place in the hall of recognition.
(This article appeared as the lead in Billboard, the weekly advertising and marketing page of Hindustan Times in Sept `06)
Who’s Afraid of ASCI?
While TV ads need to meet the code set by ASCI, no such rule applies to radio. As this emerging medium is not under the scanner, risqué and bold advertising flourishes.
Swapna sundari wearing maxi
Getting out of a yellow taxi
Walks into a club
Paagal ho gaye sab
Surprisingly she looked at me
And said
Is that a pen in your pocket Mister,
Or are you just happy to see me….
These are not controversial, cult Eminem lyrics or the foul expletives of the Pakistani band, ‘Zeist’ but the words of a radio ad for a fairly innocent-sounding Lexi pens. The man being addressed answers this question with “I am very, very sorry sexy, But now every pocket has a Lexi….”
Lexi Pens, according to the ad are de riguer in every pocket in New York. Besides being difficult to fathom why this fact is advertised in India, what’s really interesting is how the jingle hasn’t created a furore by now. If a corresponding commercial were to be on TV, activists and moral guardians would have long back found a summer job. There would have been a complaint filed with the Advertising Standards Council of India (ASCI) and chances are the song would have to be altered.
TV ads are now under the scanner even more than before, given the amendment in the Cable & TV Act, that they have to follow the ASCI code. But radio seems top be a happy playground for risqué and politically incorrect humour. TV jungles and ads, mostly consumed by self-preoccupied teens and tweens or people looking for a sonorous relief to frustrating driving, haven’t yet got anyone’s heckles up.
Spend a few hours tuning in to radio and listen carefully to the ads. There’s a world of ideas and lyrics that would have been thrashed and objected to on other media. Objectionable humour or a laugh at disadvantaged, stereotypical groups is being used generously, perhaps to make up for the absence of the video element.
Take the following examples, for instance, of unsocial and politically incorrect ideas. The first is the ad for Pears Oil Control Soap. The ad features a boy seeking friendship with a girl who is not interested. The boy talks English like a “vernie” or vernacular if you aren’t cool enough to know that. He seeks Priya’s affections by saying “I waant to be ‘friend’ with you”. Priya of course gets impatient with him. The ad signs off saying that “chipchipey log” (sticky people) are as irritating as “chipchipee twachcha” (sticky skin). A parallel between the uncool and stickiness is drawn unapologetically.
And then there’s the other HLL ad for Sunsilk Gang of Girls site that highlights a social stereotype that women all over are trying to fight away. Introduced in the FIFA period, it shows what could be the significance of football terminology in the life of girls. Highlighting that “Girls are different”, the ad goes on to explain football terms. “Kick” is what you do to your boyfriend when he lands up late, “Pass” is what you do to bills you run up and “Goal” is when he actually gives you a diamond ring.
Humour takes yet a greater stretch of proportion by a channel ad that ran around the Independence Day. It asks a fellow, “Who composed the national anthem?” The fellow fumbles and umms and aaaws. He is then asked in the same rapid fire style, “Who composed Kajraa re kajraa re…?” This time he answers in a flash, “Shankar, Ehsaan Loy”. So what’s the message? That it is funny not to know simple, “patriotic” facts? Or is that current, popular music is of greater relevance? In either case such an ad on TV would have got a whole bunch of citizens excited enough to protest and probably a few editorial rips in newspapers.
Says Brian Tellis, founder Radio Active and an old radio hand,” Radio is a medium where you can paint pictures lot left to listener’s imagination”. It is powerful and hence can be used or misused.
However being the newest medium, it is perceived as small and no one is yet looking hard at it.
Says Sam Balsara, past president and Board member, ASCI, “ ASCI found a convenient handle in the C&S Act to contain TV advertising. But while ASCI watches every medium equally, no law is contravened if a radio jingle is found objectionable by us.”
The radio business is currently focussed on growth and expansion. The government has given out close to 300 licences in this second phase that will cover 90 cities. The industry is expected to grow in leaps and bounds. Radio ad spends, at the moment, account for two per cent of total ad spends in the country. Regulatory issues for content and for advertising will probably follow but much later.
But as it grows – radio is expected to grow exponentially in next 5-10 years according to a PwC report- these issues will gradually come in the spotlight. But until then, guess it will be, “bajaate raho…”
(This article appeared as the lead in Billboard, the weekly advertising and marketing page in Hindustan Times)
While TV ads need to meet the code set by ASCI, no such rule applies to radio. As this emerging medium is not under the scanner, risqué and bold advertising flourishes.
Swapna sundari wearing maxi
Getting out of a yellow taxi
Walks into a club
Paagal ho gaye sab
Surprisingly she looked at me
And said
Is that a pen in your pocket Mister,
Or are you just happy to see me….
These are not controversial, cult Eminem lyrics or the foul expletives of the Pakistani band, ‘Zeist’ but the words of a radio ad for a fairly innocent-sounding Lexi pens. The man being addressed answers this question with “I am very, very sorry sexy, But now every pocket has a Lexi….”
Lexi Pens, according to the ad are de riguer in every pocket in New York. Besides being difficult to fathom why this fact is advertised in India, what’s really interesting is how the jingle hasn’t created a furore by now. If a corresponding commercial were to be on TV, activists and moral guardians would have long back found a summer job. There would have been a complaint filed with the Advertising Standards Council of India (ASCI) and chances are the song would have to be altered.
TV ads are now under the scanner even more than before, given the amendment in the Cable & TV Act, that they have to follow the ASCI code. But radio seems top be a happy playground for risqué and politically incorrect humour. TV jungles and ads, mostly consumed by self-preoccupied teens and tweens or people looking for a sonorous relief to frustrating driving, haven’t yet got anyone’s heckles up.
Spend a few hours tuning in to radio and listen carefully to the ads. There’s a world of ideas and lyrics that would have been thrashed and objected to on other media. Objectionable humour or a laugh at disadvantaged, stereotypical groups is being used generously, perhaps to make up for the absence of the video element.
Take the following examples, for instance, of unsocial and politically incorrect ideas. The first is the ad for Pears Oil Control Soap. The ad features a boy seeking friendship with a girl who is not interested. The boy talks English like a “vernie” or vernacular if you aren’t cool enough to know that. He seeks Priya’s affections by saying “I waant to be ‘friend’ with you”. Priya of course gets impatient with him. The ad signs off saying that “chipchipey log” (sticky people) are as irritating as “chipchipee twachcha” (sticky skin). A parallel between the uncool and stickiness is drawn unapologetically.
And then there’s the other HLL ad for Sunsilk Gang of Girls site that highlights a social stereotype that women all over are trying to fight away. Introduced in the FIFA period, it shows what could be the significance of football terminology in the life of girls. Highlighting that “Girls are different”, the ad goes on to explain football terms. “Kick” is what you do to your boyfriend when he lands up late, “Pass” is what you do to bills you run up and “Goal” is when he actually gives you a diamond ring.
Humour takes yet a greater stretch of proportion by a channel ad that ran around the Independence Day. It asks a fellow, “Who composed the national anthem?” The fellow fumbles and umms and aaaws. He is then asked in the same rapid fire style, “Who composed Kajraa re kajraa re…?” This time he answers in a flash, “Shankar, Ehsaan Loy”. So what’s the message? That it is funny not to know simple, “patriotic” facts? Or is that current, popular music is of greater relevance? In either case such an ad on TV would have got a whole bunch of citizens excited enough to protest and probably a few editorial rips in newspapers.
Says Brian Tellis, founder Radio Active and an old radio hand,” Radio is a medium where you can paint pictures lot left to listener’s imagination”. It is powerful and hence can be used or misused.
However being the newest medium, it is perceived as small and no one is yet looking hard at it.
Says Sam Balsara, past president and Board member, ASCI, “ ASCI found a convenient handle in the C&S Act to contain TV advertising. But while ASCI watches every medium equally, no law is contravened if a radio jingle is found objectionable by us.”
The radio business is currently focussed on growth and expansion. The government has given out close to 300 licences in this second phase that will cover 90 cities. The industry is expected to grow in leaps and bounds. Radio ad spends, at the moment, account for two per cent of total ad spends in the country. Regulatory issues for content and for advertising will probably follow but much later.
But as it grows – radio is expected to grow exponentially in next 5-10 years according to a PwC report- these issues will gradually come in the spotlight. But until then, guess it will be, “bajaate raho…”
(This article appeared as the lead in Billboard, the weekly advertising and marketing page in Hindustan Times)
DIFFERENT FOLKS
There's is a growing crop of professionals from varied industries who opting for the excitement of advertising over the safety of their technical fields.
These men and women wear ties and formal shirts to work and even carry serviettes. If they look a bit out of place to you in an advertising agency, it's not their fault. They are an unexpected but welcome breed of young professionals who have chosen advertising over their primary professions- the ones they were educated for.
If the advertising industry has been lamenting silently the loss of talent, there is a quiet development on the other side. Doctors, bankers, engineers and rural marketers are being lured by the excitement and the organised chaos of advertising. And they have given up stuff for it- from better remuneration to status to family acceptance.
