News: 7 Day Round Up
October 31 - 6
October 31 - 6
AD SPEND HEADS UPWARDS AT ITV LONDON: ITV has reported a resurgence in advertising spending, led by food retailers, cosmetics brands and telecoms. The results mark the best rate of ad growth at the firm since 2007. ITV now believes that total revenue will be up by four per cent in December; the first increase in monthly NAR (net advertising revenue) since the first half of 2008. The company expects NAR to be flat across the fourth quarter as a whole but no longer forecasts a decline. Shares in the company rose by 3.9% on the news that ad revenue had stabilised, adding weight to the view that the worst of the slump may now be over. The share of peak-time viewing recorded by the ITV channels remains stable at 27.6%. Chief operating officer John Cresswell described the result as "the strongest monthly year-on-year performance since the back end of 2007" and said he looked forward to a strong schedule, including the World Cup, in 2010. While ratings for the X-Factor, TV Burp and Doc Martin made for happy reading at ITV, the search for a successor to outgoing chairman and former chief executive Michael Grade continues to cast a shadow. Mr Cresswell said he was unable to comment on the continuing succession problem. Data sourced from BBC News; additional content by WARC staff, 06 November 2009 Print | Email | Add to Folder Related News StoriesMobile apps lure media owners in UK - Oct 2, 09 UK beer brands desert TV - Sep 30, 09 Ad rules remain in place for ITV - Sep 15, 09  NEWS CORP AND WPP STRIKE DEAL  NEW YORK: News Corporation's Fox Audience Network (FAN) and WPP Group have forged an alliance that will see the two companies share key consumer insights from the digital space, it has been announced. Under the terms of the deal, WPP will be entitled to tap FAN's audience segmentation service to bolster planning and measurement projects. The data-sharing tie-up will also pave the way for the world's leading marketing communications firm to use a new “real-time” bidding system to buy up inventory from Fox. Speaking at Ad:tech New York 2009 - Warc's coverage of which is available here - Jonathan Miller, chairman and chief executive News Corp's digital media group, argued that the “socialisation” of the internet, the rise of mobile media, and the move towards “real time” communications were among the key trends that would shape the digital arena of the future. “We believe that by adding audience insights to what would otherwise be not differentiated inventory, you make it more valuable,” Miller said. “Starting from the social networking environment … people tell you a lot about themselves in unstructured data. Once you structure it and make it useful as a seller, you make it useful to a buyer.” He added that the more targeted approach to display advertising, and the quest to provide marketers with the type of precision typically delivered by online search, would entail a change in emphasis among agencies. The role of researchers and media specialists would inevitably increase in importance and their work would become more essential to creative teams, he predicted. Data sourced from WARC, 06 November 2009 Print | Email | Add to Folder Related News StoriesEmerging markets to drive growth, says Sorrell - Nov 5, 09 Trading climate is "less worse", says WPP - Oct 30, 09 Omnicom profits fall in Q3 - Oct 22, 09 UNILEVER PRICE CUTS AID RECOVERY  LONDON: Unilever, the world's third-biggest food and consumer goods group, has taken one further step towards recovery with a 3.6% rise in third-quarter sales.The Anglo-Dutch firm's second successive quarter of volume growth has been triggered partly by selective price cuts, as well as strong sales of ice-cream brands such as Magnum and Ben & Jerry's. Despite shelling out more on marketing in recent months, Unilever has also benefited from falling prices for key commodities including edible oils and packaging. Chief executive Paul Polman, who took the helm in January after quitting Procter & Gamble, believes that price cutting is the best way to restore volume growth in the downturn. In the first quarter of the year, it was the opposite strategy - that of price rises - that prompted extra sales for the firm. "We expect volume growth in the fourth quarter and we don't see anything to slow up our underlying momentum," said finance director Jim Lawrence. While trading conditions for top Unilever brands such as Knorr, Hellman's and Dove remained challenging as a result of high unemployment and low consumer confidence, Lawrence believed that it continued to sell affordable products to a range of consumers. Data sourced from Reuters; additional content by WARC staff, 06 November 2009 Print | Email | Add to Folder Related News StoriesP&G plans for growth in India - Nov 2, 09 Unilever looks to social media in Asia - Nov 2, 09 P&G plans marketing push - Oct 30, 09 CASBAA BRIDGES DIGITAL DIVIDE  HONG KONG: Agencies must address "an apparent lack of consumer trust in digital advertising" in order to capitalise on the new technology's long-term potential, the CASBAA conference heard yesterday. Bernhard Glock, president of the World Federation of Advertisers, told delegates that the basic principles of consumer insight and engaging content had not changed and added that the "30-second ad will continue to be an important part of any advertiser's message." While he believed there was "a digital competence gap" between specialist media agencies and less media-savvy advertisers, Glock stressed that a return to basics was now in order to maintain the trust of customers. Although other panellists called on digital practitioners to speak in a language understood by the average advertiser and to abandon what one called "the obsession with click-based search," Anthony Fitzerald, chief executive of the Multi Channel Network, believed there should be no distinction between traditional and digital marketing. "TV is about to enter a new golden era," he said, "and the experience that it can offer has never been better." "Online advertising complements that of TV very well and we believe that both are going to show good growth in the years to come." Data sourced from MediaAsia; additional content by WARC staff, 06 November 2009 Print | Email | Add to Folder Related News StoriesAgencies struggle with digital in APAC - Oct 26, 09 Value-based remuneration has global appeal - Oct 22, 09 Consumers see value in advertising - Jul 16, 09 NEWS CORP BANKS ON CABLE GROWTH  NEW YORK: News Corporation has reported an 11% increase in profits in Q3, prompted largely by cable TV growth in the US.Despite a 4.1% fall in revenues to $7.2 billion (€4.8bn; £4.3bn) in the last quarter, the media conglomerate produced net income of $571 million, compared with $515m a year ago. Ice Age: Dawn of the Donosaurs, which has so far grossed $880m, triggered a $391m operating profit at Twentieth Century Fox, up 55%. Over at News Corp's newspapers division however, things look less rosy as the company digests a 77% drop in profits to $25m. Chairman