Brands
TAM report: Aakash Byjus was the top brand in print during Jan-Jun’23
Mumbai: TAM India has released a report on print advertising for the period Jan-Jun 2023 vs Jan-Jun 2022.
Ad Space in first half of 2022-23 grew by 36 per cent and 43 per cent compared to same period of 2021 respectively. In H1 2023, ad space increased five per cent over the corresponding period in 2022.
The education sector dominated with 19 per cent of the ad space share in print medium, followed by services with 16 per cent. Top three sectors together accounted more than 45 per cent share of ad space in print.
Top ten categories together accounted 43 per cent share of ad space in print. Five out of top 10 categories moved up in ranking during Jan-Jun’23. Only retail outlets – jewellers and retail outlets – electronics/durables category maintain its rank in H1 of year 2022-23.
Three out of top ten categories were from retail and education sectors each.
Maruti Suzuki India topped the advertisers’ list in print followed by SBS Biotech. Six of the top ten advertisers from Jan-Jun’22 were still in the Top ten of Jan-Jun’23. Ranking of MG Motors India and Allen Career Institute shot up to the top ten list of Jan-Jun’23 compared to Jan-Jan’22.
Aakash Byjus was the top brand in print during Jan-Jun’23 followed by FIITJEE. During Jan-Jun’23, there were a total over 108k brands advertised in print. Among the top ten, two brands were from personal accessories and durables sectors and three from education sector.
Coaching/competitive exam centre saw the highest ad space growth i.e. 98 per cent increase, followed by multiple courses which grew by 70 per cent during Jan-Jun’23 over Jan-Jun’22 respectively. In terms of growth percentage, ecom-gaming category witnessed highest growth per cent among the top ten i.e. 3.21 times in the Jan-Jun’23.
Over 51k advertisers & over 67k brands exclusively advertised during Jan-Jun’23 in print compared to Jan-Jun’22. Aura Services N V and Lotus365.com were the top exclusive advertiser and brand respectively in Jan-Jun’23 compared to Jan-Jun’22.
Sales promotion advertising covered 29 per cent share of ad space in print during Jan-Jun’23. Among sales promotions, multiple promotion was on top with 47 per cent share of ad space followed by discount promotion. Top two promotions solely covered more than 80 per cent share of ad space during year Jan-Jun’23.
Brands
Microsoft faces worst quarter since 2008 financial crisis
Cloud giant battles soaring AI costs and fierce competition from nimble startups.
MUMBAI: When the tech titan starts looking a little wobbly, even the Magnificent Seven can feel the tremors because Microsoft is currently starring in its own sequel, “Clouds and Doubts.” Microsoft is on track for its worst quarterly performance since the 2008 global financial crisis, according to Bloomberg, as investors grow increasingly uneasy about rising capital expenditure and intensifying competition from nimble AI firms. The company has been pouring money into AI infrastructure, yet markets are questioning when these hefty investments will finally deliver stronger revenue growth.
At the same time, investors are shifting away from traditional software stocks amid fears that AI startups such as Anthropic and OpenAI are developing autonomous agents capable of replacing established products, including those from Microsoft. Jonathan Cofsky, portfolio manager at Janus Henderson Investors, noted growing concern that customers may bypass Microsoft and deal directly with AI vendors, potentially disrupting its core business and putting pressure on pricing and margins.
Microsoft’s stock has tumbled 25 per cent in the first quarter, putting it on course for its largest drop since a 27 per cent fall in the fourth quarter of 2008. It has also emerged as the weakest performer among the so-called Magnificent Seven technology stocks, while a broader index tracking the group has fallen 14 per cent over the same period. The shares slipped a further 1.7 per cent after markets opened on Friday, marking a potential fourth consecutive session of declines.
Cofsky pointed out that Microsoft has become more capital intensive and that improved investor confidence will hinge on assurances that software growth will not slow materially. Despite the sell-off, the stock is now trading at less than 20 times projected earnings over the next 12 months, its lowest valuation level since June 2016. Its valuation remains slightly above that of the S&P 500 Index, although it has recently traded at a discount to the broader benchmark for the first time since 2015.
Bloomberg data shows Microsoft’s capital expenditure, including leases, is expected to surge to $146 billion in fiscal 2026, up around 66 per cent from $88 billion in fiscal 2025. Spending is projected to climb further to $170 billion in fiscal 2027 and $191 billion in fiscal 2028, based on average estimates. Investors are growing cautious about such levels of spending without clearer signs of stronger growth.
Microsoft’s Azure cloud division has reported a slight slowdown in growth compared with the previous quarter, while its Copilot AI product has seen limited user traction, prompting internal changes aimed at improving performance. Ben Reitzes, an analyst at Melius Research, warned in a March note that Microsoft’s upside in Azure could be constrained as the company works to address challenges related to its AI models and Copilot offering, adding that these issues are unlikely to be resolved in the short term.
Of the 67 analysts covering Microsoft, 63 maintain buy ratings, three hold ratings and one a sell rating. The average 12-month price target of $592 implies a potential upside of more than 64 per cent, the highest on record based on data going back to 2009. The stock is also trading below its 200-day moving average by the widest margin since 2009.
Reitzes suggested the dominance of buy ratings may indicate complacency among analysts, while highlighting risks in Microsoft’s productivity and business processes segment as well as its More Personal Computing division. In contrast, Tal Liani of Bank of America reinstated coverage with a buy rating, citing durable multi-year growth prospects across cloud and AI. Jake Seltz, portfolio manager at Allspring Global Investments, maintained that Microsoft retains strong long-term value and that its AI strategy is likely to be validated over time, viewing near-term concerns as a potential opportunity for longer-term investors.
The report highlights a growing divergence in market sentiment, with optimism around long-term AI potential weighed against immediate execution risks and investor uncertainty. In the world of big tech, even the mightiest clouds can have silver linings but right now, Microsoft’s investors are scanning the horizon for clearer skies.
