MAM
Madison for astute use of radio by advertisers
MUMBAI:Car owners may not turn out to be the largest audience segment for radio in the country, but they are the ones that advertisers are most likely to target, if a Madison study is to be believed.
In its latest media newsletter, Madison says that it is not important whether in-car listeners form the bulk of listenership base. Radio worldwide has been the best medium to target upwardly mobile high spending executives and business people, says the study. Quoting previous studies, Madison says that in-car listeners have proved to be light consumers of other media like television, making radio a very effective medium to reach. Research by Radio Advertising Bureau, UK indicates that contrary to popular myth, nearly 85 per cent of in-car audience do not shift stations frequently while driving.
The Madison study points out that in other markets, many successful service brands, especially those in office supplies and financial services have benefited by judicious use of radio. The study notes that campaign efficiency increases by around 15 per cent if 10 per cent of a given TV budget can be re-deployed by advertisers on to radio.
For advertisers keen to employ radio as a secondary medium, Madison has some good news. Quoting a Statistical Research Inc study, it says that Imagery Transfer helps three out of four consumers who have watched a TV spot ‘replay’ the visual image mentally when they hear a radio commercial for the same brand. Another series of studies called ‘distraction study’ tried to simulate the fact that radio listening is always secondary activity. These tests also indicated that listeners were able to create and keep images fresh and top of mind even when engaged in other tasks.
Sonic branding, where aural brand elements are used, is also very effective in sustaining brand recall, says the study. Citing the example of Britannia’s Ting-ting-ti-ting campaign, the study says that creation of sonic branding reduces long term cost of advertising, as one need not air the complete commercial to register recall.
While spots of 45 seconds or more are effective on radio, research also indicates that the fatigue factor is high with radio commercials – a factor that can be countered with copy variations, says the study.
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.
