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From colas to consumer durables: Centre of ads shifts
Published on Sat, Dec 20, 2008 at 15:04   |  Updated at Sat, Dec 27, 2008 at 14:42  |  Source : CNBC-TV18

As the curtains come down on 2008, let us take stock of the good, bad and the ugly in advertising this year. What are the brands that generated the most buzz, thanks to their advertising, and what did the ads that we see say about us as a society and as a people.

 

Santosh Desai, CEO of Future Brands, one of the most insightful people in this business, is here to do a review of the year in advertising. He said that the key development in advertising or in the business of advertising this year has been the fact that the category that defines advertising has moved. He feels the centre of advertisement has shifted from Colas to consumer durables.

 

Q: What are the key developments you would say in advertising or in the business of advertising this year?

 

Santosh Desai: The most striking sort of change is the fact that the category that defines advertising has moved. In earlier times, one used to talk about Cola’s being the centre of advertising then it moved to consumer durables. It is clearly new categories that have emerged - whether it is telecom or even the DTH (direct-to-home) as categories are completely new ones, and tend to dominate the space. I think the really large trend is that we have moved from the FMCG era which defined advertising much more to the new technology era.

 

Anchor: I was looking at TAM AdEx data and I think telecom brands are going to end the year as the largest category-wise advertiser or spender. DTH, which you mentioned is coming in for the first time ever in the top ten ad spenders in the country, is at number eight. So, that is a sign of times to come. In fact, in the course of the year on Storyboard when we were tracking the DTH business and the ad brands and what they were doing this is what Dish TV had to say.

 

Salil Kapoor, COO, Dish TV: With more and more players coming in and everybody spending a lot of money, the overall estimation maybe about Rs 700–800 crore being spent annually on this going forward when everybody will be there. So if this kind of money will be spent on this industry then one can very well imagine the visibility it will get.

 

Q: Would you also say that these guys are doing pretty much what the FMCG brands were known for––ambush marketing. Big and Airtel Digital TV did this?

 

Desai: One is following all the codes whether it is in terms of the scale, in terms of the kind of celebrities that they use, in terms of entertainment-based advertising. I think if one were to look at what these guys are doing, although this is a new medium and there is a certain amount of education involved but overall they pretty much behave like the FMCG companies.

 

Q: There is pretty much parity in terms of what services they offer and prices more or less, the price packages. We are going to be focusing on television, isn’t it? On TV advertising? Why aren’t you talking about print?

 

Desai: Print advertising, if you were to look at advertising as a means of persuasion, has more or less died in India. It is perhaps a slightly extreme thing to say but print advertising is so functional nowadays. It really rides on the nature of the medium, it is topical, it announces things but well-written print advertising is more or less non-existent. Copyrighting in some sense is dying, script writing is arriving well.

 

Q: I am again referring to TAM AdEx data––the largest category wise spender on that medium is educational institutions.

 

Desai: Those are figures.

 

Q: Let us go back to why FMCG and those FMCG brands seem to have lost that leadership status when it comes to advertising. Why do you think that has happened?

 

Desai: They tend to play much safer now. They acknowledge the fact that they are not playing a central role in our lives. In India today we are looking for things that transform our lives, our way of life and FMCG provides incremental change. In a sense, FMCG brands reflect that, they become much more product performance centric. One will see so much more functional advertising whether it is the new launches seen in FMCG sector that ITC has come in with. The advertising is so timid. We are so old fashioned and traditional.

 

Even if one considers a brand like Coke, their advertisement of last year was like going back ten–fifteen years. It is not just these brands, it is across the board. Hair care advertisement, it is almost like you have invented new hair. I don’t know where that hair exists in reality; however, it is a consistent pattern being noticed that a large number of these brands are reverting to much more basic forms of advertising.

 

Q: Why is that because if you see what P&G is doing across the world, there is huge concerted effort to make their advertising in terms of the entertainment quotient? So why are we not being able to do that here?

 

Desai: I don’t think Asia has got that memo because if you were to look at the advertising that comes out of Asia and the P&G advertising that we get to see, in that very contrive kind of a way.

