Joy Chakraborthy Rajat Sharma Media Agencies, That Were Being
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June 16-30, 2011 Volume 2, Issue 12 `100 28 Media agencies, that were being battered by dwindling commission incomes, are playing the field smartly with non-traditional verticals. 38 8 42 32 PLUS TYROO MEDIA Re-targeting 20 THE INQUILAB Spreading its Wings 24 AMAR UJALA PROFILE ULYSSE NARDIN DEFINING MOMENTS Then and Now 30 Joy Chakraborthy Clocking Time Rajat Sharma NAMASTHE TELENGANA This man is confidence The Swiss watchmaker India TV’s head honcho has personified. lands in Bengaluru airport. a host of memories. New Approach 30 8iuissis Vvivssi@sqqiDsirwsirs@sqqiDsir GiiiyisqrsirAuwvriwvivisswi wqsiswsirsvwwvsETUS$Qisiuswssirsvwvi up"$(sETUS!" !!Qsvisirsww @sqqiDsirsswu EsuiwusrwiAuiuwu9s Sudip Nag, GM (Advertisement) - 96861 88840. Vijaya R - 98440 92091, Tony Doulton - 98450 67371, Anantha Krishnan - 81477 52856 Deepak Menon - 98106 65814 Prabal Deb - 98303 75315 A V Vinod Babu - 99520 16709 Ramachandra Rao - 98490 41737 Rajeev Pathria - 98201 51642. ! ads@deccanherald.co.in rsqqivsirq rsqqivsirsisq EDITORIAL This fortnight... Volume 2, Issue 12 EDITOR n advertising agency is 85 per cent confusion and 15 per cent commission,” remarked a Sreekant Khandekar Afamous US comedian during the early ’50s. PUBLISHER Jokes apart, it was the 15 per cent model that sustained many advertising agencies (then Prasanna Singh CONSULTING EDITOR called full-service ad agencies) for decades. This continued even as the media departments of M Venkatesh these agencies were spun off into separate, specialist media buying agencies that CONTRIBUTING EDITOR bought and managed media for their clients. Prajjal Saha As these media agencies grew in size, so did their clout. The commission SENIOR LAYOUT ARTIST Vinay Dominic June 16-30, 2011 Volume 2, Issue 12 `100 model was an arrangement that many thought would go on without a hitch. LOGISTICS Agencies went merrily on their way making this model the cornerstone for Rajesh Kanwal growing their bottomlines. But as clients started getting wiser and began leaning ADVERTISING ENQUIRIES on agencies, the latter’s commission levels dipped to alarming levels, sometimes Hansika Koli, (0120) 4077834 4077837 Noida 28 threatening their very survival. Varun Mohan, (022) 40429702-5 Mumbai mktg@afaqs.com Media agencies, that were being battered by When these agencies woke to the perils of the situation, they moved into dwindling commission incomes, are playing the field smartly with non-traditional verticals. Marketing Office damage control mode as fast as they could. Over the last few years, agencies also B-3, First Floor, Sector-4, Noida-201301. discovered that the best way to stay in the game was to diversify and discover Tel: (0120) 4077800. avenues away from print and television. The truth of putting all their eggs in Mumbai 38 8 42 32 PLUS 501-502, Makani Center, 5th Floor, TYROO MEDIA one basket - two in this case - came home painfully to these players. Re-targeting 20 Off Linking Road, Bandra (W), THE INQUILAB Spreading its Wings 24 Mumbai - 400050 AMAR UJALA PROFILE ULYSSE NARDIN DEFINING MOMENTS Then and Now 30 Value-addition - giving a better deal to the consumer - became the watchword Joy Chakraborthy Clocking Time Rajat Sharma Tel: +91-22-40429 709 - 712 NAMASTHE TELENGANA This man is confidence The Swiss watchmaker India TV’s head honcho has personified. lands in Bengaluru airport. a host of memories. New Approach 30 for one and all. New ideas, newer media and even newer verticals came to the Bengaluru rescue of agencies. Today, a relatively high percentage of a media agency’s S-1, New Bridge Corporate Centre, income comes from non-traditional sources. Agencies embraced the latter with a 777 D, 100 ft Road, Indira Nagar, Bengaluru - 560038, India fervour that was matched only by their fear of extinction. Subscription Enquiries This fortnight’s cover story explores what these non-traditional sources are, how media Garima Agnihotri, (0120) 4077837 subscriptions@afaqs.com agencies manoeuvred their way to stay afloat and found ways to shore up their revenues and profitability. In the process, they also discovered the depth of talent, the adaptability, resilience Printed, published, and owned by Prasanna Singh, Publisher, and professionalism that that they could call up on when buffeted by crises. at 7-A/13, Ch. Ratan Singh Complex, Jawala Heri Market, Paschim Vihar, New Delhi-110 063. Printed at Cirrus Graphics Private Limited B-62/14, Naraina Industrial Area, Phase II, New Delhi – 110028. M Venkatesh Cover Illustration venkatesh.m@afaqs.com Tiffin Box CONTENTS 41 20 PLUS FASTRACK Going the Retro Way 14 CHING’S SECRET KURKURE Hidden Message Psychic Healing 14 Brand building through casual GODREJ gaming. Record Maker 34 STAR MOVIES HD INTERVIEW 10 36 Meet the Superheroes 34 Amit Chopra SIGNAGE CIRCUS HMVL’s CEO on what lies ahead for the Hindi press. Rotating Display 42 POV 18 ERRATA The OOH agency for UTV Deo Brands IPHONE 4 ZEE CAFE Salon branding (Campaign Trail, May 16-31) is Augustus Are deodorant brands going Three Birds, One Stone Green with Pride Communications. overboard with their projection Aircel and Airtel get their Adopt saplings, save the The error is regretted. of sensuality? space in this iPhone ad. Earth, says the channel. Editor afaqs! Reporter, June 16-30, 2011 3 NIELSEN SURVEY Sponsored by ielsen has released the cent believed that it was a good time results of its Global to buy the things that they wanted, NConsumer Confidence compared to 56 per cent in the previ- Survey, conducted between March ous quarter. 23 and April 12, 2011. The survey As a true savings-oriented econ- Hero Group> The Hero Group is all set to take a plunge polled over 28,000 consumers, in omy, India ranks fourth, globally, in the international market by setting up factories and 51 countries throughout Asia-Pacific, for a country that puts its spare cash assembly operations overseas, apart from developing new Europe, Latin America, West Asia, into savings. Indians list savings as models specifically for the foreign markets. The company is Africa and North America. It was top priority. According to the survey; aggressively looking at markets like Latin America, Africa and based on the behaviour of respond- sixty five per cent Indians intend to South-East Asia where it plans to use some of the existing ents with online access only. save spare cash after meeting their brands apart from introducing all the new range. Results show that Indian con- essential living expenses. sumers continue to remain the most Nielsen finds that Indians are now optimistic, globally. However, their spending their spare cash on new Panasonic is get- Panasonic> The Japanese consumer durables firm, confidence level has not risen from technology products, new clothes, ting into newer Panasonic is looking at technical collaboration with sev- the last quarter of 2010. holidays or vacations, out-of-home categories apart eral Indian firms, including the Tata Group, to develop “India’s consumer confidence has entertainment, home improve- India-specific products. It has set up its first R&D centre in from upgrading Haryana and is also getting into remained consistent ments and decorating. its existing range over the last five quar- Globally, Indians rank newer categories like water purifi- ters, driven by strong number one amongst of products ers this year, apart from upgrading MARKETING economic growth those who put their its existing range of products. and an optimistic job spare cash into buying market. If confidence new technology. Lipton Ice Tea> Beverages major PepsiCo and FMCG levels among consum- Though Indian Tangentially, it was ers have remained flat found that the biggest giant Unilever are all set to revive their joint venture (JV) in India with the relaunch of their global product, Lipton Ice over the last quarter, it consumers drop in the spare cash Tea, in the country. The JV’s Indian arm has launched two is largely due to global spending list this quar- continue to new flavours of the ready-to-drink ice tea, after a gap of factors such as weaker remain the ter is in investments in seven years. In 2003, PepsiCo and Unilever had formed a equity markets, higher the stock market or in global 50:50 joint venture - Pepsi Lipton International - to commodity prices and most optimistic, mutual funds. manufacture and market Lipton Ice Tea variants in 67 coun- overall weaker global globally, Overall, Indian tries. The company entered India in 2004. recovery, compound- consumers now seem ed by rising domestic their confidence eager to spend on inflation,” says Justin level has not themselves, their fami- Tata Global Tata> Tata Global Beverages, is in talks to sell about 20 Sargent, MD, con- risen from Q4 lies and their homes, Beverages group per cent of its stake in its international operations to a stra- sumer, India, Nielsen while keeping away owns brands such tegic investor. The company expects to close the deal in the Company in an official of 2010. from making volatile next few months. The move comes after the firm, failed to communiqué. investments related to as Tetley Tea and close a deal with private equity investors, some time back. The survey further revealed that the stock market. Eight O’Clock The world’s second-largest tea group owns brands such as when it comes to job prospects in the However, the study also showed Coffee. Tetley Tea and Eight O’Clock Coffee. next twelve months, Indians contin- that Indians have had to reduce ue to be the most optimistic, globally. household expenses in order to Indians are also extremely optimis- cope with alarmingly high inflation. Crompton Greaves> Electrical appliances and capital tic about the state of their personal Interestingly, on the global charts, goods maker, Crompton Greaves (CG) has acquired the finances in the next twelve months. Indians rank third on the list of US-based QEI for about $30 million in a deal that will allow In fact, they top the global ranking countries that believe that they will the company to expand its presence to North American for countries that are most optimistic emerge from the economic recession automation market.