MAM
WPP reports record ?1.5 billion annual profit
MUMBAI: For 2014, Martin Sorrell’s WPP Group reported a record ?1.5 billion annual profit in 2014, which was up by 12 per cent on reported revenue of ?11.53 billion, which was up 4.6 per cent year on year.
WPP, which owns agencies such as Ogilvy, J. Walter Thompson, and Milward Brown, said 2015 was off to a flying start. Like-for-like revenue in January rose 6.7 per cent, with like-for-like net sales up 3.9 per cent, which WPP says was stronger than the final quarter of 2014 and 2014 itself.
The agency expects to grow net sales by three per cent in 2015 and is looking at a headline operating margin target of 0.3 margin points, excluding the impact of currency.
WPP’s reported billings at ?46.186 billion, were up 6.8 per cent in constant currency driven by a strong leadership position in net new business league tables. On the other hand, WPP saw like-for-like revenue growth in all regions, led by strong growth in North America, United Kingdom and Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe, and by all sectors, with particularly strong growth in advertising and media investment management and branding and identity, healthcare and specialist communications (including direct, digital and interactive).
The group’s like-for-like net sales growth were at 3.3 per cent, with the gap compared to revenue growth more than the first half, as the scale of digital media purchases in media investment management and data investment management revenue continues to increase.
WPP saw EBITDA growth of 0.7 per cent, up 7.5 per cent in constant currency, reflecting currency headwinds, but giving 0.2 margin points improvement, to 19.0 per cent on net sales, with like-for-like operating costs (+3.1 per cent) rising slower than net sales.
PBIT increase of 1.1 per cent to ?1.681 billion, up eight per cent in constant currency was observed for the year. Net sales margin, a more accurate competitive comparator, up 0.2 margin points to an industry leading 16.7 per cent, up 0.3 margin points in constant currency, in line with target.
WPP saw exceptional gains of ?196 million largely representing gains on the AppNexus and Rentrak transactions completed in the second half, together with other gains of ?45 million, including gains on the re-measurement of the Group’s equity interests, partly offset by ?89 million of restructuring costs, ?39 million of IT transformation costs and ?7 million of investment write-downs, giving a net exceptional gain of ?61 million.
WPP was recognised again in 2014 for creative and effectiveness excellence with the award of the Cannes Lion to WPP for the most creative Holding Company, for the fourth successive year, since the awards inception and another to Ogilvy & Mather Worldwide, for the third consecutive year, as the most creative agency network. In another rare occurrence in the industry, in 2014 Grey was named Global Agency of the Year 2013 by both US trade magazines Ad Age and Ad Week. For the third consecutive year, WPP was awarded the EFFIE as the most effective Holding Company.
MAM
India’s experience economy grows as live events market hits Rs 17,000 crore
EY-Parthenon and BookMyShow report finds 78 per cent Indians prefer experiences over products
MUMBAI: India’s live entertainment scene is no longer just about music, comedy or festivals. It is increasingly becoming a powerful stage for brands seeking deeper connections with consumers.
A new report titled Beyond Attention, Into Immersion by EY-Parthenon and BookMyShow suggests that India’s experience economy is entering a strong growth phase, driven by consumers who are choosing memorable moments over material purchases.
According to the study, the country’s live events ecosystem, which includes concerts, comedy tours, festivals and immersive exhibitions, is estimated to reach around Rs 17,000 crore in 2025. The growth reflects a broader cultural shift in how Indians spend their time and money.
The report finds that 78 per cent of Indian consumers now prefer spending on experiences rather than physical products. From attending concerts and festivals to participating in interactive brand installations, audiences are increasingly seeking engagement, community and shareable moments.
This change in consumer behaviour is particularly evident among younger audiences who want to participate rather than simply watch. Instead of passively consuming entertainment, many now look for experiences that allow them to interact, express themselves and connect with like minded communities.
For marketers, this shift has turned experiential marketing into a strategic priority rather than a promotional add on. Brands are moving away from interruption driven advertising and towards immersive formats that allow consumers to discover, test and emotionally connect with products.
The report suggests that experiential marketing now plays a role across the entire consumer journey. It can spark brand discovery, strengthen storytelling, encourage product trials and ultimately influence purchase decisions and loyalty.
The impact is already visible. Post event surveys conducted among 7,450 attendees at major events including Lollapalooza India and concerts by Ed Sheeran and Guns N’ Roses highlight the effectiveness of these experiences.
Around 59 per cent of attendees recalled brands they interacted with during the events, while 55 per cent said those interactions increased their likelihood of purchasing from the brand. A further 63 per cent reported that brand activations actually enhanced their event experience rather than distracting from it. Nearly 29 per cent also said the interaction improved their perception of the brand.
Brands are also changing the way they approach events. Instead of simply putting logos on stages or banners, companies are building experiences into the fabric of the event itself.
Financial services brands, for example, are offering early ticket access, exclusive lounges and curated event experiences for cardholders. Fashion and beauty companies are using festivals to showcase products through pop ups, interactive installations and social media friendly spaces that encourage visitors to share their experiences online.
The scope of experiential marketing now stretches far beyond live entertainment. Retailers are designing experiential stores where customers can explore products in lifelike environments. Entertainment platforms are extending popular intellectual properties into immersive exhibitions and fan events. Technology is also playing a growing role through augmented reality and virtual try on tools that blend digital discovery with physical interaction.
Cultural festivals remain one of the most powerful platforms for such engagement in India. Celebrations such as Navratri and Holi bring together large communities, emotional participation and heightened consumer spending. For brands, these moments offer an opportunity to become part of the celebration rather than simply advertise around it.
Despite the momentum, the report notes that some companies still hesitate to adopt experiential marketing at scale. Budget constraints, limited expertise and uncertainty around measuring return on investment remain common concerns.
However, the growing body of data around consumer engagement and brand impact is gradually addressing these challenges. More marketers are expected to allocate a larger share of their budgets to experiential formats over the coming years.
Taken together, the findings point to a clear trend. As consumers seek meaning, memories and moments worth sharing, live experiences are emerging as one of the most powerful ways for brands to stay relevant in a crowded media landscape.
