Proposed scrapping of Press Note 1: No huge difference to Indian ad industry feel experts
The Government’s proposed move to scrap the regulation known as Press Note 1 of 2005, has met with mixed reactions from the Indian advertising industry, with most saying this exemption won’t make much difference. While some say it would make a difference to the Indian entrepreneurs/ companies that had JVs with international players.
The Government’s proposed move to scrap the regulation known as Press Note 1 of 2005, has met with mixed reactions from the Indian advertising industry. The move would ease the flow of foreign direct investments (FDI) into the country and assumes significance in the light of quite a few mergers and acquisitions taking place recently in the Indian advertising industry – BBDO, Tribal DDB and Omnicom, among others.
Press Note 1 protects the interests of Indian companies by putting a brake on foreign companies changing local partners to suit their business interests. It prohibits any foreign company from exiting a joint venture in India and setting up its own company in the same line of business without the Indian partner’s consent. The foreign companies would require ‘No Objection Certificates’ (NoCs) from their Indian partners before starting any venture in India.
The Government’s proposal, when it comes into effect, would make the mandatory the NoCs from joint venture partners redundant for new investments. The Government is keen to go ahead with this proposal since there are various sub-sectors within the broad categorisation of advertisement industry, where there is no clash of interests in several cases.
However, most of the advertising fraternity feels that the move will not make much of a difference to the India advertising industry.
Sam Balsara, Chairman & Managing Director, Madison World, opined, “I do not think it will have a major impact on advertising agency entrepreneurs, because most large agencies are fully controlled by foreign networks. Also, foreign investors tend to take a pre-clearance letter at the time of entering into an agreement with the Indian agency.”
Nakul Chopra, CEO - South Asia, Publicis, said, “I am not sure whether this will make any huge difference to the advertising industry.” According to him, most of the top 20 agencies were now wholly or majority-owned, hence, the elimination would help ease the paperwork and be relevant where a dispute arose between the Indian and foreign partners. In a sense, it was ‘protection’ for the Indian partner, he said, adding, “This protection is equally available through our courts. I don’t believe this would make a huge difference.”
Arvind Sharma, Chairman, Leo Burnett felt that in the short run, “elimination of Press Note 1 will make a difference to the Indian entrepreneurs/ companies that have JVs with international players. The burden of providing a no-objection certificate will no longer rest with the international players. In cases where their contracts with local players bar them from entering into other JVs, the burden of proving this in the courts of law will now fall on the Indian players”.
Sharma believed that from a global perspective, however, restrictions like the one via Press Note 1 were more of an aberration. “They were not expected to last forever,” he added.
Though the advent of global players opens up competition and leads to a healthier growth and better quality, it should not be at the expense of Indian players. Taking this point of view, Suman Srivastava, CEO, Euro RSCG, noted that the elimination of Press Note 1 was healthy for the industry. He explained, “I expect something similar to happen in media as well. New media brands often create an eco-system for a new category of advertisers. Magazines for the rich are growing at the same time as luxury brands are growing. Similarly, I expect whole new categories to emerge, which have their own set of readers and advertisers.”
As for the Indian entrepreneur, would this elimination mean any kind of a setback? Srivastava said that most Indian entrepreneurs operated in a ‘Jugaadu’ way. “We Indians find our ways to compete. I don’t think foreign brands will do well merely because they are foreign brands. That was the mindset of a lot of brands in the first wave of liberalisation and many brands had to rue that mindset,” he added.
In the same context, Sharma stated, “I don’t believe that Indian entrepreneurs have planned their futures on the basis of Press Note 1. JVs and partnerships are rooted in complementary strengths that the two sides bring to the party. So, as long as the Indian players have their strengths, they will come up strategies to monetise them.”
While Balsara is of the opinion that even if one Indian entrepreneur is negatively impacted, it seems unfair. “I don’t see why only agencies should be singled out for this exception on Press Note 1,” he said.
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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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