MAM

Ofcom issues consultation on removal of airtime sales rules

MUMBAI: UK media watchdog Ofcom has published a consultation on possible removal of the Airtime Sales Rules (ASR).


The consultation relates to how broadcasters sell TV advertising to media buyers and advertisers. Specifically, it is consulting on whether commercial Public Service Broadcasters (PSBs) must sell all of their available advertising airtime and also whether the prohibition that applies to all commercial broadcasters relating to conditional selling is still appropriate.


The consultation closes on 7 June.
 
Ofocm is consulting on the possible removal of the Airtime Sales Rules - two rules, which relate to how broadcasters sell TV advertising to media buyers and advertisers, referred to as the ‘withholding rule‘ and the ‘conditional selling rule‘.


The withholding rule means all of the airtime available on the commercial analogue channels - ITV1, C4 and Five - must be sold. In contrast, the conditional selling rule applies to all broadcasters, prohibiting them from ‘forcing‘ media buyers - who want to buy airtime on one channel - to purchase airtime on additional channels.


The rules were intended to ensure fair and effective competition in relation to broadcasting and connected services and we have an obligation to review them periodically, to check whether they are still appropriate and fit for purpose. The rules were last reviewed in 2003 and we think it is now appropriate to assess whether they are still necessary.
 
Ofcom believes that the rules need to be considered in light of key changes in the TV sector which we believe are likely to have enhanced competition in the supply of TV advertising airtime. The large increase in the number of TV channels and in digital TV take-up, along with a shift in viewing from PSBs toward digital channels, has provided more opportunities for buyers to secure advertising from non-PSBs. This trend towards greater competition is expected to continue with future sector developments.


Ofcom has also considered whether there are incentives for broadcasters to engage in behaviour prohibited by the rules. We believe there are limited incentives for withholding airtime, given evidence that, in the short run, it is unlikely to be a profitable strategy for C4 or Five and it would provide very little uplift for ITV1‘s revenues. Moreover, Ofcom believes that the way TV advertising is traded incentivises broadcasters to sell all their airtime in the long run. 
 
Conditional selling is a form of bundling and bundling can yield benefits such as reduced costs. For bundling to have anti-competitive effects (for example reduced choice or higher prices), a sales house would need to have market power - and even then, any negative outcomes might be outweighed by beneficial welfare effects. Ofcom, therefore, believes that it is more appropriate to treat possible conditional selling by broadcasters on a case by case basis, rather than through an industry-wide rule to prevent this behaviour.


Given these considerations, Ofcom‘s preliminary view is that the ASRs are no longer appropriate for ensuring fair and effective competition. Removing unnecessary regulation is important to enable sectors to develop and to give players more flexibility to run their businesses. This may then have positive impacts on innovation or investment.


If Ofcom concludes that it is appropriate to remove the rules, then it will continue to monitor the development of the TV advertising sector and any effects of the removal. Continuing engagement from industry stakeholders will form an integral part of its ability to review the effects of lifting the rules.
 

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/Digital.jpg?itok=LM0bBxXP
Digital will be core of ad budgets by 2020: DAN report

MUMBAI: The increasing penetration of digital media in India is creating huge opportunities for marketers to reach out to untapped audiences in newer ways than before. Marketers are getting innovative with the way they choose to advertise to their audience.

MAM Media and Advertising Digital Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/voda.jpg?itok=llTNSmks
Vodafone brings back the Pug in AR

MUMBAI: Television viewers and spectators at Sunday’s grand finale of the Vodafone Premiere Badminton League broke into impromptu smiles when they realised they had unexpected company.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/smart.jpg?itok=5qxiMtZr
Smartworks shows tech-friendly office in new ad

MUMBAI: Provider of shared work spaces, Smartworks has launched its second brand video featuring the benefits of hassle free technology to enhance collaboration and productivity for its members.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/rs.jpg?itok=cJF-fG9v
Ramesh & Suresh get 'lost' again in Cadbury 5Star 3D

MUMBAI: Ramesh and Suresh are back and this time they are lost at a whole new level. Over the last twelve years, Cadbury 5Star has entertained viewers bringing to them ‘lost’ antics of the iconic duo of Ramesh and Suresh.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/16/amazon.jpg?itok=SP1ttU6t
Amazon says out with the old in Great Indian Sale ads

MUMBAI: E-commerce giant Amazon has launched its new campaign ‘Ab Sehan Kyun Karna’ in tandem with its first Great Indian Sale for 2018. The message to the customers is to do away with the old and usher in the new for the new year. The campaign features a series of ads on various situations in...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/16/rajiv.jpg?itok=gbuyOtMO
WATConsult celebrates 11 yrs with unique board game

MUMBAI: WATConsult, the digital and social media agency from Dentsu Aegis Network, has launched PlayAgency, an innovative board-game, as part of its 11th anniversary celebration. To break the monotony of regular anniversary campaigns, the agency came up with something unique which caters to all...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/15/arpila.jpg?itok=Ea7gQg73
Dentsu Webchutney launches digital campaigns for Vespa Red and Aprilia

Dentsu Webchutney has created a digital campaign for Piaggio India’s trendsetting Vespa Red that was launched the month of October last year. It is an extension of its existing global collaboration with Red, an organisation that partners with global brands to create awareness and support the fight...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/15/mentos.jpg?itok=_nB6UHxV
Perfetti Van Melle hands over media duties to Wavemaker

Perfetti Van Melle India has handed over its media duties account to GroupM’s content and technology agency Wavemaker.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/15/rising.jpg?itok=wfrpl5-l
The rising trend of coopetition among brands

MUMBAI: Who would have thought that companies would overcome their ego and actually collaborate with other brands to come up with joint advertisements? That is the new trend in the market-coopetition (a combination of cooperative and competition).

MAM Media and Advertising Ad Campaigns

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories