CHENNAI: With the Telecom Regulatory Authority of India (Trai) enforcing a cap of 12 minutes per hour on television (TV) ads, several TV channels have almost doubled their ad tariffs. Yet, despite the pull of other emerging media, television retains its lure, with few companies reworking their ad strategy to focus more on other media like online or print.
"Over the last few weeks, the air time for advertisements on TV has come down resulting in a sharp hike in tariffs. Channels like Sun TV have doubled rates from Rs 40,000 for 10 seconds to Rs 80,000," said Vinu Prasad, CEO of S S Brainshare Media, an advertising agency. "Genera lentertainment channels like Star Plus, ZEE, Colors and Sony have announced increase in their ad rates by 20-30%," Abneesh Roy & Pooja Lath, analysts with Edelweiss, said in a report.
At present, the FMCG sector, contributes about 55% to total TV ad revenues and enjoys the lowest rates because of the high ad volumes. However, the cap on ads will result in fewer slots, driving channels to increase tariffs.
0 comments:
Post a Comment