and chief executive Rupert Murdoch has already announced his intention to charge for all online newspaper content by next June, but now believes that the deadline will not be met. Despite ongoing talks with other media companies over the thorny issue of charging, most research suggests that consumers will not be prepared to cough up without a fight. Data sourced from The Times; additional content by WARC staff, 06 November 2009 Print | Email | Add to Folder Related News StoriesAsia set for pay-TV boom - Sep 8, 09 Dow Jones seeks new owner - Aug 25, 09 News Corp to charge for web content - Aug 7, 09 FAKE CHINA HANDSETS POSE THREAT TO BRANDS  BEIJING: Fake handsets produced in China are flooding emerging markets such as India, Russia and Brazil to the detriment of branded manufacturers such as Nokia, says a new report. China's 'grey' market phone shipments will soar to 145 million by the end of this year, an increase of more than 44% in a year, according to electronics research group iSuppi. While small workshops in Shenzhen have been assiduously churning out counterfeit handsets fo more than five years now, they have sold mostly to the Chinese. In recent months though, domestic makers such as Lenovo Mobile, TCL and Tianyu have begun hitting back with cheaper products and are now enoying market share growth at home. In response, fake producers have upped the ante by adding additional features such as powerful speakers or even flashlights and are increasingly focussing their efforts on foreign shores. Although a small proportion of the fakes end up in Western Europe, the majority of shipments are bound for less developed markets, the report suggests. Says KevinWang, director of China Research for iSupp: "Margins in the grey market are being squeezed so producers have started exporting aggressively." "While this will not damage the supply chain as such, it will be very damaging for Nokia." Data sourced from Financial Times; additional content by WARC staff, 06 November 2009 Print | Email | Add to Folder Related News StoriesNokia, Vegemite among top Australian brands - Oct 30, 09 Asia set for pay-TV boom - Sep 8, 09 Nokia joins the netbook revolution - Aug 26, 09 EMERGING MARKETS TO DRIVE GROWTH, SAYS SORRELL  NEW YORK: Advertisers are currently "totally focused on cost", but new media and developing countries are still attracting considerable attention from marketers seeking to drive growth during the downturn, according to Sir Martin Sorrell, chief executive of WPP Group, the agency holding company.Speaking at ad:tech 2009 in New York - covered by Warc here - Sorrell said brand owners are cutting back even though all the statistical evidence "points to the fact that companies that invest in brands in times like these benefit when we come out of recession." Indeed, while many major companies report they are continuing to invest in commercial communications in the recession, advertising expenditure levels demonstrate this cannot be the case. "Most companies say they maintained their spending, or if they have cut it, they have cut it by media deflation. That can't be true, because the traditional media market is down by 10% or 15%," Sorrell added. Looking forward, WPP's ceo predicted emerging markets will increase their prominence over the next ten years, as growth in more advanced areas like the US, and particularly Western Europe, slows. "We are in my view approaching a decade where the attention of the world is going to increasingly be on Latin America as well as the BRICs and the Next 11. This shift in power is considerable," said Sorrell. "Every single client that we deal with is focusing on those parts of the world for growth," he continued, with WPP hoping to boost the share of revenue it generates from these areas from around a quarter at present to 33% in five years time. Similarly, the UK-based firm is looking to raise the proportion of sales derived via new media, but clients also need to heighten their activity in this area if they are to mirror the behaviour of their customers. At present, consumers spend around 20% of their time online - with Morgan Stanley recently pegging this figure at 28% for the US - but advertisers currently direct just 12% of their budgets to digital channels. One reason for this is that "people who run clients, media owners and agencies tend to be of an older vintage, they tend to be resistant to change," Sorrell said. However, there is also "a natural gravitational pull to 20% or 25%" at work where new media spending is concerned, a process that should be complete in the next five years, he forecast. To view Warc's Conference Report from Ad:tech New York, click here. Data sourced from Warc, 05 November 2009 Print | Email | Add to Folder Related News StoriesNews Corp and WPP strike deal - Nov 6, 09 Trading climate is "less worse", says WPP - Oct 30, 09 Omnicom profits fall in Q3 - Oct 22, 09 'SON-OF-WOOLWORTHS' OPENS UP  DIDCOT; OXON: Despite the threat of a looming court battle with the powerful Barclay Brothers, variety retailer Alworths will defiantly open its doors for the first time this morning.Born out of the ashes of the now-defunct Woolworths operation - which would have been 100 years old today - the new chain aims to have five more outlets operational in the South of the country before Christmas, with a further 17 openings planned for the next 12 months. Founder Andy Latham, the former head of stores and concessions at Woolworths who has used his own initials to create the new company name, is aiming to run 100 shops - and build a £30 million (€33.4m; $49.5m) annual turnover - by 2011. Many of the staff will be ex-Woolworths employees. Although it has taken just 66 days to create the store; which will focus on branded toys, homeware, seasonal and garden products plus pick 'n' mix sweets, Latham believes that Alworths has a good chance of plugging the gap left by the Woolworths liquidation a year ago. "We will be a real family retailer," he says, "and we expect lots of interest in the run-up to Christmas." "Both staff and customers have really missed Woolies." While Alworths has no immediate plans to offer internet shopping, the new brand is already causing consternation at Shop Direct. Owned by the Barclay Brothers, the Shop Direct online operation bought the original Woolworths brand name and logo for £12 million several months ago. It fears that Alworths may be about to steal its clothes. With the matter now in the hands of solicitors, neither side was willing to talk about the likelihood of a legal battle. Data sourced from Alworths; additional content by WARC staff, 05 November 2009 Print | Email | Add to Folder Related News StoriesWoolworth's chain resurrected as e-tailer - Jun 26, 09 Britain's Tax Exile Twins Snatch Woolworths Brand - Feb 4, 09 BBC Mulls Buy-Out of Joint Venture With Failed Retail Chain - Nov 28, 08 GLENFIDDICH TO WOO CHINESE  SHANGHAI: Scottish whisky label Glenfiddich is on the hunt for a 'brand ambassador' to sell its flavoursome virtues to the Chinese.Boutique agency Can Create, part