Look at Nirmallya Roy Chowdhury of Bates. When he decided to quit his marketing career for advertising his family was puzzled. His father seriously thought he needed psychiatric treatment. Or there's Rajeev Hajare from Lowe India. His parents yet prefer to introduce him as "having worked with companies like Tata Electric" hoping their guests will excuse his current choice. Hajare laughs and says that they yet have to come to terms with his preference for advertising over a safe career in engineering.
But these decisions haven’t come easily. Hajare says he met his parents' middle class dream and became an engineer. Now it was time to do something for himself.
At 26, Subhasis Chatterjee is very mature for his years. He says he contemplated for a year before he took the plunge. But he had to because being in the media-advertising world was his dream profile and he couldn't wait for a safe and easy transit option.
The intangible returns are obviously big enough to beat the lure of other attractions. Look at Brinda Gupta, 41, who was a banker for 17 years in Australia before she joined Grey Worldwide as director, client servicing. She says “The stimulating environment and the creative process more than makes up.” She says she’s actually thankful to get this break and thinks nothing of a much smaller pay packet.
Then there’s Dr Mehul Shukla who practised as a family general physician for eight years after which he wanted to go beyond handling fever and diarrhoea. So he did an MBA and went into pharmaceutical marketing. That's where, while handling over-the-counter brands that he interacted with advertising agencies. It was like tasting blood. He knew he wanted to be on that side of business. Now, heading Lintas’ healthcare division, he uses all his education and experience.
Advertising is a place where only people passionate about it survive, it seems. There are no half measures. And the perks of excitement outweigh other, physical benefits like more reasonable working hours and remuneration. Chatterjee says he simply followed his heart. " I look back I realize that ideally I could have chosen to move into marketing within Hutch itself but this provides a wider horizon. The hunt for this horizon was a sub-conscious critical point that buoyed me to advertising".
There are of course adjustments to be made. Roy Chowdhury, a dyed-in-the-wool MNC marketing man took some time to change over but yet initially found the cultural change, the frank and chaotic environment and the absence of an HR team unsettling. “ I had researched the industry well”, says Hajare, “and I knew I would have to role up my sleeves and dirty my hands initially”.
And all said and done, danger lurks. All of them agree that the first thing they had to adjust to was the obviously less money. Though someone like Gupta is not concerned about the package others could be at a later date. Roy Chowdhury and Hajare both say they would be earning far more in their marketing jobs. Hajare says that a practical consideration later to simply have to earn more could make him look elsewhere. For Dr Shukla the change was possible because is doctor wife took the brunt of paying the bills. But he wouldn't want that to be forever.
So while death by monotony will certainly not strike them, there’s a niggling fear that taxes and rising costs could make them look out when the honeymoon with advertising ends. It will then be advertising’s loss.
(This article appeared as the lead in Billboard, the weekly advertising and marketing page of Hindustan Times in July `06)
There's is a growing crop of professionals from varied industries who opting for the excitement of advertising over the safety of their technical fields.
These men and women wear ties and formal shirts to work and even carry serviettes. If they look a bit out of place to you in an advertising agency, it's not their fault. They are an unexpected but welcome breed of young professionals who have chosen advertising over their primary professions- the ones they were educated for.
If the advertising industry has been lamenting silently the loss of talent, there is a quiet development on the other side. Doctors, bankers, engineers and rural marketers are being lured by the excitement and the organised chaos of advertising. And they have given up stuff for it- from better remuneration to status to family acceptance.
Look at Nirmallya Roy Chowdhury of Bates. When he decided to quit his marketing career for advertising his family was puzzled. His father seriously thought he needed psychiatric treatment. Or there's Rajeev Hajare from Lowe India. His parents yet prefer to introduce him as "having worked with companies like Tata Electric" hoping their guests will excuse his current choice. Hajare laughs and says that they yet have to come to terms with his preference for advertising over a safe career in engineering.
But these decisions haven’t come easily. Hajare says he met his parents' middle class dream and became an engineer. Now it was time to do something for himself.
At 26, Subhasis Chatterjee is very mature for his years. He says he contemplated for a year before he took the plunge. But he had to because being in the media-advertising world was his dream profile and he couldn't wait for a safe and easy transit option.
The intangible returns are obviously big enough to beat the lure of other attractions. Look at Brinda Gupta, 41, who was a banker for 17 years in Australia before she joined Grey Worldwide as director, client servicing. She says “The stimulating environment and the creative process more than makes up.” She says she’s actually thankful to get this break and thinks nothing of a much smaller pay packet.
Then there’s Dr Mehul Shukla who practised as a family general physician for eight years after which he wanted to go beyond handling fever and diarrhoea. So he did an MBA and went into pharmaceutical marketing. That's where, while handling over-the-counter brands that he interacted with advertising agencies. It was like tasting blood. He knew he wanted to be on that side of business. Now, heading Lintas’ healthcare division, he uses all his education and experience.
Advertising is a place where only people passionate about it survive, it seems. There are no half measures. And the perks of excitement outweigh other, physical benefits like more reasonable working hours and remuneration. Chatterjee says he simply followed his heart. " I look back I realize that ideally I could have chosen to move into marketing within Hutch itself but this provides a wider horizon. The hunt for this horizon was a sub-conscious critical point that buoyed me to advertising".
There are of course adjustments to be made. Roy Chowdhury, a dyed-in-the-wool MNC marketing man took some time to change over but yet initially found the cultural change, the frank and chaotic environment and the absence of an HR team unsettling. “ I had researched the industry well”, says Hajare, “and I knew I would have to role up my sleeves and dirty my hands initially”.
And all said and done, danger lurks. All of them agree that the first thing they had to adjust to was the obviously less money. Though someone like Gupta is not concerned about the package others could be at a later date. Roy Chowdhury and Hajare both say they would be earning far more in their marketing jobs. Hajare says that a practical consideration later to simply have to earn more could make him look elsewhere. For Dr Shukla the change was possible because is doctor wife took the brunt of paying the bills. But he wouldn't want that to be forever.
So while death by monotony will certainly not strike them, there’s a niggling fear that taxes and rising costs could make them look out when the honeymoon with advertising ends. It will then be advertising’s loss.
(This article appeared as the lead in Billboard, the weekly advertising and marketing page of Hindustan Times in July `06)
THE EXODUS
The advertising industry is facing a severe people crunch as the bright are being lured away. This, discover the agencies, is actually their own doing.
There’s a new job function in ad agencies today that would have been a joke even five years back: the human resource department. Time was when the advertising industry was the coolest place to park your creative ponytail. But the last five years have witnessed a gradual decline in the quality of people who are attracted to this business. This trend is now picking up pace and it has agency heads running helter-skelter to save a complete erosion.
Suddenly they are realizing the significance of doing what marketing companies have done for decades. Work on retaining the right people. Now agencies like O&M have full fledged HR departments. Others like Bates Enterprise are undergoing structural changes to accommodate people and their ambitions while those like Grey are hiring people from technical backgrounds to support the creative function.
So why has all this happened?
First the pull: A lot of more lucrative avenues that offer equal creative satisfaction have opened up for the creative people. TV has opened up an entire new world. Apart from that feature films, film production, radio, Internet gaming are attractive avenues.
Those in account management and planning are lured to cross over to the clients’ side. This year apparently three fourths of the graduates from MICA, India’s first advertising school opted for marketing assignments.
“Agencies have brought this plight upon themselves,” says Preeti Vyas Gianetti, CEO, Vyas Gianetti Creatives. Once upon a time, in the glorious 15-per cent agency commission days, the industry rewarded talent generously. But agencies have been undercutting each other to grab business. This has put a tremendous pressure on the bottom line and hence there is little room to increase salaries.
Subhash Kamath, CEO, Bates Enterprise, feels that “The blame is squarely on the shoulders of the industry heads. We have spent no time in making the profession attractive to youngsters.” Nurturing and training talent have been alien terms to the industry and no one thought that such a time would come where people would need to be told why they should come to advertising.
And then there is the new generation. “They prefer to explore the Amazon than build a monument”, explains Kamath. Both are exciting roads to success but the fresh talent is far more adventurous and comfortable with professional risk. Loyalty to an organization is no virtue. They work hard but expect fulfillment earlier than the previous generations. They are not afraid or embarrassed to ask for more money or a higher designation. It is for the heads to understand the new value system and show them that they care.
And they have identified the solution. First: Bring back the passion with good quality mentoring. Also reward talent. Grey has started giving away monthly and even weekly prizes to good work besides the annual recognitions. Singh sees a drop in attrition with such initiatives.
Two, agencies have started taking training and nurturing more seriously, not the old way but in the new format of talent management. If the industry is not naturally attracting the people it needs it has to learn to hunt better. Agencies like Grey for instance are looking at fresh graduates from top end colleges like St Stephen’s.
Three: A lesson can be learnt from marketing companies such as Unilever that has deconstructed the brand management structure according to skill sets in the innovation and activation areas. Agencies need to learn this quickly to accommodate young ambition.
Traditional skill-based training now needs to be complemented by attitude-based training. It becomes essential when people have to work in groups at a short notice if for instance a 360-degree solution has to be presented to a client. Typically then people are pulled out to form a group for a short term. Success now will depend on not the traditional team building skills but managing a coalition. “If you’ve 12 days to complete a project how do you bring together a group than can quickly adapt and present a solution is key to success today”, explains Kamath.
Nirvik Singh, CEO, Grey has initiated a process of hiring talent from outside the creative fields. The most prominent recruit has been Brinda Gupta who heads the Deutsche Bank account and comes with years of experience in banking communication. “Now my people can talk the client’s language and we have the ear of the top guns at agency meetings than earlier.”
Says Kalpana Rao, HR Head, O&M, “People issues are being addressed far more consciously by the top management.” Earlier training budgets lapsed, unused. Now O&M spends 1.5 per cent of its revenues towards it. Attrition hasn’t gone down but hasn’t gone up either. “Our employee satisfaction surveys are getting the same response as our other global offices”, says Rao.
The agencies are moving fast now. Chances are the damage will be curtailed before the slip starts showing.
(This article appeared as the lead in Billboard, the weekly advertising and marketing page in Hindstan Times in June `06)
The advertising industry is facing a severe people crunch as the bright are being lured away. This, discover the agencies, is actually their own doing.
There’s a new job function in ad agencies today that would have been a joke even five years back: the human resource department. Time was when the advertising industry was the coolest place to park your creative ponytail. But the last five years have witnessed a gradual decline in the quality of people who are attracted to this business. This trend is now picking up pace and it has agency heads running helter-skelter to save a complete erosion.
Suddenly they are realizing the significance of doing what marketing companies have done for decades. Work on retaining the right people. Now agencies like O&M have full fledged HR departments. Others like Bates Enterprise are undergoing structural changes to accommodate people and their ambitions while those like Grey are hiring people from technical backgrounds to support the creative function.
So why has all this happened?
First the pull: A lot of more lucrative avenues that offer equal creative satisfaction have opened up for the creative people. TV has opened up an entire new world. Apart from that feature films, film production, radio, Internet gaming are attractive avenues.
Those in account management and planning are lured to cross over to the clients’ side. This year apparently three fourths of the graduates from MICA, India’s first advertising school opted for marketing assignments.
“Agencies have brought this plight upon themselves,” says Preeti Vyas Gianetti, CEO, Vyas Gianetti Creatives. Once upon a time, in the glorious 15-per cent agency commission days, the industry rewarded talent generously. But agencies have been undercutting each other to grab business. This has put a tremendous pressure on the bottom line and hence there is little room to increase salaries.
Subhash Kamath, CEO, Bates Enterprise, feels that “The blame is squarely on the shoulders of the industry heads. We have spent no time in making the profession attractive to youngsters.” Nurturing and training talent have been alien terms to the industry and no one thought that such a time would come where people would need to be told why they should come to advertising.
And then there is the new generation. “They prefer to explore the Amazon than build a monument”, explains Kamath. Both are exciting roads to success but the fresh talent is far more adventurous and comfortable with professional risk. Loyalty to an organization is no virtue. They work hard but expect fulfillment earlier than the previous generations. They are not afraid or embarrassed to ask for more money or a higher designation. It is for the heads to understand the new value system and show them that they care.
And they have identified the solution. First: Bring back the passion with good quality mentoring. Also reward talent. Grey has started giving away monthly and even weekly prizes to good work besides the annual recognitions. Singh sees a drop in attrition with such initiatives.
Two, agencies have started taking training and nurturing more seriously, not the old way but in the new format of talent management. If the industry is not naturally attracting the people it needs it has to learn to hunt better. Agencies like Grey for instance are looking at fresh graduates from top end colleges like St Stephen’s.
Three: A lesson can be learnt from marketing companies such as Unilever that has deconstructed the brand management structure according to skill sets in the innovation and activation areas. Agencies need to learn this quickly to accommodate young ambition.
Traditional skill-based training now needs to be complemented by attitude-based training. It becomes essential when people have to work in groups at a short notice if for instance a 360-degree solution has to be presented to a client. Typically then people are pulled out to form a group for a short term. Success now will depend on not the traditional team building skills but managing a coalition. “If you’ve 12 days to complete a project how do you bring together a group than can quickly adapt and present a solution is key to success today”, explains Kamath.
Nirvik Singh, CEO, Grey has initiated a process of hiring talent from outside the creative fields. The most prominent recruit has been Brinda Gupta who heads the Deutsche Bank account and comes with years of experience in banking communication. “Now my people can talk the client’s language and we have the ear of the top guns at agency meetings than earlier.”
Says Kalpana Rao, HR Head, O&M, “People issues are being addressed far more consciously by the top management.” Earlier training budgets lapsed, unused. Now O&M spends 1.5 per cent of its revenues towards it. Attrition hasn’t gone down but hasn’t gone up either. “Our employee satisfaction surveys are getting the same response as our other global offices”, says Rao.
The agencies are moving fast now. Chances are the damage will be curtailed before the slip starts showing.
(This article appeared as the lead in Billboard, the weekly advertising and marketing page in Hindstan Times in June `06)
INTERVIEW: PREETI VYAS GIANNETTI
THE WARRIOR PRINCESS
She runs the only independent ad agency in the top notch. Her revenues surpass those of some of the internationally affiliated names. But she's mad at the industry for lowering the creative bar
Dressed in a calming, cerulean blue, Preeti Vyas Giannetti could easily pass off for a counsellor or a teacher. Who she is however, is India's only woman ad agency founder and owner in the top rungs, reminiscent of Tara Sinha in the good old days of Indian advertising. An NID graduate, she runs her 60-strong agency, Vyas Giannetti Creative, fiercely independently. She is recognized for her work internationally. She has only recently been on the jury of the international awards in Sri Lanka and is, at this moment judging at Cannes.
Besides all this, she is unafraid to air her views on issues on the underbelly of the ad world
Her take ...
On Indian ad awards
They are fake. 95 per cent of the work is done for awards. In the early `90s we yet entered the work that was actually used and that is fulfilling. We are trying to fool everyone including ourselves.
The toll this takes
Four months of an agency's work and over Rs 20 lakh would go into participating in a Goafest-like event. No small agency can afford that. So the awards are skewed in favour of the big and the powerful and remain a rich man's game.
On the other hand, creative talent makes its decisions of job switching based on how many awards an agency participates in. Fifteen minutes of fame has eroded both the practice of meticulous learning in the new generation as well as the feeling of ownership of work as they go hopping jobs every season. Employers on their part also don't work towards creating this feeling In the strategic side of the business, the loss of talent is even greater as people switch over to the clients' side.
Clients
Clients are happy to win awards definitely but are certainly not driven by them. So business is not hampered whether you enter awards or not. While most top end agencies are driven by servicing the old, stodgy clients the real action is happening with young entrepreneurs or young scions of old businesses interested in re-inventing the business. This is fantastic for an agency like ours.
So should awards be a no-no?
Not if they are fair and really showcase the best work. I was recently on the Sri Lankan international awards jury. They had such an award for the first time and the jury came from all over. The most creative from countries like Thailand, Malaysia, U.K. and Singapore were there. It was a humbling experience.
Visual Communication.
My view on this has been media unspecific. I have always exposed brands to the potential consumer wherever strategic, whether it is POP work or say an annual report. I have done a lot of work in corporate brand building, media brand designing (ver 20 publications). I have done music video as and TV programming. I have believed in 360 degree communication for a long while. But I am yet labeled as a designer/ boutique agency. VGC's revenues this year touched US$ 20 million. I understand this is more than the revenues of some well-recognised agencies that are part of global networks.
Making up for loss of a global network backing
We are a part of the global Independent Agencies' Network, the only Indian agency in it. The Network helps us access insight into consumers in member countries, reach, global; knowledge based skill set and new business opportunities without selling out.
The state of the industry today
Some agencies are clearly very top or middle heavy with poor traffic management. Clearly the industry is facing a big management issue. The productivity levels are low and the quality even lower. It is the client who's leading the way and we are reacting. We've stopped being pro-active a long while back.
We are safe riders today. The entrepreneurial spirit is missing. So we witness an outgo of disillusioned people. Inflated egos, salaries and pompous designations rule but what we need is path-breaking work to put the vibrancy back and make advertising the adventure it is supposed to be.
My contribution
We try to keep the bar higher and work for clients who will give us the opportunity. Of course we need billing but creative satisfaction is not compromised.
(This interview appeared as the lead in Billboard, the weekly advertising and marketing features page in Hindustan Times in June `06)
THE WARRIOR PRINCESS
She runs the only independent ad agency in the top notch. Her revenues surpass those of some of the internationally affiliated names. But she's mad at the industry for lowering the creative bar
Dressed in a calming, cerulean blue, Preeti Vyas Giannetti could easily pass off for a counsellor or a teacher. Who she is however, is India's only woman ad agency founder and owner in the top rungs, reminiscent of Tara Sinha in the good old days of Indian advertising. An NID graduate, she runs her 60-strong agency, Vyas Giannetti Creative, fiercely independently. She is recognized for her work internationally. She has only recently been on the jury of the international awards in Sri Lanka and is, at this moment judging at Cannes.
