Under, over or rightly spending on advertising?
Do companies overspend on advertising and if so, what is the right amount? While Indian companies are more aggressive on investing in brand building, are they getting the desired RoIs?
Are we an under-spending economy when it comes to advertising monies? Is the Indian frugal mindset holding back companies and brand owners to optimally spend on much needed marketing, promotion and advertising initiatives? Or do companies overspend on advertising, and if so, what is the right amount?
Praven Tripathi, CEO, Magic9Media and Consumer Knowledge, observed, “As an economy, India is ranked the 75th country on ad expenditure per GDP ratio. The may be due to various reasons such as a large basket of our services are B2B. We have bypassed manufacturing, but have not yet invested enough in consumer understanding and research. There are stellar examples of MNC and Indian brands that have effectively used marketing and advertising and built brands.”
One of the shining examples of a brand built from scratch in the past few years is that of cellphone maker Micromax. Rahul Sharma, Executive Director and Co-Promoter of the brand, pointed that there weren’t enough global brands coming out of the country. Sharing his experience, he said “Two and a half years ago, we did our research, and when we entered a market that was fiercely competitive worldwide, we too went the youth way. By offering differentiated products such as long battery life phones, dual SIM phones, a Querty phone, a woman’s phone, Bling, we tapped into markets.”
He added, “It depends on the vision of the brand, and companies and entrepreneurs need to decide if they want to play a regional or a global game. We have cutting edge products as a country, and creating aspiration and a tonality for the brand by investing in advertising and marketing is how Indian companies can increasingly have an international presence.” Today, Micromax products have entered about four countries and will soon be available in Brazil.
What then, separates companies that spend from those that don’t? Coming from a background of having worked with Unilever, an MNC and one of the biggest spenders, to Indian brand Airtel, and now at STAR India, Sanjay Gupta noted that companies did invest in brand building and added that Indian companies were more aggressive on that front. He pointed out key issues that the industry as a whole needed to address, which were “a brand to be viewed as an asset, is what companies must look at. The way we value brands on our balance sheets have to be looked at, so as to better justify to all stakeholders. Two drivers that fuel brand building activities are belief from the top management and the need to look into our measurement system, so as to see a more informed return on investment.”
Gupta also pointed out that as media had gone deeper from a nation to a regional scale and businesses were springing up in different parts of the country, one needed to see if they had enough marketing capability in the country as most agencies and services were based in cities. He also emphasised on the need for better consumer segmentation based on lifestyle measures to better target the market.
He stressed, “A more robust measurement of the media is required to better measure ROI so that companies can make informed choices. At the moment, we are under investing in building brands and it is not due to an Indian or MNC mindset. We need to implement a better manpower and marketing ecosystem and ways to sharply target to get better bang for the buck.”
As Chairman and Editor-in-Chief, exchange4media Group, Anurag Batra had some entrepreneurial insights to share. He said, “Traditionally, brands spend about 5 per cent, which will move to about 10 per cent as we go along and local media options become more affordable. Indian brand owners have a clear understanding of their brand and are rightly investing. Private treaties are another important aspect, which are not factored in spends. Another increasing trend is of brand owners acquiring assets in the media. Quality of talent is another space that needs attention in order to instil confidence in brand owners for allocating more spends.”
Sharma of Micromax added here that companies and brand owners needed to understand the power of the brand and have a vision that was more away from short term goals, something that would help in brand building.
The speakers were at the 11th CII Annual Marketing Summit, hosted in Mumbai on April 1, 2011, which was the second day of the Summit. This edition was chaired by Radio City 91.1 FM’s Apurva Purohit.
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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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