MAM
Forbes.Com delivers on ad RoI guarantee; Net advertising looking up
MUMBAI: A number cruncher might claim not be too impressed but Internet advertising looks to be on the up and up. For those who can deliver quality that is.
First some numbers. Internet ad revenue in the United States was $5.95 billion in 2002, a 17 per cent decrease from 2001, according to trade group Interactive Advertising Bureau. Also, Net ad revenue was $1.5 billion for fourth-quarter 2002, down 9.8 per cent from fourth-quarter 2001, the IAB has said in a report released with PricewaterhouseCoopers.
There is an upside though. Ad revenue rose 2.3 per cent in the fourth quarter from the third, the IAB reported. “Those who monitor the industry know that a few predominant factors contributed to the [year-over-year] revenue decline, including the conclusion of some long-term advertising deals. What’s important to recognize is that the majority of online publishers are profitable, and their revenues continue to rise year-over-year,” Greg Stuart, IAB president/CEO, was quoted as saying in a statement.
“The improved performance over the past two quarters reflects a stabilizing online advertising market, highlighted by continued strength in paid-for-search results. The recent upturn, coupled with forecasts of continued expansion of broadband distribution, bodes well for a strong year in 2003” said Tom Hyland, Chair, PricewaterhouseCoopers New Media Group.
The report is based on data from the top 15 online ad sellers, which account for 80 percent of online ad sales, the IAB said.
Coming to the quality issue, forbes.com is a case in point. Last September, forbes.com introduced a “brand increase guarantee” scheme wherein it announced it wouldn’t charge advertisers for placements that prove completely ineffective.
The offer was only made available to advertisers willing to spend $100,000 (enough for a measurable quantity of impressions) and run campaigns for two months before the tests were conducted to determine whether the advertising has worked. The guarantee was that the advertising would boost at least one of four brand metrics: awareness, message association, purchasing intent and brand favorability, as measured by Dynamic Logic.
Blue chip marketers like AT&T, Samsung, Acura, LG and BearingPoint were among those that bought into the idea and forbes.com says none of them have come away disappointed.
The aggregated results of the program show a lift in each of the four brand metrics measured as follows:
Message Association: +28%
Purchase Consideration: +14%
Aided Awareness: +11%
Brand Favorability: + 6%
Brands
Kwality Wall’s reports standalone losses following strategic HUL demerger
Ice cream major faces Rs 64 crore Ebitda loss amid commodity inflation and muted Q3 sales
MUMBAI: Kwality Wall’s (India) Limited (KWIL) has released its first set of financial results as a standalone entity, revealing a challenging start to its independent journey. Following its successful demerger from Hindustan Unilever Limited (HUL) on 1st December 2025 and its subsequent listing on 16th February 2026, the company is navigating a transition period marked by structural changes and high input costs.
For the quarter ended 31st December 2025, the company reported revenue of Rs 222 crores. Despite the revenue base, the bottom line was impacted by several factors, resulting in an Ebitda loss of Rs 64.2 crores. When calculated on a Pre-IND AS 116 basis, the Ebitda loss stood at Rs 83.8 crores.
Organic Sales Growth (OSG) declined by 6.5 per cent year-on-year during the quarter. Volume growth, however, saw a marginal increase of 1.2 per cent. The company reported a gross margin of 41.5 per cent. Additionally, exceptional expenses amounting to Rs 94 crores were recorded, primarily linked to non-recurring costs during the transition phase.
Performance across portfolios and channels was mixed. Within the impulse portfolio, brands such as Magnum and Cornetto recorded mid-single digit volume growth, indicating steady demand in on-the-go consumption. However, the in-home portfolio, which includes take-home packs, experienced muted consumption. The company is planning a relaunch of this category with improved offerings ahead of the 2026 season.
Quick commerce (Q-Com) continued to emerge as a strong growth driver, delivering robust double-digit growth during the quarter. Meanwhile, the company also expanded its physical distribution network by increasing the number of company-owned cabinets across markets.
Margin pressure during the quarter was driven by a combination of one-off factors and broader cost inflation. Gross margins were impacted by around 600 basis points due to trade investments made for stock liquidation. Additionally, cocoa price inflation contributed to another 400 basis points of pressure on margins.
Deputy managing director Chitrank Goel attributed the muted performance partly to prolonged monsoons and transitional challenges linked to the GST framework. Operating expenses also increased as the company invested in establishing its standalone supply chain, operational systems and corporate infrastructure following the demerger.
Looking ahead, the management remains focused on a volume-driven growth strategy. To restore profitability, the company has initiated a cost productivity programme aimed at reducing non-consumer-facing costs. It is also working on building regional manufacturing networks to optimise logistics expenses and improve operational efficiency.
The commodity outlook for the near term remains mixed. Dairy prices are expected to remain firm due to tight supply conditions and rising fodder costs. Sugar prices may also move higher following increases in the Minimum Selling Price (MSP). While cocoa prices have moderated recently, currency depreciation has offset some of the potential cost relief for the company.
