According to a study done by Starcom Worldwide, television advertising spend in the year 2001 has risen by just 10 per cent over 2000 and most of the increase came in the first half of last year. Advertising spend on television rose to $600 million (Rs 294 crore) in 2001 from $550 million (Rs 269.5 crore).
This better first half performance was matched by a poor show in the second half of 2001, when TV ad spend collapsed by eight to nine per cent on a year on year basis, from $289 million (Rs 141.61 crore) to $267 million (Rs 130.83 crore).
The study also emphasises that although television has bucked the economic slowdown of 2001, there is still cause for worry.
Starcom Worldwide says the bad economic climate has played havoc with smaller TV networks and channels being the hardest hit: most specialist genre channels have closed below 2001 targets and many even below their 2000 targets.
According to Intam, the share of general entertainment channels’ plunged from 37 per cent to 32 per cent despite a lot of money pumped into programming and marketing.
According to study, more viewers are watching the same programmes (the number of programmes with TV ratings more than five has risen from 14 to 28 in the past year).
Many of the programmes have become daily programmes, but most are focused on one channel.
The fact that Star Plus is ruling means that it has gained at everyone else’s expense - including its own sister channels - in 2001, says Intam. It also commands a 70 per cent higher viewing share than the nearest rival on all days of the week. Starcom Worldwide’s view is that Star Plus has not only sold more advertising seconds in 2001 compared with 2000, but it has also jacked up prices by 300 per cent leading to enhanced revenues.
Media industry analysts say that it remains to be seen whether this will continue this year.Source: Business Standard
Our typical marketing budget is usually 10 per cent of the topline spend