HCL Relationship Beyond the Contract in partnership with LinkedIn

HCL has launched a digital campaign called ‘Relationship Beyond the Contract’ in partnership with LinkedIn, and is promoting the app with a digital video.

Concept: Every relationship – be it between family members, friends, colleagues or clients and vendors – operates based on an agreement, whether written or unwritten. When it comes to business, though, not every contact goes beyond the contract.

A contract can only convert to business advantage through a value centric relationship. Following this belief, the company has launched a digital campaign called ‘Relationship Beyond the Contract’ in partnership with LinkedIn, and is promoting the app with a digital video.

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Indian Online Advertising Revenues Forecast 2014

According to IPG Mediabrands’ strategic global media unit Magna Global:

India advertising revenue by media category 2012-2013

  • The global ad revenue is expected to grow by 6.5 per cent in 2014, the Indian ad revenue should grow by 11.3 per cent in the coming year with the internet again leading the growth at 31.4%.
  • The growth in television ad spends will be 10.4% while that for newspapers will be 8.8%.
  • Magazine ad spend growth will be 2.3% while OOH will be 12.1% and radio at 11%.
  • The Indian advertising market is going to show further buoyancy in 2014 by growing 11.9 per cent. The reason: the investment climate is expected to warm up and demand from external economies backed by solid domestic consumption will boost the Indian economy.

“That level of economic activity is not particularly impressive by historical standards, but confidence indices keep improving and we believe advertising spending will reflect and amplify that economic trend,” – Venkatesh S, EVP, Director Intelligence, Magna Global, India.

According to the latest Ad Matrix report from ComScore:

More than 3900 advertisers ran online ad campaigns in September 2013.  On an average, this resulted in 395 ads viewed by each active internet user in India.

Top Online Display Advertisers In India By Industry: 30.2 billion online display ads were served in September alone. Retail, online media and computers remained the top category advertisers came from.

India Display Ad Landscape

Top Online Display Ads Publishers By Industry: Social media, portals and services together generated about 68% of the total online display ads impressions generated in India in September 2013.

Nearly 2 out of every 5 impressions were generated on social media networks alone.

Top Online Display Ads Category In India: Retail and Finance industries have contributed the maximum in online display ad market in India in the last few months.

Between June and September 2013, the Retail industry saw nearly 6% surge in number of total ad impressions by all advertisers from the industry, reaching 3.97 billion impressions in September.

However, the Finance industry in India has presented a better show in the last few months as the number of ad impressions increased nearly 30% during the time reached to 1.19 billion.

Ad Data Trends

Share of Impressions

Top Online Display Advertisers In India: A comparatively lesser known and free-to-use business model OLX.in leapfrogged other online majors in India, including Flipkart, Amazon and Myntra, in number of Display Ad Impressions (DAI) and Display Ad Spending (DAS) by a distinct margin.

In September 2013, OLX.in emerged as the top advertiser that marketed 1.38 billion impressions, followed by Amazon, Google and Jabong with 493 million, 431 million and 427 million impressions, respectively.

According to IBEF:

The Indian Advertising and Media & Entertainment industry is expected to grow 11.8 per cent to garner revenues worth Rs 91,700 crore (US$ 14.79 billion) in 2013, according to an industry report. Traditional media such as television, print and radio continue to dominate. However, other segments such as animation, visual effects, films and music are quickly gaining acceptance due to their content and the advantages of digitization.

Search advertising catered for about 38 per cent (Rs 850 crore [US$ 137.14 million]) of the total online advertising spend while display advertising formed a significant 29 per cent (Rs 662 crore [US$ 106.86 million]) by March 2013, according to the findings of ‘Digital Advertising in India’ report conducted by the Internet and Mobile Association of India (IAMAI) and IMRB International.

India-ad-revenue-forecastIndustry body NASSCOM in collaboration with AbsolutData Research and Analytics, has released a report: ‘Marketing Analytics – An opportunity for India to Lead’ which states that the Indian marketing analytics industry is expected to grow from its present value of US$ 200 million to US$ 1.2 billion in 2020, a CAGR of 25 per cent.

