“New media is hot buy today”

Media agencies have evolved from only buying print, tv, cinema, radio and outdoors to doing lots of digital buying, says Dnyanada Chaudhari.

As a media planner what is the environment like today and what are the fundamental challenges for professionals in this industry?

The fundamental challenges for us are that we need to keep up with the whole dynamism of the changing landscape. We have to be up and about regarding the changes taking place around us. Just look at the programmes on television today. Every month they are changing. As a media buyer we go where the consumers drive us and the consumers are buying into these changes. In such a dynamic media environment, we have got to keep up with the changing times and also figure out what’s going to last. So keeping your ears to the ground, assessing the changes and the kind of impact they will have on the industry, figuring out the long-term trends and dealing with lots of uncertainty around are the challenges we face today.

How would you describe the evolution of media buying agencies in the face of so much changes taking place in the sector?

I think the whole media consumption pattern is changing and a lot of new products have entered the market, which reflect the changes taking place around us. A lot of new advertisers with novel ideas and skills have come up, which is helping advertising to break new and fresh ground. Till sometime ago, the role of most media buying agencies was limited to only trading and buying media space for their clients. In recent times though, media agencies have taken on a more differentiated role. Media planning has become more focused and there is a much greater emphasis on getting returns for an investment made. So you will find there is a lot of conversation happening on ROI before a buying commitment is made. Similarly, a lot of analysis goes into assessing what the kind of impact would be for taking media space in the IPL or other large media properties. There are hard negotiations on buying terms and conditions besides getting clarity and understanding in terms of what works and what doesn’t.

What are the more visible trends that are impacting media consumption and how are media-buying agencies reacting to them?

Consumerism and technology are having a visible impact on the way we consume media. The impact of consumerism is not just on FMCG consumption but on a whole lot of other things, including media consumption. In the same way that rising consumerism has led to changing consumption patterns, technology is driving consumers to adapt in various ways leading to changes in the pattern of media consumption as well. For example, today mobile phones, which have deep penetration in the population, are used not just for chatting but for hearing songs, playing games, conducting financial transactions and so on. As such media buying agencies are now looking more to the potential of new media and not just at traditional media. The digital space has now become hot for both advertisers and sellers. So a lot of agencies have evolved from only buying print, radio, TV, cinema, outdoors to doing a lot of digital buying.


For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM Proves Its Mettle Once Again.....
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
Planman Technologies

Journey to the centre of the heart

The upcoming festive season with some favourable developments is expected to provide the much needed boost to the Gems & Jewellery sector in India.

Circa February 2011: It seemed as if the branded jewellery buyers’ sponsored honeymoon was over. After doing away with 2% excise duty on branded jewellery in 2009-10, Finance Minister Pranab Mukherjee, in the Budget 2011-12, had proposed to again levy a 1% excise duty on the same. Although 1% seems not too high for an excise duty rate, if one were to consider the same with the burgeoning gold and silver prices (while gold prices appreciated by around 30% in 2010, silver increased by a mind-boggling 80%), the multiplier effect was bound to burn a hole in the buyers’ wallets, and in turn the sellers’ pockets, with an imminent slowdown in sales. Even worse: the timing. While the sector was poised to grow at a CAGR of 40% to touch the Rs.100 billion mark by the end of 2011, the announcement was considered a major roadblock for the sector. Did all this hit the sector growth?

It’s been over six months since then and the sector seems to have weathered it all quite well. In fact, a 15.1% y-o-y growth in total exports of gems and jewellery from India during April-June 2011 shows that there’s not much bothering the sector, which accounts for 16.7% of India’s total merchandise exports (as on March 31, 2011). The January-June 2011 export figure for the segment was $25 billion; last year, during the same period, the figure was only $18 billion – in other words, the first six months of this year have seen a growth of 34.17% in exports. The Hong Kong jewellery fair, held every year from September 19 to September 25, is considered to be Asia’s largest gems and jewellery expositiong. 3,300 and above exhibitors from 46 countries, 50,000 plus buyers from 135 countries – and you know this is the grand slam of all events for this sector. This year, India has the largest contingent in this event compared to all participating countries. –

But still, for the players in this industry, the most critical market is the domestic one. While the global jewellery market is close to $145 billion in size, US, Hong Kong, China, and India, make up the top consumers of this industry. But recently, the domestic prices of diamonds have gone down by more than 10% – this is because during the fortnight before Dussehra, almost no purchases are made of gold and jewellery as this pre-Dussehra period is considered an inauspicious period to buy jewellery. Also, with gold prices at unimaginable highs (Rs. 27000 per 10 gms), and inflation playing truant with the savings of the Indian consumer, it is true that even the most auspicious of Indian consumers are thinking twice about investing in gold and jewellery – players like Gitanjali Gems have already commented that their sales could get hit by almost 10% this year.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM Proves Its Mettle Once Again.....
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
Planman Technologies