After 2 years, Star ups ad rates

MUMBAI: Advertisers will need to cough out more to place their ads on television as two leading Indian broadcasters have indicated that they would be upping their rates this fiscal.

After a gap of two years, Star India said Tuesday it would increase the advertising rates for its bouquet of channels by 20 per cent with immediate effect.

"We expect our revenues to grow by around 15-20 per cent this fiscal as compared to 12-13 per cent in the last year. Since advertisements are the major source of income for this industry, the increase in rates will help us achieve the target," says Star India COO Sanjay Gupta.

The other leading broadcasting company, Zee Entertainment Enterprises Ltd (Zeel), has forecast a 12-14 per cent ad revenue growth in FY‘12.

Star‘s decision has come amid rising content costs, an increase in market share and a leadership position of its flagship Hindi general entertainment channel Star Plus.

Says Gupta, “We have achieved an unprecedented growth of 30 per cent in the last two years. Today we are leaders in 18 key states of India. This unstoppable growth is riding on the back bone of significant investments, innovative content and delivery of quality of experience through technologically advanced platforms.”

Broadcasters have been pressing for a fair rise in ad rates as the cable and satellite homes in India have increased from 90 million in 2009 to 116 million in 2011, while the digital homes have almost double (from 15 million in 2009 to 26 million in 2011).

Star claims that its market share and reach has gone up substantially. However, the advertising revenue growth has not kept the same pace.
Says Gupta, "The total viewership share of the network in 2009 was 12.4 per cent, which today stands at 16.1 per cent. Advertisers should accept our increase."

Star justifies the increase in ad rates as it has come in the backdrop of spiraling cost of talent, increased investments in technology, advanced delivery and distribution platforms as well as increased production costs.

Says Star India ad sales president Kevin Vaz, “Our network reach has increased and at the same time for the advertiser, the cost of reaching 1000 people has reduced by 38 per cent in the last two years. This rate increase of 20 per cent is just a part correction in lieu of the phenomenal growth the network has shown in the past two years.”
Some senior industry executives do not find sense in Star making a public announcement. “Why do you need to announce the hike in ad rates when you don’t do business on rate cards? The deals are signed after negotiations and advertisers always try to beat down the price. This announcement is amusing,” says a senior ad sales executive from a rival network.

Media buyers feel the pricing will be determined by the demand-supply equation.

Says Madison Media Group COO Punitha Arumugam, “The television rates are decided by the TVR performance and not by rate cards. As Star is performing, it can charge premium. It all depends on the ratings and not on rate cards.”
On the point of CPT (cost per thousand) going down, RK Swamy Media Group president Chintamani Rao believes that in India deals are not signed on the basis of CPT. “Deals are done on CPRP (Cost Per Rating Point). If deals would have been signed on CPT basis, the rates would have been much higher,” he says.

Latest Reads
Wringley's Doublemint tells a 'fresh' new love story

MUMBAI: Released on Youtube on 21 October, the new TVC of Wringley's Doublemint conceptualised by BBDO Indua and directed by Shoojit Sircar has already garnered over two lac views.

MAM Media and Advertising Ad Campaigns
Flipkart announces integrated brand communication campaign

There are a host of dates earmarked in India’s annual calendar where consumers wait with bated breath to partake of the celebrations. Clearly figuring in this list is the ‘The Big Billion Days’ (BBD), that has been made popular by Flipkart over the past two years. As a concept, Big Billion Day was...

MAM Media and Advertising Ad Campaigns
Colors campaign inspires men to take over Sunday chores

Colors has launched a new movement called #SundayIsHerHoliday. The campaign -- one Sunday at a time -- is inviting every man (and woman) to participate. The goal of the campaign is to inspire and help men take over the Sunday chores of women, so she can get her much needed time off.

MAM Media and Advertising Ad Campaigns
betterU launches Diwali campaign #FestivalOfLearning

India’s online learning marketplace, betterU, has launched a unique Diwali campaign #FestivalOfLearning across its digital platforms.The campaign aims at helping people think differently about their purchases, and highlights the importance of investing for the long term on the auspicious occasion...

MAM Media and Advertising Ad Campaigns
BBH India creates live radio spots for Abbott

BBH Mumbai has released a case study on the first ever live radio spots for Abbott's The Race of Possible’ campaign, which received overwhelming response in India.

MAM Media and Advertising Ad Campaigns
Abhibus's 'Har Safar Mein Aapka Hamsafar' Mahesh Babu, India’s online bus ticket booking platform, has announced superstar Mahesh Babu as their brand ambassador. He will also feature in the company`s marketing campaign called 'Har Safar Mein Aapka Hamsafar' (With you on all your journeys, wherever you go).

MAM Media and Advertising Ad Campaigns
Posterscope rolls out 'Frooti' OOH campaign

MUMBAI: Posterscope India from Dentsu Aegis Network has rolled out a massive OOH campaign for Frooti to make the consumers Live #TheFrootiLife. The core objective of the campaign is to create high visibility and impact for Frooti in the OOH space. Targeted at audiences aged between 15-35 years, the...

MAM Media and Advertising Ad Campaigns
Q2-17: DB Corp revenue up, radio operating profit doubles

DB Corp Limited (DB Corp), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar reported 10.5 percent higher consolidated revenue for the quarter ended 30 September 2016 (Q2-17, current quarter) as compared to the corresponding year ago quarter....

MAM Marketing Brands
P Mark TVC features Boman Irani

MUMBAI: P Mark, the front-runner in the mustard oil segment in India, has unveiled its new TV campaign ‘one specialist to another’. Reinforcing its commitment as specialists and educating the masses about the taste, the new TVC pays tribute to P Mark’s exceptional taster in the category.

MAM Media and Advertising Ad Campaigns

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories