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Television gets ready to prime the pump for Telebuzz
Sibabrata Das
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Mumbai:
In the past six months, Star Plus' popular Telebuzz game
show Kaun Banega Crorepati has changed the way commercial
time is bought on television. While advertising money chased
a few of the top-rated programmes, the weaker shows were sold
at a heavily discounted price.Said Mr Sandip Tarkas, associate
vice president, Fulcrum, the media buying agency of HTA: "The
market saw a realignment. Advertisers were willing to pay
a high premium for reach. The rest of the shows were severely
discounted."
The lesson for 2001? Channels will have to spend more on programming,
create bigger properties, push up ad rates and limit the commercial
time.The trend has already started. Star Plus has priced KBC
at a whopping Rs 4.5 lakh per 10 seconds. The advertising
time on the channel is restricted to 10 minutes per hour.
Zee TV also increased its spot rates recently and priced Sawaal
Dus Crore Ka at Rs 2.5 lakh. Though the game show flopped,
the channel is determined to make a comeback. "The model
of low-cost programming, low-cost advertising and expanding
air-time commercials on top-rated shows will be under severe
threat," said Mr Sandeep Singh, a media analyst.
The market
is ready to take on mega shows with big budget promotions.
"Media buyers will increasingly inquire about the channel's
promo plans before committing on a high-priced programme.
The buying cost on good shows has the potential to shoot up.
The whole platform will move up in the coming year,"
said Ms Nandini Dias, national media director, Interface Communications.
Agreed
Paulomi Dhawan, vice president and chief buyer, The MediaEdge,
a media division of Rediffusion DY&R: "High ticket
items like events, blockbusters and big shows will break through
the clutter, drive the channel share, and command a price.
Channels will have to invest and focus on quality software."
Broadcasting
companies have learnt that a mega show can twist and turn
their fortunes. Mainline entertainment channels lost their
leadership position due to the runaway success of just one
game show. Star Plus, riding on the KBC wave, shot to the
top position while Zee TV sunk to the third place. Said Mr
Tarkas, "Zee TV has paid a high penalty for doing mediocre
programming. Competition will put pressure on channels to
uplift the production values and packaging of their shows."
Media
companies in 2001 will tend to sell their channels as a bouquet.
Star TV, sources said, is contemplating bundling Star Plus
with its other channel properties. Sony Entertainment Network
and Zee TV have started early practices but the trend will
become more defined.
Said Ms
Punitha Arumugam, chief operating officer, Madison Media,
"An offering of a basket of channels has to happen. To
get a higher percentage of the client's spend, big networks
have already started to offer a multi-channel deal."
Channels will have to guarantee an audience delivery system
to get their price. A ratings-led deal, says Ms Dias, will
be a trend in 2001. The spot buy rate will have to account
for a minimum television ratings points (TRP). "With
spot rates high on big shows, the only way advertisers can
cushion their risks is by stressing on a guaranteed TRP. We
have seen how Colgate committed a market estimated spend of
Rs 5 crore on Zee's Sawaal Dus Crore Ka which flopped. The
practice of buying on an assured TRP will happen in a high
priced channel before spreading out to the low-priced channels."
Media
buyers will also tend to reduce the commitment of their budgets
upfront. Said Ms Dias, "We had a hardwiring (committed
budgets) arrangement of 80 per cent. Now our hardwiring and
softwiring (negotiations before the event) ratios are being
equally split. We have to do more last minute buying. "
As the
fight between Zee TV, Sony and Star Plus intensifies and the
three giants try to consolidate, the me-too channels like
Sahara TV and SABe TV will have to struggle harder. Said Ms
Arumugam, "The me-too channels will be pressured to offer
lower and lower rates which will prove to be their downfall
in the longer run."
Niche
channels may be relatively protected. Said Mr Tarkas, "Channels
like Discovery and AXN can garner their own audiences and
advertisers." But even here, competition is hotting up.
Niche channels which have the support of being sold as a bouquet,
though, have a distinct advantage. Media buyers will have
to be careful not to chase a particular format blindly. Though
most of them put their money on the game show format after
the success of KBC, it did not work across all the channels.
Admitted Mr Tarkas, "High-cost game shows does not assure
of success. The format worked for KBC but Sawaal Dus Crore
Ka flopped. Even Koteswaran is not the top programme in Sun
TV, though it is the highest priced show on the channel."
For television
which was dominated by soap operas, the mood has come to experiment
with new forms. Channels are starting TV plays and shooting
in foreign locale. Movie stars like Rajesh Khanna are coming
to the small screen. The game shows have also introduced interactive
programming.Media opportunities will multiply in 2001. The
KBC show will have new competition from Sony Entertainment
Television which has signed movie star Govinda to co-host
the programme. "KBC stole the rates in 2000. But we will
soon see a rationalisation process. Advertisers who are not
willing to commit to Star Plus at the new rates are waiting
for Sony's show which has the potential of being as big as
KBC," said Mr Tarkas.
But Sony
also will not come cheap. Media buyers can't wait for the
show to deliver before they put their money in. Some media
analysts say Hindustan Lever, which did not advertise on KBC
because of the high rates, lost an opportunity. HLL, according
to sources, is talking to Sony to get Close Up as the sponsor
for the game show.
Media
buyers will look at solutions beyond traditional media and
try to establish linkage with television, events, interactivity,
Internet and FM radio which is expected to kick off in 2001.
Though several dot coms collapsed in the second half of 2000,
agencies predict growth in online advertising. Media buyers,
however, are still figuring out how to buy on the Internet.
The worst
could be over for print. The days of one strong newspaper
in one city may be over. Newspapers are charting out new territories
in a bid to expand. And the dailies are focussing on niche
supplements to cater to new audiences. Said Mr Tarkas, "Print
is more willing to understand the client's needs. Though the
time spend on dailies has not improved, readers are willing
to spend on two newspapers as they meet different needs and
come cheap due to the price war."
Two trends
are emerging, says Ms Arumugam. "Most advertisers will
be trying to consolidate spends on one or two media options.
However, clients who have saturated spend on TV, are now willing
to explore multi-media options to gain better benefits.
Nobody
predicts an easy year for the media buyers. "The market
is getting more complex and fragmented. As options continue
to increase, buying will have to be more focussed and customised,"
said Ms Dhawan.
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