Besides all this, she is unafraid to air her views on issues on the underbelly of the ad world
Her take ...
On Indian ad awards
They are fake. 95 per cent of the work is done for awards. In the early `90s we yet entered the work that was actually used and that is fulfilling. We are trying to fool everyone including ourselves.
The toll this takes
Four months of an agency's work and over Rs 20 lakh would go into participating in a Goafest-like event. No small agency can afford that. So the awards are skewed in favour of the big and the powerful and remain a rich man's game.
On the other hand, creative talent makes its decisions of job switching based on how many awards an agency participates in. Fifteen minutes of fame has eroded both the practice of meticulous learning in the new generation as well as the feeling of ownership of work as they go hopping jobs every season. Employers on their part also don't work towards creating this feeling In the strategic side of the business, the loss of talent is even greater as people switch over to the clients' side.
Clients
Clients are happy to win awards definitely but are certainly not driven by them. So business is not hampered whether you enter awards or not. While most top end agencies are driven by servicing the old, stodgy clients the real action is happening with young entrepreneurs or young scions of old businesses interested in re-inventing the business. This is fantastic for an agency like ours.
So should awards be a no-no?
Not if they are fair and really showcase the best work. I was recently on the Sri Lankan international awards jury. They had such an award for the first time and the jury came from all over. The most creative from countries like Thailand, Malaysia, U.K. and Singapore were there. It was a humbling experience.
Visual Communication.
My view on this has been media unspecific. I have always exposed brands to the potential consumer wherever strategic, whether it is POP work or say an annual report. I have done a lot of work in corporate brand building, media brand designing (ver 20 publications). I have done music video as and TV programming. I have believed in 360 degree communication for a long while. But I am yet labeled as a designer/ boutique agency. VGC's revenues this year touched US$ 20 million. I understand this is more than the revenues of some well-recognised agencies that are part of global networks.
Making up for loss of a global network backing
We are a part of the global Independent Agencies' Network, the only Indian agency in it. The Network helps us access insight into consumers in member countries, reach, global; knowledge based skill set and new business opportunities without selling out.
The state of the industry today
Some agencies are clearly very top or middle heavy with poor traffic management. Clearly the industry is facing a big management issue. The productivity levels are low and the quality even lower. It is the client who's leading the way and we are reacting. We've stopped being pro-active a long while back.
We are safe riders today. The entrepreneurial spirit is missing. So we witness an outgo of disillusioned people. Inflated egos, salaries and pompous designations rule but what we need is path-breaking work to put the vibrancy back and make advertising the adventure it is supposed to be.
My contribution
We try to keep the bar higher and work for clients who will give us the opportunity. Of course we need billing but creative satisfaction is not compromised.
(This interview appeared as the lead in Billboard, the weekly advertising and marketing features page in Hindustan Times in June `06)
THE IMAGINARY LINE
The line that divided advertising into mainstream and below-the-line was drawn in magic ink. It is fast disappearing as clients force the industry out of its medieval mindset.
As you start eating your favourite dish at a restaurant, a message tries to raise its head out of the bottom of the plate. As the dish gets emptier, you can read better, "There are X number of people dying of hunger every month. Don't waste your food."
The message hits the gut at the perfect moment. You aren't going to forget that in a hurry. So does the medium – the plate become the mainstay for this client? It probably did what no TV commercial and certainly no print ad could have done, because it met the consumer where he would be the most receptive.
As communication needs to get more encompassing and sophisticated, it is becoming more imperative to use and even create more media options to deliver brand solutions. Until yesterday, below the line was a euphemism for below the belt. It was any form of communication that was not traditionally media commission-linked and that a metal hungry creative person of yesteryears wouldn't touch with a bargepole.
But no Indian agency can ignore the call any more. Every one of them is creating separate divisions to handle different areas of brand communication including out-of-home advertising, events, promotions, digital media buying.
While some may have been a little faster than the others largely the demand came from the client. Says Ranjeetha Menon, head, Ogilvy One, "Clients have been asking for 360 degree communication." The process has been largely led by international corporations like Citibank, IBM and Ford, the new generation Indian entrepreneurs or old-time companies that are being turned around by their foreign educated scions.
Says Cajetan Vaz, national; creative director, Everest, "Now it is for us to evangelise and offer solutions to our clients that are media independent." Soumitra S Bhattacharyya, CEO, MOMS, Madison's Outdoor arm, further explains that "With media fragmentation it is critical to have touch point communication which reduces wastage and hits your target group directly".
Vasant Jante, Publisher, POP and Outdoor advertising says that "Marketers realise that a combination of mediums will make the best impact. And everything, every space –washrooms, lifts, malls, mirrors- is being explored as a medium to give a brand maximum exposure to the target group. Jante instituted The Outdoor Advertising Awards last year marking the recognition of the medium as mainstream.
So the change is coming surely and fast enough both in the mindset of agencies and consequently the services they offer. O&M only recently appointed Pratap Bose, the man who led its outdoor business, as CEO. Every agency is setting up divisions with dedicated staff for them and increasingly more experienced people are heading them.
Those days when agencies would create advertising for print and the same artwork was used outdoors are fast disappearing into the horizon. Today, the agencies create advertising specifically for outdoor and OOH mediums. Finally, design is getting more weight.
The change in the remuneration system from being commission based to fee based also supports the rounded servicing that is today's news. Earlier, everything outside of traditional media commission-led work like say hoardings would be done but the agency never got a cut out of it.
The learning is fast as increasingly business depends on it. "We choose to be media-independent" says Vaz. Right now, says Menon, we are in a stage where we are looking at direct marketing not as just a channel but need to map out the customer journey and understand their purchase patterns.
Vaz clearly outlines that his agency's focus this year is to deepen its understanding of digital media. Menon says that digital marketing is where she will focus as technology gains ground and digital media (Internet and Interactivity) lead growth. The integration of digital media-. TV, radio, online, mobile telephony, digital outdoor all converging in one handset or desktop is the future. The communication opportunities are mind-boggling. I'd love to dive in, says Vaz.
Internationally, the ratio stands at 50:50. Here it is 80:20 in favour of mainstream. While TV and print have stopped growing internationally in India they are yet to be saturated. But the trend will be first arrested and then probably reversed. Sectors like banking, insurance, hotels, airlines, automobiles, IT, have made the shift globally and it follows here.
(This article appeared as the lead in Billboard, the weekly advertising and marketing page of Hindustan Times in May `06)
The line that divided advertising into mainstream and below-the-line was drawn in magic ink. It is fast disappearing as clients force the industry out of its medieval mindset.
As you start eating your favourite dish at a restaurant, a message tries to raise its head out of the bottom of the plate. As the dish gets emptier, you can read better, "There are X number of people dying of hunger every month. Don't waste your food."
The message hits the gut at the perfect moment. You aren't going to forget that in a hurry. So does the medium – the plate become the mainstay for this client? It probably did what no TV commercial and certainly no print ad could have done, because it met the consumer where he would be the most receptive.
As communication needs to get more encompassing and sophisticated, it is becoming more imperative to use and even create more media options to deliver brand solutions. Until yesterday, below the line was a euphemism for below the belt. It was any form of communication that was not traditionally media commission-linked and that a metal hungry creative person of yesteryears wouldn't touch with a bargepole.
But no Indian agency can ignore the call any more. Every one of them is creating separate divisions to handle different areas of brand communication including out-of-home advertising, events, promotions, digital media buying.
While some may have been a little faster than the others largely the demand came from the client. Says Ranjeetha Menon, head, Ogilvy One, "Clients have been asking for 360 degree communication." The process has been largely led by international corporations like Citibank, IBM and Ford, the new generation Indian entrepreneurs or old-time companies that are being turned around by their foreign educated scions.
Says Cajetan Vaz, national; creative director, Everest, "Now it is for us to evangelise and offer solutions to our clients that are media independent." Soumitra S Bhattacharyya, CEO, MOMS, Madison's Outdoor arm, further explains that "With media fragmentation it is critical to have touch point communication which reduces wastage and hits your target group directly".
Vasant Jante, Publisher, POP and Outdoor advertising says that "Marketers realise that a combination of mediums will make the best impact. And everything, every space –washrooms, lifts, malls, mirrors- is being explored as a medium to give a brand maximum exposure to the target group. Jante instituted The Outdoor Advertising Awards last year marking the recognition of the medium as mainstream.
So the change is coming surely and fast enough both in the mindset of agencies and consequently the services they offer. O&M only recently appointed Pratap Bose, the man who led its outdoor business, as CEO. Every agency is setting up divisions with dedicated staff for them and increasingly more experienced people are heading them.
Those days when agencies would create advertising for print and the same artwork was used outdoors are fast disappearing into the horizon. Today, the agencies create advertising specifically for outdoor and OOH mediums. Finally, design is getting more weight.
