In an advisory issued on May 30, 2012, DAVP (Directorate of Advertising & Visual Publicity) has announced an extension of empanelment of TV channels and FM radio channels. DAVP initiated the process of empanelment on May 24, 2012 but it is yet to be completed. Hence, it announced a three-month extension for all current empanelled channels.
The DAVP advisory explained that the empanelment of TV and FM radio channels that was due to expire of May 31, 2012 is extended up to August 31, 2012 or till the time the fresh empanelment process is completed. DAVP empanelment is done for a period of three years.
It has also said that the revised ad rates for TV channels, as approved by the DAVP at the end of the process, will come into effect from June 1, 2012. The existing rates of FM radio channels will continue for the time being.
As is known, only the empanelled DAVP TV and FM radio channels get any part of the government advertising. DAVP is the nodal agency for release of advertisements of Ministries and Departments and organisations of the Govt. of India for TV broadcasting in India.
For DAVP, the primary objective of empanelment of the cable & satellite channels and fixing their rates is to obtain the widest possible coverage of the intended content or message for the target audience in a cost effective manner. While releasing its advertisements, DAVP does not take into account the political affiliation or editorial policies of TV Channels. The DAVP also warns that since media planning for a campaign is done on the basis of publicity requirement and target audience for that campaign, the empanelment of a channel would not guarantee assured business.
There are various factors that govern the empanelment of channels including channels that quote lowest CPRPs (cost per rating points)
Empanelled channels are under contractual obligation to telecast DAVP or AA (Authorised Agency) advertisements. Channels cannot drop Government spots and if they do, the empanelment will be suspended for a period of one year. The suspension is done without any notice to the channel. The DAVP and AA take steps to ensure that payment for all TV spots is made only after a third-party verification, that the spots have been broadcast in the stipulated time band and for the stipulated duration, is done.
Out of the total annual budget allocation for television, 40 per cent shall be exclusively earmarked for regional channels. While finalising media planning, it has to be ensured that bottom up approach is adopted, i.e., regional channels in that region should be first widely covered, followed by other mainstream channels. The DAVP also allows a regional channel, satisfying the criterion for empanelment at any point of time in the year, to apply for empanelment without waiting for the annual schedule.