of the McCann Worldgroup empire, aims to use community forums, blogs and PR events to recruit a whisky enthusiast willing to represent the brand to local media and hoteliers. Says Canon Wu, chief creative director at Can Create: "We don't want to use typical, traditional PR executions like having a product launch, a PR party or taking some journalists to whisky refineries in Scotland." "As the client's budget is not substantial, we need to get creative in order to raise the brand's visibility in China." Drawing on inspiration from the Queensland State Government's 'Best job in the world' campaign, Can Create has already created a minisite on zhaopin.com to attract whisky afficionadoes. Glenfiddich competes against Chivas Regal and Johnny Walker in the Chinese market and describes its core consumers as "sophisticated, white-collar men in tier-one cities." Data sourced from MediaAsia; additional content by WARC staff, 05 November 2009 Print | Email | Add to Folder Related News StoriesLuxury sales to rise in China - Sep 28, 09 Consumer preferences changing, says Gucci chief - Sep 28, 09 Luxury watches lure Chinese - Sep 18, 09 VIACOM SEES CAUSE FOR OPTIMISM  NEW YORK: Cable TV company Viacom Inc, which posted a 15% rise in net income for Q3 this week, believes that the TV advertising sector is set for what may be a mini-boom as the holiday season begins.After a punishing year for advertising, Philippe Dauman, chief executive at the firm - which owns MTV, Nickelodeon and Comedy Central - said that there were signs that both demand and prices were finally on their way up. "There is demand out there at the moment," he said, adding that prices for last-minute commercials are currently up on the summer rates by "double-digit" percentages. Dauman's cautious optimism was reinforced by Discovery Communications, whose US ad revenue through networks such as TLC and Animal Planet has increased by 4.8% in Q3. Discovery's chief executive David Zaslav, said: "The market does feel more robust and while we can't predict where it will be in three weeks or four weeks, it feels much stronger." Analsysts believe that after months of reining in their marketing plans, large US advertisers may decide to go on a spending spree during the holiday period. Data sourced from Wall Street Journal; additional content by WARC staff, 05 November 2009 Print | Email | Add to Folder Related News StoriesHasbro buys into Discovery Kids - May 4, 09 Viacom's Ad Revenues Down 3% - Feb 16, 09 Time Warner and Viacom in New Year's Resolution - Jan 5, 09 M&S SIGNALS BRANDS RE-THINK  LONDON: Marks & Spencer is to roll out 400 branded products across all of its 600 or so stores following a successful 16-month trial.The products; which include top-selling names such as Coca Cola, Heinz, Kellogg and Marmite, will fill gaps in brand-dominated categories where "we could simply never compete," or where no own-label brands exist, according to chairman Sir Stuart Rose. Announcing better than expected half-year profits of £298.3 million (€202m; £180m) the retailer - which has long pursued a strict own-label-only trading policy - stressed that the volte-face would not lead to any de-listing of M & S products. "The example I give is Tabasco sauce," he told BBC Breakfast News. "You either have genuine Tabasco or fake Tabasco - which tastes awful." "Our customers deserve the best and that's what they shall get; without having to shop elsewhere." Despite the half-year optimism; which he puts down to multi-channel offers, better in-store service and profitable international operations, Sir Stuart added that the company remained cautious about the all-important Christmas trading period and the year ahead. Data sourced from BBC News; additional content by WARC staff, 05 November 2009 Print | Email | Add to Folder Related News StoriesUnilever, M&S top environmental firms - Oct 26, 09 Coca-Cola Heads UK Grocery Brands - Feb 22, 07 Ads Spur UK Retailer's Comeback - Nov 8, 06 PAY-TV SOARS IN ASIA  HONG KONG: Pay-TV subscription rates in Asia now outstrip those of the entire rest of the world, with China and India leading the way.According to figures released by the Cable & Satellite Broadcasting Association of Asia or CASBAA, which is holding its annual convention this week, the region now has some 326 million pay-TV households; an increase of 26m on last year. When it comes to digital subscriptions - accounting for 115m or some 35% of the market - China dominates to the tune of 69 million, while India lags benind at 19m. Anil Wanvari, ceo and editor of chief of Indiantelevision.com, told the convention that pay-TV in India was "large, sexy and alluring," but felt that it was not reaching its full potential. Another speaker, Jagit Singh Kohli, managing director and ceo of Digicable Network India, believes that there are simply too many service providers competing for the same audience. "How low can you go on price?" he asked. Despite the industry's encouraging development in Asia, piracy - which is said to cost content providers around $1.94 billion (€1.31 bn; £1.17 bn) in lost revenue - continues to be a major headache. Data sourced from Brand Republic; additional content by WARC staff, 05 November 2009 Print | Email | Add to Folder Related News StoriesFox goes local in Asia - Nov 9, 09 Asia-PacificTV Households Set to Boom - Mar 16, 05 New Weapon Launched in War Against Pay-TV Piracy - Sep 13, 04 BOTTLED WATER TURNS ON SALES  LONDON: If bottled water sales are the ultimate barometer of economic health, then Britain appears to be on the brink of recovery, says a Mintel report published today.After more than two years of declining sales, the market for both sparkling and still waters is beginning to climb again and by 2014 should be back to pre-recession levels, the report suggests. Between 1997 and 2007, the industry saw sales double to 2.5 billion litres as consumers turned away from the tap and sought the superior taste and sophistication of bottled varieties. As the ultimate discretionary purchase though, bottled water has been hit hard by the dip in consumer confidence; consumption levels collapsing by as much as 11% between 2006 and 2008. Despite lingering consumer resistance, the effects of the recession and, arguably, two consecutive bad summers though, that decline has now slowed to just one per cent, according to the report. "Consumer confidenmce is inextricably linked with bottled water consumption and when the decline in confidence began in the latter half of 2007, bottled water became one of the easiest products for cautious consumers to sacrifice," says Jonny Forsyth, drinks analyst with Mintel. While tap water - 250 times cheaper than bottled -seemed a more sensible option when the economy was in very bad shape, he believes that consumers "have now started to loosen their purse strings and bottled water has been one of the beneficiaries." Some 35% of British consumers believe that bottled water tastes better than tap, but only one in 10 say it represents value for money. Around a third think it is "a bit of a con" and four in 10 say it is no healthier than tap water. Data sourced from Mintel; additional content by WARC staff, 04 November 2009 Print | Email | Add to Folder Related News StoriesBritons flock to high-strength alcohol - Aug 27, 09 UK Households Struggle with Financial Feel Good Factor - Jul 24, 08 Independents Look to Cellphones in Fight Against Supermarkets - Apr 13, 07 SONY ERICSSON UNVEILS ANDROID  HELSINKI: Handset maker Sony Ericsson has taken the wraps off its new flagship mobile; the first one to be built around Google's Android operating system.The Xperia X10 - to be known as 'Rachel' while under development - will go on sale in the first quarter of next year and will be followed by an entire family of Android-based models. 'Rachel' has a four-inch touch screen, an eight megapixel camera and can work with second and third generation mobile networks, including HSPA, as well as wi-fi. Price and distribution details are so far unavailable. Although analysts fear that yesterday's announcement may harm the sales of Sony Ericsson's top-end Satio product; which went on sale last month, the firm is said to be keen to build consumer excitement over the Android innovation. Says Carolina Milanesi, analyst with Gartner: "I think some consumers will think about waiting until the first quarter to get their hands on an X10 rather than get a Satio for Christmas." "It was a difficult call to make trying not to negatively impact products like the Satio...while at the same time announce something that will persuade consumers not to go to another brand." Loss-making Sony Ericsson; still the world's fourth largest handset maker, saw Q3 sales this year shrink by 45%. Data sourced from Reuters; additional content by WARC staff, 04 November 2009 Print | Email | Add to Folder Related News StoriesSony Ericsson Appoints New Marketing Chief - Apr 3, 08 Sony Ericsson and Global Marketing Chief Part Company - Mar 28, 08 Gourmand Google Eyes Cellphone Ad Market - Nov 7, 07 BAIDU HAMMERS HOME BRANDING  BEIJING: Baidu, China's leading search agency, has launched its first branding campaign since 2005 in a bid to maintain its hold on the world's biggest and fastest-growing internet population. The centrepiece of the campaign is a 48-second TV and online commercial showing how daily searches for information are transforming the lives of both young and old for the better. While the company has revealed that the ad was produced by a Taiwanese director, the identity of the agency involved remains a closely-guarded secret. Last month, Baidu signed an agreement with China Unicom to provide wireless search facilities to all Unicom subscribers. It has also struck a deal with the Discovery Network and M2B World Asia-Pacific to broaden its scope across the entire region. Earlier this year, digital measurement consultancy ComScore revealed that Asia-Pacific has, at 41%, the highest share of all global internet users. While China has now surpassed the US to become the biggest internet culture in the world, the country's 298 million-plus regular web users represent just one in four of the total Chinese population. Data sourced from Brand Republic; additional content by WARC staff, 04 November 2009 Print | Email | Add to Folder Related News StoriesGoogle struggles in China - Sep 22, 09 Baidu fights off Google - May 7, 09 Chinese Search Giant Grows - Feb 20, 09 STARBUCKS FACES ITALIAN CHALLENGE  SEATTLE: A David and Goliath battle between the mighty Starbucks Corporation and Italian challenger IllyCaffe SpA looks set to add some piquancy to the US premium coffee market. After two decades of US trading, during which it has adopted a largely low-key distribution strategy via top-end hotels and restaurants, Illy has come out fighting. The Trieste-based firm has so far signed exclusive deals with around 30 independent coffee shops – many of them in traditional Starbucks ‘neighbourhoods' - and aims to add 100 more in the coming three years. The company is also set to move into Canada and Mexico. Under the terms of the deal, Illy supplies each shop with luxury Italian espresso machines, crockery, artwork, recipes and staff training programmes in return for official Illy certification and an agreement to sell nothing but Illy coffee for at least three years. A number of coffee shops brought to their knees by the recession report to brisker trade, younger customers and happy acceptance of higher prices post the Illy deal. While Starbucks' presence is undeniable – despite store closures, it still has 11,000 outlets in America alone – Illy, which claims a 10% share of the $48 billion (€33bn; £29bn) global retail gourmet coffee market believes that the US coffee drinker is ready for something new. Armed with a strategy allowing it to move into Starbucks territory without the need to rent or buy its own premises, this is one Italian invasion that looks promising. Data sourced from Wall Street Journal; additional content by WARC staff, 04 November 2009 Print | Email | Add to Folder Related News StoriesStarbucks, Microsoft target social media - Oct 21, 09 Brands planning to invest in online communities - Oct 9, 09 US sees 3.9% wealth rise - Sep 21, 09 LEAGAS DELANEY LOOKS EAST  SHANGHAI: Independent, London-based creative agency Leagas Delaney is aiming to capitalise on the fast-growing Chinese market with the opening of its first office outside Europe. The firm's new Shanghai outlet, which is likely to open for business with projects from existing clients Intercontinental Hotels, Timberland and Skoda - as well as two other unnamed firms - will focus its efforts on digital media developments, says chairman Tim Delaney. “Most other agencies are adapting international campaigns for China,” he said, “but we don't want to do that.” “We want to employ China-centric, strategic and creative (work) across all platforms and while we plainly won't be the biggest, we can try to be the best.” While Delaney admits that the move to the world's fastest-growing economy is somewhat belated, the firm believes that the time is now right “to take advantage of the sophistication of China's young, optimistic and media-savvy ‘sunshine generation.' “ Multi-award winning Leagas Delaney also has operations in Rome, Hamburg, Milan and Prague. Data sourced from Brand Republic; additional content by WARC staff , 04 November 2009 Print | Email | Add to Folder Related News StoriesChina looks for 8.5% growth - Aug 24, 09 China shops for Euro business - May 11, 09 Chinese airlines bounce back - May 7, 09 DISNEY GOES GREEN  BURBANK, CA: WALT DISNEY is to invest $7million (€4.8m; £4.3m) in forestry conservation projects in the Amazon and Congo Basin following high-profile deals with Conservation International, Nature Conservancy and the Conservation Fund.The move, which comes ahead of next month's Climate Change Summit in Copenhagen, marks a significant re-think by the firm, which is now pledged to cut its towering 290,000 tonne waste mountain by 50% over the coming three years. Most of the Disney money will go towards financing community