3rd Panel Discussion
Is below-the-line a serious threat to mass media?
In a fiercely competitive market scenario, increasing number of clients are successfully exploring below the line spending as an effective option to further up their market presence, both in terms of reach and numbers. In such a scenario, will below the line pose a serious threat to Mass media and advertising? Is below the line sufficient in building a brand? What will happen to above the line advertising? To debate such an issue, the panelists included Ashutosh Srivastava from Mindshare India, Geetu Gidwani Verma from Frito-Lay India, Srikant Sastri from Solutions, Harish Bijoor and Gemini R. Ramamurthy, member of CII committee on media & entertainment. Moderator-Anurag Batra from exchange4media. Amidst the debate the panelists broadly agreed on the point that Mass media and advertising along with below the line promotions will increasingly complement each other.

Listing out the categories, which constitute below-the-line activity, Anurag Batra said, "Broadly the following seven categories constitute the elements of below-the-line categories which have seen an increased spending from the clients. They are, Events and Promotions, Public Relations, Direct Marketing, In-film-Promotion, Sales Promotions, Entertainment medium like Fashion, Films and Contact programmes.

Starting the debate, Srivastava agreed that the fast growth of below-the-line (BTL) activities are definitely a threat to the mass media but there lies an opportunity also in terms of revenues through new delivery platforms. "For an effective execution of a media plan in a regional scenario, Micro Marketing has increasing gained significance."

Harish Bijoor in his openings remarks said, "Today around 32-33% of the total promotional budget allocation goes for below the line promotions. It was some 14% ten years back. And In 1989 when I started out, it was 6-7%. In the times to come, it will reach a ratio of 70-30, where seventy percent will be going into below-the-line activities."

As to the reasons for such a jump in below-the-line activity, Bijoor said, "Today the marketers are looking for returns from the buck very aggressively. Three factors holding driving this trend are measurability, Focus and Innovation. While above the line advertising helps in the 'massification' of the product, its the below-the-line efforts which results in 'demassification' and sale of the product."

The issues here are of brand perception. Added Bijoor, "There has been a phenomenal jump in the number of televised brands today. They work occasionally, but it's in the below the line that brands perception can best be addressed. The measurability issue is also taken care of well in below the line. I believe that in the time to come, non-media activity will grow tremendously."

Commenting on the increase in below the line activities, Gemini Ramamurthy said, "Companies are looking for expenditure-cut, that is the main reason that the below the line spending has gained momentum." He also directed the attention of the panelists on the onslaught of WTO regime next year, which could spoil the party for many of the players on both the sides if preventive steps were not taken immediately. WTO will affect the above the line spending in a big way, as all the international players will start competing for revenues.

Drawing some examples from her profession, Geetu Gidwani Verma said, "Mass media by far is the most powerful medium in terms of its reach. It is audio-visual and effects directly to its consumers. Having said that let me point out the case of the brand 'Whisper'. At the time of launch, we went all out in the mass media. There were bold ads when even women used to avoid the subject publicly. We used 50% of our budget for sampling. We went door-to-door. It was a perfect example of mass advertising and below-the-line promotions complimenting each other to achieve a single result. Therefore I am pushing for a case where both kind of advertising and promotions will co-exist."

Srikant Sastri was of the opinion that while below the line has been grabbing share of promotional budget, it's a threat for mass media. Media Agencies have been smart enough to acquire smaller below the line firms, but it is the media itself, which has not realized the potential of below the line promotions. "They still believe that advertising in mass media alone suffices. Which is not all true. Both are complimentary to each other. Look at the way the bigger media groups like the Times Group has been involved in events and promotions. Similarly, there is the Jagran Group that is also in events. Smaller players in media will have to appreciate the power of below the line promotions"

But does below the line help in building brands? "Yes they can build brands," said Bijoor. While media agencies ask for margins in mass advertising, that is not the case in BTL," added Bijoor. "Mass media helps in the selling of a concept while BTL intensifies the effort in selling," added Ramamurthy.

There have been occasions when BTL have been able to build big brands. "Take the example of Barista and Starbucks. They only spend in BTL activates yet they are such big and fast growing brands. Take the case of 'Foodworld' in the south. Its organized trade where the consumers can touch and feel the product-all classic examples where BTL have worked very effectively in building a brand on its own strength."

Consenting to it, Srikant Sastri cited the example of a leading toothpaste which over a three year period, managed to reach out to over 6 million school kids through contact programme in oral health and hygiene thereby also touching their parents - potential customers. "Today mass media advertising is like an umbrella cover. We will have to go below the line to increase brand presence and the sales," added Sastri.

"Amway and Oriflamme are the classic example where BTL have worked single handedly," added Bijoor. On the question of measurability of BTL, it was widely felt that like mass media advertising, BTL could also be measured. Ground level sales, constant monitoring of consumer buying patterns are some example where we can measure BTL," added Geetu Gidwani Verma.

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