TV Advertising
TV Advertising
TV Advertising
There are two media segments that define the contour, body and tastes of the Indian market. Television is one of them, the other being film. Both have mesmerising hold over Indian audience, Investors, and advertisers. Television contributes to 36% of total media and entertainment revenue. It controls and shapes the course of several other sub-segments such as; music, films, sports, production houses, and array of distribution business such as cable or DTH. Television advertising revenues grew by 14% over 2007, just short of overall advertising growth, while pay revenues remained stagnant Indian television broadcast industry is regarded as a chain with three links: Broadcasters TV channels who broadcasts programmes Production houses / software makers Who creates programmes and sell to broadcasters Distributors Who downlink the programmes and distribute it in several ways. In television, the product is not a commodity. Content comes in different shapes, sizes, textures and it costs differently. Ex. Cricket tournament could cost million of Rs while a top rated talk show might take half a million Rs. an episode. So much depends on the stars, production house, how much channel spends on promoting the show, its success and therefore advertisers willingness to pay top ad rates for it. Technological issues: Many of the streaming technologies (Internet TV, Mobile TV) that offer a personal/digital video recorder (PVR/DVR), allow consumers to skip ads. Homes with DVRs watch 25% fewer commercials than non-DVR homes. This has tremendous implications for advertisers. Broadcasting revenue through advertising: This is the revenue generated through airtime sold to advertisers. This is done through advertising agencies or through media houses such as GroupM or Madidon. While international norm is 5 minutes of advertising time per 30 minutes of programming; it is normal for Indian channels to stretch their ad seconds into the programming if they find buyers for an exceptionally popular show. India is probably one of few markets in the world where, volume of advertising sold on television has risen dramatically in the last few years, ad rates have actually fallen in real terms, because there is so much discounting and bonusing. There is practice of giving bonus seconds on sister channels or programmes as an add-on to advertisers buying on prime time. Bonus seconds are also offered for not delivering on television rating targets (TVR). To capture more of the advertising rupee going to other channels, broadcasters started putting together bouquets. If an advertiser is taking a package of Zee and ETV Marathi, Zee could offer him Zee Marathi and Zee TV as a package to ensure that all the money comes into the Zee kitty.
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2. Discounts could be given as bonus seconds. If HUL buys 20 spots on prime on Star Plus,
it could get five bonus spots on non prime time shows as a preferred buyer OR because a show it advertised on did not deliver on promised TRPs/TVRs 3. Some spots on few channels are auctioned in advance. These upfront buys could get quantity discount of 15%. The rest of the prime time inventory is sold closer to the broadcast dates. However many of these are locked in rating deliveries. If Pepsi buys time on a new soap on Zee TV, it will do so for 13 episodes on the guarantee of certain rating points. If Zee can not deliver on those rating points, it makes up with hefty discount or with bonus seconds. That explains the rise in the volume of ad seconds without a commensurate rise in broadcasting revenues. Airtime:
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