MAM
Mobile third largest ad medium; may grow to Rs 10,000 cr by ’18
MUMBAI: The Mobile Marketing Association (MMA), in association with GroupM, one of India’s largest media and marketing conglomerate, has released a report on the mobile marketing ecosystem in India. Called the ‘Mobile Ecosystem and Sizing Report’, this report states that the mobile medium is the third largest mass media in India in terms of ad spends, after television and print. The ad spends on mobile media is estimated to be Rs. 4200 crore by the end of 2016, and is expected to grow to Rs. 10,000 crore by end of 2018.
The report is an endeavour to decode the burgeoning Indian mobile market in terms of reach of the medium, rural-urban divide in-terms of usage habits and increasing mobile data usage. The report takes into account the mobile service providers and handset manufacturers ecosystem as well. It is a collaborative effort by the marketing and mobile industry, championed by the research team at GroupM India.
The growing use of mobile in rural media-dark markets has made brand marketers look at increasing their ad spends on mobile marketing. While spends are increasing, organizations are still evolving in terms of familiarity with mobile marketing. Industry sectors such as e-commerce and BFSI are leading the way in mobile advertising, while sectors such as FMCG are now going beyond the SMS and IVR-based mobile solutions The report also brings in perspective on the role of local language in enabling the next spurt of growth in rural India.
CVL Srinivas, CEO, GroupM South Asiasaid, “It is clear that brands cannot ignore the power of the small screen. It may be the third largest (after TV and print) in terms of ad spends but is by far the leader in terms of time spent and consumer engagement.”
PepsiCo India Holdings chairman and CEO, D Shivakumar, said, “MMA felt there was a distinct need for a single comprehensive report that covers the mobile marketing ecosystem in India and provides insights to marketers to help them make sharper decisions.”
“Marketers are aware that mobile is arguably the closest you can get to the consumer with its powerful promise of ‘immediacy’. The consumer is getting steadily used to everything in the ‘now’ with regards to content, commerce, information or utilitarian. This very concept has transformed the mobile into a tool of action and transaction,” said Mobile Marketing Association India manager, Preeti Desai.
2015 has been a good year for mobile subscriber growth in India. Over 60 million new mobile subscribers were added since the start of year, at an average 5 million subscribers added every month. This was a 20% growth in comparison to 2014. Research has found that in the last 5 years, rural tele-density in India has increased by 60%; rural mobile internet subscriber saw a 90% YOY growth in 2015 and they are using the internet primarily with their mobile phones.
In terms of usage, the report clearly states the varied usage patterns between urban and rural consumers. While urban consumers are adopting 3G and 4G technology at a much faster rate, the growth spurt in new technology and smartphone penetration is coming from the Tier 2, Tier 3 and rural markets. There is a high demand for affordable smartphones in rural markets, as mobile phones are replacing or supplementing TV as an important entertainment and marketing medium, alongside other traditional communication methods. Handset manufacturers are also looking at developing distribution channels to meet this high demand and thus as seen in the report, eTailers are gaining significance where 29% of smartphone purchases in 2015 happened via e-commerce channels.
This increase in higher speed data penetration along with growth in smartphones will lead to data driven marketing. It is also reported that traditional TV players are getting more vertical with OTT driving the case for mobile as the stronger secondary screen. [Leading video publishers have seen watch-time in India grew 80% over the last one year, of which 55% of the watch time was on mobile. 90% content upload on these services was from mobile as well]. All this could mean that Native and Video formats are set to dominate mobile marketing in the years to come. Consumers look at Native ads 53% more often than they look at traditional mobile display ad. Also, mobile based audio and video streaming apps provide measurable reach, with 100+ million monthly active user base in India according to the report.
MMA’s objective through this report is to give the readers a comprehensive view of the mobile marketing ecosystem in India and the various factors that influence it like the various mobile marketing channels, the mobile marketing landscape and the growing subscriber, internet and app user base. It also highlights some of the case studies that readers of the report can leverage to better understand the medium from a marketing perspective. Going forward, MMA also plans to follow up with a second report that will deep dive on topics like use of location and other signals on mobile for predictive analytics and intelligence and mobile measurability.
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.
