ITV

Tag: FCT

  • Nilesh Thakkar moves on from GS TV to launch The Real Media People

    MUMBAI: Media veteran Nilesh Thakkar, whose latest stint was with Aas Paas TV (the television wing of Gujarati daily Gujarat Samachar), has turned entrepreneur with his media venture – The Real Media People (TRMP).

    The media agency will focus on providing media solutions to the real estate sector which is heavy on print and out of home media. It will also help players in the sector capitalise on the use of electronic media, which has not been used effectively by the builder community as yet.

    Thakkar, the founder CEO of TRMP, said, “At TRMP, we shall give 360 degree solutions to builders who are still heavy on print and will generate additional revenue for all regional and national news channels by way of spot/non FCT/advertiser paid feature. Real estate is huge sector for print and this sector requires a personalised touch. We shall not operate like an ad agency but will act as consultants in promoting the clients.”

    TRMP was inaugurated on the pious occasion of Vasant Panchami and will start full-fledged operations from 1 April. Thakkar will be joined by two more partners, whose identities will be revealed in due course of time. There are already some new channels that have tied up with TRMP.

    Thakkar further said, “I started working at a very early age, practically during my school days. I always thought I shall retire early and start something on my own by the time I enter the early forties.”

    Thakkar has 20 years of experience in the media business having spent seven in years in print with publications like Manorama, Abhiyaan and Chitralekha and 13 years with Zee, Star News, Star Ananda, Star Majha, Tv9 and Gujarat Samachar (GS Tv).

  • ESPN Star Sports eyes Rs 1.6 bn ad rev from Indo-Pak series

    MUMBAI: Sports broadcaster ESPN Star Sports is playing hard ball with advertisers for the blockbuster India-Pakistan series comprising 3 ODIs and two T20s.

    The sportscaster has set high ad rates for the high-profile series hoping to suck in as much ad revenue as it can. The series kicks off on 25 December.

    According to industry sources, the broadcaster is asking for Rs 800,000 per 10 second spot for the ODIs while the T20s have been priced at mind-boggling Rs 900,000-1 million.

    In comparison, the going rate for an India-England series is about Rs 275,000-300,000 per spot for ODIs and Rs 450,000 for the T20s, according to media buyers.

    An ODI match typically has 5,000-5,500 seconds of FCT, out of which each sponsor gets about 240-360 seconds. In contrast, a T20 match has 2,000-2,200 seconds wherein a sponsor gets 120-180 seconds.

    ESS is eyeing eight sponsors including two co-presenting and six associate sponsors. It has set an ambitious target of Rs 1.6 billion ad revenue from the series.

    ESPN Software India MD Aloke Malik said it has already got one sponsor on board for the series which will be held from 25 December to 6 January.

    “We are looking at two co-presenting and six associate sponsors. We have just gone to the market with it and have got one sponsor,” Malik told Indiantelevision.com without revealing the name of the sponsor.

    The steep rates have clearly not gone down well with the advertisers who are questioning the basis on which the rates have been hiked coming as it is in the wake of a subdued ad market.

    Lodestar UM COO Anamika Mehta said, “The ad rates for the series are inflated because of the hype around the series. The entry price is too steep and it‘s not really easy to spend that kind of money even on an India-Pakistan series. In any case, we had a packed cricket calendar this year.”

    While acknowledging that an India-Pakistan series will deliver high ratings compared to any other series, Mehta said the price point is too steep to take the bait. Lodestar‘s client Tata DoCoMo had signed a deal with ESS for the entire cricket season.

    “Although an India-Pakistan encounter delivers high viewership, beyond a point the ratings won‘t increase. At that price point we can as well buy other cricket properties,” Mehta reasoned.

    A top media buying executive from Mindshare questioned the justification behind the ad rate hike while conceding that an India-Pakistan series is a lucrative property to buy for any advertiser.

    “An India-Pakistan series is a premium property but it cannot be just doubled. There has to be some justification for this kind of an ad rate. A couple of our clients are interested in the series but this is not the price that we are willing to pay,” the official said requesting anonymity.

    The executive said that ESS can expect a premium of 25 to 50 per cent maximum on the prevailing prices. But anything above that is obnoxious, he added.

