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English channels offer huge discount: ORG Study

05-April-2002
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English channels offer huge discount: ORG Study

According to a study done by ORG MARG, English language channels offer the highest percentage of average discount on ads followed by Gujarati language channels.

Southern language TV channels are stronger in holding on to their ad rate cards while Hindi, English and other regional broadcasters are beset with the problem of having to offer huge discounts. The ad rate card is discounted by a whopping 92 per cent in case of English while Gujarati channels sell 85 per cent less on the actual rate card. Hindi has a 81 per cent average discounted price.

The ad spend on English language channels could have been Rs 1,453 crore but stand at only Rs 116 crore. Similarly, the Gujarati market is estimated at Rs 32 crore but could turn out to be only Rs 6 crore. The Hindi channels would have attracted a whopping Rs 9,034 crore, sans discounts.

Compare this with the southern vernacular channels. Kannada is the least discounted market with an average of 28 per cent less from the rate card, followed by Tamil at 29 per cent, Malayalam at 31 per cent and Telugu at 36 per cent. The Kannada market, according to the rate card, is Rs 179 crore while the Malayalam channels should be at Rs 189 crore and Telugu Rs 274 crore. The Tamil market is the highest at Rs 538 crore.

Advertising share in broadcast time has grown at twice the rate of increase in broadcast hours. The total broadcast hours per day has grown from 680 in 1997 to 1,528 in 2001, reflecting a 50.2 per cent increase in ad load.

Source: Financial Express

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