Advertising Innovations Bennett, Coleman & Co Ltd

Ravi Dhariwal August 2013

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1,296

5,667

132

1,391

-

1,000

2,000

3,000

4,000

5,000

6,000

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Total Revenue

Op PBT

CAGR 14%

BCCL: extremely successful

Our Publishing Growth Curve

English newspaper in India (and the World)

Business paper in India by circulation (2nd Globally)

Non-English newspapers in Mumbai, Delhi, Bangalore

English News Channels – English and Business

Radio Network

Outdoor Company

India’s largest Media Co

13 Newspapers

18 Magazines

4 TV Channels

32 Radio Stations

26 Printing centers

# 1

2

CAGR 24%

Growing Advertising : Brand Capital

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Brand Capital

Creating and filling the marketing jar

Brand Capital Helping fill the marketing jar since 2005

Addressing 3 unique advertising challenges

“I know 50% of my advertising works, but I just

don’t know which 50%.”

“I do not have cash to advertise.”

“How do I convince myself or my boss to invest our

limited funds in marketing, when returns are long-

term?”

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Brand Capital addresses all 3 concerns simultaneously.

This is why, 400+ companies have partnered with us till date.

How does Brand Capital work?

How does Brand Capital Work?

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Cash

Media

Space

The Regular Advertising Model

Advertiser

Aligning advertiser and media owner’s interests

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Cash

Media

Space

Brand Capital Structure

Advertiser

Cash 1/3rd

Equity

2/3rd

Equity portion

decided upfront,

and issued to

Brand Capital

Cash

paid

only as

you

advertis

e (Pay

as you

Use)

Real Estate Assets in lieu of equity when we

partner with Property Companies

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We do not discriminate on ad rates

between cash advertisers and

investee companies.

Rates driven by volume and market

dynamics.

No Editorial give-and-take -

Our editors are free to write

on any Brand Capital clients

2 Important Principles

How Brand Capital differs from the regular PE model

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Traditional Private Equity Brand Capital

Cash Media is our currency

Supply-side capital • Financing factories, capacity

Demand–side capital

Board seats No board seats

No competing investments Partner with competitors • We fuel category creation

Exit-focussed Exit important; not time-bound

Revolutionizes media selling

Brand Capital gives us a three-fold ability to

- Upsell

- Target first-time advertisers / startups

- Bundle / cross-sell different media in one deal

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756

531

886

1,399

469

1,299

1,434

2,076

FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13 ITD

133

Astounding Growth

Note: FY 09-10 figure for 8 months due to change in financial year

Data shown is not actual but indexed data

1. Over 7,500 crs worth of deals signed

2. Accounts for 13% of our ad revenues

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Brand Capital 2.0

BRAND CAPITAL

BRAND ESTATE

DIVINITUS CAPITAL

CEREBRAND

SPRING BOARD BRAND

SPREAD

BRAND VENTURES

EQUITACE CAPITAL

BRAND SCOPE

Brand Capital’s new avatars

Partners highly ad dependent businesses

• taking majority stakes

• provides advertising at 10% of the rate card.

• Clients can buy back stakes in the future.

Building a premium distribution network (modern trade / key retail)

• for high-end domestic / foreign brands

Creates original brands

• licenses them along with bundled advertising

• Clients can buy these brands in the future.

Creates experiential marketing platforms

• to help brands connect in unique ways to customers

Brand Ventures To partner niche international brands

• who will need significant ad support

Brand Estates barters real estate against advertising.

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Springboard – enabling expansion of Times

into NonMedia segments

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Growing Advertising : Licensing

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Brand Licensing Initiative

• License our publishing brands to consumer product manufacturers – Differentiator : Bundle ads (1/3rd rates) with our brand

MISS INDIA

Apparel & Accessories Museums Personal Care Products Jewellery

Personal Care Products Cafes Apparel & Accessories Education

Salons / Gyms Lifestyle Products Fitness / Makeover Centres Real Estate

Potential Categories for Licensing our Brands

Beyond Advertising : Education

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• Where can we leverage all 3 of our existing assets?

• Media muscle (to create a strong brand & generate walk-ins)

• Financial muscle

• Brand equity

• Education emerges as the perfect sector

• Vocational Education initiative kickstarted under TimesPro brand name

• Vocational training for the Banking sector being offered

• Branch out to other programs gradually across 35 cities

• Academic Education initiative presently being worked on

Why Education?

Thank you

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