The report highlights that companies have begun to use marketing analytics insights more and more in order to gain competitive advantage in the market.

Indian tax law set to come of age

The government has proposed a dramatic makeover of the country’s 48-year tax law, bringing it on a par with the new economy and also with what prevails in the rest of the world.

The draft of a new direct tax code introduced by the finance ministry on Wednesday has suggested significant cuts in tax rates for individuals and companies, pruned exemptions, choked loopholes for foreign companies and radically changed definitions, all of which are likely to have a mixed impact on companies and individuals. Together with greater surveillance, it would ensure greater compliance and thereby reduce the risk of any loss in tax revenues due to a cut in rates.

“The underlying philosophy of the code is the philosophy of the government. (It is) wedded to a well-regulated free market system,” P. Chidambaram, current home minister who was involved in preparing the draft code earlier, said at a press conference called by finance minister Pranab Mukherjee to release the draft code. Mukherjee said he would strive to introduce the draft legislation in the winter session of Parliament.

Source: Livemint

Word of mouth (WOM) is the most trusted form of advertising in India

According to the Nielsen Global Online Consumer Survey, conducted by Nielsen Consumer Research company that provides insights on the preferences of internet consumers across the world, word of mouth is the most trusted form of advertising in India with 93% votes, followed by editorial content such as articles in newspaper with 87% votes and Brand websites with 78% votes. This comes at a time when internet advertising is booming, with newer brands associating themselves with internet and testing new waters.

“The main problem is that there are too many online users and just very few websites, this results in just the same ads on every website or a great clutter. So the ads don’t attract the audiences at all, hence not serving the purpose they should,” says Rammohan Sundaram, Founder of Networkplay.

Alok Kejariwal, CEO, games2win.com, feels that internet is at its nascent stage, so it will take some time for internet advertising to catch. “Any medium takes at least 20-30 years to develop. Further more, internet advertising intrudes personal space. It strikes when you are reading your personal mail or browsing through the net; it gets very irritating.”

According to Sundaram, there are many ads which are placed just to have an online presence. The advertisers don’t get into a deep research as to which site will suit the product, the placement of the ad.

But does this mean that online advertising is not on the right track? “There’s no major flaw in online advertising or its approach, it’s just that people find word of mouth more credible since it’s an unbiased and unpaid review. There’s no hidden motive behind it, which makes people trust it blindly. This difference between the trust on word of mouth and any form of advertising will remain forever,” says Mudit Khosla, Founding General Manager, Strategic Relations Group, Yatra.com
“The only way one can improve the trust is by involving the audiences. In my website we invite our audiences to write comments of services they have used.
This not only gives these audiences a platform to speak up but the others also get a chance to read unbiased opinions on the same website, “asserts Khosla.

Harish Bahl, MD, Quasar Media has a positive outlook, “According to me, the search results are very contradictory. A major portion of online advertising are the social websites, where audiences write blogs, connect and exchange information, or in other words, spread word of mouth. The Nielsen report saying that word of mouth is more trustworthy than online advertising proves that it’s a win-win situation for online advertising.”

“Internet is definitely growing fast and so will internet advertising, it just that products should be sold in a better way to gain the consumers’ trust,” believes Khosla.

Indian entertainment and media industry to reach Rs. 929.5 billion in the next 5 years

The Indian E&M industry is estimated to grow from Rs. 563.9 billion in 2008, at a CAGR of 10.5% for the next five years to reach Rs. 929.5 billion in 2013, says the PricewaterhouseCoopers’s Indian entertainment and media outlook 2009.

Over the next five years, television industry is projected to continue to be the major contributor to the overall industry revenue pie and is estimated to grow at a stable rate of 11.4% cumulatively, from an estimated Rs. 244.7 billion in 2008.

