The Hindu Business Line : Channelling synergies

A. R. Rehman's Airtel ringtone buzzing in the episodes of Star Plus's Kaun Banega Crorepati 2, when a participant uses her `phone-a-friend' lifeline; actor Shahid Kapoor conducting a workshop on confidence-building on the sets of Sony's Fame Gurukul, bringing alive the brand positioning of Clinic All Clear; Jassi, the lead character in the serial Jassi Jaisi Koi Nahin on Sony going to VLCC for a makeover; or Tulsi of Kyunki Saas Bhi Kabhi Thi promoting oral rehydration solution (ORS) in one of the episodes of the soap - the list of in-programme placement of brands is growing, with advertisers trying all possible ways to catch the attention of their target audience in a non-obtrusive manner.

With as many as 250 television channels and 400 million viewers with varied tastes and interests, advertisers are beginning to feel that mass communication is losing its punch. In fact, Santosh Desai, President, McCann Erickson, at a recent media summit stressed the need for marketers to keep brands alive and make it part of the live experience.

Reshma Malhotra of Milk Corporation, a company which specialises in branded content, says: "In a world of personalised media platforms, advertisers are now implementing a relatively new approach of grabbing consumers' attention by generating branded content. They create ideas that bring entertainment value to brands while integrating them into relevant entertainment properties that consumers want to engage in, as it's a more compelling experience for the consumer, and adds value to the brand."

Neeraj Roy, CEO, Hungama, says that with as many as 650 brands trying to attract consumers, the only way they can gain the target audience's attention is by relying on the natural draw of the entertainment media (films, TV and cricket).

Roy feels weaving the brand proposition into the content of a TV programme is an effective way as these programmes are shot in an environment to which people relate. "For an SUV brand, for instance, it would make sense to associate with a travel show which features extensive road travel across the country. This gives the brand an opportunity to bring out its core values and talk about its various features."

Similarly, Anand Sinha, Country Manager, ABT Associates, which markets ORS Electrol, claims that research has shown that people, especially mothers, are more receptive to messages when they are consuming an entertainment programme. "In-programme placements have a cascading impact on the brand as people tend to talk about it when they discuss the programme. This helps to spread the message as it becomes more conversational."

Like Sinha, Vipul Prakash, Executive Vice-President (Marketing), Pepsi, says, "Serials and soaps are a reflection of what's happening in our society. Pepsi's core values are an echo of what a section of our society — the youth — stands for. Our endeavour is to identify relevant programming platforms and create integration that will add value to both the brand and the content."

Some of the in-programme placements which Pepsi has recently been involved in are the integration of its Oye Bubbly sound track with leading protagonists such as Jassi on Jassi Jaisi Koi Nahin (Sony) and Kareena on Kareena Kareena (Zee). The brand also featured itself on Star One's Remix, which revolves around four college students.

Vivek Bali, Senior Vice-President (Marketing), Airtel Mobility, feels in-programme placements are win-win for both channel and advertiser. "If the brand is able to get the right environment to position itself these kind of placements definitely work well for the brand."

An eyesore?

But wouldn't too much of branded content have an adverse impact? "We always ensure that the brand has synergy with the show. The brand integration is always done discreetly so that the show doesn't look like a brand promo," says Nina Jaipuria, Marketing Head, Sony Entertainment Television.

Ajay Vidyasagar, Senior Vice-President (Marketing), Star India, says, "A broadcaster cherishes and nourishes his relationship with his viewers and can't afford to let that get damaged by meaninglessly integrating brands with its content. In-programme placements have to be done carefully."

Branded content, says Malhotra of Milk, has to be handled correctly, or else it could damage both channel and advertiser. "Branded content development requires that the left and right brain people (channels and advertisers) work harmoniously in order to bring consumers entertainment in the way and form that they want it, while increasing brand awareness, sales and an association that could lead to further opportunities like merchandising."

A major revenue-earner?

According to a recent estimate of Adex India, a division of TAM Media Research, in-TV placements are already a Rs 400-crore-plus industry. "This is at a take-off stage. With the word `clutter' increasingly becoming an understatement, advertisers are going all out to get the best possible ROI (audience ROI in this case). This situation is getting all the more challenging because of rapid increase of brands that are getting added on TV. Added to this are the rising media costs. Moving beyond ad breaks into content is the only next option," says a TAM spokesperson.

However, Vidyasagar of Star says that in-programme placements are a small fraction of the overall revenue of the broadcasters. "In-programme placements are still in the first stage of evolution in India and have not yet reached a stage for broadcasters to look at it as a revenue model."

But he also adds that advertisers have to pay almost 300 per cent more to get their brands woven into a programme. "In-programme placements have to be done judiciously so that the broadcaster is able to enjoy his relationship with his viewers. And that is why we charge a premium for it."

Jaipuria of Sony also says that in-programme placements are not yet a revenue model for the channel. "We offer it as a value addition to the clients depending on the money they spend."

Srinivas Prabhu, Senior Vice-President and General Manager, Universal McCann, is not too sure whether in-programme placements can become a revenue earner. "It is a challenge for the channels to convert this into a good revenue stream. Channels have to develop credible formats to blend the brands into their content in order to make it a viable revenue earner."

Punitha Arumugam, Group CEO, Madison Media, is also not too sure whether this format will emerge as a revenue earner for the channels. "In-programme contributes just one per cent to the revenues of the channels now and in the future its contribution would be in region of just four to five per cent."

Are 30-second TVCs fading?

"Certainly not," says Arumugam. "Though in-programme placements are here to stay, spot advertising will continue to rule the roost. Channels can't substitute that with in-programme placements," she adds.

Anita Karnik, in charge of Content, Event and Programming, MindShare Fulcrum, says in-programme placements would complement the 30-second spots and that the latter can never die.

On the other hand, the TAM India spokesperson says that while the impact of spot advertising can't be underestimated, in-programme placements allow the brand to be presented in a much more realistic manner and adds to the recall level of the brand in the consumer's mind. "At this juncture, however, it may be interesting to note that if one schedules an ad campaign just after the brand was featured in the content, the brand recall goes up by as high as 22 per cent."

Though the concept of in-programme placement is definitely here to stay, industry observers feel it is early days and it still has a long way to go to make an impact on the broadcaster's as well as the advertiser's business.

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