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HUL, P&G, Colgate, Dabur pull out ads from channels opting monthly ratings

15-July-2013
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HUL, P&G, Colgate, Dabur pull out ads from channels opting monthly ratings

Top advertisers HUL, P&G, Colgate and Dabur got the ball rolling on Friday July 12, with initiation of communication with channels that have shifted to monthly ratings towards cancellation orders, shared industry sources. They also revealed that Parle is slated to pull out today.

The action is seemingly a direct result of the sentiment amongst the advertiser community at not being consulted when the decision was being made to shift to monthly ratings from weekly ratings by select broadcasters. This clearly is the advertisers’ impactful step of getting back at what they consider a unilateral change to the measurement system.

Media agencies, too, have voiced their opinions in no uncertain manner, citing the disruption and confusion this sudden change is causing.

Advertisers have made their discontent clear at the turn of events, and pulling their advertisements from channels seems like a clear way of making their stand apparent.

Advertisers’ unhappiness had been simmering below the surface with the issue of some broadcasters discontinuing from TAM subscription early last month. However, it finally reached tipping point when select broadcasters, which include, NDTV, STAR India, Viacom18, ZEE Network and MSM, among others, made a decision to shift from weekly ratings to monthly ratings without consulting advertisers.
 
Starting Friday evening, emails were sent out from four of the leading media agencies asking respective channels to cancel their client activity.

The cancellation orders will impact from Tuesday or Wednesday, depending on the lead time required for different channels.

Advertisers maintain their stand of wanting a currency to measure the ratings system on a weekly basis. Their view being that in product campaigns, some weeks may be more important than others. Moreover, the impact of campaigns can be gauged every week so they can be tweaked to be made more effective.

If we were to estimate the ad revenue loss to the broadcasters, it is expected to be roughly 14 – 15 per cent, when calculated on a weekly basis. Since the ratings will be calculated on the CPT format, the per day average amounts to around 2.73 per cent.

As advertisers pull out of channels opting for monthly ratings, does this mean that channels maintaining weekly ratings stand to benefit?

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