The change in the remuneration system from being commission based to fee based also supports the rounded servicing that is today's news. Earlier, everything outside of traditional media commission-led work like say hoardings would be done but the agency never got a cut out of it.
The learning is fast as increasingly business depends on it. "We choose to be media-independent" says Vaz. Right now, says Menon, we are in a stage where we are looking at direct marketing not as just a channel but need to map out the customer journey and understand their purchase patterns.
Vaz clearly outlines that his agency's focus this year is to deepen its understanding of digital media. Menon says that digital marketing is where she will focus as technology gains ground and digital media (Internet and Interactivity) lead growth. The integration of digital media-. TV, radio, online, mobile telephony, digital outdoor all converging in one handset or desktop is the future. The communication opportunities are mind-boggling. I'd love to dive in, says Vaz.
Internationally, the ratio stands at 50:50. Here it is 80:20 in favour of mainstream. While TV and print have stopped growing internationally in India they are yet to be saturated. But the trend will be first arrested and then probably reversed. Sectors like banking, insurance, hotels, airlines, automobiles, IT, have made the shift globally and it follows here.
(This article appeared as the lead in Billboard, the weekly advertising and marketing page of Hindustan Times in May `06)
THE SECOND COMING
After a big hit about a decade back, financial advertising agencies are making a strong comeback over the past year. They rise from the ashes with lessons well-learnt.
They have a more glorious past than a present. In the heady days of the stock market boom in the early `90s, a clutch of small-time advertising agencies made hay, specializing in what came to be known as financial advertising.
This was a bit of a misnomer because what they did involved little advertising. Financial ads were essentially SEBI-approved straitjacketed formats where information about Initial Public Offerings (IPOs) had to be displayed. They had to follow strict norms. Most IPOs came from unknown companies that were cashing on the boom. There was no brand building, strategizing or creatives. But there was certainly an expertise involved. These six agencies-Pressman, Sobhagya, Concept, Clea, Adfactors, Percept along with smaller ones like Imageads- knew what it took to deliver a successful IPO. They knew the merchant bankers- the chaps who would tell the corporations which agency to use. They also had networked with brokers, analysts and the business media to get the best possible coverage and reach to potential consumers. "No brand building, creative agency could match this expertise", says Vinod Nair of Clea PR.
In `95 these six agencies shared nearly Rs 1500 crore of business. Besides, the Six were kings of all they surveyed. Unlike for brand work where agencies have to pitch and hope they'll be the chosen ones, here clients came to them. There was no negotiation, no bargaining because the job had to be done right the first time. There was no time and certainly no room for mistakes. And there was that wonderful caveat that worked beautifully for both sides- SEBI rules allowed seven per cent of the issue amount to be spent on advertising and promotions. So a company wanting to raise Rs 100 crore could easily spend Rs 7 crore in a month or so to build its image. The money would eventually go from the public money collected. Neither the client nor the agency took the hit. Also, if the issue was oversubscribed by say ten times, common in those days, the client had Rs 900 crore of extra collection to be returned over 45 days. At 1.5 per cent bank interest he pocketed a cool Rs 20 crore before he returned the funds, all within legal limits. So the agency was never questioned on expenses as every issue was oversubscribed and the Six basked in unprecedented growth.
Then came the fall. The markets collapsed and the IPO business dried up as fast as it had blossomed. The Six were suddenly virtually out of business, saddled with staff and infrastructure. And they had no other advertising expertise to go seek brand-building business.
Some realized that the talent they had was actually public relations. Little wonder then, that agencies like Percept, Adfactors and Clea went the whole hog into PR. At one point, this activity supported the entire structure. The biggest success story amongst all was however Percept. Senior founder Harinder Singh- once remembered most for displaying Pooja Bhatt's best assets to draw people to an IPO- diversified rapidly into all directions- events, celebrity management, branding agencies, below-the-line services etc- to create an empire that is today valuated at Rs 2000 crore.
Pressman, Concept and Sobhagya went the PSU route getting empanneled on companies like MTNL and BSNL. Today as these corporates increase advertising, they are growing.
Mercantile shut down. Imageads sold out to Percept. Those who survived comfortably was say Canco. Says Ramesh Narayan, founder, "We took IPO business of existing clients but never pitched for IPO business alone."
However these agencies remained the pariahs of the advertising industry. They were for instance never allowed membership in the AAAI. At one point the AAAI asked to see the books of accounts of members and that was instrumental in shooing away some financial agencies that were already members. An ex-president of AAAI says that they were unscrupulous and the AAAI wanted to stand for ethical standards.
Today, a second wind has blown into their once-tattered sails. They are quietly re-surfacing as the IPO-financial advertising market is once again looking up. The financial ad business is around Rs 300 crore already. It is expected to go to Rs1000 crore. Everyone knows those days will not return. But the same crop of agencies are at it again, returning to do what they know best. But this time round, they are cautious and keeping the other fires burning as well. Agencies like say Concept are doing both corporate and financial advertising for clients like Air Deccan. Says Naren Suchanti of Concept, “Half our business comes from corporate advertising.”
While the MNC ad agencies look down upon this bunch, the fact is that they all tried to set up financial advertising divisions but failed. Luckily for them, clients did not share this sentiment even though the cloud of being just financial advertisers has yet to be completely lifted. The agencies in themselves may be bruised but are all grown up.
(This article appeared as the lead in Billboard the weekly advertising and marketing features page of Hindustan Times in May `06)
After a big hit about a decade back, financial advertising agencies are making a strong comeback over the past year. They rise from the ashes with lessons well-learnt.
They have a more glorious past than a present. In the heady days of the stock market boom in the early `90s, a clutch of small-time advertising agencies made hay, specializing in what came to be known as financial advertising.
This was a bit of a misnomer because what they did involved little advertising. Financial ads were essentially SEBI-approved straitjacketed formats where information about Initial Public Offerings (IPOs) had to be displayed. They had to follow strict norms. Most IPOs came from unknown companies that were cashing on the boom. There was no brand building, strategizing or creatives. But there was certainly an expertise involved. These six agencies-Pressman, Sobhagya, Concept, Clea, Adfactors, Percept along with smaller ones like Imageads- knew what it took to deliver a successful IPO. They knew the merchant bankers- the chaps who would tell the corporations which agency to use. They also had networked with brokers, analysts and the business media to get the best possible coverage and reach to potential consumers. "No brand building, creative agency could match this expertise", says Vinod Nair of Clea PR.
In `95 these six agencies shared nearly Rs 1500 crore of business. Besides, the Six were kings of all they surveyed. Unlike for brand work where agencies have to pitch and hope they'll be the chosen ones, here clients came to them. There was no negotiation, no bargaining because the job had to be done right the first time. There was no time and certainly no room for mistakes. And there was that wonderful caveat that worked beautifully for both sides- SEBI rules allowed seven per cent of the issue amount to be spent on advertising and promotions. So a company wanting to raise Rs 100 crore could easily spend Rs 7 crore in a month or so to build its image. The money would eventually go from the public money collected. Neither the client nor the agency took the hit. Also, if the issue was oversubscribed by say ten times, common in those days, the client had Rs 900 crore of extra collection to be returned over 45 days. At 1.5 per cent bank interest he pocketed a cool Rs 20 crore before he returned the funds, all within legal limits. So the agency was never questioned on expenses as every issue was oversubscribed and the Six basked in unprecedented growth.
Then came the fall. The markets collapsed and the IPO business dried up as fast as it had blossomed. The Six were suddenly virtually out of business, saddled with staff and infrastructure. And they had no other advertising expertise to go seek brand-building business.
Some realized that the talent they had was actually public relations. Little wonder then, that agencies like Percept, Adfactors and Clea went the whole hog into PR. At one point, this activity supported the entire structure. The biggest success story amongst all was however Percept. Senior founder Harinder Singh- once remembered most for displaying Pooja Bhatt's best assets to draw people to an IPO- diversified rapidly into all directions- events, celebrity management, branding agencies, below-the-line services etc- to create an empire that is today valuated at Rs 2000 crore.
Pressman, Concept and Sobhagya went the PSU route getting empanneled on companies like MTNL and BSNL. Today as these corporates increase advertising, they are growing.
Mercantile shut down. Imageads sold out to Percept. Those who survived comfortably was say Canco. Says Ramesh Narayan, founder, "We took IPO business of existing clients but never pitched for IPO business alone."
However these agencies remained the pariahs of the advertising industry. They were for instance never allowed membership in the AAAI. At one point the AAAI asked to see the books of accounts of members and that was instrumental in shooing away some financial agencies that were already members. An ex-president of AAAI says that they were unscrupulous and the AAAI wanted to stand for ethical standards.
Today, a second wind has blown into their once-tattered sails. They are quietly re-surfacing as the IPO-financial advertising market is once again looking up. The financial ad business is around Rs 300 crore already. It is expected to go to Rs1000 crore. Everyone knows those days will not return. But the same crop of agencies are at it again, returning to do what they know best. But this time round, they are cautious and keeping the other fires burning as well. Agencies like say Concept are doing both corporate and financial advertising for clients like Air Deccan. Says Naren Suchanti of Concept, “Half our business comes from corporate advertising.”
