Forecasting in entrepreneurship

1. FORECASTING IN ENTREPRENEURSHIP
Prof. Juris Ozols
JOHNNY RALSTON SOUNDARARAJ WASHINGTON
Group ID: UMA1V2
SUBJECT CODE: VAD1538M
someone@example.com
ADVERTISING TREND &
FINANCIAL FORECAST
REVENUE OF MINDSHARE
MEDIA

2. 1Forecasting 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

3. 2Forecasting in Entrepreneurship
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 & Plastic
Product
.

4. 3Forecasting in Entrepreneurship
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)

5. 4Forecasting in Entrepreneurship
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

6. 5Forecasting in Entrepreneurship
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
0
200
400
600
800
1000
1200
1400
1600
1800
Income Trend
2010 2011 2012 2013 2014

7. 6Forecasting in Entrepreneurship
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.

8. 7Forecasting in Entrepreneurship
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
5743.5
6051.2
6273.6
6389.6
6683.6
6878.8
6909
8043
2007 2008 2009 2010 2011 2012 2013 2014
INCOME TREND

9. 8Forecasting in Entrepreneurship
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 - 531788
R² = 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

10. 9Forecasting in Entrepreneurship
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: informjohnny@yahoo.com