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Ad Tariffs by Product categories: Opening a Pandora box?<br>exchange4media analyzes advertising trends by Product Categories for key Channel Genres

16-September-2002
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Ad Tariffs by Product categories: Opening a Pandora box?<br>exchange4media analyzes advertising trends by Product Categories for key Channel Genres

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.

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