Livid advertisers start pulling out ads from TV

Capping a week of dramatic developments, some of India's top advertisers started issuing cancellation of their ads running on some key broadcast networks starting 5 PM on July 12, 2013

e4m by Priyanka Mehra
Updated: Jul 13, 2013 9:51 AM
Livid advertisers start pulling out ads from TV

Top media agencies have confirmed to exhange4media that leading advertisers have started sending cancellation orders to broadcasters who shifted to monthly ratings from 5 PM on July 12, 2013. However, the broadcasters who are maintaining weekly ratings will remain unaffected.

The cancellation orders are not restricted to ad campaigns, but include sponsorships as well.

In a development yesterday, TAM Media had confirmed that ratings will be released on a monthly basis henceforth for reporting the ratings for seven major broadcasters, which include NDTV, STAR India, Viacom18, and MSM, among others. This apart, the CPT (Cost Per Thousand) format will be used for reporting the ratings.

This may seem like a logical conclusion for advertisers, who have remained consistent in their stand since the ratings row began over the frequency of ratings. They expressed in no uncertain terms their support of TAM’s weekly ratings and voiced their discontent with the decision of some broadcasters to opt for monthly release of ratings, resulting in loss of a currency to measure ROI.

The estimated ad revenue loss to the broadcasters is expected to be roughly 14-15 per cent, when calculated on a weekly basis. Since the ratings will be calculated on the CPT format, the per day average amounts to around 2.73 per cent.

It may be recalled that exchange4media had first reported on the advertisers’ decision to pull out ads from television in the report titled ‘Top advertisers vote to pull out ads from TV’, along with the reactions of the advertisers and media agencies in the report titled Disgruntled advertisers & media agencies speak up, published on July 12, 2013.

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