While the MNC ad agencies look down upon this bunch, the fact is that they all tried to set up financial advertising divisions but failed. Luckily for them, clients did not share this sentiment even though the cloud of being just financial advertisers has yet to be completely lifted. The agencies in themselves may be bruised but are all grown up.
(This article appeared as the lead in Billboard the weekly advertising and marketing features page of Hindustan Times in May `06)
THE ADVERTISING OF POLITICS
Political advertising is getting smarter as national parties go to professional agencies for the parliamentary elections. But for the forthcoming state elections innovative, promotional activity will woo the voter.
"Labour isn't working. Britain 's better off with the Tories". This was the advertising campaign that not only made Margaret Thatcher's fortunes in 1978 but also of Saatchi & Saatchi, the ad agency that created it. The campaign's success also marked the entry of professional agencies into the world of British politics.
In India we saw the emergence of similar professional work in the general elections of `04. But now as four states- Tamil Nadu, West Bengal , Kerala and Assam- go in for Assembly elections- the slant is clearly towards below the line promotion instead of mass media based brand development.
The `04 elections clearly proved that the party with less mass media –Congress spent a fraction of the BJP -actually won the elections. This election saw a never-before ad spend. NDTV hiked its 10-second rates from Rs 10,000 to Rs 40,000. Star News signed up advertising worth Rs 18.7 crore. The India Shining campaign that the ruling NDA government commissioned had official sanction of Rs 100 crore. A figure, five times that floated in the parliament when BJP was accused of using public money for self-promotion.
The Congress' victory however seemed to prove that elections are events and promotions have to be based on relevant, local issues. Says N.S. Rajan of Sampark that did the PR work for the Congress in `04 in Maharashtra , " Issues are very local and change from district to district, city to city. Hoardings, cutouts and other promotional activity rule.”
The parties this time round are then clearly turning to localized promotions. These promotions are as always fascinating in their innovation, low costs and local relevance. So with the EC strictly enforcing its clean walls regime in West Bengal, CPM candidate Kanti Ganguly's team has reached out to the skies, quite literally. Three thousand kites took off on the campaign trail last week with his message emblazoned. The strings were later cut off so that they could land all over the constituency. Kites are a favourite in this region. Complementing the aerial effort, sixty boats took off Denkal Ghat with sloganeering party workers. Hats, umbrellas, T-shirts and vests are the latest political merchandise.
In Tamil Nadu the public can't wait to see the end of the election so that they can return to watching their favourite TV programs. No, they aren't exactly bewitched by their leaders. But the contestants have invaded even prime time TV with their messages. On Tamil New year Sun TV ran a two-hour poet's meet anchored by DMK president M. Karunanidhi. He spewed verse and venom on rival Jayalalithaa. Rival Jaya TV ran and re-ran an hour-long interview with Jayalalithaa who spoke of her trials and tribulations.
In the meanwhile the anti-Hindi party, DMK's candidate from Erode, N.K.K.P. Raja started distributing pamphlets in Hindi with its "rising sun" symbol and pictures of the party stalwarts to win over the growing North Indian population. Chief rival, AIADMK capitalized on it immediately. Its Hindi support group, Sangam, copied the pamphlets. AIADMK also got film stars led by Simran out to campaign.
In Kerala folk theatre is the means of the opposition to hit out at Neelalohithadasan Nadar. Accused of sexual harassment and denied a ticket by the LDF, the play shows Draupadi's modesty being molested by Dushasan who has a face resembling none else but Nadar. Cheeky graffiti and caustic poster of his infamous exploits cover public spaces in Kovalam.
In a country where 80 per cent of rural households have yet to afford a black and white TV set and 70 per cent even a transistor, broadcast media doesn't seem the answer. BJP used TV extensively for its India Shining campaign and later, direct party advertising while Congress barely tapped TV. But Congress used the print medium extensively, accounting for half the print advertising volumes with BJP a distant second according to TAM data.
BJP leader, Nitin Gadkari said categorically that the BJP doesn’t have money to advertise this time. Given the disparity, a centralized branding probably has little meaning. The local candidate’s moves will work the best.
BOX
The India Shining campaign flagged off big time political advertising in 2004 though the then NDA government insisted it was only a statement of how India had fared and not tom-tomming BJP’s achievements.
The agency, Grey Worldwide did the campaign after an earlier one by Rediffusion. This was however the more successful one that has gone down in public memory.
Laloo Prasad Yadav also similarly was accused of using public money by advertising the achievements of the railways in pre-poll time.
For the first time in Maharashtra , Congress used a professional PR agency. Insiders say they spent Rs five crore for the exercise.
In 2004 advertising started with 90 per cent directed towards belittling the opposition. It ended with most ads of self praise by all parties.
(This article appeared in April `06 in Billboard, the weekly advertising page in the Hindustan Times)
Political advertising is getting smarter as national parties go to professional agencies for the parliamentary elections. But for the forthcoming state elections innovative, promotional activity will woo the voter.
"Labour isn't working. Britain 's better off with the Tories". This was the advertising campaign that not only made Margaret Thatcher's fortunes in 1978 but also of Saatchi & Saatchi, the ad agency that created it. The campaign's success also marked the entry of professional agencies into the world of British politics.
In India we saw the emergence of similar professional work in the general elections of `04. But now as four states- Tamil Nadu, West Bengal , Kerala and Assam- go in for Assembly elections- the slant is clearly towards below the line promotion instead of mass media based brand development.
The `04 elections clearly proved that the party with less mass media –Congress spent a fraction of the BJP -actually won the elections. This election saw a never-before ad spend. NDTV hiked its 10-second rates from Rs 10,000 to Rs 40,000. Star News signed up advertising worth Rs 18.7 crore. The India Shining campaign that the ruling NDA government commissioned had official sanction of Rs 100 crore. A figure, five times that floated in the parliament when BJP was accused of using public money for self-promotion.
The Congress' victory however seemed to prove that elections are events and promotions have to be based on relevant, local issues. Says N.S. Rajan of Sampark that did the PR work for the Congress in `04 in Maharashtra , " Issues are very local and change from district to district, city to city. Hoardings, cutouts and other promotional activity rule.”
The parties this time round are then clearly turning to localized promotions. These promotions are as always fascinating in their innovation, low costs and local relevance. So with the EC strictly enforcing its clean walls regime in West Bengal, CPM candidate Kanti Ganguly's team has reached out to the skies, quite literally. Three thousand kites took off on the campaign trail last week with his message emblazoned. The strings were later cut off so that they could land all over the constituency. Kites are a favourite in this region. Complementing the aerial effort, sixty boats took off Denkal Ghat with sloganeering party workers. Hats, umbrellas, T-shirts and vests are the latest political merchandise.
In Tamil Nadu the public can't wait to see the end of the election so that they can return to watching their favourite TV programs. No, they aren't exactly bewitched by their leaders. But the contestants have invaded even prime time TV with their messages. On Tamil New year Sun TV ran a two-hour poet's meet anchored by DMK president M. Karunanidhi. He spewed verse and venom on rival Jayalalithaa. Rival Jaya TV ran and re-ran an hour-long interview with Jayalalithaa who spoke of her trials and tribulations.
In the meanwhile the anti-Hindi party, DMK's candidate from Erode, N.K.K.P. Raja started distributing pamphlets in Hindi with its "rising sun" symbol and pictures of the party stalwarts to win over the growing North Indian population. Chief rival, AIADMK capitalized on it immediately. Its Hindi support group, Sangam, copied the pamphlets. AIADMK also got film stars led by Simran out to campaign.
In Kerala folk theatre is the means of the opposition to hit out at Neelalohithadasan Nadar. Accused of sexual harassment and denied a ticket by the LDF, the play shows Draupadi's modesty being molested by Dushasan who has a face resembling none else but Nadar. Cheeky graffiti and caustic poster of his infamous exploits cover public spaces in Kovalam.
In a country where 80 per cent of rural households have yet to afford a black and white TV set and 70 per cent even a transistor, broadcast media doesn't seem the answer. BJP used TV extensively for its India Shining campaign and later, direct party advertising while Congress barely tapped TV. But Congress used the print medium extensively, accounting for half the print advertising volumes with BJP a distant second according to TAM data.
BJP leader, Nitin Gadkari said categorically that the BJP doesn’t have money to advertise this time. Given the disparity, a centralized branding probably has little meaning. The local candidate’s moves will work the best.
BOX
The India Shining campaign flagged off big time political advertising in 2004 though the then NDA government insisted it was only a statement of how India had fared and not tom-tomming BJP’s achievements.
The agency, Grey Worldwide did the campaign after an earlier one by Rediffusion. This was however the more successful one that has gone down in public memory.
Laloo Prasad Yadav also similarly was accused of using public money by advertising the achievements of the railways in pre-poll time.
For the first time in Maharashtra , Congress used a professional PR agency. Insiders say they spent Rs five crore for the exercise.
