Media agencies depend heavily on flagship clients

MUMBAI: Single flagship clients account for over one-fifth of revenue for many media agencies, showing a symbiotic long-term relationship between them.

Mindshare earned 20.3 per cent of its revenue in calendar year 2011 from Hindustan Lever, the largest advertiser in the Indian market. The FMCG major’s media spend in 2011 was $214.7 million, handled entirely by Mindshare which had total billings crossing the $1 billion mark in the year, RECMA’s (Research Company Evaluating the Media Agency Industry) global billings report shows.

Incidentally, HUL has marginally scaled down its media spends in 2011 due to the slowdown in the Indian economy. The company had spent $241.9 million in 2010 to promote its rich and diverse reach of brands cutting across all segments.

The GroupM agency’s other clients in India include Pepsico, GSK, Nike, Ford, Star Network, ICICI, Lenovo, Kellogg’s, IBM, Nestle, and Aditya Birla Capital.

Brand Media Expenses* Media Agency Total Billing*2011 % contributed by Brand
  2011 2010      
Hindustan Lever 214.7 241.9 Mindshare 1050 20.30%
LG 56.2 77 MEC 300 18%
Maruti Udyog 61.3 65.5 LMG 430 14.25%
Nokia 58.7 58.5 Maxus 570 10.20%
Pantaloons Retail 65.6 74.2 Allied Media 235 27.90%
Reckitt  64.7 80.2 ZenithOptemedia 295 21.90%
Samsung 81.8 60.2 Starcom 275 29.70%

ZenithOptimedia, which had grossed a billing of $295 million in 2011, got 21.9 per cent of its revenue from Reckitt Benckiser. The company had spent $64.7 million in 2011 as compared to $80.2 million in 2010, according to RECMA. It has brands like Harpic, Air Wick, Calgon, Veet, Boots Healthcare, Nurofen, Strepsils, Clearasil, Adams Respiratory.

The Samsung business accounted for 29.7 per cent of Starcom’s billing of $295 million in 2011. The Korean company spent $81.8 million in 2011, up from $60.2 million in the previous year.

Allied Media, with a net billing of $235 million, made 27.9 per cent of its revenue from Pantaloons Retail, RECMA report shows. Pantaloons Retail had a media spend of $65.6 million in 2011, down from $74.2 million a year ago.

GroupM’s MEC derives 18.73 per cent of its revenue from LG Electronics. Out of MEC’s billings of $300 million in 2011, the consumer electronics major shelled out $56.2 million towards media in 2011. LG has also cut its media spend by almost 27 per cent ($77 million in 2010), according to RECMA.

Lintas Media Group got 14.25 per cent of its revenue from Maruti Udyog that spent $61.3 million on media in 2011. This was lower than what the company had spent in the year 2010 which was 65.5 per cent. Maruti Suzuki, Magyar Suzuki, M-800, Omni, Alto, WagonR, Swift, Dezire, Esteem, Zen, Estilo, SX4, Grand Vitara and Versa are the brands that run under the brand.

GroupM’s Maxus earned 10.26 per cent of its total billing of $570 million in 2011 from its Nokia account. The mobile phone handset maker Nokia spent $58.7 million on media, almost the same ($58.5 million) as in 2010.

Latest Reads
Ogilvy India makes key top-level appointments

MUMBAI: Advertising agency Ogilvy India has announced the appointment of Prem Narayan as its new chief strategy officer and Balagopalan Ganapathy as the new head of planning, Ogilvy Mumbai. Narayan and Ganapathy have started in their respective roles with immediate effect.

MAM Media and Advertising People
SVG Columbus debuts with big wins at IAMAI's 8th India Digital Awards

SVG Columbus has been honoured with 2 Golds and 1 Silver by the Internet & Mobile Association of India (IAMAI) on its debut. For the record, SVG Media was acquired by Dentsu Aegis Network in April 2017. Post the acquisition, SVG Media launched Columbus – an agency focused on Data Driven...

MAM Marketing MAM
81% Indians find ads intrusive: KMB study

MUMBAI: A well-executed multichannel campaign is a thing of beauty. But over one in four of the campaigns we see are not well integrated, and consumers are much more critical than marketers about campaign connectivity. Also, less than half of all campaigns take full advantage of different channels...

MAM Marketing MAM
Vivo YouTube campaign saw better response using Vogon

MUMBAI: Chinese smartphone brand Vivo rolled out a digital campaign - ViewTube, giving a new wave to YouTube’s ongoing TrueView Ads. With the launch of its V7 model, Vivo leveraged Google’s Director Mix tool to launch a campaign that offers a unique creative solution to gauge higher viewer...

MAM Marketing MAM
Big Bazaar launches game to promote R-day sale

MUMBAI: Hypermarket chain from Future Group, Big Bazaar, has created a mobile game to promote its mega property, ‘Big Bazaar Sabse Saste 5 Din’. Designed and executed by L & K Saatchi & Saatchi, Big Bazaar’s innovative deal game is set to transform the shopping experience in India....

MAM Marketing Brands
Inito gives anxious couples hope through its new ad

The desire to have children is something that is harboured by millions of couples. But, in the eagerness to do so, many times this whimsical process ends up becoming strenuous and stressful for many. In order to help beat the woes for many such couples, Inito, a medical technology company, has...

MAM Marketing Brands
Vernacular content consumers to be 2.5 times English by 2021: Deloitte

MUMBAI: Deloitte India has launched the eighth edition of its report on technology, media and telecommunications which predicts major advances in machine learning, voice over LTE (VoLTE) technology services and over-the-top (OTT) platforms, apart from other trends.

MAM Marketing MAM
IAA's new initiative seeks to end rigidity in office timings

A new social initiative titled #WorkToLiveToWork has been undertaken by the International Advertising Association’s (IAA) India chapter with Nandini Dias, managing committee member of IAA and CEO of Lodestar India, at the helm. Dias lost two colleagues in separate accidents related to railways...

MAM Media and Advertising People
PVR promotes cleaner air

MUMBAI: Cinema exhibition company PVR Pictures has launched a new campaign called, #BeTheCommuter with an aim to promote clean air and curb pollution.

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories