MAM
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.
MAM
Havas acquires Berlin agency Styleheads in Playnetwork push
Acquisition strengthens Havas Play’s push in music, sport and creator culture
PUTEAUX: Havas has acquired Berlin-based cultural marketing agency Styleheads, strengthening its push into creator-led brand activations and cultural marketing in Germany.
Styleheads will join the Havas Media Network in Germany and expand the capabilities of the group’s global Havas Playnetwork, which focuses on building brand connections through passion points such as music, sport, gaming, fashion and lifestyle.
As part of the integration, Havas Play and Styleheads will operate under a single leadership structure. Eike Faecks, managing director of Styleheads, will take strategic and operational leadership of Havas Play across all German locations, bringing the group’s activation, creator expertise and cultural marketing activities under one umbrella.
Founded in 2001, Styleheads is a full-service communications agency specialising in cultural marketing. The Berlin-based firm develops campaigns, live events and creator partnerships for brands across fashion, lifestyle, FMCG and entertainment.
Havas said the partnership will allow Styleheads to tap the group’s global network and resources while retaining its Berlin base and independent brand identity.
The combined model blends Styleheads’ strengths in culture-led campaigns, creators and live activations with Havas Media’s integrated capabilities across media, data and strategy.
“I am delighted to welcome Eike Faecks and the entire Styleheads team to the Havas family,” said Yannick Bolloré, chairman and CEO of Havas. “Their leadership in cultural marketing and creator-driven activations perfectly aligns with our ambition to build the most innovative and culturally relevant activation offer in the market.”
Sven Traichel, CEO and country manager of Havas Media Germany, said the acquisition would strengthen the group’s activation capabilities. “Placing Havas Play under their leadership reflects the high quality and added value their team brings,” he said.
Faecks said the partnership would allow Styleheads to scale its cultural marketing approach globally while preserving its creative independence.