In 2004 advertising started with 90 per cent directed towards belittling the opposition. It ended with most ads of self praise by all parties.
(This article appeared in April `06 in Billboard, the weekly advertising page in the Hindustan Times)
INDIA KYA CHAHATA HAI?
Films mirror the aspirations and therefore tastes of the people, believes the fast rising czar of the Indian retail sector. So he too looks at Bollywood for ideas.
“If Salaam Namaste has done well in a city then our stores will definitely do well”, says Kishore Biyani, head honcho, Pantaloon Retail India Ltd. Owner of two of India’s biggest retail successes, Big Bazaar and Pantaloon, Biyani follows unconventional research methods to identify potential markets.
There’s method in this apparent madness, however. He looks at successful Hindi films as mirroring the preferences and aspirations of the Indian people. So if such a film centred around a live-in relationship did well in a city it means its people are ready for and open to modern, urban ideas in every aspect of their lives. Hence, Biyani believes, that they are ready for stores like his that personify an urban, international experience.
There’s proof enough. He has been following the increasing urbanization of the Indian public again, through films. So while Dil Chahata Hai did well in only the major metros a few years back, Kal Ho Na Ho won in many more, smaller cities like Indore where incidentally Biyani went on to open his stores. Then came Bunty aur Babli which had a small town background but big town aspirations. Everyone in the company was made to watch it to understand the consumer.
And now, Salaam Namaste has surprised everyone including the film producers by being a hit in cities like Siliguri, Ranchi, Lucknow and Kanpur among many others. So expect the stores in these cities shortly. 27 cities
Biyani stands vindicated as he pooh poohs the traditional market research that corporates world over love. He uses some research but only to verify his own hypothesis. And so far it’s worked fine.
Other megatrends that Biyani is watching develop with the help of films and TV and music: That the youth bases its preferences on factors other than talent, probably looks and style as opposed to 35-40 year-old who vote for talent. Source-Indian Idol. That woman are taken more seriously if seen wearing sarees over any other garment. Source: A host of Indian films and TV. And that youngsters are getting more religious. Sale of devotional music and the presence of youth in Siddhi Vinayak and Tirupathi
(This article appeared on the front page in the Hindustan Times in January `06)
Films mirror the aspirations and therefore tastes of the people, believes the fast rising czar of the Indian retail sector. So he too looks at Bollywood for ideas.
“If Salaam Namaste has done well in a city then our stores will definitely do well”, says Kishore Biyani, head honcho, Pantaloon Retail India Ltd. Owner of two of India’s biggest retail successes, Big Bazaar and Pantaloon, Biyani follows unconventional research methods to identify potential markets.
There’s method in this apparent madness, however. He looks at successful Hindi films as mirroring the preferences and aspirations of the Indian people. So if such a film centred around a live-in relationship did well in a city it means its people are ready for and open to modern, urban ideas in every aspect of their lives. Hence, Biyani believes, that they are ready for stores like his that personify an urban, international experience.
There’s proof enough. He has been following the increasing urbanization of the Indian public again, through films. So while Dil Chahata Hai did well in only the major metros a few years back, Kal Ho Na Ho won in many more, smaller cities like Indore where incidentally Biyani went on to open his stores. Then came Bunty aur Babli which had a small town background but big town aspirations. Everyone in the company was made to watch it to understand the consumer.
And now, Salaam Namaste has surprised everyone including the film producers by being a hit in cities like Siliguri, Ranchi, Lucknow and Kanpur among many others. So expect the stores in these cities shortly. 27 cities
Biyani stands vindicated as he pooh poohs the traditional market research that corporates world over love. He uses some research but only to verify his own hypothesis. And so far it’s worked fine.
Other megatrends that Biyani is watching develop with the help of films and TV and music: That the youth bases its preferences on factors other than talent, probably looks and style as opposed to 35-40 year-old who vote for talent. Source-Indian Idol. That woman are taken more seriously if seen wearing sarees over any other garment. Source: A host of Indian films and TV. And that youngsters are getting more religious. Sale of devotional music and the presence of youth in Siddhi Vinayak and Tirupathi
(This article appeared on the front page in the Hindustan Times in January `06)
E-STRATEGY: BACK TO THE FUTURE
After a near-death experience, the internet is fast becoming an important marketing medium. And while e-strategy may not yet have the chairman's attention because of its small numbers, it will grow exponentially as net and mobile connectivity increases.
Harsh Mehta and Bina Mathias, both 20 are your regular kids in the college canteen. But they have experiences that are the envy of their friends. They both met Aamir Khan as a prize while gaming on a contest site. They were two of the three lakh youth that participated in a Coke "advergaming" show where you could virtually play the role of Aamir Khan in different mofussil avatars.
Increasingly, brand owners are recognizing the power of the internet to draw the 15-30 year age group. The internet as an advertising and marketing medium is going through a renaissance of sorts after the severe existential crisis until `03. Ad spends crawled from Rs 70 crore in 03-04 to Rs 90 crore the next year. This year big companies like L'Oreal, Philips, Samsung, AXN, Star TV, UTI Bank, will together spend Rs 125 crore. Meenakshi Madhvani, managing partner, Spatial Access, says it will grow by 50 per cent year on year.
This is a miniscule one per cent of the total industry ad spends of Rs 10,000 crore. What's significant is the numbers a small campaign costing Rs 10-12 lakh can draw. (LOOK AT BOX1). Advertisers realize that experimenting with the medium comes cheap, be it net campaigns or advergaming (gaming centred around your brand) or constructing “microsites” with limited life (as for new product or movie launches). Compare this to a TV campaign where a film costs about Rs 25 lakh while TV time would be Rs 1.5 crore.
The internet has a lot going for it. 1) This age group that has growing spending power and influence over daddy's wallet is difficult to track through traditional media. Madhvani says that reading habits are erratic in this age group and she is sure even TV hours have reduced in favour of net surfing.
2) Net usage is more definable. Evolving technology makes it increasingly easier to minutely track the preferences of the surfer. As soon as you log in, the server tracks you and knows exactly how much time you send mailing, searching chatting or browsing," says Alok Kejriwal, CEO, contest2win. Advertisers then can narrowcast their messages and avoid the wastage.
3) The medium allows for interim correction. You release three or four banners of your campaign and watch the response. Then you replace the unpopular with the most popular. In fact, the server does that automatically after it collates data while you sleep. But God help you if you get your TV campaign wrong!
4) It gives the consumer the controls and the opportunity to actively interact with the brand. So his response is immediately recorded. Besides, the feeling of privacy encourages him to share personal information. Finance companies like HSBC, Citibank could vouch for this.
5) It delivers quality numbers and time spent with a brand. Kejriwal says that an average advergame would draw about 70,000 people each of who would spend three to five minutes there exclusively.
"The smart advertisers are no longer looking at page views", explains Madhvani. They are fine-tuning their campaigns to reach out to the right customer profile. Sanjay Purohit , director, sales & marketing, Cadbury India says “The digi-media is clearly evolving as a critical touch point to reach, inform and influence consumers.”
Companies are interested in building brands on the web as on traditional media. Look at corporations like Samsung who have created sites to build a user community. The Samsung Fun Club member can download games and ring tones, get information on the latest products. Purohit says “considering the exciting current estimates of internet and mobile phone usership, our long-term e-strategy would be to optimize these media in terms of their direct impact on the actual purchase behaviour.”
The problem for the web remaining so small was simply the numbers. Till two years back you had fewer than 15 million people connected against say 250 million that could watch TV at home. Today nearly 40 million are connected. But in less than five years 100 million people, mostly in this age group, will be connected, even by a conservative estimate. As telecom companies push broadband connectivity and all-the-time live internet in all the telephone homes, the numbers will certainly swell.
The heavy users are already there for over an hour. And they are far from net fatigue. Ask the first successful retail e-shop like FabMall that had revenues of Rs 15 crore in three years' time. Or budget airlines like Air Deccan whose business model is centred on e-sales that saves you a chunk of the costs. Or even the Indian Railways that sells one crore tickets everyday. V. Sudhakar, CEO, FabMall, “While we remained niche in the early days, the net surfer has matured and this will lead to bigger e-business.”
The fact is that Indians love technology. And so, e-strategy is becoming a popular term amongst marketing managers. The HSBC spokesperson says, "E-channels have helped us achieve significant cost reductions and increasing revenues. It gives us an edge over competition by reaching the customer first and pinpoint target our communication." V.
Apart from the web e-strategy will also include mobile telephony for sales, advertising and promotions. Companies like Hutch, HSBC, Lifestyle are using it to announce their services, due payments and sales. Star India created the first “mobisodes” or mobile episodes of Star One’s highest rated comedy show, The Great Indian Laughter Challenge. Hutch offered 25 “mobisodes” of popular Tamilian comedian, Crazy Mohan’s plays as a value added service. It plans to grow its list. Mobile promotions will grow to encompass varied usage. You will soon have mobile coupons to shop for discounts. Location Based Marketing (LBM) will allow marketers to offer you services- say like a Happy Hour discount at a bar close to where you are - as mobile technology tracks where you are.