 

So, one is finding the movement from the centre from India to the region which is true for P&G and Hindustan Unilever (HUL). I think that is a big shift. In many ways HUL is the primary motive engine, and always has been, of FMCG in India. For the last few years they were doing very interesting work.

 

This shift out of India–so to speak–has made the whole sector lose a certain amount of energy.

 

Q: In terms of the kind of leadership role their advertising can play for the entire industry?

 

Desai: Yes and I think in terms of the fact that they really invested in understanding India in some sense they really were beginning to invest in taking creative risk and by moving this out it sort of standardizes the advertising and India becomes one other countries and it shows.

 

Q: You mentioned Coca Cola hasn’t impressed you much in the past, what about Pepsi’s Youngistan?

 

Desai: Youngistan, for instance, clearly has a big idea but the execution is so small and I think this dichotomy between what could potentially be a really large idea executed in a really small way.

 

Q: Are you talking about the Shah Rukh Khan, Ranbir Kapur and Deepika Padukone execution?

 

Desai: Pepsi is a brand that is a little juvenile, but I think that execution perhaps pushes that.

 

Q: Do you think this is time for you to make a disclosure that you worked on Coca Cola at some point?

 

Desai: I will talk about Coca Cola too but I am just saying that both Coke and Pepsi, if you look at the recent Coke advertising of Diwali, I really don’t know where it is coming from, what is it about or if you look at the earlier Jashn mana le that is Coke territory 10–15 years ago. It is nice, warm but absolutely middle of the road idea.

 

Q: So you are saying it is between aerated drink, personal care products, brands that traditionally do exciting advertising or lead advertising both in terms of spends and perhaps even their creative briefs. Are you saying they have given up their leadership position when it comes to advertising?

 

Desai: They are now putting their briefs on air instead of putting the campaigns on air. They have sort of reconciled themselves for the fact that they are not going to lead advertising. So now, in a sense pressure is off them. In a sense they don’t have to define what 2009 is going to be about. They can take it easy; they can produce yet another ad.

 

Q: It is a serious charge. They are still the biggest spenders.

 

Desai: That is true and it is just because, in a sense, there is a crisis of imagination in that category.

 

Q: You were to tell us which category or set of brands has replaced FMCG brands when it comes to leading advertising?

 

Desai: Without question, the category that is leading advertising today is telecom and the service providers in a category which otherwise is so easy. It is such a virtual category that the differentiation is difficult to manage, yet each of them have managed to build a very unique distinctive territory, very distinct languages are emerging, for instance, the Vodafone world has been consistent for many years through its various name avatars but the advertising has provided a certain amount of unity. Idea has opened out a rich new interesting space that we are beginning to see and over the last year certainly has developed.

 

Q: Consistently, so they keep coming up with the new ideas.

 

Desai: Yes, so you are beginning to see Idea emerge. Airtel of which, personally, I have never been a fan of.

 

Q: Not in the olden days where it had Rehman.

 

Desai: Also the earlier campaigns, which were the big campus campaigns, it is the whole connecting kind of a campaigns. I was not a great fan of this. This year for the first time it is a more intimate brand, the whole Madhavan-Vidya Balan campaign.

 

Q: Actually these commercials or the Madhavan-Vidya Balan campaign is really not about the brand. It is not about the brand, it is about services isn’t it?

 

Desai: Naturally.

 

Q: So, I find that interesting and it has done more for the brand.

 

Desai: Also, it is touching something real and Airtel problem always was that it did not have any reference to the real and I guess it has begun to do that.

 

Q: They have done it all. They had Shah Rukh Khan and Kareena Kapur endorsing it at one point, they have had Rehman, Sachin Tendulkar, and they have had a very big canvas.

 

Desai: Spending money has not been their problem. They have spent money on everything. I think getting it right has been an issue and this time they have tracked it.

 

It is a vastly improved brand in terms of advertising. So when one looks at such distinct areas, it is really rare to do. So clearly today telecom leads the charge.

 

Q: Let us talk about Idea, because I think what they are doing is something that you have mentioned to me in the past––the social conscience that brands are getting onto or the social conscience plank.

 

Desai: If one was to say what is new in advertising in terms of creative trends, clearly, the fact that conventional mainstream brands, which have otherwise no reason to associate with larger issues, are beginning to whip them into advertising. Therefore, whether it is an Idea or a Tata Tea, one sees these brands doing that.

 

Q: Overall, are there any problems with brands like a telecom service provider and a tea brand to wear a social conscience on their sleeve?

 

Desai: No there isn’t. In fact, in some ways it talks about integration of brand with society and brands instead of being opposed to society become a part of it. The only caveat and the danger here is to speak too glibly. If one is actually not doing anything on the ground and is using, only using, the social plank then it can become exploitative because then one is using somebody else’s misery without any responsibility.

 

Q: When will Tata Tea turn around and say that they have this website and they have got a whole lot of people–over a lakh of people–who have registered to get registered as voters? I don’t know about Idea. What do you make of Idea? I want you to hear what Balakrishnan says because Lowe is behind both Tata Tea and Idea.

 

R Balakrishnan, Chairman and COO, Lowe Lintas: We started very long back. Lifebuoy was one of the first examples where a little boy cleans all the street, but it is not about having a social cause or whatever. It is about the idea. If the idea resonates with the brand and says you can do this as a brand, idea has got nothing to do. It is just about social cause, social causes will give you the platform for making the idea bigger and I would use the platform for that reason rather than for any social causes. The brand’s first job is to kind of project itself in the way it wants to. Social cause happens to be a fabulous platform.

 

Q: He is denying this big social cause platform but I am thinking he is protesting too much.

 

Desai: I also worry slightly about it because by that logic anything that is large scale becomes valid for the brand. Death is the biggest idea in the world for that matter. Disasters are massive scales. So if that becomes the logic, without any boundaries, then anything is fair game in it’s a user’s perspective. I don’t think he means exactly the way he said it, but I still feel that that view needs boundaries.

 

Q: You are saying that it is interesting and this would be perhaps the overarching most striking creative trend although there are not that many brands doing it. There are media brands, of course, you know about Times of India, we saw Dainik Bhaskar do what I think is a pretty exciting campaign with MS Dhoni, but otherwise do you see other brands getting onto this bandwagon?

 

Desai: I do think, especially, given the current mood in the country. The temptation will be there and we will see more brands take on a more activist kind of a hue. I see that coming.

 

Q: You are saying that there are pitfalls on that way.

 

Desai: Because, eventually, if it becomes too easy and it is a difference between use and scavenging, and I am using a strong word, but there is danger of being seen as praying on somebody because causes will always involve a certain amount of unhappiness. That is how they become causes.

 

So, I think some measure of restraint here is called for.

 

Q: When you go back to Times of India, Dainik Bhaskar, Tata Tea, Idea––which one resonates most with you?

 

Desai: As an idea I would say the Idea campaign. In terms of what it attempted to do is the one that resonates most with me subject to a couple of minor executions.

 

Q: You have a quibbles with the execution but overall it works for you, you like that.

 

Desai: Yes, I like that.

 

Q: Any other trends you think, because the Virgin Mobile campaign interesting sort of taboo topic, is that big enough a trend?

 

Desai: Everybody is beginning to see a comfort with more taboo subjects whether it is the whole question of alternative sexuality which gets referred to in Virgin ad.

 

Q: It is not a huge brand so they could do it.

 

Desai: But take the idea of death in life insurance. I think you are able to talk a little more about it.

 

Q: In an old LIC commercial where there was this husband who passed away but who has managed to give his family life cover.

 

Desai: I think by and large if you look at the new multinationals coming in and the new language, you would find certain insurance categories. It was almost as if there was no death involved. Everybody was flying kites and all.

 

Q: That was a positive because they changed the way they were looking at life insurance as an investment for a future when you are retired rather than this safety net when you are not there for the rest of your family.

 

Desai: But the fact that, I think, there is maturity where you are being able to handle slightly trickier conversations. For instance, the ICICI Jeete Raho commercial, where there is a husband-wife conversation about what happens if something were to happen to him and that conversation is a very difficult conversation to have in advertising to portray. I like that.

