|
Southern language
TV channels are stronger in holding on to their ad rate cards while
Hindi, English and other regional broadcasters are beset with the
problem of having to offer huge discounts. English language channels
have the highest percentage of average discounts, followed by Gujarati
language channels. The ad rate card is discounted by a whopping
92 per cent in case of English while Gujarati channels sell 85 per
cent less on the actual rate card, an ORG MARG study says. Hindi
has a 81 per cent average discounted price.
The ad spend
on English language channels could have been Rs 1,453 crore but
stand at only Rs 116 crore. Similarly, the Gujarati market is estimated
at Rs 32 crore but could turn out to be only Rs 6 crore. The Hindi
channels would have attracted a whopping Rs 9,034 crore, sans discounts.
Compare this with the southern vernacular channels. Kannada is the
least discounted market with an average of 28 per cent less from
the rate card, followed by Tamil at 29 per cent, Malayalam at 31
per cent and Telugu at 36 per cent. The Kannada market, according
to the rate card, is Rs 179 crore while the Malayalam channels should
be at Rs 189 crore and Telugu Rs 274 crore. The Tamil market is
the highest at Rs 538 crore. “The Southern region can protect
its rates because of the insularity of the market.
Competition
has not affected rates severely as these markets can support more
than two channels,” said Shankara Pillai, who was responsible
for carrying out the study in ORG MARG. “The northern, western
and eastern markets are eroded by Hindi viewership. In Gujarat,
for instance, the viewership is swayed by Hindi content,” said
Pillai.
Advertising
share in broadcast time has grown at twice the rate of increase
in broadcast hours. The total broadcast hours per day has grown
from 680 in 1997 to 1,528 in 2001, reflecting a 50.2 per cent increase
in ad load. What impact will the heavy discounting have on the industry?
“Rate card systems are passe. A new pricing model is needed,
either in terms of ratings points, reach or frequency. Potentially,
a rating point based system needs to be developed for pricing,”
said Pillai.
|
