International: Forecast for '08 Is OK, but Only Online Shines
ZenithOptimedia's 6.7% Global Growth Prediction Inflated by Presidential Election, Olympics, Soccer
It's a good thing working in the media business is fun, because the forthcoming ad-spending forecast from ZenithOptimedia offers many reminders that it's also plenty difficult. More Info:
Marketers will pour $195 billion into North American advertising channels next year, 4.1% more than in 2007, according to the ZenithOptimedia forecast, scheduled for release Dec. 3. Ad spending worldwide will near $486 billion in 2008 for a 6.7% gain.
That all sounds great except for the broader forces, rising costs and economic uncertainty, that accompany it. ZenithOptimedia's new report pegs U.S. ad-spending growth this year at just 2.5%, well short of the 3.7% expansion it foresaw as recently as last summer. That 2.5% is also way under inflation, which ran at an annual rate of 3.6% for the first 10 months of this year.
What's more, even 6.7% growth globally isn't quite so grand when you consider that it takes into account what WPP chief Martin Sorrell has in the past called a "quadrennial kick," in which ad-boosting events such as the Olympics, a presidential election and a European soccer championship take place in the same year.
Internet safety
It's only online, of course, that the media business looks both fun and easy. Worldwide internet ad spending will climb to $44.6 billion from about $36 billion, increasing its share of the market to 9.4% from 8.1%.
"We predict internet advertising to pass three milestones over the next three years," ZenithOptimedia's forecast said. "We expect it to overtake radio advertising in 2008; to attain a double-digit share of global advertising in 2009; and to overtake magazine advertising in 2010, with 11.5% of total ad spend."
Various media sectors will see only slightly less dramatic shifts. Technically, to be sure, everyone will win in the worldwide market next year -- by collecting more ad revenue than they did this year.
Bad news
But if you toil in newspapers, magazines or radio, ZenithOptimedia expects you to lose share. Even TV, still the biggest and most powerful way to reach a lot of customers at once, is projected to essentially hold its ground on the global stage, taking a 37.9% slice in 2008 after getting 37.7% in 2007. Outdoor, for its part, will expand its stake to 5.7% from 5.6%, and cinema will improve to 0.5% from 0.4%.
In the U.S., network TV is facing still unquantifiable risk from the writers strike, according to Tim Jones, CEO of ZenithOptimedia Americas. "In 1988, it lasted 22 weeks, which is clearly a long time," he said. "The three major networks lost 6% of their audience to cable. And that was never recaptured."
The area that's perhaps the most interesting and difficult to watch going into 2008, however, is event marketing and experiential media, Mr. Jones said. "Everyone talks about migration to the internet, but experiential-type media are seeing huge increases -- that are difficult to capture."
The industry, however, can be grateful in 2008 for a few gifts. "Look ahead to 2008, and it's definitely a quadrennial year, and the Olympics and Euro 2008 football tournament and the presidential elections may well be disguising some underlying performance," Mr. Jones said. "That's a key thing to say. We're all carefully watching the economy. If it wasn't for those things, which actually account for a considerable amount of investment, we would be about flat year to year in growth."
Quadrennial year
Quadrennial effects or no, if growth is your game, the forecast calls more than ever for a current passport.
"North America used to be half of advertising expenditures," Mr. Jones said. "We're seeing its share drop a full point every year at this point. That's being made up for everywhere east of Eastern Europe. Look at the multinationals and where their investments are focused: the Russias, Chinas and Indias of the world. That's true of our business and media vendor companies as well."
Between now and 2010, according to the forecast, the 10 fastest-growing ad markets will be Kazakhstan in the pole position followed by Belarus, Serbia, Egypt, Russia, Moldova, Indonesia, the United Arab Emirates, Ukraine and what the agency refers to as "Pan Arab."
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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
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.
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ShareSwapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
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.
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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 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.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
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."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
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."
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