MAM
Indian TV ad spend in 2002 up 11% to Rs 39 billion
MUMBAI: The buzz phrase of the new century may not be “integrated marketing” after all, but rather “Show me the gross ratings points!”
The total Indian ad spend on television in the year 2002 was Rs 39.09 billion (up 11.71 per cent) as compared to Rs 34.99 billion in 2001, says TAM India. The size of the Indian ad industry also grew from Rs 87.99 billion to Rs 95.09 billion in 2002.
In India, the total number of spots on TV stood at 4,408,401 by September 2002 as compared to 3,227,880 in the whole of 2001, says TAM India.
Spends (Rs billion) in different media as per TAM India
|
Year
|
TV
|
Press
|
Others
|
Total ad spend
|
|
2002
|
39.09
|
44.00
|
12.00
|
95.09
|
|
2001
|
34.99
|
42.00
|
11.00
|
87.99
|
Source TAM India estimates for 2002
The World Cup cricket spend on TV is estimated to be in the region of Rs 4.5 billion. In the fiscal year ending 31 March 2003, the spend on TV will shoot up due to the cricket World Cup and aggressive promotions by several general entertainment TV channels.
Meanwhile, in the US, a survey by Morgan Anderson Consulting finds that an overwhelming majority of big marketers in the US plan to spend more on TV in 2003 than in 2002. The Morgan Anderson survey of the top 100 US advertisers found that 63 per cent plan to spend more on TV in 2003, while only 15 per cent plan to spend less and 22 per cent plan to spend the same.
Quoting the US-based Morgan Andersen Consulting study, an adage report states that the direct-to-consumer mantra pushed global TV ad rates up rapidly in the late 1990s and early 2000 when terms such as integrated marketing and holistic marketing increasingly gained currency with traditional marketers.
The report also mentions that big advertisers in different parts of the world returned to TV in a big way post the dotcom era. Marketers will always go with the things they have the most confidence in and have experience with, and television would tend to be that. Media consultants believe that troubled times lead marketers to fall back on the security of TV.
Yet, media buyers and industry watchers aren’t ready to lay to rest integrated marketing or their concerns about the long-term viability of TV advertising. During her recent India visit, WPP Media worldwide head of consumer insights Sheila Byfield states that the youngsters across the globe are watching less TV. “In fact, television, radio and print media are under threat as far as the younger audiences are concerned,” adds Byfield.
Others proclaim that spending more doesn’t mean shifting the focus to TV!
An adage report states that Unilever increased global marketing spending by a whopping $625 million, or 1 per cent of sales, globally in 2002, but continued a long-term movement to reduce dependence on TV. TV as a percentage of Unilever’s media budget globally fell from around 90 per cent in the late 1990s to 75 per cent in 2002.
In India, several space sellers say that Hindustan Lever has started using print much more than in the past. Perhaps, the umpteen promotions and special offers to woo consumers has something to do with this emerging trend, says a media expert.
In India, it looks as the World Cup cricket 2003 has ensured that the medium of television has begun the year well. That begs the question – after the World Cup what?
Brands
Estée Lauder to shed 10,000 jobs as new boss bets on digital shift
The cosmetics giant raises its profit outlook but stays silent on a possible merger with Spain’s Puig, as job cuts deepen and a three-year sales slump weighs on the turnaround
NEW YORK: Stéphane de La Faverie is not done cutting. Estée Lauder announced on Friday that it plans to eliminate as many as 3,000 additional jobs, taking its total redundancy programme to as many as 10,000 roles, up from a previous target of 7,000 announced a year ago. The company, which owns La Mer, The Ordinary, Tom Ford, and Aveda, employs roughly 57,000 people worldwide. The mathematics of what is now being contemplated is stark.
The fresh round of cuts is expected to generate a further $200 million in savings, bringing the total annual savings from the programme to as much as $1.2 billion before taxes. That money, De La Faverie has made clear, will be ploughed back into the turnaround.
A CEO in a hurry
De La Faverie, who took the helm in January 2025, inherited a company that had endured three consecutive years of annual sales declines. His response has been to move fast and cut deep. A significant portion of the latest redundancies reflects his push to reduce headcount at US department stores, long a cornerstone of Estée Lauder’s distribution model but now a channel in structural decline. In their place, he is accelerating the shift toward faster-growing online platforms, including Amazon.com and TikTok Shop, a pivot that is reshaping not just where Estée Lauder sells but how it thinks about its customers.
The numbers are moving in the right direction
Despite the pain, there are signs the medicine is working. Estée Lauder raised its profit outlook for the remainder of the fiscal year, guiding for adjusted earnings per share in the range of $2.35 to $2.45, above analyst estimates and a notable step up from the $2.05 to $2.25 range it had guided for in February. Organic net sales growth is expected to come in at 3 per cent, the company said, at the high end of the range it set out in February.
The share price tells a mixed story. After De La Faverie took charge, the stock surged nearly 60 per cent, buoyed by investor optimism that a longtime company insider could finally arrest the decline. But 2026 has been rougher: the shares have fallen 27 per cent this year, weighed down by disappointing February results and the overhang of unresolved merger talks with Spanish beauty giant Puig Brands SA. The company gave no additional details about those discussions on Friday, leaving the market to guess.
Silence on Puig
The proposed tie-up with Puig remains the most consequential unknown hanging over Estée Lauder. A deal with the Barcelona-based group, which owns brands including Carolina Herrera and Rabanne, would reshape the global luxury beauty landscape. But with nothing new to say and a turnaround still very much in progress, De La Faverie is asking investors to trust the process.
Three years of sales declines, 10,000 job cuts, and a merger that may or may not happen. At Estée Lauder, the overhaul has barely started.
