New Delhi: Through
the Indian Broadcasting Foundation (IBF) had tried to broker a truce yesterday
with its Plan B offering of a one-month surcharge-waiver that it had announced
on Sunday, the Plan B seems to have had a minimal impact on the advertiser - broadcaster
- media buyer war.
Tuesday, programmes across most TV channels will see ad-breaks decline to around
10-20 per cent.
advertisers such as Hindustan Unilever Limited (HUL) and Procter & Gamble
(P&G) have reportedly refused to accept the IBF''s implementation of a 25 per
cent surcharge on advertisements.
TV executives across various channels are slogging to extend the programme duration
to fill airtime that would have otherwise to led to the broadcasters'' cash tills
ringing to the tune of "commercial breaks".
a stop-gap, broadcasters are airing promos, public service advertising, along
with own brand inventories would occupy the regular ad slots, as will government
ads ie those issues by the Directorate of Advertising and Visual Publicity (DAVP),
and media ads.
to Paritosh Joshi, president for ad sales and distribution at Star India, this
situation is unlikely to continue for a very long time, as clients would soon
realise the gravity of the situation. "Can you imagine TV without ads?",
sir. TV viewers would love the thought, as over the next few days they''d get unadulterated
programming, without innumerable advertising breaks. What the advertisers and
broadcasters should think about, is what would happen if viewers like the concept
of watching programming sans advertising.
to industry estimated, the ad-free television viewing experience will last a week
at the most.
to IBF sources, there were only a modest number of advertisers who signed up for
its'' plan B of the one-month surcharge-free ad rates.
row between the broadcasters and the advertisers started when IBF cited a hike
in input cost as justification to levy a 25 per cent surcharge on all advertising
rates being offered by the broadcasters, effective 16 October. Homes with cable
and satellite (C&S) TV have increased from 42 million to 70 million during
the past three years. In the same time, increased competition in the channel space
has seen ad rates sink by 20-30 per cent.
to reports, most mass entertainment channels have accepted IBF''s advisory to hike
the ad rates through the 25 per cent surcharge. Some news, and niche and regional
channels have preferred to complete existing deals with advertising clients at
per existing contracts, prior to shifting to the hiked rates.
also see : What's the
spat over TV ad surcharge?