Individual report on mindshare media

FORECASTING IN ENTREPRENEURSHIP

Prof. Juris Ozols

JOHNNY RALSTON SOUNDARARAJ WASHINGTON

Group ID: UMA1V2

SUBJECT CODE: VAD1538M

[email protected]

ADVERTISING TREND &

FINANCIAL FORECAST

REVENUE OF MINDSHARE

MEDIA

1 Forecasting in Entrepreneurship

Contents

Company Profile ............................................................ 2

Advertisement Consumption in Media .......................... 3

Characterization of Advertising Trends ......................... 4

Company Comprehensive Income Statement................ 5

GDP Growth of Asia Pacifi Region…………………………………6

Company consolidated profit details…………………………….7

Examine the Forecasting Model……………………………………8

Results & Conclusion…………………………………………………….9


Company Profile

WPP is the world leader in Advertising and marketing

communications established in 1986 and the company

is leading in:

Advertising Media Investment Management Data

Investment Management, Public Relations & Public Affairs;

Branding & Identity, Healthcare

Communications, Direct, Digital, Promotion

& Relationship Marketing

GroupM is the leading global media

investment management operation serving

as the parent company to WPP media

agencies each global operations in their

own right with leading market positions.

GroupM’s primary purpose is to maximize performance of WPP’s media agencies by operating as

leader and collaborator in trading, content creation, sports, digital, finance, proprietary tool

development and other business-critical capabilities.

Mindshare is one of the WPP is allied company which has $ 1,01,000 billion turnover on an

average through out the world having operations in Asia Pacific, EMEA, Latin America, North

America. Mindshare has been the pioneer in providing various marketing solutions to their clients

to make the brand big with diversified innovation in the market.

ASIA PACIFIC REGION

The Asia Pacific region was launched in 1997 Speed propagation and innovation is the DNA of the

Company. The media company’s core strength is always staying ahead of competitive

environment by creating new ideas in the evolving trend of adverting industry. The company is

well versed in providing media planning, media buying, operations and ROI analysis to their

clients.

As advertising company Mindshare offers services for their clients in the following media

platforms.

Television, Radio (FM), Newspaper & Magazine, OOH (Out of Home) Outdoor, Public Relations Website & Digital, Mobile Advertising. Research

Wire & PlasticProduct

.


Advertisement Consumption in Media

The primary purpose of this research to analyse the advertising trend of the Mindshare Media as

advertisement agency used different media vehicle over a period of time. Data analysis of various

segment of media and graphical representation of the data is figured out in detail.

NEWSPAPER SPACE CONSUMPTION FOR ADVERTISEMENT

The data analysed for the period of 52 weeks during the space consumption for advertisement

spend in the newspapers and magazines

FM RADIO diagram states that the advertisement duration consumed by advertisers’ average for

the period of 5 years (5 X 4) 20 periods with the rate trends of various FM companies average

A= y = 1.4133x + 754.39

R² = 0.0063

Consider A & B ; A =

754.39; B = 1.413

So Seconds

= 754.39 + 1.413 X

Period (1…28) Rate Per

Second = Rate / Total

no of Seconds

Average Rate per Second = Seconds * Average Rate per second

PRINT MEDIA FM RADIO DIGITAL & OOH TELEVISION OUTDOOR(OOH)

y = 38143e-0.022x

R² = 0.2532

0

20000

40000

60000

80000

100000

0 20 40 60 80 100

Space Consumed cm2

$0

$200

$400

$600

$800

$1 000

0 5 10 15 20 25 30

Avg Rate/Sec

Rate ForOrig = Sec * (Aver of R/Sec)


CHARACTERIZATION OF THE ADVERTISING TREND IN DIFFERENT MEDIA

TELEVISION ADVERTISEMENT

Time Spend average by

the clients of Mindshare

for the periods between

June 2016 – December

2011 on prime time. The

Day average time spent

for the duration of 7 & 15

days have been analyzed

and represented in the

diagram.

DIGITAL ADVERTISEMENTS SPEND MOVING AVERAGE

2011 -2014

Advertisement Spend

moving average for 3

Quarters and 5 Quarters

for the above mentioned

periods.

=avg (y(q1Xq3)

=avg(y(q1Xq5)

OUTDOOR ADVERTISEMENT

The diagram represents the count of hoarding and flexi boards placed across selective regions in South East Asia

0

500

1 000

1 500

2 000

01.06.200818.12.200806.07.200922.01.201010.08.201026.02.201114.09.2011

Average Seconds Spend

TVC Seconds TVC 7 TVC, 15

$0

$50

$100

$150

$200

0 5 10 15 20

Moving Average

Internet Advertising

Three -Quarter Moving Average

Five -Quarter Moving Average

0 1 2 3 4 5 6

0-100

600-700

800-900

1000-1100

1300-1400

1500-1600

1800-1900

Total

Total


MINDSHARE ASIA PAIFIC COMPREHENSIVE INCOME STATEMENT 2010 – 2014

The above mentioned chart represents the data of the advertisement income generated by

mindhsare media over the period of time between 2010-2014 by planning in different media

tools. The income trend likely to be increasing on the digital and social media average due to

technologial advancement of media usage by the audience

BILLING NOTE VALUE(USD Billion)

Television $ 26628.9

Radio $ 2215.2

Newspaper $ 4851.8

Magazine $ 3280.8

Cinema $ 3449.2

Outdoor $ 3202.6

Digital $ 5766.5

Mobile $ 5554.3

Social Media $ 5858.2

Public Relations $ 4002.5

Events $ 4060.3

Net Sales before Taxation $ 68870.3

Trade bal - $ 4927

Net Profit Comission $ 9264

Taxes & inc (-) $ 12141

Services Sales Margin $ 3757

$ 52972.3

0200400600800

10001200140016001800

Income Trend

2010 2011 2012 2013 2014


MOBILE ADVERTISING TRENDS FOR THE FUTURE

The future of media in the hands of audience indeed the mobile advertising trend has totally been

showing phenomenon growth these years in fact the media planning team of mindshare

worldwide has created an exclusive division to handle the mobile media advertisement campaign

planning. Find below the chart explains the advertisement spend since 2008 till the present year

using the Mobile media.

GDP GROWTH RATE OF ASIA PACIFIC REGION

GDP growth (annual %) in East Asia and Pacific was last measured at 6.83 in 2014, according to

the World Bank. Annual percentage growth rate of GDP at market prices based on constant local

currency.


MINDSHARE – ASIA PACIFIC CONSOLIDATED PROFIT STATEMENT 2007 -2014 SUMMARY

Following are the list of comprehensive Profit generated through the clients media handling

acitivity throughout asia pacific region

YEAR PROFIT ($Billion)

2007 5743.5

2008 6051.2

2009 6273.6

2010 6389.6

2011 6683.6

2012 6878.8

2013 6909

2014 8043

57

43

.5

60

51

.2

62

73

.6

63

89

.6

66

83

.6

68

78

.8

69

09

80

43

2007 2008 2009 2010 2011 2012 2013 2014

INCOME TREND


THE EXAMINATION OF FORECASTING MODEL

The linear forecasting model is derived here to discuss the future and assumption of the media

consumption in the near future in Asia pacific region alone. In spite of overall development

across the global media competition.

Using the developed mode, forecasting of the net profit has been calculated for the next five

consecutive years for the Asia Pacific region.

The net profit of the Mindshare media Asia pacific region is analyzed and forecasted in the given

diagram above.

As proven that the forecast of the profit on the selective region is substantially to be grown by

2020.

Average Profit (Avg = y1 – y7 / 8)

Absolute increase value (y7 –y1 / 8-1)

Mean of profit growth y7 / (y1 ^ (1-8-1))

Linear growth: Means of Absolute Increase + profit value (2007….2014)

Y=abx

Exponential: means of temp growth X (y1….y7)

y = 267.8 x - 531788R² = 0.8745

$0

$1 000

$2 000

$3 000

$4 000

$5 000

$6 000

$7 000

$8 000

$9 000

$10 000

2006 2008 2010 2012 2014 2016 2018 2020

Profit Forecast

Net Profit Billion Linear Exponential


RESULTS AND CONCLUSION:

Further to the summarize analysis of the date of the mindshare advertising agency on a respective

region of Asia pacific which has been a billion turnover market as the size of the market is

geographically wide and the trend of advertising campaign are subsequently been diverged

towards technological aspects.

The consumpition of advertisement behavior has been showing various results in spite of having

a slow growth in GDP rate in selective countries. The trend of advertisement seems to increase

due to competitive marketing strategy and change in the media trends.

Future of media is digital and the social media advertising, Google ads, SEO (Search Engine

Optimization), Ad words, etc are the current trending of technological advancement method.

As the advanced apporach in thinking and executing Mindshare has already been operating for

the digital media as a separate wing of their division. Also conducting 360 degree solution for the

media plans.

The company seem to grow as a separte entitiy of digital business by having mobile media

advertising solutions. Finally since its a world wide known company with advanced technology

with resources it can lead the future and adopt to the culture of media changing environment.

REFERENCES:

1. Adex analysis

2. http://afaqs.com

3. http://www.Campaign Asia.com

4. http://www.mindshareworld.com/asia-pacifc

5. http://www.wpp.com/companies

CONTACT:

Johnny Ralston Soundararaj Washington M.B.A (2015-2017) 68B, Turiba Youth Hostels, Graudu Iela Riga, Latvia – 1058 Mobile: +371 26283857 Email: [email protected]

Education

Individual report on mindshare media