 

Q: You are picking all of Lowe’s commercials, any disclosure about Balakrishnan?

 

Desai: Nothing.

 

Q: You are saying that is a difficult conversation to have, I am shifting the conversation completely to another place. Bingo, I like their advertising. I don’t know how much it has helped their brand in terms of sales but definitely in terms of recall they did a great job and they are managing to continue with it.

 

Desai: It is a great example of some brand coming up with a new language. You create a completely different kind of a world for the brand to live in a category that is crowded and where there is not really that much to say. They have done a consistently good job. Again in a campaign like this, one will have hits and misses but the idea of taking a new landscape and that inspired zaniness of Bingo I think is very refreshing.

 

Q: Give us a word on the role of celebrities because I think celebrity power continues only thing is that it is not longer Amitabh Bachchan. It is a bit of Aamir Khan and MS Dhoni, the way I am seeing 2008 when it comes to celeb power.

 

Desai: Celebrities continue to ride strong in a lot of brands. What everyone is seeing is a deepening and widening of the celebrity ambit, whether it is Irfan Khan for Vodafone which is the least favourite part of the Vodafone; Madhavan and Vidya Balan––the most successful faces and brand ambassadors used by that brand it is not the Shah Rukhs, etc. So, all of us are beginning to see whether it is the fact that there are boxers and whether we have Abhinav Bindra.

 

Q: I am going to disagree on boxer and Abhinav Bindra front because that is 2008 Beijing Olympics’ incredible performance. Historic performance. I don’t think that is going to be a consistent thing going forward. I don’t see Bindra going beyond Samsung though I would like him to.

 

Desai: I agree with you, but the point I am making is that the desire to look elsewhere, today those options manifest themselves, those are easy options to take. Tomorrow, there will be somebody else but at least one is open.

 

Q: What is your best, worst and most bizarre and you have to narrow it down to just one?

 

Desai: Our best campaign for the year would be the ‘i-pill’ campaign because I just find that it is an extremely sensitive subject and to handle that with restraint, is very rare for advertising to be responsible because it is a pill that you can have and apparently without side effects, as I am told. If that is the case, it is so easy to have sold it as a confection of some kind to make it easier. But there were two campaigns in the year––the first one was still when in doubt; shall we, shall we not but the second one which is a progression is actually much grimmer. It is actually the question of better than an abortion for you to dial the anxiety up, and therefore, be responsible and try and ensure that it doesn’t get misused. I think it is a responsible act. Secondly, the way of doing it is very well cast, very well performed. I find advertising shying away from complex stars.

 

Q: You are saying this one scores on that front and also it is meant for women and it is speaking to women as regular, normal average IQ people?

 

Desai: Absolutely, and it doesn’t patronize them. It doesn’t see them as appendages which more and more of advertising tends to do and it speaks to them one-on-one. It is a really well-done.

 

My worst campaign of the year would be anything than by LG and the most bizarre campaign that I have seen is the Cyclops ad of Yahoo I have no clue what they were trying to do.

 

Q: But the fact is that it caught your attention maybe that is what they wanted to do.

 

Desai: But I will go out to make sure that I have nothing to do with it.

 

Q: When you said worst ad as LG, I was thinking of another Korean brand Hyundai and Kappa engine for the i10 and then Shah Rukh Khan. I just have no idea what they did with all that money.

 

Desai: That category itself is doing mysterious work, but LG it is almost like 500, virtually anything that they are doing is non-descript.

 

Q: We are ending 2008 on a pretty pessimistic note all businesses are really worried about where the economy is headed and though India will still be better than the rest of the world, how do you see this economic condition impact the advertising. Do you see smaller ads to begin with smaller budgets?

 

Desai: I do think that there will be a sort of a safer advertising. I think you will see smaller budgets, you will see some sort of a narrowing but I do think that actually there are categories that are driving this, the telecoms and the DTHs because they are on a growth path. So therefore because they drive advertising I think they will continue to do so and the truth is if they were to spend 20% less, nobody would notice.

 

So to that extent, even if it does spend a little less I don’t think it will change the tenure of advertising. So to that extent I think there is safety in that.

 

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