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| Indiantelevision.com's
interview with CNN International exceutive VP ad sales Jonathan
Davies |
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'Asia
contributes 25-28 per cent of our ad revenues out of
which 10 per cent comes from India'
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| Posted
on 19 May 2008 |
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As
the television landscape in India gets more fragmented, channels
try to come up with customised solutions for clients by trying
to understand their business requirements better. Such is
the case with CNN International.
CNN
says that more revenue is coming out of India, particularly
with local companies going global. The tie up with IBN has
also been a big help in this regard.
Indiantelevision.com's
Ashwin Pinto
caught up with CNN International executive VP ad sales Jonathan
Davies to find out more about the international news network's
prospects in India.
Excerpts:
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How has CNN International fared over the last couple of years?
We have fared strongly. In the last five years, we have
recorded double digit growth. There aren't many channels operating
in mature markets that have seen this kind of growth level.
There
are three key drivers for us. Our digital businesses have
grown rapidly. The website has been able to monetise eyeballs;
we are also seeing growth in developing markets like in Asia,
Africa and Middle East; the area of sponsored content has
also grown in terms of collaborative partnerships.
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In terms of CNN's overall ad pie how much do Asia and India
contribute?
About 25-28 per cent of our revenue comes from Asia, out
of which India contributes 10 per cent. This has seen a huge
growth over the last five years. India used to contribute
two per cent of the revenue from Asia.
In
the Asian market, CNN International is seeing quick growth
in Japan and Korea.
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How has the tie-up with IBN helped CNN in India?
It increases the profile of the CNN brand among the Indian
advertisers. The IBN deal was not designed to be a huge revenue
earner but to establish brand saliency. Advertisers in India
have become more familiar and comfortable with CNN as a result
of our alliance with IBN.
As
more Indian companies want to be present on the world stage,
they require a global platform to reach out. We can provide
the global platform. Already you have a situation where the
Tatas have bought out Jaguar and Land Rover. The more this
happens, the more CNN will benefit in the coming years.
Besides
manufacturing and consulting, Indian companies in sectors
like BPOs are moving up the value chain globally. We are looking
to tap these sectors.
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Which are the key advertiser categories for India?
Tourism is one of the key categories. We are also looking
to tap conglomerates like ABG. Airlines are also important
as they are looking to go global. However, India is still
an under-developed market for us. But through the CNN IBN
tie up, we are laying the foundations for a market that will
take off in the coming years.
India
will follow a similar pattern like the Gulf States. Over the
five years Abu Dhabi, Dubai, Qatar and Bahrain have seen huge
growth in terms of clients.
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Apart
from travel and tourism, which are the categories that are
emerging in Asia?
The financial segment, consumer electronics and airlines
like Singapore Airlines are growing.
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'India
is still an under-developed market for us, but through
the CNN IBN tie up we are laying the foundations for
a market'
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The Indian market is getting more fragmented with a plethora
of launches in the news space and other genres. How has this
impacted CNN?
Fragmentation works in our favour. With the marketplace
getting more confusing, clients tend to go to those places
that they know and trust - like CNN. Our levels of churn have
gone down. Rolex has been with us for 11 years. Cathay Pacific
has been with us for 15 years. We also add new clients in
different parts of the world, which is encouraging for the
future. Trust is becoming an increasingly valuable commodity
for brands. I am not just talking about news channels here.
It also applies to governments and the financial sector, among
others.
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Besides the 'Eye On India' initiative, is CNN International
looking at more local Indian content that would allow you
to attract more advertisers in the sub-continent?
It is not necessarily that we will do only those stories
that gets revenue for us. We highly place value on interesting
stories. India is an interesting country. We have invested
in more newsgathering resources in India. We have got people
in Chennai. Now that we have more people in India we can generate
more stories from this country.
Currently
we are doing an Eye On initiative. This will focus on in-depth
stories from India. Investment companies will tie up with
us for this initiative.
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One major initiative from CNN International was the launch
of the Task Group late last year. What was its purpose?
The travel and tourism sector is important for us. The
aim is to offer expertise to any client in that industry.
We give them the tools and ammunition to make their campaigns
more effective. We work in a consultancy role so that a travel
board can explain to their state about why they are taking
marketing steps. They can explain that an ad showing beaches
will create economic growth. We help film commercials for
tourism organisations.
We
have worked with the Indian ministry of tourism. We helped
them expand their business and offerings in other regions.
In the latter part of 2006, we had in an initiative to promote
India around the world in association with India's ministry
of tourism, produced a series of six advertorials.
The
vignettes aired for several months. We look at a country and
understand the dynamics of their business. We then help them
market it better.
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From a brand building perspective how important was CNN's
eco-tourism event in India in December?
The environment has been the key theme in CNN programming
for many years. Countries wanted to know more about eco tourism
and it's potential. Our event helped educate state tourism
ministers on what eco tourism is all about.
Horizons
2007 was organised in conjunction with ministry of tourism.
We got local and international experts offering their views.
Next year we will be doing an initiative around the infrastructure
business, which is related to tourism. The event will also
be held in India.
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Could you shed light on innovations done with clients that
go beyond the 30-second ad spot?
With Nokia we did an initiative that spanned different
platforms. Phones of our journalists had a Nokia widget, which
could be tracked on our site as they traveled across the world.
Journalists submitted blogs from their locations. This was
a marrying of technology with our editorial interests. We
have worked with Suzlon to embed their brand in our environmental
solutions content. The perception and understanding of this
company has gone up as a result.
We
have a show called Principal Voices, which is sponsored by
Shell. It looks at developmental issues around the world.
We bring experts whether it is education or environment or
in other areas from around the world to have a debate.
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How has CNN changed in regards to perception among clients?
If you go back to a little over a decade, people felt
that CNN offered an American view of the world. Research shows
that perception about CNN has changed. It is now seen as a
channel that offers a global perspective. We offer programming
from around the world. While our CNN US network is a strong
resource, we use it only when relevant like the US Elections.
Clients see that global issues like credit crunch and food
crises are tackled in an objective manner with multiple perspectives,
which attracts viewers.
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Is CNN packaged with the other Turner channels or is it sold
separately?
No, we work with our sister channels in other areas but
not in advertising. That is because the CNN audience is very
different from the audience of the other Turner channels.
The news audience tends to be more upscale. Other Turner channels
get clients who are more mass market focussed.
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Does
CNN do roadshows, events for clients?
Yes, we do. However we try to make it more client-specific
as opposed to exposing them to the whole world of CNN. We
are introspective. We look at our business offerings and see
how clients can benefit from being associated with us. We
try to show people what we can do as opposed to telling them
about our capabilities.
We
did an initiative with the Clinton global Initiative a few
years back. We did a film on this and invited clients to watch
CNN in action and see the kind of people that the CNN brand
can bring together. Clients met Bill Clinton, which was a
good endorsement for CNN.
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Now
social media sites like Youtube and Facebook are competing
with traditional media for eyeballs and ad revenue. How is
CNN adapting to this?
We launched ireport.com earlier this year. It is a separately
managed organisation, which allows any viewer from around
the world to upload video programming. This is a viewer-moderated
initiative. They can discuss key issues. The best ones that
are done by citizen journalists are put on CNN.
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