    A media buying executive of another agency wondered which advertiser would spend the kind of money that ESS is asking for. “The ad market is not buoyant as big spenders of cricket like telecom are not spending much. The insurance sector is dead, colas also spend mostly during summer and MNCs have already closed their yearly budgets. So the question is who has the appetite to spend this kind of money,” the executive questioned.

    The negative mood notwithstanding, the sports broadcaster remains optimistic about the prospects of the series which is happening after almost half a decade. The two countries last played a series in 2007.

    A senior ESS official asserted that the company was in the process of finalising deals and by next week it would be able stitch together a few of them.

    “The media buyers can say whatever they want to, but we are confident of achieving our targets. We are in negotiations with advertisers and will hopefully finalise few deals by next week,” the official said.

    The official said that apart from big spenders they would also have about 20-30 per cent of first time advertisers who are willing to pump in money for the big bang series.

  • ZengaTV ropes in Parle Wafers as title sponsor for India-SL series

    MUMBAI: Mobile video streaming provider ZengaTV, the exclusive mobile rights for the ongoing India-Sri Lanka series, has roped in Parle Wafers as the title sponsor for the series.

    Under the deal, Parle Wafers will advertise in between overs as pure FCT and also on Action Replay and Super 4‘s mirroring the traditional TV model of advertising and this alternate platform gives a choice to the brands to consider while they strategize their marketing and advertising plan.

    Announcing the sponsorship, ZengaTV CEO Abhishek Joshi said, “This tie-up with Parle Wafers is an important addition to our already existing advertiser bouquet and we strongly feel is that there is enough space for every brand to advertise on the mobile TV platform and this will be very hard to ignore when they launch their future brand campaigns. Zenga TV which currently is on a very high growth trajectory is proof that this is a serious platform for the marketers to start considering.”

    The series kicked off on 21 July on Ten Cricket featuring five ODIs and one Twenty20 match.

  • Indian television advertising is very much underpriced’ : Joy Chakraborthy – Zee Network executive VP Network Sales

    Indian television advertising is very much underpriced’ : Joy Chakraborthy – Zee Network executive VP Network Sales

    Joy Chakraborthy took charge of Zee Network as ad sales head in early 2005, at a time when Zee TV was going through a crucial phase. Chairman Subhash Chandra was strategising a turnaround for the flagship channel and a number of big ticket shows were being readied, with the expectations of re-writing Zee TV's fortunes in the Hindi GEC arena.

    As Network sales head, Chakraborthy's first challenge was to project Zee in a new light. "Zee had a perception problem in the market and a section of the trade had written it off. We wanted to create a new impression and build on that," Chakraborthy says."There couldn't have been a better time for me to head the network's sales team," he gushes.

    Speaking to indiantelevision.com's Bijoy A K, Chakraborthy elaborates on the strategies that worked for Zee, future plans and on the industry scenario.
    Excerpts:

    You have completed a year as the sales head of Zee network. Please elaborate on the key industry learnings you could gather during this period?
    A crucial lesson we have learnt is on the significance of soaps in the GEC prime time game. We have learnt that GEC is all about soaps, but different from Saas-Bahu sagas. People buy a channel for consistency and not for spikes only. In the industry, on an average, 70 per cent revenue is tied up on a long-term basis and only soaps can fulfill that promise. Innovative programming is fine, but they should be scheduled and timed very effectively. When you innovate, it should not be just a programming decision but a collective decision including sales, marketing and programming.

    Everybody had written Zee off. But we could pull off a turnaround — what seemed impossible until some time back – through team work, discipline, passion, accurate timing and by keeping the faith intact. As expected, the trade has responded to this change very positively, and now we enjoy the backing of the entire market. This is because of the strong relationships we had built during this period. What I am driving at is the fact that, relationships play a key role in this industry. This period also showed us who are our real friends and who are opportunists. Also, it has been a learning for me that both, people and organizations are important, and one cannot exist without the other.

    How is the industry evolving? Give us a low down in the recent developments and the trends?
    Indian television advertising is very much underpriced and we have decided to bring this issue into focus, under the banner of the Indian Broadcast Foundation (IBF). In a couple of months, we are planning to come out with certain guidelines on pricing, which would hold a lot of significance for the industry. Our main concern is the underpricing of television. It is a powerful medium and it should get its due, especially at a time when the costs of programming and marketing have skyrocketed. All network sales heads are now represented in IBF and we are united on this cause.

    The present scenario is very confusing. Television is booming, but clients are very tentative to take a call on TV as compared to the print as television research is more confusing and dynamic and changes everyday. I think an increase of 15 per cent to 20 per cent in rate is due immediately. It should also be noted that cricket of late has not affected GEC/Hindi movies viewership, which are the primary revenue drivers in C&S. The Hindi movie genre is still very much underpriced and same is the case with regional channels.

    I keep hearing that the English entertainment space is shrinking, but I don't agree with this as this is the genre with least wastage and where even an advertiser is a viewer.

    Does GEC still hold an edge over other genres when it comes to delivery and demand? Or has there been a change in the pattern?
    GEC will always hold the edge as maximum revenue comes to this genre. For any client, the reach build up and in some cases, frequency by smart scheduling comes from GEC. According to me, the genre pecking order would remain as: GEC, Hindi Movies, Regional, News, Sports – in that order.

    In the last two years, unique content channels have seen so much of a price cut that the FCT has increased drastically and revenue in the genre has hardly moved. I sometimes wonder how they are still surviving in business.

    Regional television space holds a lot of potential though it faces tough competition from print. The key segments driving growth in regional are: Retail, education and real estate, in addition to general categories like FMCG, telecom services, consumer durables etc.

    Zee has already started working on all these segments. We have started roping in retail clients and our next focus is on the real estate and education. Though there is a slow transition of main print category advertisers to television, the good news is that these clients have realised the power of television.

    Did the recent stock exchange fluctuations impact sales?
    The fluctuations haven't affected us at all. Actually, Zee recorded better sales during this period of May-June. June-July usually has a lean period tag attached to it, but this year, it was different. This is one change in the normal pattern. These days, there is nothing called lean or peak period. This is due to the boom in categories such as telecom, services, finance and the perennial FMCG.

    Today, advertisers are not limiting themselves to a particular genre due to media fragmentation. Most clients are there in almost all the channels/genres. Earlier, there used to be a particular set of advertisers for particular genres, such as premium products for English entertainment channels. These days, even FMCG brands are keen on English channels. It is a trend of aspirational marketing.
    'With the good performance, our viewer base has also expanded and this, in turn, helps us to better our performance on a consistent basis'

    The last one year saw Zee TV pulling off a turnaround in Hindi GEC, by reaching the second position. Could you briefly outline what happened during this eventful phase?
    During this period, the sales team was able to initiate a lot of changes successfully. To start with, we decided to remove the paid bonus system and agreed to reduction of ad sales inventory. This helped to change the general perception that, Zee has unlimited inventory. Then, we made it a point to keep away from attempting any innovation in terms of sales. This is because, the delivery of innovations take too much of time for the value we generate. Also, I have observed that in spite of doing innovations, the clients/agencies are always unhappy with the implementations, however good you might do. So why do innovations?

    We also focused on doing more client/agency meetings and met people at all levels. The Zee Network had a perception problem in the market, and the sales team has positively addressed this. I felt a lot of our positives were not known to the market. We had been very firm in our decisions and we always made it a point to abide by our well-defined sales policy. I have ensured all commitments/deliverables are in writing and not verbal, as this avoids conflict when people change at channel/agency side. When it comes to deals, the attempt has been to create win-win situations. We reduced our FCT to an effective level to create demand and initiated a very transparent sales policy.

    We also introduced the Matrix system, which played a key role in bettering the network performance. We appointed individual sales heads, responsible for strategy, revenues and targets of their channels. We have senior people as branch heads in the business deployed in key markets such as Delhi, Kolkata and the South whose roles are more tactical and they ensure revenue spread across all channels and have their branch targets. Both sales heads and branch heads work very closely with themselves and with me.

    For me, Zee has turned out to be a great place to work. It is a place with total freedom and great empowerment. I would say internal stability in Zee is very high. All decisions are discussed and not pushed down your throat. We have the best bunch of professionals, both at senior and junior level.

    Please comment on your face-off with Star. Star recently initiated its counter strategy to block your surge in the 9-10 pm time band. What impact has it made on your game plan?
    You feel happy when the leader reacts. Zee has pioneered the strategy of launching soaps with innovative media breaks. Seeing Star also doing the same for their show has been an ego booster for us. Coming to the second part of your question, it felt even better when the leader's tactics didn't affect our numbers and the market demand.

    With the good performance, our viewer base has also expanded and this, in turn, now helps us to better our performance on a consistent basis. Earlier, when we launched a show, rating in the range of 1 TVR to 2 TVR was considered as satisfactory or good. Now, our new launches pick up very fast and the shows even record an opening rating of 2+ TVR on an average basis. This has inspired us to fight Star in its own bastion – the 10 – 11 pm band – with non-soaps such as Johny Aala Re and Sabash India.

    So what is the next big idea? What will be Zee's next focus?
    We have now settled ourself comfortably in the 6 pm – 8 pm and the 9 – 10 time bands. You will be seeing some more launches in the months to come which will strengthen our FPC even further. The programming, marketing and sales wings are now working on the strategies to strengthen the 8-9 pm band.

    What is the strategy you follow to sell Day Parts?
    We have made lot of efforts to increase the demand for the Non Prime Time (NPT) band. Each sales package has got a mix of PT and NPT. We ideally would love to sell at 30:70 for PT/NPT. We have also been selling early NPT and late night slots for religious/tele shopping properties. As a result of focusing on NPT, our inventory FCT consumption has doubled in NPT.

    Which are the client segments that top your delivery list these days?
    Still FMCG is number one, though there has been a major upswing in Telecom/Services/Auto/ to name a few. The concern has been the consumer durable category with a few big players not clear about their plans. Additionally, SMS has emerged as a key revenue driver for us for our interactive shows.

    Speaking about the network performance, what is the scorecard?
    Zee TV is on top followed by Zee Cinema. Zee TV was underpriced when I took over, and now we are steadily moving in the right direction of rate. We activated rate corrections twice for the network during the six months and now, as the festival season is coming, you can expect another correction soon. For some channels, it will be across all day parts and for some it will be programme based.

    Revenue wise, maximum share comes from Zee TV followed by Zee Cinema, Zee Marathi, Zee Bangla, Zee English cluster, Zee Music and Zee Smile. The beginning of the year has been very good and I am sure we will touch a new high this fiscal.

    Now let us take it one at a time. To start with, please comment on the performance of Zee Cinema. What is the plan for this year?
    As a sales person, I can't ask for a better channel than Zee cinema which has been consistently delivering for years in the face of stiff competition. My colleagues in programming and marketing have given us a product which is a must have in all media plans, specially if it is targeting the "cow" belt (Hindi heartland). Since the last two years, the Amitabh movie band Shaniwaar ki Raat Amitabh Ke Saath has been our key driver. This year, we have introduced a youth block – Klub. We have our own share of blockbusters for the year also.

    Zee Smile has been keeping a low profile these days. Is the channel in an orphaned state, or is there a plan on the anvil?
    You will soon know our plan for Smile. But for sales, Smile has been a great help to get incremental revenues. The channel is very well distributed in non traditional markets and hence, you will find lots of brands advertising on Smile.
    Speaking about regional channels, you are in charge of sales of two key players Zee Bangla and Zee Marathi. How did these two channels fare in the last one year period?
    This year, we have practically re-launched Zee Bangla with a slew of new programmes and this will boost its sales potential. We are again going to do sales initiated programmes like Durga Pooja and Jatra.

    Zee Marathi has now become the clear number one. We are there in almost all plans. We have also set up a separate sales team to develop retail and non traditional advertisers like educational institutes, real estate, local jewelers, classified etc and the results are showing.

    Comment on the delivery of your event properties.
    During the last one year, there has been an extra thrust on good events, and the efforts have paid off very well, I would say. We have converted the Saregama finals as an on-ground event and the attempt has met with great success. This had inspired us to take the Saregama Ek Mein Aur Ek Tum finals to Dubai. Apart from winning a global appeal, going to international venues helps sales also. Zee Cine Awards, Mauritius and even the Zee F- Awards, have done very well for us.

    We have Zee Astitva Award, Zee Marathi Awards, Zee Gaurav Puraskaar, Zee Amader Gaurav, Zee Songeet Puroshkaar to name a few, lined up in the next few months across various channels.
    Have you retained Amap's service as an alternative rating agency to Tam?
    Yes. We need to have two meters because the industry needs competition in this realm also. It is always good for the trade. It brings out the best of everyone. According to me, each of them can coexist, triggering healthy competition. I am not making a judgment here, but for the betterment of industry, we need two parallel rating systems. The earlier we acknowledge this, the better it would be for all of us.