From all the previous analysis that S-Group has done on TV Channel Program Promos, we have seen that not only does it form a critical aspect for any channels and programs fortunes, it also needs to be judiciously used. That's because while Press and Outdoor advertising is bloody expensive, On-air Program Promos is 'paid advertising refused' by the channel for the time of that promo.

This piece attempts to look at two aspects:-

1. A 'valuation' of the 'worth' of all promos by TV channels
2. Latest trends in press promotions

Let's look at the first. What do we mean by valuation or the worth of all promos by TV channels? That merely means that all the money spent by TV channels on Print, Radio, Outdoor, etc PLUS the collective worth of all promos on TV. The collective worth of all on-air promos is nothing but a virtual sum of money that the industry could have earned had every promo been a paid advertisement!

Now we know, from previous papers that roughly for every 3 paid ads that are telecast on TV, there are 2 promos running. Now if the Total TV advertising corresponding to the paid ads is Rs. 3900 Crores (39000 million), then the virtual money that the promos are worth would be 2600 Crores! Obviously, there is no 2600 Crores that is exchanging hands… it's just a virtual concept. And yet its critical to keep that stunning number at the back of our minds.

But what about other promotions that channels undertake… Newspapers, Magazines, Outdoor, Radio, Cinema, etc. From the latest trends we do know that annually, close to 100 Crores are spent by TV Stations on Press (after taking out barter and in-house ads). Another 35 to 40 Crores are estimated to be spent between Outdoor, Cinema, Radio and the Internet.

Hence the total worth of TV channel promotions annually is close to 2740 Crores (consisting of 2600 Crores of virtual money + 140 Crores of real money).

That brings us to the 2nd issue - latest trends on press promotions by TV stations.

The first issue is how large is this category for Press industry. We have seen that the annual contribution of TV stations to Press is close to 100 Crores. What is also interesting is that TV Channel Promotions is the 11th largest category on Print as shown below!

Top Categories on Press : Jan-June'2003

Source : ADEX India

The latest trends show healthy signs of revival of promotions in Print from TV Channels. Post World Cup, we have seen News channels come up in a big way. We have also seen the pre-CAS launches from Pay channels as well as FTA channels.

Source : ADEX India

We will continue to bring some more interesting developments as we get into a pre-festive period when some channels might want to launch newer shows and programs.

A TAM S-Group Analysis