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Tag: Sony Entertainment

  • Uncertainty about IPL's future freezes ad sales

    Freeze! Media agencies put on hold IPL-7 buys given uncertainty over tourney

    By A Correspondent

     

    Media-buying firms have frozen all ad sales of the Indian Premier League for the next 48 hours as they await clarity on the future of the tournament, two top officials of leading media buying firms said.

     

    They said advertisers are considering either re-negotiating ad rates for the IPL, or considering pulling out of the twenty20 tournament and putting their money on elections instead, after the Supreme Court on Thursday recommended suspension of two teams – Chennai Super Kings and Rajasthan Royals.

     

    Gautam Kiyawat

    Gautam Kiyawat, CEO at media buying firm Madison Media group, said the development will hit the sentiments of marketers. “There was a bit of scepticism from the beginning with some matches being moved out of the country and now with the potential disappearance of two star teams, advertiser sentiments are going to tank even further,” he said. Media buyers, which represent some of the country’s biggest advertisers, are of the opinion that if 20-30 per cent of the IPL matches are scrapped, it would bring down the overall revenues of the popular twenty20 tournament by half.

     

    Multi Screen Media-run Sony Entertainment, which holds broadcasts rights for the tournament, would also face a similar quantum of losses because advertising airtime would also shrink with less number of matches, said the CEO of a top media buying firm.

     

    Multi Screen Media (MSM), which is charging Rs4.5-5 lakh for 10 seconds, was expected to better its last year’s IPL earnings of around Rs900 crore that was helped by 30 per cent – 40 per cent jump in advertising revenues. Rohit Gupta, president at MSM, said: “Since the final order has not come yet, it is too early for us to comment on the matter. Let the order come.”

     

    If Chennai Super Kings and Rajasthan Royals are banned, then it would have a direct negative rub-off on advertisers. Title sponsor PepsiCo, which had has committedRs400 crore for five years, stands to lose the most, as it has hinged its entire annual plans on the tournament that falls in peak summer season for the soft drinks sector. PepsiCo declined comment on the matter.

     

    CVL Srinivas

    CVL Srinivas, CEO at GroupM, the country’s largest media conglomerate that also represents PepsiCo, said, “It is too early to take any decision (on whether or not we should advice our clients to stay away from the IPL) as we don’t know which way the scenario will pan out. We will get more clarity in days to come and then we will weigh the options for our clients.”

     

    Some matches of the IPL will be played in the UAE, which is not a market for many brands, and with the Supreme Court banning two teams, advertisers stand to accrue huge losses if the tournament is scrapped. Navin Khemka, managing partner at media buying firm ZenithOptimedia, said absence of two key teams will bring down the value of IPL as a property.

     

    IPL’s brand value grew 4per cent, from $2.92 billion in 2012 to $3.03 billion in 2013. The total brand value of the nine franchises last year reached $325.8 million from $321.12 million in 2012, according to consulting firm Brand Finance.

     

    Nandini Dias

    Mr Khemka said that big advertisers may choose to be on elections over IPL, while likely lower ad rates may open IPL doors to smaller companies. “The sense is that overall ad rates could come down in the IPL. The flip side is that many small advertisers, who otherwise were not able to afford IPL as the entry costs were very high, may get a chance to be a part of it this time,” he said. Nandini Dias, CEO at media-buying firm Lodestar UM, said the agency was not advising clients to pull out of the tournament.

     

    “Controversies in cricket seem to have become a regular occurrence. Advertisers like PepsiCo have paid unprecedented amount of money despite all the controversies and uncertainties,” she said. “There are enough clients who want to ride on the higher viewership likely due to controversies. In fact, there are clients who change their media plans and skew their media plans to news channels when the channel is breaking news regarding controversies and scams.” The hospitality industry too could take a hit if some matches are cancelled.

     

    Source:The Economic Times

    Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • They say that TRPs should decide the ad rates of reality shows instead of the channels charging advertisers fixed rates even before the show goes live

    Advertisers crib as TRPs fall for Satyamev Jayate

    By Ratna Bhushan

     

    The truth isn’t quite triumphing – not at least in the way some advertisers on Aamir Khan’s hyped debut television reality show Satyamev Jayate thought it would. Television rating points (TRPs) have fallen short of expectations, say at least two marketing heads of associate sponsors, although publicly most advertisers are making the right noises. That, however, hasn’t stopped media buying firms, on behalf of advertisers, from pushing for result and performance-based ad rates on reality shows. They say that TRPs should decide the ad rates of reality shows instead of the channels charging advertisers fixed rates even before the show goes live.

     

    As per rating agency TAM’s data released by Star on June 13, Satyamev Jayate – which is being aired on Sunday mornings across nine channels of the Star Network (as well as on the state-owned Doordarshan) delivered a national TVR of 3.9. That’s lower than the ratings of blockbuster shows of the past like Kaun Banega Crorepati (Sony Entertainment) and Bigg Boss’ debut show (Colors).

     

    Navin Khemka, managing partner of media buying firm ZenithOptimedia, which represents consumer goods major Reckitt Benckiser, one of the associate sponsors of Satyamev Jayate said: “All the risk cannot be passed on to the advertiser. With high entry-level costs on reality shows, it is critical that channels take more accountability on the returns on investment.”

     

    Increasingly, agencies and clients will ask for certain minimum guarantees on programme performance and viewership, he added: “It has to be a win-win for both the brand and the show.”

     

    While Bharti Airtel coughed up a chunky Rs17-20 crore for the presenting sponsor slot, associate sponsors like Axis Bank, Reckitt Benckiser, Skoda, Coca-Cola and Johnson & Johnson paid Rs6-7 crore each for the 13-week show.

     

    Star has charged Rs8-10 lakh per 10 seconds for spot rates for Satyamev Jayate while spot rates for KBC were Rs 3.5-4 lakh per 10 seconds.

     

    According to the marketing head of an associate sponsor who did not wish to be quoted, returns on investment on the show could have been higher. “The way the show was sold to us, we expected higher ratings. It’s disappointing and we hope the ratings increase as the show progresses.”

     

    However, Bharat Bambawale, global brand director at Bharti Airtel, defended the investment: “To view the success of a show based only on television ratings would limit its overall value. The success of a show has to be looked at collectively and in a holistic way… the content of a show will impact ratings.” On whether broadcasters should rationalise ad rates on reality shows, Bambawale said: “It’s a matter of individual judgement for every sponsor.”

     

    Basabdutta Chowdhury, CEO of Platinum Media, a division of media buying firm Madison World, which buys media for Bharti Airtel, said: “Advertisers do want accountability and minimum guarantees factored in for reality shows in general, although Satyamev Jayate was not meant to be a mass ratings show.”

     

    On reality shows, deals are structured in a way that they cannot be re-negotiated through the entire program. This is unlike cricket where broadcasters keep at least some ad inventory – like the semi-finals and finals – open to negotiations based on the ratings.

     

    Ajit Varghese, MD, South Asia of Maxus, which is owned by the country’s largest media buying house Group M, said: “While there’s no standardised way of looking at a deal, we all are pushing for deals with a minimum guarantee. Of course, the arrangement should factor in an upside too, but overall ad deals should be linked to a programme’s performance.”

     

    Veteran ad man Santosh Desai is of the view that Satyamev Jayate needs to be evaluated not just by viewership but also for the impact it has. “It’s a difficult show to watch…. Some subjects don’t have a mass audience at all so to be watched week after week by masses will be a challenge.” KBC’s most recent season had opened to a rating of 5.24, and Bigg Boss Season 5 had opened to a TRP of 4.25. The Amitabh Bachchan-hosted KBC had managed ratings of over 4 all through its run.

     

    A Star India spokesperson says the show has delivered a reach of Rs40 crore over the first five episodes (including repeats). The launch episode delivered a TVR of 4.9 in Hindi-speaking markets and a 4.1 TVR all-India. Subsequently, all episodes have consistently delivered a 4+ rating in HSM and 3.5+ ratings at the all-India level.

     

    Kevin Vaz, Star India president, ad sales said: “Satyamev has ranked amongst the top few every week on an all-India level.”

     

     

    Source: The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved