Advertisers turn the heat on Hindi GECs
By NASRIN SULTANA & ANUSHREE BHATTACHARYYA
Indiantelevision.com Team
(22 November 2008 9:30 pm)
MUMBAI: With the TV strike not cooling off, advertisers have started turning the heat on the Hindi general entertainment broadcasters.
The period of negotiations has begun and some have even moved their monies to other genres of TV content as the first week of ratings after the 'fresh programming blackout' have indicated a 13 per cent drop in prime time viewership.
Says Maruti Suzuki India Limited executive officer – marketing and sales Mayank Pareek, "Looking at the current situation in terms of the dispute between FWICE and producers, we have moved whatever ads we were supposed to air on Hindi GECs. We have shifted most of our ads to news and sports channels."
Agrees Yum Brands India marketing director - KFC Unnat Varma: "Since the strike began, we have withdrawn our ads from the Hindi GECs."
Zee Entertainment Enterprises Limited chief revenue officer Joy Chakraborthy admits some clients have pulled out, but feels the pinch is still very soft.
"We have 350 clients on Zee TV who are also spread across our network. We get 80 per cent of our revenue coming from the top 20 clients. We have annual deals and are not disturbed," says Chakraborthy.
Zee has offered its clients two options: advertisers can withdraw ads now and hop on to the channel when fresh content resumes; or they can continue with their ads on a negotiated rate. "We had a 10-day grace period. So we are telling advertisers that we can arrive at a mutually negotiated rate after 21 November. We can calculate the shortfall in early December."
So how many advertisers have opted to return only when original content is back on the channel? "Only 4-5 from our top 20 advertisers have settled for the second option," says Chakraborthy.
Some channels have already dropped their ad rates. "Though no advertiser has dropped out, we are offering 20-25 per cent discount to our clients," says the ad sales head of a leading broadcaster.
Advertisers like Emami are pressing hard to get reduced rates. Says Emami Group of Companies director Aditya Agarwal, "We would definitely try to bring the rates down. And I am sure that since we have enjoyed a long term relationship with the broadcaster, they will surely understand the situation."
Agrees LG India director - sales and marketing V Ramachandran: "We are trying to negotiate the price of the spots. Additionally, we our buying spots on GECs based on the programme and its popularity."
Advertisers are staying out of GECs when it comes to the launch of fresh campaigns during this period. "We launched a new campaign two days back, but have not put advertisements on any Hindi GECs. For the new commercial, we are mostly using a mix of Hindi and English news, movie, sports and infotainment channels," says Varma.
In this dry spell of content, news, movie and sports channels have been gainers. Says Max New York Life Insurance executive director marketing Anisha Motwani says, "After analysing the situation, we have moved beyond the Hindi general entertainment channels to sports, movie and news channels. When fresh content is back on Hindi GECs, we would first prefer to wait and watch for a week or so and then take a decision on how to use the space once again."
Chakraborthy, however, disagrees. "Advertisers have to concentrate on Hindi GECs. News and movie channels are running on full inventory while live cricket that is being shown now is not occupying prime time," he says.
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