The bigwigs in corner offices have yet to sit up and notice the potential of the medium. "But chief executives had better hear about it", says Madhvani, "as returns on investment in such targeted media is ten times higher than traditional media". The only way to go now is headlong into virtual success.
300 WORD SIDEBAR
SOME MEMORABLE CAMPAIGNS
# Nescafe: Nescafe stimulates your senses. The advergame involved jumbled words that had to be "stirred" back to form the right words. The three strengths of coffee were reflected in the words. It got one million responses in a month's time.
# Cadbury’s Pappu Pass Ho Gaya, Each successful candidate of the 6.5 million students who checked their Std XII results via Reliance SMS would receive his marks and a tag line saying Let’s celebrate with Cadbury’s Dairy Milk. Another contest on the microsite drew over 50,000 students.
# Garnier Fructis shampoo: The brand proposition was "five times stronger hair". The game created a virtual braid and you could come and add a knot and tie yourself to it. You could invite others to visit your knot. It got 125000 people over a month's time.
#AXN TV: For its crime show, Crime Scene Investigation, the advergame had a crime scene where you searched for clues to solve it. You could also get them SMSed if you couldn’t do it yourself. It got 50,000 people logging in.
# Aitraaz, a blockbuster Hindi film that premiered on Zee Cinema: The film is based on the Hollywood film, Disclosure that deals with seduction. A microsite secret-seduction.com invited people to send seductive messages declaring their feelings. The recipient had to go to the site to identify his or her secret admirer. This viral mail – a popular e-technique -got nearly 4000 people to the movie ad over just two days. Samsung used this to make people invite their friends to their new note PC. They reached out to five million potential consumers.
# DSP Merill Lynch's : Typically finance banners give you limited information. But DSPML’s Super Systematic Investment Planning product banner immediately calculated EMIs, returns on investment etc. Over 5.7 mn impressions were delivered & 1783 people opted to go ahead with the product. The microsite homepage generated over 30,000 page views
(This article appeared in the Sunday edition of Hindustan Times in May `06)
After a near-death experience, the internet is fast becoming an important marketing medium. And while e-strategy may not yet have the chairman's attention because of its small numbers, it will grow exponentially as net and mobile connectivity increases.
Harsh Mehta and Bina Mathias, both 20 are your regular kids in the college canteen. But they have experiences that are the envy of their friends. They both met Aamir Khan as a prize while gaming on a contest site. They were two of the three lakh youth that participated in a Coke "advergaming" show where you could virtually play the role of Aamir Khan in different mofussil avatars.
Increasingly, brand owners are recognizing the power of the internet to draw the 15-30 year age group. The internet as an advertising and marketing medium is going through a renaissance of sorts after the severe existential crisis until `03. Ad spends crawled from Rs 70 crore in 03-04 to Rs 90 crore the next year. This year big companies like L'Oreal, Philips, Samsung, AXN, Star TV, UTI Bank, will together spend Rs 125 crore. Meenakshi Madhvani, managing partner, Spatial Access, says it will grow by 50 per cent year on year.
This is a miniscule one per cent of the total industry ad spends of Rs 10,000 crore. What's significant is the numbers a small campaign costing Rs 10-12 lakh can draw. (LOOK AT BOX1). Advertisers realize that experimenting with the medium comes cheap, be it net campaigns or advergaming (gaming centred around your brand) or constructing “microsites” with limited life (as for new product or movie launches). Compare this to a TV campaign where a film costs about Rs 25 lakh while TV time would be Rs 1.5 crore.
The internet has a lot going for it. 1) This age group that has growing spending power and influence over daddy's wallet is difficult to track through traditional media. Madhvani says that reading habits are erratic in this age group and she is sure even TV hours have reduced in favour of net surfing.
2) Net usage is more definable. Evolving technology makes it increasingly easier to minutely track the preferences of the surfer. As soon as you log in, the server tracks you and knows exactly how much time you send mailing, searching chatting or browsing," says Alok Kejriwal, CEO, contest2win. Advertisers then can narrowcast their messages and avoid the wastage.
3) The medium allows for interim correction. You release three or four banners of your campaign and watch the response. Then you replace the unpopular with the most popular. In fact, the server does that automatically after it collates data while you sleep. But God help you if you get your TV campaign wrong!
4) It gives the consumer the controls and the opportunity to actively interact with the brand. So his response is immediately recorded. Besides, the feeling of privacy encourages him to share personal information. Finance companies like HSBC, Citibank could vouch for this.
5) It delivers quality numbers and time spent with a brand. Kejriwal says that an average advergame would draw about 70,000 people each of who would spend three to five minutes there exclusively.
"The smart advertisers are no longer looking at page views", explains Madhvani. They are fine-tuning their campaigns to reach out to the right customer profile. Sanjay Purohit , director, sales & marketing, Cadbury India says “The digi-media is clearly evolving as a critical touch point to reach, inform and influence consumers.”
Companies are interested in building brands on the web as on traditional media. Look at corporations like Samsung who have created sites to build a user community. The Samsung Fun Club member can download games and ring tones, get information on the latest products. Purohit says “considering the exciting current estimates of internet and mobile phone usership, our long-term e-strategy would be to optimize these media in terms of their direct impact on the actual purchase behaviour.”
The problem for the web remaining so small was simply the numbers. Till two years back you had fewer than 15 million people connected against say 250 million that could watch TV at home. Today nearly 40 million are connected. But in less than five years 100 million people, mostly in this age group, will be connected, even by a conservative estimate. As telecom companies push broadband connectivity and all-the-time live internet in all the telephone homes, the numbers will certainly swell.
The heavy users are already there for over an hour. And they are far from net fatigue. Ask the first successful retail e-shop like FabMall that had revenues of Rs 15 crore in three years' time. Or budget airlines like Air Deccan whose business model is centred on e-sales that saves you a chunk of the costs. Or even the Indian Railways that sells one crore tickets everyday. V. Sudhakar, CEO, FabMall, “While we remained niche in the early days, the net surfer has matured and this will lead to bigger e-business.”
The fact is that Indians love technology. And so, e-strategy is becoming a popular term amongst marketing managers. The HSBC spokesperson says, "E-channels have helped us achieve significant cost reductions and increasing revenues. It gives us an edge over competition by reaching the customer first and pinpoint target our communication." V.
Apart from the web e-strategy will also include mobile telephony for sales, advertising and promotions. Companies like Hutch, HSBC, Lifestyle are using it to announce their services, due payments and sales. Star India created the first “mobisodes” or mobile episodes of Star One’s highest rated comedy show, The Great Indian Laughter Challenge. Hutch offered 25 “mobisodes” of popular Tamilian comedian, Crazy Mohan’s plays as a value added service. It plans to grow its list. Mobile promotions will grow to encompass varied usage. You will soon have mobile coupons to shop for discounts. Location Based Marketing (LBM) will allow marketers to offer you services- say like a Happy Hour discount at a bar close to where you are - as mobile technology tracks where you are.
The bigwigs in corner offices have yet to sit up and notice the potential of the medium. "But chief executives had better hear about it", says Madhvani, "as returns on investment in such targeted media is ten times higher than traditional media". The only way to go now is headlong into virtual success.
300 WORD SIDEBAR
SOME MEMORABLE CAMPAIGNS
# Nescafe: Nescafe stimulates your senses. The advergame involved jumbled words that had to be "stirred" back to form the right words. The three strengths of coffee were reflected in the words. It got one million responses in a month's time.
# Cadbury’s Pappu Pass Ho Gaya, Each successful candidate of the 6.5 million students who checked their Std XII results via Reliance SMS would receive his marks and a tag line saying Let’s celebrate with Cadbury’s Dairy Milk. Another contest on the microsite drew over 50,000 students.
# Garnier Fructis shampoo: The brand proposition was "five times stronger hair". The game created a virtual braid and you could come and add a knot and tie yourself to it. You could invite others to visit your knot. It got 125000 people over a month's time.
#AXN TV: For its crime show, Crime Scene Investigation, the advergame had a crime scene where you searched for clues to solve it. You could also get them SMSed if you couldn’t do it yourself. It got 50,000 people logging in.
# Aitraaz, a blockbuster Hindi film that premiered on Zee Cinema: The film is based on the Hollywood film, Disclosure that deals with seduction. A microsite secret-seduction.com invited people to send seductive messages declaring their feelings. The recipient had to go to the site to identify his or her secret admirer. This viral mail – a popular e-technique -got nearly 4000 people to the movie ad over just two days. Samsung used this to make people invite their friends to their new note PC. They reached out to five million potential consumers.
# DSP Merill Lynch's : Typically finance banners give you limited information. But DSPML’s Super Systematic Investment Planning product banner immediately calculated EMIs, returns on investment etc. Over 5.7 mn impressions were delivered & 1783 people opted to go ahead with the product. The microsite homepage generated over 30,000 page views
(This article appeared in the Sunday edition of Hindustan Times in May `06)
Subscribe to:
Posts (Atom)
