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IBF-ISA row: A day without surcharge makes no difference to ad effectiveness

IBF-ISA row: A day without surcharge makes no difference to ad effectiveness

Author | exchange4media Mumbai Bureau | Friday, Oct 26,2007 8:43 AM

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IBF-ISA row: A day without surcharge makes no difference to ad effectiveness

The surcharge issue of the Indian Broadcasting Foundation’s (IBF) saw one day without much advertising on top channels. While this spoke volumes about the IBF’s seriousness on this issue, a survey done by Intellect, Media Research and Technologies division of Lintas Media Group, on the day’s advertising shows that at least the brand recall of advertisers who are otherwise heavy spenders but were not present on the day or the advertisers who were seen in high frequency on the day, hasn’t changed.

Intellect conducted a two way study to understand the possible reactions of broadcasters, advertisers and impact on consumers for the day of October 16, 2007, when the advertising blackout took place.

Broadcasters and Advertisers response

A poll was carried out with exchange4media.com to gauge the advertisers and broadcasters response to the norm. The results gave two indications. More than 30 per cent of the respondents believed that channel will air more filler. If we observe the advertising schedule of the Black Out day, this situation was true. Almost 59 per cent of GEC channels were filled with subsidised ads. The ratio was disproportionately high in case of Sony, where in the contribution of film trailers and social advertisements were as high as 80 per cent. This when compared to an average of past four weeks forms merely 1 per cent of total ads.

Another statement which was assumed by most of the respondents was that the advertisers who agreed to the norm will completely exploit the situation and take full advantage of less clutter. This was not very predominant. No particular spike in advertising was observed on this day. The advertisers who were present on the blackout day sustained their advertising and kept up with the pre-planned schedule.

The situation being so sudden, the broadcasters wouldn’t have been in a position to increase their programming time. This was well assumed by the respondents and only 10 per cent of the people voted for this option. Also as against the media speculations, the broadcasters did not allow their RODP (Run on day part) advertisers to shift their non prime spots to prime time. When asked about “who will loose out in this fight”, respondents were of opinion that it shall be a loose-loose situation for media industry. If the situation prolonged, all media entities would be at a loss.











Channel
Film Trailer%
Social Ads%
Subsidised Ads%
Total
Star Plus
0
1
1
38685
Sony
0
1
1
35710
Zee TV
7
1
8
35814
NDTV 24X7
1
1
2
30873
CNBC
1
0
1
37730
CNN IBN
2
14
16
36617
Source: 7th Sept to 7 Oct 2007 Data:Adex Analysis:#of Spots
Channel
Film Trailer%
Social Ads%
Subsidised Ads%
Total
Star Plus
46
6
52
378
Sony
76
5
81
438
Zee TV
36
7
43
243
NDTV 24X7
0
15
15
120
Cnbc Tv 18
0
5
5
97
Cnn ibn
0
3
3
157
Source: 16th Oct 07 ; Data:Adex ; Analysis:# of Sports


Viewer Response

To understand the viewer response to the Black Out day, Intellect conducted a research to test the recall of various brands advertised on black-out day. 100 respondents were contacted across Delhi and Mumbai between age group of 15 to 35 years. Respondents who watched channels that did not comply with the IBF norms were excluded from the research. The unaided recall was as follows.

Advertisers
%Respondents
# of Sports on 16th
Rank based on total advts on 16th
Last 4 weeks GRPs
Bajaj XCd
10
4
176
89.26
Vodafone Magic Bus
5
1
262
24.52
Reliance Mobile
3
10
82
471.09
Samsung Easy View Flat TV
3
6
154
84.68
HCL
2
2
189
67.69
Source: DAR & TAM : Period: Wk: 38-41 : TG : 15 + C&S: Channels: Star Plus, Zee TV, Sony : Markets; Mumbai & Delhi


The top brands in the unaided awareness list were Bajaj XCD and Vodafone Magic Box.10 per cent of respondents recalled Bajaj ads and 5 per cent of the total recalled Vodafone advertising on October 16, 2007. Surprisingly Bajaj XCD had four spots and Vodafone had just a single spot on channels that rejected advertisers who disagreed to pay the surcharge. Other top five unaided recalled brands were Reliance Mobile, Samsung EasyView and HCL. None of these brands were charted on highest advertised brand list on October 16, 2007. Intellect attributes this high recall of the above brands to the heavy advertising that occurred in the past four weeks, except in case of Vodafone Magic Box which is a classic case of high recall due to the past ad stock.

Advertisers
Respondents
# of Sports on 16th
Rank based on total advts on 16th
Last 4 weeks GRPs
Vodafone Magic Box
45
1
263
24.52
Samsung Easy View Flat Tv
35
6
154
84.68
ICICI Pru New Age Retire Solns
26
27
31
23.16
Colgate Active Salt
23
2
117
110.1
Tata safari Dicor 2.2
22
16
52
22.1
Source : DAR & TAM Period : Wk 38-41 TG: 15+C&S Channels: Star Plus, Zee TV, Sony Market: Mumbai & Delhi


On the contrary, when Intellect studied the recall of Moov Pain Balm, the advertiser with the highest frequency on October 16, 2007 had a mere 1 per cent unaided and 7.5 per cent aided brand recall. Among the top heavily advertised brands some of them that could manage to get miniscule unaided awareness scores are Lux Cozi, Digjam, Dish TV and Livon Silky Potion.

Intellect concludes that given the mentioned examples, it is clear that a day’s blip in advertising did not influence the advertising effectiveness. Efficacy of advertising continues to be the function of ad stock of previous four weeks of telecast.
Tags: e4m

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