Bigger Telecom wars will drive higher ad spends in 2018

The trifurcation of the telecom sector will result in severe competition and higher ad spends

e4m by Venkata Susmita Biswas
Published: Jan 5, 2018 9:00 AM  | 4 min read

The overall shakeup of the telecom sector in 2017 reflected in a slow growth in ad spends from the sector. The advertising industry is expecting the telecom wars to intensify in 2018 leading to higher spends. “We can expect 11 – 20 per cent growth in ad spends from the telecom sector in 2018,” said a senior media planner who works closely with telecom brands.

The Indian telecommunications industry, one of mainstays of the advertising world, makes up for around 7-8 per cent of the total AdEx. According to TAM data, the share of television advertising from the telecom sector (service providers and mobile phone manufacturers) fell from 5 per cent in 2016 to 3 per cent in 2017. Vodafone, which was among the top 3 advertisers on TV in 2016, fell to the fourth spot and Reliance Jio did not appear in the top 5 TV advertisers list in 2017. As per internal audits by a broadcaster, the overall share of advertising from the telecom sector dropped to 6 per cent in 2017 owing to the constant flux in the industry.

Be it the Vodafone-Idea merger, Bharti Airtel’s acquisition of Tata Teleservices or the most recent acquisition of Anil Ambani’s Reliance Communications by Mukesh Ambani’s Jio; 2017 was a transformational year for the telecom landscape in India. The uncertainty in the industry coupled with Jio’s disruptive strategy resulted in losses for both Airtel and RCom and a slow growth in advertising spends.

The slow down notwithstanding, 2018 will see steady spends, felt Ashish Bhasin, Chairman & CEO South Asia, Dentsu Aegis Network. “There will be ups and downs for every sector, but I think the worst is behind them. It is a highly competitive sector as well, therefore there will be consistent stream of advertising coming from the telecom companies. 2018 will be slightly better than 2017. Even though the number of individual advertisers may shrink, their spends will be on track,” he said. “Led by the consolidation the industry and Jio’s overall increase in bandwidth, the growth in 2018 will be what 2017 was projected to be. Therefore, the advertising and promotional spending has to be accordingly higher in 2018,” said a media planner who did not wish to be named.

New Products and Services

A number of factors will contribute to growth in spending on communication, advertising and promotions. In the case of Jio, the brand will continue to focus on customer acquisition and attract consumers for its newly launched affordable phone - Jio Phone. “So far, Jio has been the secondary number for many consumers. Jio will now focus its efforts on becoming the primary operator for consumers,” felt Saurabh Uboweja, Founder, CEO, Brands of Desire. Jio’s ad spend which has been around Rs. 150 crore is expected to see a significant growth. “Jio’s strategy has been to develop reach. Ultimately the company will need to monetise its reach. To monetise, the brand will need to set aside a bigger budget for advertising and promotions,” said Ashish Sehgal, COO, Zee Unimedia Ltd.

Airtel and Vodafone, which have both launched a number of new services and products over the last year, including affordable smartphones, are expected to step up ad spends in 2018. Airtel has launched a range of affordable 4G smartphones in association with Intex and Vodafone also has a 4G smartphone with Itel Mobile. Both these brands are actively trying to outshine Jio and that comes at the cost of higher ad spends. Analysts also feel that the clarity on the Vodafone-Idea merged brand identity will also fuel ad spends.

Branding Led Communication

Airtel and Vodafone will not only look to communicate about the new tariff rates of products like phones and innovations, but also look at developing a stronger brand identity.
“Jio will continue its tariff-led advertising communication with competitors and focus less on pure brand building. Airtel and Vodafone will do more brand building and less price-point based communication,” said the senior media planner. The brand story will be all about creating new experiences for users driven by technology.

This is already reflected in Jio’s philosophy: Digital Life. Jio has not specifically not positioned itself as a telecom brand and instead exists in a space where it’s a way of life. This trend in telecom branding is reflected in Vodafone as well. The brand now promises to handhold its consumers into the future with the new tagline: Future is Exciting. Ready? “Brands will need to go from being purely about technology to interpreting that technology for users,” said Ashish Mishra, MD, Interbrand India.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
Test

With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
test

Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
Test

e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
test

Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

test

test

e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

test

test

e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
khugfu

KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp