I&B Ministry’s ad hike move: Are private news players impressed?

The change is based on the recommendations of the Eighth Rate Structure Committee of the MIB

Ministry of information and broadcasting

The Ministry of Information & Broadcasting recently announced hike in the ad rates for private news channels offered by its Bureau of Outreach Communication (BOC) formerly known as DAVP. The change is based on the recommendations of the Eighth Rate Structure Committee of the MIB.

In a media statement, the Ministry said, “The revision will lead to an increase in rates of around 11 per cent over the rates of 2017 in respect of most of the private TV channels while it could be of higher percentage for some others, as per their reach and TV ratings.”

“The decision will also make it easier for TV channels to be empanelled with BOC in order to take advantage of the higher rates,” it further added.

This move by I&B Ministry comes after its recent announcement of 25 per cent hike in ad rates for newspapers.

exchange4media spoke to some agency and TV channel experts to contextualise this latest move and what it means for private news channels who are already looking for bigger ad revenues this election year. 

According to Anita Nayyar, CEO, India and South East Asia, Havas Media Group, “It works well for both - channels as their yield increases and deservingly so given that reach/eyeballs have increased over a period of time. For DAVP advertisers it gives them a platform to reach the viewers which was not the case for some time now. Especially in the election year where news channel viewership will increase.”

 “A hike has been clamoured for a long time now. DAVP rates have traditionally remained low. A revision is a good sign. To an extent broadcasters who boycotted DAVP ads put the pressure from one side and the sheer pressure of the elections ahead has caused for this revision,” stated Harish Bijoor, CEO of Harish Bijoor Consults Inc.

“I do believe all the money saved last year by DAVP due to broadcaster boycott will also now hit the media with vigour. There is a short window time to spend all this money.  So expect big action and media traction,” he further added.

For Varun Kohli, CEO, iTV Network the move signifies a positive development. “I believe it is a positive development and was expected after they did a similar move in case of print players some time back,” he said.

According to Anil Singhvi, Managing Editor, Zee Business, the hike is less than expected and should have been at par with the hike in print. "People are moving from newspapers to digital and electronic media. The hike is less than expected when we compare it with what was done in the case of print players. Also, the hike should be same across channels and not just news channels," stated Singhvi.

 “With insufficient people willing to pay subscription fee to watch news and in the absence of FDI the only way for a credible news channel, devoid of any political connection to survive, is a higher ad rate. From the advertisers point of view it would make sense to pay those who choose to engage in a more meaningful manner moving away from the current stereotype which has disengaged the viewer and done a huge disservice for the industry as a whole,” stated Chetan Sharma, Founder CEO and Editorial Director, India Ahead News.

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