management of forests, as well as promoting and extending sustainable practices in local villages. “It is essential to take swift action to preserve our most vulnerable natural environments for future generations and to be innovative in achieving that goal,” said Bob Iger, Disney's chief executive. As climate change soars to the top of the political agenda, the race to establish green credentials has taken on a new urgency in corporate America. Marriott International, the hotels chain, last year signed a deal with the Brazilian state of Amazonas involving a ‘carbon offest' programme for its guests. It has also invested in a fund aimed at securing and protecting 1.4m acres of rainforest. Clear front-runner in all things green however is News Corporation, which now claims to be totally carbon neutral. Data sourced from Financial Times; additional content by WARC staff, 04 November 2009 Print | Email | Add to Folder Related News StoriesUN Seeks Help on Climate Change from Global Adland - Sep 24, 08 'Face-Up to Climate Change', Consumers Tell Brands - May 12, 08 Disney Extends Fresh Fruit Branding to Europe - Jun 9, 06 DIAGEO WARNS OF SLOW RECOVERY  LONDON: With recovery in Europe and the US likely to remain slow for the forseeable future, Diageo plc chief executive Paul Walsh aims to capitalise on the firm's operations in Latin America, Asia and Africa.Speaking at the firm's London offices, Walsh said that while markets such as Mexico and Brazil had been "almost business as usual" through the downturn, sales growth had last year stalled in both the US and across Europe. Although there has been a gradual improvement since April this year, "it's not a snap-back to pre-crisis levels," he said. "I've been in this business 27 years and never seen anything like it." The world's largest liquor maker believes that the recession has radically altered consumer attitudes both to products and marketing campaigns. "Bling has gone, consumers' views have changed...people will still pay for quality, but ostentatious consumption is gone," Walsh added. To reflect the change, Diageo has shifted its advertising focus to "play up the legitimate quality credentials of brands, with more talk about authenticity." The firm's new online campaign for top-seller Smirnoff vodka for example focuses on the story of founder Piotr Smirnov, who escaped the firing squad and fled Moscow for Paris after the Russian Revolution. Data sourced from Bloomberg; additional content by WARC staff, 03 November 2009 Print | Email | Add to Folder Related News StoriesSmirnoff goes digital in UK - Nov 2, 09 Diageo takes "pioneering" approach - Sep 9, 09 Pernod Ricard boosts adspend - Sep 4, 09 HISPANIC AMERICA TOPS US GROWTH RATE  ATLANTA: With next year's US Census expected to show growth rates among Hispanic Americans far outstripping those of the country as a whole, the race is on to build more robust marketing relationships with the community.While traditionally, specialist agencies have dominated the Latino marketing sector, recent statistics suggest that second-generation, bilingual and bicultural Hispanics are a fundamental part of contemporary US life and no longer need 'minority' treatment. Says Cynthia McFarlane, chair of Conill; a Latino agency and part of the Publicis network: "In the 2010 Census, we'll see confirmation of a shift from Hispanic consumers who are first generation, and where Spanish is the dominant language...there is a new American culture forming and these consumers are having a tremendous impact on mainstream America." Hispanics have around $863 billion (€584 bn; £528 bn) in discretionary annual income, more than any other minority group in the country. This makes them increasingly attractive to marketers, says McFarlane. "It will be a huge eye-opener to see the growing affluence of the Hispanic market, not just in buying power, but in household wealth," she says. McDonald's, which sees higher brand loyalty anong Latino customers, recently added breakfast burritos to its menu. Earlier in the year, it used so-called 'Spanglish' in mainstream ads for the Quarter Pounder. "We know the general market has become increasingly multicultural," says Cristina Vilelle, director of marketing at McDonalds USA. "We lead with Hispanic insights but make sure they appeal to the general market." Data sourced from AdWeek; additional content by WARC staff, 03 November 2009 Print | Email | Add to Folder Related News StoriesUS Multicultural Marketers Push Ahead on Mobile Ads - Jan 11, 08 US Hispanic Adspend Up by 14% in 2006 - May 7, 07 US Government Plans Simpler and Shorter 2010 Census - Apr 3, 07 CAPGEMINI SETS SIGHTS ON INDIA  BANGALORE: Global outsourcer Capgemini expects its Indian headcount to exceed that of France once its new 'business information management unit' in India's Silicon Valley opens for business next year. India's previously-buoyant business process outsourcing industry has been hit hard by the recession in recent months. But although many of the sector's biggest foreign clients – the banking multinationals – were forced to reduce or even suspended their offshore outsourcing plans as the downturn hit, recovery is now firmly underway. IBM, which already employs 74,000 Indian workers, has recently signalled its intention to move more jobs to the continent and professional services firm Accenture is following suit. Lower salaries are one incentive, but the sheer quality of IT professionals is perhaps equally important. Business information management is a multi-pronged service which helps firms improve their collection, use and analysis of data. Relying on multiple sources of information -including weather patterns and shipping schedules - to build a more complete picture of business performance, it is becoming a big growth area for Indian IT. Capgemini aims to raise its total Indian headcount to 21,000 within the next 18 months. In France, the firm's total workforce is 20,000. Data sourced from Financial Times; additional content by WARC staff, 03 November 2009 Print | Email | Add to Folder Related News StoriesIndian IT Outsourcing Faces Cost Crunch, Rivalry in 2008 - Jan 2, 08 India Pitches for US TV Production Outsourcing - Apr 3, 06 US and European Publishers Outsource Editorial to India - Aug 30, 04 BBC LICENCE FEE UNDER ATTACK  LONDON: Former BBC director general Greg Dyke is to recommend that the compulsory BBC licence fee be ditched at a saving of more than £100m (€110m; $163m) per year, it was reported by the Guardian newspaper yesterday. Dyke, who is leading a review of media policy for the Conservative Party, will suggest in a report to be published next year that the BBC should continue to be funded from the public purse – to the tune of around £3.6bn per year - but via general taxation or a government grant, rather than through the current licence fee system. The BBC currently spends more than £123m administering, collecting and chasing licence fees. Under Dyke's proposals, this money would be set aside to help pay for public service broadcasting on commercial channels; possibly