We hear that Star Group is mulling over structuring their ad tariff to offer different rates to different product categories. So if FMCG brands 'need' general entertainment channels more (after all they are chasing 'general ' or mass markets), and hence end up using a high share of inventory, they should be charged higher!

If implemented, this approach will signal a paradigm shift. Categories (and presumably brands) using less ad-inventory will be charged less and visa verse. As a result, FMCG majors might end up paying maximum rate. Our analysis shows they have over 80% of the share of cumulative advertising audiences generated by on general entertainment channels.

Levers, P&G, Colgate, Pepsi and others, Watch out for this googly.

Lets look at some topline numbers first.

FMCG firms have a huge reliance on general entertainment channels to get audience exposure. As much as 70% of their GRPs in CS homes come from General entertainment satellite channels. For the period of six months (Feb - July 02), the cumulative GRPs generated by all FMCG brands were 4.46 lakh of which about 2.9 lakhs were accounted for by General entertainment channels. See Chart 1 below.

Durables however have a better spread across genres. While General entertainment channels account for 51% share of total category GRPs, Sports has a high 20% share and News has 12% share.

Chart 1: FMCG brands have a higher reliance on 'General Entertainment' genre

Source & Demo details below.

The rationale for a higher dependence of FMCGs on General entertainment channels is the consumption pattern. Most categories, like Colas, have a 'impulse' buying pattern. This entails across the year presence on high visibility programmes, like those on Star Prime Time. Sporting events have spread out annual calendar, which works well for 'considered' purchases like two-wheelers.

But given that news genre is delivering consistent TVRs all across the year now, perhaps the FMCG majors should look at this genre more closely.

Lets now look at the data from the channels perspective.
Chart 2 below has some interesting insights.

While English Movies and Music Channels (like MTV and Star Movies) and Sports channels have very similar product category break ups, Hindi Music & Films channels and General Entertainment channels are akin.

Chart 2: Sports Channels have a balanced portfolio

Finally, what is interesting to note is how the total portfolio of Star Network breaks down by categories. Our analysis of six month data suggests that 77% of Ad GRPs across Network is accounted for by FMCG brands. And only 16% by Durable. So, while FMCGs rely on Star Plus, and other channel, this Network too has a huge dependence on them. This knife cuts both ways!

Data Tables

Data Tables 1: Total GRPs for each product category and share of each genre

	News	Gen Ent	Music & Movie - Hindi	Music & Movie - Eng	Sports	DD 1, 2 & Reg	Others	Total Ad GRPs
FMCG	6%	69%	5%	3%	6%	7%	4%	341959
Durable	12%	51%	4%	6%	20%	4%	3%	66006
Service	5%	65%	2%	7%	14%	2%	4%	16757
Others	10%	55%	5%	5%	7%	14%	4%	21467

Data Table 2: Total GRPs on each channel genre and share of individual product category.

	News	Gen Ent	Music & Movie - Hindi	Music & Movie - Eng	Sports	DD 1, 2 & Reg	Others
FMCG	64%	81%	83%	57%	52%	82%	82%
Durable	26%	11%	11%	28%	37%	8%	12%
Service	3%	4%	2%	8%	6%	1%	4%
Others	7%	4%	5%	7%	4%	9%	5%
Total Ad GRPs	30438	292793	22677	15133	36277	31141	17732