MAM
Pitch Madison projects 2014 to be a good year for media ad spends
MUMBAI: The year 2014 is expected to be one of the best years of recent times for media advertising, including for television.
Pitch Madison Media’s advertising outlook for 2014 estimates media advertising spends in 2014 to grow 16.8 per cent to Rs 37,216 crore from Rs 31,877 crore in 2013, with the biggest contribution of Rs 5,000 crore to this growth coming from elections to the Lok Sabha and to assemblies of four major states including Maharashtra.
Advertising spends on television are expected to grow well because of increased penetration of digitisation, as ad rates increase because of restricted supply with the enforcement of the 12 minute per hour cap on advertisements and with many new channel launches once the licences are issues after the Lok Sabha elections.
The advertising spends on television in 2014 are expected to grow by a robust 15 per cent in 2014 to Rs 14,282 crore from Rs 12,419 crore in 2013. The growth in advertising spend on television was 8.2 per cent against the projected 6 per cent.
The advertising spend outlook for 2014 contrasts that of 2013, when the watchword was caution. The prediction for growth of media advertising in 2013 was 7.4 per cent but the actual growth turned out to be higher at 11.1 per cent.
On television, the completion of digitisation in the top 42 cities in 2013 led to increased spending on niche channels, SD and HD channels and also local advertising options due to split runs across channels.
According to the Pitch Madison advertising outlook, the proliferation of channels from existing bouquets will increase inventory availability at higher rates.
Television’s share in the total ad spend in 2014 is projected to fall to 38.4 per cent from 39 per cent in 2013. Television’s share in the advertising pie was 42.1 per cent in 2011 and 40 per cent in 2012.
Though the growth in advertising spends on television seems to be healthy enough for the TV industry, increasing popularity of the internet is likely to cut down the share of television in total advertising spends.
In 2013, out of 15 categories of advertisers, advertising spends by seven of them showed a dip implying that advertisers are losing interest in television-based advertisements.
Media, retail, alcoholic beverages and corporate have registered a negative growth of advertising spends on television in 2013 and only fast moving consumer goods emerged as the driver of growth for advertising on television.
Print has shown immense promise and in 2014, regional dailies are expected to continue their onward march and grow at a faster rate at the expense of English dailies. In 2014, advertising in print is expected to grow by 17 per cent to Rs 15,405 crore. In 2013, print advertising spend had grown by 10 per cent and in 2012 by only 4.0 per cent.
Radio is expected to grow by another 15 per cent. Consolidation within radio will take place due to the expected phase III auction rollout. Digital will continue to grow stronger at 29.5 per cent, outdoor medium is set to grow by 8.2 per cent and cinema by 7.2 per cent.
The outlook said it was time for the medium to reinvent itself for the advertiser.
The digital medium will pull in a total of Rs 3,950 crore in 2014, which is Rs 900 crore more than Rs 3,050 crore in 2013. The growth in advertising spends on the digitial medium has however subsided from around 50 per cent from 2009 till 2012. In 2013, the growth on digital dropped to 32.4 per cent.
The digital medium’s share in the total advertising pie will rise to 10.6 per cent from 9.6 per cent in 2013, 8 per cent in 2012 and 5.6 per cent in 2011.
Due to the economic slowdown, marketers have scrutinised each and every penny spent and internet being a return on investment medium, it is becoming the preferred choice for them. The growth in online advertising is expected from FMCG, automobile and banking sectors.
For radio, the growth in advertising spends in 2013 was 17.96 per cent against the projected 4 per cent. Looking at the growing faith of advertisers in this medium, the outlook projects 15.04 per cent growth in advertising on radio in 2014, with the total advertising spends adding up to Rs 1,262 crore against Rs 1,097 crore in 2013.
Brands
Raj Cooling Systems launches Agreyas appliances brand
Emraan Hashmi named brand ambassador for consumer appliance push.
MUMBAI: A company known for cooling solutions is now heating up its ambitions in the home appliances market. Raj Cooling Systems Pvt. Ltd. has launched a new consumer appliances brand, Agreyas, marking its entry into India’s rapidly expanding home appliances sector valued at more than Rs 1.5 lakh crore. The move represents a strategic diversification for the company, which has traditionally focused on cooling solutions for residential, commercial and industrial applications. Through Agreyas, the firm plans to tap into growing consumer demand for energy efficient and technology driven household appliances.
To build brand visibility, Agreyas has appointed Emraan Hashmi as its brand ambassador. The campaign has been developed under the banner of Zoommantra Productions, with actor and filmmaker Rohit Roy contributing to the creative direction.
The brand’s initial portfolio will include mid premium air conditioners, washing machines, geysers and other white goods designed to cater to modern Indian households seeking efficient and reliable appliances.
Raj Cooling Systems, founder and chairman Kalpesh Ramoliya said the launch aligns with the company’s broader expansion plans.
“The launch of Agreyas is in line with our vision to build a strong presence in India’s consumer electronics and home appliances market. The brand has been developed as a standalone identity to meet the evolving needs of Indian consumers,” he said.
Hashmi said the collaboration comes at a time when Indian buyers are increasingly looking for innovative and functional home solutions.
“I’m looking forward to working with Agreyas at a time when consumers are seeking more innovative and efficient home products. The brand reflects changing consumer behaviour around functionality, innovation and ease of use,” he said.
Raj Cooling Systems plans to invest around 10 million dollars in developing the brand, with an additional 5 million dollars earmarked over the next three to five years for product development and distribution expansion.
Agreyas will follow a multi channel distribution approach, selling through online platforms, retail outlets and dealer networks aimed at both urban and semi urban markets across India.
With the launch, the company is positioning Agreyas as a standalone consumer facing brand while continuing to leverage its existing manufacturing, engineering and research capabilities built through its core cooling solutions business.