including local news. Introduced in 1923, the first combined radio and TV licence cost just £2. In the intervening 86 years, the price-tag has soared to £142.50 and has attracted mounting criticism from many public figures. Dyke himself called it “a desperately unfair tax” in a widely-reported speech last year. While the BBC itself argues that the licence fee arrangement guarantees the corporation's independence, Conservative Party leader David Cameron is not a fan. He believes that the licence should be frozen at its current rate and has repeatedly called for the BBC to curb what he claims is its “profligacy.” Last week, the BBC announced that it would reduce the salaries of senior managers and prepare to cut 18% of senior posts by 2013. Data sourced from the Guardian; additional content by WARC staff, 03 November 2009 Print | Email | Add to Folder Related News StoriesConservative Party Will Not Privatise Channel 4 - Oct 31, 08 UK Adland Luminaries Talk Cash With Conservatives - Oct 24, 08 Britons Baulk at BBC Licence Fee - Aug 19, 08 WAL-MART SLASHES TOY PRICES  NEW YORK: Wal-Mart has announced phase two of its aggressive price-cutting campaign across key toy categories.The world's biggest retailer is to slash the price of top-selling lines such as the Buzz Lightyear talking action figure and Star Wars light sabers by a further 20% to 30% in a bid to outsmart rivals and gain the long-term loyalty of customers. It vows to continue its rolling programme of holiday price reductions just as long as stocks last. At the end of September, Wal-Mart triggered a pricing frenzy among competitors when it trumpeted a new $10 (€7; £6) price tag on 100 of its top-selling toys. The rival Target Corp responded with price cuts of as much as 50% on old favourites such as Barbie and G.I. Joe, but other chains have so far been unable to match the sheer scale of the discounts. While analysts believe that the damage to retailer margins posed by such swingeing price-cuts can be mitigated by careful advance planning and good stock control, manufacturers are in a very different position. There are growing suggestions that training shoppers to expect lower prices in this way not only damages the long-term interests of consumer goods manufacturers but may even prompt closures among the weaker retail chains. With deep pockets at its disposal though, Wal-Mart is committed to cutting prices every week between now and Christmas. Data sourced from Reuters; additional content by WARC staff, 03 November 2009 Print | Email | Add to Folder Related News StoriesWal-Mart targets range of new sectors - Oct 20, 09 Carrefour chief says consumers will change - Oct 14, 09 Engagement still matters, says JCPenney - Oct 9, 09 WII SALES SLOWDOWN  TOKYO: Nintendo admits to being “caught off-guard” by a slowdown in Wii sales and believes that it will take some time for the games machine to regain its momentum. Although Wii remains the undisputed leader of the console market with unit sales of more than 53 million since its debut in late 2006, Nintendo has in recent days been forced to scale back both hardware and software targets in the light of dwindling demand. While the slowdown has prompted questions over whether Wii has now lost its three-year Midas touch, Nintendo President Satoru Iwata argues that the console's track record speaks for itself. He told a meeting of analysts last week: “Right now, the mood is not one where people feel like they have to rush out to buy a Wii, so we need a little time for things to pick up.” Iwata reminded the meeting that neither exercise game Wii Fit nor mental training product BrainAge – now two of the world's top-selling software products – had been expected to do well. Yet both had captured the imagination of the public. He added that the firm would continue to introduce equally “unconventional products.” “The message we can give to the market is that you have to look at our track record and believe that we can introduce software that will be a hit,” he said, before stressing that not every new game could become a top seller. Wii transformed the entire video games market with its innovative motion-sensing controllers, but Nintendo's two biggest rivals are now catching up. Sales of Sony's PlayStation 3 exceeded 24 million back in the summer, while Microsoft's Xbox reached the 34 million mark at the end of September. Both manufacturers intend to launch their own motion-sensing controllers next year. Data sourced from Wall Street Journal; additional content by WARC staff, 03 November 2009 Print | Email | Add to Folder Related News StoriesSony launches cheaper PS3 - Aug 20, 09 Gaming giants start to struggle - Aug 3, 09 Wii goes higher and higher - May 8, 09 UNILEVER LOOKS TO SOCIAL MEDIA IN ASIA  SINGAPORE: Unilever, the Anglo-Dutch consumer goods giant, is making increased use of a wide variety of social media tools in Asia, as it seeks to connect with consumers in a number of different countries in the region.Simon Clift, the FMCG titan's chief marketing officer, has previously championed the idea of brands utilising the emerging range of Web 2.0 services as a means of engaging their target audience. One example of how the UK-based firm is applying this approach in Asia is a recent initiative where it asked influential bloggers in China to undertake "blind" tests of Pond's Age Miracle skincare range, and post their opinions online. Pond's main competitors in the world's most populous nation include Clinique and L'Oréal, as well as Olay and SK-II, both of which are manufactured by Procter & Gamble. As part of its strategy to increase brand consideration, Pond's aimed to sign up affluent female consumers through portals such as Onlylady.com, with 150 women ultimately taking part in a seven-day trial of the "mystery" product. The aims of the scheme included encouraging electronic word-of-mouth about Pond's new offering, and building the brand's credentials in an authentic way. Coca-Cola and P&G are also currently attempting to use bloggers to champion their goods, and this approach is regarded as being particularly effective in China, where large numbers of web users produce, read and comment on this form of content. Overall, Unilever found that the feedback delivered during the trial was overwhelmingly positive, with 90% of the bloggers involved continuing to endorse the brand once its identity had been revealed. Laercio Cardoso, vp, marketing for Unilever's home and personal care brands in China, said "this is the first time used we've used social media in China. There is no doubt we will use it more to connect with consumers." Mutya Laxa, global brand director for Pond's, added "everyone was excited by the response in China." Moreover, "the cost of those sites are a tenth that of traditional media, so it's very cost efficient as well." Pond's now plans to roll out this model to other key emerging nations in Asia, including the Philippines, Thailand and Vietnam. In Indonesia, one of the brand's "fan pages" on Facebook, the popular social network, also currently has nearly 10,000 members, and Pond's has been seeking to leverage its position with these web users. To do so, it produced games to be featured on Facebook, as well as running events for members of this group, and even developing a bespoke mobile application. Similarly, in Vietnam, Unilever has launched a competition linked to its Comfort brand, requesting that married male consumers submit stories about love online, with the winning entries going on to be published in a well-known magazine. As part of this process, it created a campaign website allowing people in the country to send romantic messages to each other. To support a new TV ad for Lux, its beauty range, featuring the Bollywood actress Priyanka, the CPG specialist again reached out to bloggers, this time across Asia, encouraging them to link to the brand's YouTube channel, in the hope visitors would post their own videos based on the theme of the ad, which was called Behave Beautiful. Tina Reejsinghani, global PR manager for Lux's brand development team, said "it's a fun contest that invites women to be beautiful rather than be an object of beauty." "You don't really see results right away, you have to let things play out. ... We don't have as much hold and control as we might like, but that's also the beauty of it." Data sourced from AdAge; additional content by Warc staff, 02 November 2009 Print | Email | Add to Folder Related News StoriesUnilever price cuts aid recovery - Nov 6, 09 Kellogg benefits from boosting adspend - Nov 2, 09 P&G plans for growth in India - Nov 2, 09 AGENCIES MUST ADAPT TO "LEAN MARKETING"  DALLAS: Advertising agencies must adapt to the requirements of "lean" marketing if they are to best serve the changing needs of their clients, according to Tony Palmer, chief marketing officer of Kimberly-Clark, the FMCG company.Some of the US giant's major brands include Huggies diapers, Kleenex tissues and Kotex, the feminine hygiene range, with its biggest rivals including Unilever and Procter & Gamble. Last year, the Dallas-based firm substantially increased its marketing expenditure, and Palmer has also sought to develop its operations in a number of other ways during his three year tenure to date. This has included taking a more restrained approach to TV upfronts, which tended to limit flexibility as far as adapting strategy was concerned, and were also indicative of the fact that "the way that the company was going to market was broken," he said. "We were missing out on a lot of consumer touchpoints – like baby showers, which aren't a medium but are an important event where many products are given out," added Palmer. More broadly, Kimberly-Clark's agencies were told "you are not the top dog any more," and were challenged to adopt "smarter" and more "lean" working practices in line with the company's specific requirements. "Lean is about starting at the source of what you are trying to do, so, in marketing speak, that is putting the consumer at the centre and delivering on their needs and then taking waste out of the system," Palmer argued. This approach necessitates streamlining both time management and production processes, with the latter area, in particular, being one in which there is still "a lot of work to be done." "We have to find a way to reinvent the production process which is faster, better, cheaper. You can't give up one of them. It has got to be faster, it has to be better and you can't spend more for it," Palmer stated. "It's not something you do tomorrow, but if marketers aren't thinking about that the end of the road is going to be huge non-working costs and minimal money going against your brand." This will offer advantages in terms of efficiency and quicker project completion times, and could also have financial benefits, with the possibility of the savings achieved being shared between advertisers and their creative partners. "There is, I believe, a big opportunity for agencies to be smarter, get a percentage of the cost savings and actually turn something into a revenue stream that is not currently a revenue stream by working smarter,” said Palmer. "As a client I want to share it with my agencies so we all prosper and therefore the best people want to work for us. That has to be the game." As previously reported, Procter & Gamble, the world's biggest advertiser, and Reckitt Benckiser, the household goods specialist, have both sought to tighten the procedures in place when it comes to their agencies choosing production houses. Data sourced from Sydney Morning Herald, B&T; additional content by Warc staff, 02 November 2009 Print | Email | Add to Folder Related News StoriesKellogg benefits from boosting adspend - Nov 2, 09 P&G plans for growth in India - Nov 2, 09 Unilever looks to social media in Asia - Nov 2, 09 GLOBAL ADSPEND TO FALL 8.4%  LONDON/WASHINGTON: Global adspend is expected to fall by 8.4% this year, based on a weighted average of recent predictions made by ad agencies, media companies and industry associations provided in Warc's latest Consensus Forecast.This prediction marks a downward revision on the previous estimate of a 5.9% decline made in April, and is based on aggregated data collected over the last four months, and which is provided on the condition of anonymity, preventing further information from being released. Of the 13 countries covered, China leads the way, with anticipated growth of 6.8% – only marginally below the 7% forecast last time. The outlook for India, although still fairly bright, has taken a more pronounced downturn, from an uptick of 8.4% to one of 6.4%. Brazil is the only other country due to see an advance in spending, up by 3.0% in all. Having previously forecast 7% to 8% reductions for the UK and US respectively, these two nations are now expected to deliver drops of 13% and 14% in turn. Spain's ad market has suffered more than any other in Europe, and could register a decrease of 20% overall. The outlook for the other nations featured is for moderate losses of up to –2%. Warc's Consensus Forecast also contains predictions for the major media spending in each of the markets assessed. For more information, and to see the PowerPoint charts that accompany this research, please email enquiries@warc.com. Data sourced from Warc, 02 November 2009 Print | Email | Add to Folder Related News StoriesGlobal consumer confidence rises - Oct 29, 09 Major brands still investing in advertising - Oct 28, 09 FT, Economist favoured by execs in Europe - Oct 23, 09 KELLOGG BENEFITS FROM BOOSTING ADSPEND  BATTLE CREEK, Michigan: The Kellogg Company, the cereal giant, posted a double-digit increase in its advertising expenditure during the last quarter, and plans to continue investing in communications over the rest of 2009, as it seeks to further strengthen its brands.The manufacturer of Corn Flakes and Raisin Bran registered sales of $3.3 billion (€2.2bn; £2.0bn) from July to September, a small drop year-on-year, while earnings per share rose by 5%. In this period, the Battle Creek-based firm boosted its adspend by a total of 17%, with