MAM
Media agencies depend heavily on flagship clients
MUMBAI: Single flagship clients account for over one-fifth of revenue for many media agencies, showing a symbiotic long-term relationship between them.
Mindshare earned 20.3 per cent of its revenue in calendar year 2011 from Hindustan Lever, the largest advertiser in the Indian market. The FMCG major’s media spend in 2011 was $214.7 million, handled entirely by Mindshare which had total billings crossing the $1 billion mark in the year, RECMA’s (Research Company Evaluating the Media Agency Industry) global billings report shows.
Incidentally, HUL has marginally scaled down its media spends in 2011 due to the slowdown in the Indian economy. The company had spent $241.9 million in 2010 to promote its rich and diverse reach of brands cutting across all segments.
The GroupM agency’s other clients in India include Pepsico, GSK, Nike, Ford, Star Network, ICICI, Lenovo, Kellogg’s, IBM, Nestle, and Aditya Birla Capital.
| Brand | Media Expenses* | Media Agency | Total Billing*2011 | % contributed by Brand | |
| 2011 | 2010 | ||||
| Hindustan Lever | 214.7 | 241.9 | Mindshare | 1050 | 20.30% |
| LG | 56.2 | 77 | MEC | 300 | 18% |
| Maruti Udyog | 61.3 | 65.5 | LMG | 430 | 14.25% |
| Nokia | 58.7 | 58.5 | Maxus | 570 | 10.20% |
| Pantaloons Retail | 65.6 | 74.2 | Allied Media | 235 | 27.90% |
| Reckitt | 64.7 | 80.2 | ZenithOptemedia | 295 | 21.90% |
| Samsung | 81.8 | 60.2 | Starcom | 275 | 29.70% |
ZenithOptimedia, which had grossed a billing of $295 million in 2011, got 21.9 per cent of its revenue from Reckitt Benckiser. The company had spent $64.7 million in 2011 as compared to $80.2 million in 2010, according to RECMA. It has brands like Harpic, Air Wick, Calgon, Veet, Boots Healthcare, Nurofen, Strepsils, Clearasil, Adams Respiratory.
The Samsung business accounted for 29.7 per cent of Starcom’s billing of $295 million in 2011. The Korean company spent $81.8 million in 2011, up from $60.2 million in the previous year.
Allied Media, with a net billing of $235 million, made 27.9 per cent of its revenue from Pantaloons Retail, RECMA report shows. Pantaloons Retail had a media spend of $65.6 million in 2011, down from $74.2 million a year ago.
GroupM’s MEC derives 18.73 per cent of its revenue from LG Electronics. Out of MEC’s billings of $300 million in 2011, the consumer electronics major shelled out $56.2 million towards media in 2011. LG has also cut its media spend by almost 27 per cent ($77 million in 2010), according to RECMA.
Lintas Media Group got 14.25 per cent of its revenue from Maruti Udyog that spent $61.3 million on media in 2011. This was lower than what the company had spent in the year 2010 which was 65.5 per cent. Maruti Suzuki, Magyar Suzuki, M-800, Omni, Alto, WagonR, Swift, Dezire, Esteem, Zen, Estilo, SX4, Grand Vitara and Versa are the brands that run under the brand.
GroupM’s Maxus earned 10.26 per cent of its total billing of $570 million in 2011 from its Nokia account. The mobile phone handset maker Nokia spent $58.7 million on media, almost the same ($58.5 million) as in 2010.
Brands
Apple CEO Tim Cook to step down after 15 years, John Ternus to take over
Leadership shake-up sees long-time hardware chief step up from September
CUPERTINO: Apple has confirmed that chief executive officer Tim Cook will step down from his role and transition to executive chairman, with senior vice president of hardware engineering John Ternus set to take over as CEO from September 1, 2026.
The transition, approved unanimously by the board, marks a carefully planned leadership shift at one of the world’s most valuable companies. Cook will remain CEO through the summer, working closely with Ternus to ensure a smooth handover before moving into his new role, where he will continue to support Apple and engage with policymakers globally.
In a memo to employees, Apple CEO Tim Cook reflected on his 15-year tenure, recalling the moment Steve Jobs asked him to step into the role. “It was an emotional and challenging moment for all of us at Apple,” he wrote, adding that the company’s core values, from simplicity and innovation to a commitment to improving lives, remain unchanged.
Explaining his decision, Cook said the company’s strong roadmap and future outlook made this the right time for a transition. “I have never been more optimistic about Apple’s future,” he noted, while announcing Ternus as his successor. He described Ternus as “a visionary in his own right” with “remarkable integrity” and the right leader to guide Apple into its next phase.
Cook said, “John Ternus has the mind of an engineer, the soul of an innovator, and the heart to lead with integrity and with honour.”
Ternus, in his own note to employees, struck a steady, execution-focused tone. Ternus said, “It has been such a privilege to lead the hardware engineering team… I still plan to be very hands-on,” signalling continuity rather than a strategic reset.
As part of the leadership reshuffle, Ternus will step away from leading hardware engineering, with Tom Marieb taking over the role. Marieb will report to Johny Srouji, who assumes an expanded position as chief hardware officer, aligning hardware development more closely with Apple’s silicon and technology teams.
Cook also used his memo to thank employees, calling them “the most remarkable people in the world” and crediting them for building Apple into what it is today. A town hall has been scheduled at the Steve Jobs Theater to discuss the transition further.
The leadership change also sees Arthur Levinson move to the role of lead independent director, while Ternus joins Apple’s board.
Cook’s tenure has been defined by massive growth and expansion, with Apple’s market value rising from around $350 billion in 2011 to $4 trillion, alongside the launch of new product categories and a booming services business. Ternus, a 25-year Apple veteran, has played a central role in shaping the company’s hardware roadmap, from iPhone and Mac to newer innovations in materials and sustainability.
The transition signals a generational shift, but not a dramatic change in direction. If anything, both memos point to continuity, discipline and a belief that Apple’s next chapter will be built on the same values that shaped its last.