The overall television industry is projected to reach Rs. 420 billion by 2013. In the Television pie, distribution is projected to garner a share of 60% in 2013. On the other hand, television advertising industry is projected to command a share of 41.0% in 2013, having increased from a present share of 39.0% in the total ad industry pie. The relative share of the television content industry is expected to remain constant at 4%.

The Indian film industry is projected to grow at a CAGR of 11.6% over the next five years, reaching to Rs. 185 billion in 2013 from Rs. 107 billion in 2008. The relative shares of the film industry are expected to shift marginally from the traditional revenues to the new emerging revenues.

The Indian film print media industry is projected to grow by 5.6% over 2009-13, reaching to Rs. 213 billion in 2013 from Rs. 162 billion in 2008. The relative shares of newspaper publishing and magazine publishing are not expected to remain the same at around 87%, in favour of newspaper publishing. Magazine publishing is expected to grow at a higher rate of 6.5% as compared with newspaper publishing which is expected to grow at 5.6% for the next five years.

The radio advertising industry is projected to grow at a CAGR of 18% over 2009-13, reaching Rs. 19 billion in 2013 from Rs. 8.3 billion in 2008; more than double its present size. In terms of share of ad pie, it is projected that the radio advertising industry will be able to increase its share from 3.8% to 5.2% in the next five years.

The animation, gaming and VFX industry will continue to maintain its growth pace and is projected to grow at a CAGR of 22% to Rs. 42.5 billion in 2013 from Rs 15.6 billion. In the animation space, domestic demand will create the fillip in its growth, as well as contribution from international co-productions, in the film and television space.

The Indian gaming industry is projected to grow from an estimated size of Rs. 3.9 billion in 2008 to an estimated Rs. 16.3 billion by 2013; translating into a cumulative growth of 32.7% over the next five years . Mobile gaming will dominate the segment with 74% share , driven by the growth in the high end segment of the mobile users, new content by mobile operators and the availability of 3G spectrum that enables easy of play.

Online gaming will be the next highest contributor followed by console gaming. This will be fuelled by the growth of internet users and especially the growth of the target segment of users aged between 15-34 years. The growth in solo gaming will also be aided by falling cost of console prices and availability of local games.
Given the trends of increased internet usage, internet advertising is projected to grow by 32% over the next five years and reach an estimated Rs. 20 billion in 2013 from Rs. 5 billion, currently. The share of the online advertising too is projected to grow from 2.3% in 2008 to 5.5% in 2013 of the overall advertising pie.

The estimated size of the OOH industry is Rs. 15 billion, which is projected to become almost twice its current size in 2013 to 25 billion. Its share in the total ad pie is expected to go down marginally to 6.8% in 2013 from 6.9% in 2008.

The key growth driver for the music industry over the next five years will be digital music, and its share is expected to move from 16% in 2008 to 60% in 2013. Within digital music, mobile music will continue to increase its share and maintain its dominance.

Source: http://www.audiencematters.com/newsdetails.aspx?tbl_type=news&n_detail=2551&news_type=Media

Online advertising market to grow 27% by 2013: Study

Netscribes (India) Pvt. Ltd., a knowledge consulting solutions company, has launched the Online Advertising Market – India Report.

According to the report, the industry has grown at 74% per annum from 2004-08, driven by increasing awareness among advertisers and increase in internet penetration. Online ad networks have started gaining acceptance in the Indian market in the past 2-3 years.

Online advertising in India, largely dominated by search engines and portal, is fast gaining acceptance and offers an ever increasing user base. Increasing awareness among advertisers, low input costs for advertisers, and increase in Internet penetration are driving growth of the online medium and its horizontals.

The market is expected to witness only a 27% p.a. growth from 2008-2013. primarily due the massive advertising budget cuts in the industry.

The developing online advertising market in India is already witnessing stiff competition among domestic as well as international players. Niche and emerging nature coupled with low barriers to entry in this industry could lead to rise in competition. BFSI, Online publishers and IT/Telecom are the major revenue contributors for the online advertising industry in India. Acquisitions and investments by foreign players as well as private equity firms are providing a boost to this industry in the nascent stage.