Advertisers are pressing for structuring of advertising deals with
television broadcasters to reflect the likelihood of a section of
homes going without cable TV connections in the four metros as the
shift to digital delivery of television channels happens from 1
The advertising industry expects about 15-20 per cent of television
households to remain disconnected for some period from 1 November.
Also, advertisers communications in the run up to the deadline
for digitisation will not reach to the fullest extent as broadcasters
have begun to switch off analogue channels genre wise from 10 October
and would end the process of complete withdrawal of analogue TV
channels in the four metros on 22 October with the most watched
Hindi general entertainment channels (GECs).
Media COO PM Balakrishnan says, There is lot of thinking happening
at the backend. I dont think advertisers are panicking. Even
the deals are getting structured considering all these things.
The CEO of a large media buying and planning agency, who did not
want to be quoted, said, Advertisers may do well to analyse
the realities of digitisation based on data available and fine-tune
their media plans for the festive season.
The Information and Broadcasting Ministry on Wednesday said an average
of 77 per cent of cable TV homes in Mumbai, Delhi, Chennai and Kolkata
have switched to digital with the installation of set-top boxes
(STBs), led by Mumbai with 99 per cent digitisation. According to
the ministry, Chennai is the laggard with 59 per cent cable TV homes
converted to digital.
Advertising, particularly by consumer durable companies and automobile
makers, peaks during Diwali festival when the consuming class spends
Media India and South Asia CEO Anita Nayyar says, The timing
is very bad. The advertisers and media agencies are not going to
be happy considering the environment currently. This was the period
when we were looking at some traction at least. This has been a
year of reduced ad spends and basically a slowdown year. Now there
is uncertainty about the reach of the channels in the metros. The
deals will have to be re-packaged.
Advertising community is also doubtful about the governments
claim of 77 per cent average digitisation in the four metros. Cable
operators in Chennai and Kolkata are asking for extension of the
digitisation deadline as they fear a significant percentage of homes
would be without cable TV connection after 31 October.
UM COO Anamika Mehta says, The economy has been sluggish,
so all marketers were looking at the festive period to drive sales.
TV obviously takes the big chunk of advertising. Now on TV many
marketers will play safe.
to this, OMD COO Haresh Shriyan says, Whatever genre broadcasters
will pull out, there are companies which are advertising on it.
It will have serious implications on them in all the four metros.
All this will certainly reflect on the ratings and reach, if executed.
The advertisers now will have two options. One is that if the reach
comes down and if the ratings and connectivity is impacted, advertisers
will seek to have compensation from the broadcasters. They have
paid when everything was normal but today it isnt. Also, if
this is the scenario, if the reach is impacted, if people dont
get to see their ads, the advertisers and agencies need to recommend
a boost of plan for these markets.
is also a faction of media planners that feels the advertisers need
not panic. If the current figures are to be believed, then the percentage
of media darkness will be small compared to the earlier estimates.
Madison Media CEO Basab Datta Chowdhury says, Given the current
level of penetration, it is only 20 per cent of homes that will
be without cable TV connections. 100 per cent penetration wont
happen, we all know.
The important point to consider here is what part of the estimated
20 per cent media dark homes constitutes the TG. The advertisers
ire on the pull out of analogue signals will depend on how much
of their TG is being excluded from the reach.
to Madisons Chowdhury, there isnt much to worry in that
case. Right now, we are talking about 20 per cent of the homes
(in media darkness). Also, if we extrapolate IRS figures onto the
current penetration of digitisation, then it is essentially the
Sec D and E homes. Nearly 95 per cent of the communication is targeted
at the Sec A B and C viewers, she says.
If the industry banked on TAM ratings for planning and estimates
earlier, the data becomes all the more important now in view of
the genre-wise switching off of analogue signals. Nayyar says, What
TAM does post 1 November will be known only after the meeting next
week. But till 31 October, TAM should continue giving ratings. This
will serve two purposes -- we will know the reality of digitisation
figures in the metros. Secondly, we will know how much media darkness
is prevalent in the metros.
Representatives from Advertising Agencies Association of India (AAAI),
Indian Society of Advertisers (ISA) and Indian Broadcasting Foundation
(IBF) would be meeting TAM Media Research on 15 October to discuss
issues arising out of digitisation and the likelihood of some homes
remaining without cable TV connections.