Companies

Advertisers to wait and watch as digitisation deadline nears

Meenakshi Verma Ambwani New Delhi | Updated on October 29, 2012 Published on October 29, 2012




With the deadline of the first phase of digitisation just round the corner, key stakeholders — media buyers, advertisers and broadcasters — are watching out for how television viewership patterns change and how advertising deals are struck.

“Obviously, there will be some changes in television homes in metros. Some advertisers could look at delaying the launch of new brand campaigns that are metro-focused, though most big advertisers have long-term deals. Also, as the analogue homes go digital, there could be changes in viewership patterns and we will need to recognise them,” said Sam Balsara, Chairman and Managing Director, Madison World, on the sidelines of CII’s media and entertainment summit here on Monday.

Broadcasters believe there could also be changes in the way channels price themselves for advertising deals post-digitisation. “Some channels, especially the niche ones, are under-priced or under-valued. With more transparency about their reach, broadcasters could command more from advertisers,” said Rohit Gupta, President, Sony Entertainment Television.

Media buyers and broadcasters said deferring of viewership data release by two months had not impacted advertising deals in the short term. Most advertisers strike long-terms deals with broadcasters. Shripad Kulkarni, CEO, Allied Media, said, “It is business as usual, especially as it is festival season and advertisers have to spend. Of course, one is used to getting viewership data and do course corrections.”

According to a CII-PwC report on Indian media and entertainment outlook, advertising spend in the industry was estimated at Rs 279 billion in 2001, contributing 35 per cent to the total entertainment and media revenues. This is expected to grow at 13.4 per cent to reach Rs 525 billion by 2016. It said innovation in television sets had revived viewer interest. Also, the launch of new channels would enable advertisers to reach niche segments.

Published on October 29, 2012
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