a similar improvement also slated for the final quarter. Speaking on a conference call with investors, John Bryant, Kellogg's chief financial officer, said "our commitment to investing in advertising continues to be a key to our business model and to achieving our goals." "Rather than take advantage of lower rates to reduce the cost of our advertising investment, we see this as a great opportunity to increase our investment and build even stronger brands in the future," he added. "Higher spend combined with media deflation and a push on efficiency is driving a significant increase in advertising pressure." The company has also heightened its emphasis on the eight brands which are currently producing the most impressive results, as well as using targeted promotions where necessary. David MacKay, its ceo, said "during the quarter, these brands grew net sales at a strong 8%, with Special K, Rice Krispies brand and Kashi each delivering double-digit growth." "This strong growth from our top brands was driven by double-digit increase in our advertising investment, as well as successful promotions." Data sourced from AdAge; additional content by Warc staff, 02 November 2009 Print | Email | Add to Folder Related News StoriesP&G plans for growth in India - Nov 2, 09 Agencies must adapt to "lean marketing" - Nov 2, 09 Unilever looks to social media in Asia - Nov 2, 09 SMIRNOFF GOES DIGITAL IN UK  LONDON: Smirnoff, the vodka brand owned by Diageo, is set to spend around 20% of its marketing budget on digital media this year, and is also placing a heightened emphasis on social networks, as it seeks to connect with a younger audience. As previously reported, Diageo, which spent some £1.3 billion ($2.1bn; €1.4bn) on advertising and marketing over 2008 as a whole, has developed a new communications model which it hopes will deliver heightened engagement with consumers. Currently, it directs approximately one tenth of its expenditure to new media, but it will boost this figure to around a fifth for Smirnoff as it aims to target a new demographic. Earlier this year, the company launched a campaign for the premium vodka which included online ads based around videos from promising young musicians. It also held a competition asking members of Facebook, the social network, to suggest ideas for possible nights out, and which cocktails could be served at these events. The company then used the best entries as a basis for gatherings which were held in London, adding video footage from these occasions to a dedicated website. A Facebook page launched to coincide with this communications effort now has some 600,000 members, while traffic to Smirnoff's website has also recorded a substantial uptick. Philip Gladman, global brand director for Smirnoff, said using these sorts of channels was more "labour intensive" than TV and other more traditional media. This is because there is a need to frequently refresh digital campaigns, and is also due to the "scary" rate at which this platform is developing. Overall, however, Gladman argued "I have been amazed how many creative people there are out there who want to share their ideas with us." Data sourced from Daily Telegraph; additional content by Warc staff, 02 November 2009 Print | Email | Add to Folder Related News StoriesDiageo warns of slow recovery - Nov 3, 09 Diageo takes "pioneering" approach - Sep 9, 09 Pernod Ricard boosts adspend - Sep 4, 09 P&G PLANS FOR GROWTH IN INDIA  NEW DELHI: Procter & Gamble, the world's biggest advertiser, is aiming to attract some 500 million new customers to its products in India over the next five years, as it seeks to boost sales in what is regarded as a key future growth market.As previously reported, the Cincinnati-based firm has outlined its intentions to increase the size of its global customer base by 1 billion people in the short-to-medium-term, taking it to a total of 5 billion overall. More specifically, it is hoping to raise the amount spent per consumer in China and India from $3 (€2.03; £1.82) and $1 per head, respectively, at present to around $20, which is the current average total recorded in Mexico. Sumeet Vohra, the US corporation's marketing director in India, has now predicted "we will add half a billion new consumers by 2014" in this one country alone. This would mean the company's penetration level in India would extend to around 75% of the entire population, which is estimated to be approaching some 1.3 billion people. P&G's operations in the Asian nation are divided into three separate units, each of which covers a specific aspect of its broad portfolio of products, and two of which are listed locally. Of these, Procter & Gamble Hygiene and Healthcare posted revenues of 774 crore rupees ($164.9m) in the year to June, while Gillette India recorded sales of 662 crore rupees over the same period. As it is not listed in India, Procter & Gamble Home Products, which houses brands from Tide to Pantene, does not release sales figures, but it is estimated to generate revenues at least matching those of its two counterparts combined. Pampers, the nappy brand, is one of P&G's major success stories in India at present, having taken market leadership just two years after being launched in the rapidly-developing economy. Olay, its skincare brand, has also quickly picked up a 6% share of its category in the country, where sales in the anti-ageing segment as a whole have doubled in the recent past. Alongside developing its distribution network, it is thought the multinational operator will heighten its focus on rural consumers, who are expected to be among the key drivers of growth in the FMCG market going forward. Data source from Livemint; additional content by Warc staff, 02 November 2009 Print | Email | Add to Folder Related News StoriesUnilever price cuts aid recovery - Nov 6, 09 Kellogg benefits from boosting adspend - Nov 2, 09 Agencies must adapt to "lean marketing" - Nov 2, 09 | HeadlinesNovember 6, 2009Ad spend heads upwards at ITV News Corp and WPP strike deal Unilever price cuts aid recovery CASBAA bridges digital divide News Corp banks on cable growth Fake China handsets pose threat to brands  November 5, 2009 Emerging markets to drive growth, says Sorrell 'Son-of-Woolworths' opens up Glenfiddich to woo Chinese Viacom sees cause for optimism M&S signals brands re-think Pay-TV soars in Asia November 4, 2009 Bottled water turns on sales Sony Ericsson unveils Android Baidu hammers home branding Starbucks faces Italian challenge Leagas Delaney looks east Disney goes green November 3, 2009 Diageo warns of slow recovery Hispanic America tops US growth rate Capgemini sets sights on India BBC licence fee under attack Wal-Mart slashes toy prices Wii sales slowdown November 2, 2009 Unilever looks to social media in Asia Agencies must adapt to "lean marketing" Global adspend to fall 8.4% Kellogg benefits from boosting adspend Smirnoff goes digital in UK P&G plans for growth in India |
home • subscribe • free trial • contact us • warc mobile • ©2009 Copyright and Database Rights owned by Warc
