MAM
US ad spend to grow by 2.7 per cent: TNS
MUMBAI: Total US ad spending is expected to increase 2.6 per cent in 2007 to $153.7 billion, according to the full-year forecast released by TNS Media Intelligence which provides strategic advertising and marketing information.
This anticipated tepid gain is the smallest since the media economy emerged from its 2001 recession and follows estimated advertising spending growth of 3.8 per cent in 2006.
Ad expenditures are forecast to increase by just gain of 3.2 per cent in the second half, paralleling an expected late year uptick in overall economic activity.
TNS Media Intelligence president and CEO Steven Fredericks says, “Our outlook for 2007 is tempered by the absence of two biennial advertising events, the Olympics and federal elections, which tend to contribute an incremental 80-100 basis points to growth rates. More significant, we expect share of total ad spending will continue to shift away from the top 100 marketers, as media fragmentation enables more brands with smaller media budgets to participate in the market, while concurrently helping dampen media price inflation.
“Based on our forecast, 2007 is poised to be the third consecutive year in which the advertising sector more closely tracks growth in real GDP as opposed to its historical reference mark of nominal GDP. The forces driving this new pattern appear to be sustaining and there is little reason to believe a return to the old order will be forthcoming.”
Internet display advertising is expected to continue growing at double-digit rates in 2007 with syndication TV, outdoor and magazines also exceeding the overall market average. Network TV is projected to be almost flat versus 2006, while newspapers and spot TV are expected to experience outright declines in ad revenue.
Brands
Airtel, Jio, Vi quietly raise tariffs with tweaks ahead of major hike
Airtel, Jio and Vi test subscriber response with subtle plan changes
NEW DELHI: India’s top telecom operators, including Bharti Airtel, Reliance Jio and Vodafone Idea, are quietly reworking their prepaid plans in what appears to be a calculated run-up to a broader tariff hike expected later this year.
Rather than announcing headline-grabbing price increases, the operators are opting for subtle tweaks that are less likely to trigger immediate consumer backlash. Industry observers describe this as a “testing the waters” approach, where small changes help gauge subscriber sensitivity while gradually improving revenues.
Among the most visible moves is plan pruning. Airtel has discontinued its popular Rs 799 pack, widely seen as a high-value offering, while nudging up the price of its Rs 859 plan to Rs 899. The changes may seem marginal, but across millions of users, they translate into meaningful revenue gains.
Reliance Jio, on its part, has taken a sharper route by slashing the validity of its Rs 195 plan from 90 days to just 30 days. The price remains unchanged, but the value per day has dropped steeply, effectively raising costs for consumers without altering headline tariffs.
Meanwhile, Vodafone Idea is restructuring its “NonStopHero” packs, limiting unlimited data benefits to night hours in several circles. The move trims usage flexibility while keeping plan positioning largely intact.
Another common tactic is bundling. Operators are increasingly pairing plans with OTT subscriptions such as streaming services, framing price adjustments as value additions even when the core offering remains largely unchanged.
The broader goal behind these moves is to lift ARPU (Average Revenue Per User), a key profitability metric in the telecom business. Airtel is targeting an ARPU of around Rs 300, up from roughly Rs 250, while Jio is under pressure to demonstrate stronger revenue growth ahead of a potential IPO. For Vodafone Idea, the urgency is more immediate as it seeks higher cash flows to fund 5G expansion and manage outstanding dues.
Industry estimates suggest that these incremental changes are a precursor to a larger, industry-wide tariff hike of 15 to 20 per cent, likely towards the end of 2026. The delay in announcing a full-scale increase is partly due to macroeconomic concerns, including inflation and volatile fuel prices, which could dampen consumer sentiment.
The push to monetise 5G is also gathering pace. After investing more than Rs 3 lakh crore in next-generation networks, operators are expected to gradually phase out free 5G data and reposition it as a premium service.
For consumers, the impact is already visible in small but steady increases in monthly bills. For telcos, however, this is a carefully choreographed build-up, easing users into higher spending before the bigger pricing reset arrives.
