IPL, general elections promise to make things more hectic.
Volatility in advertising rates across media and increased bargaining over rates due to thinner budgets on the back of a slowing economy have shortened the media planning cycle (the period for which advertising spends and spots are planned) to one to two months from three to six months during boom times.
Mona Jain, India head, strategic investments, India Media Exchange, (IMX, media buying division for Publicis), says: “The market is very dynamic in the light of the slump. Renegotiation of rates across channels is happening, due to which rates keep on changing. For this reason, advertisers have a wait and watch policy. They are planning their media spends for a shorter time, so that their contracts are in sync with the changing rates.”
UNSTABLE PLANS
* Advertisers no longer come up with annual plans due to changing ad rates
* Shorter cycles have made planners’ job more difficult
* Upcoming months’ planning will be more hectic due to IPL and general elections
* Launch of Real channel will also lead to some reshuffle
The demand-supply gap has made channels and publications vulnerable to rate negotiations. There is more airtime and ad space, but few takers. Sandeep Lakhina, managing director, India-West & South, Starcom Worldwide, agrees: “By and large, the cycle has come down to one to two months.” Shripad Kulkarni, COO, Allied Media (Percept’s media buying agency), says that, sometimes, it’s even shorter periods.
Pratap Bose, COO, Mudra Group, concurs that clients are hesitant on large and extensive budgets. Except FMCG companies, all other categories are looking at shorter windows, he opines, adding, “Nobody comes with an annual plan.”
This has made planners’ job hectic. Says Lakhina: “Clients’ marketing teams are not releasing money in big amounts and are evaluating ROIs more stringently. There is more pressure on us now, as there is more involvement of the marketing teams.”
“We are working overtime. Frequent renegotiations and planning is keeping us thinking on our feet,” Jain adds. Kulkarni says the coming months will be more hectic, as there will be lots of replanning due to the IPL cricket tourney and the general elections. Advertisers wish to see the switch in viewership and accordingly put money on relevant channels.
The Launch of the Real (a general entertainment channel) will also create some ripples in the coming months’ planning. Advertisers will relook at TRPs (television rating points,an indication of which programmes are viewed the most) of GEC category and plan accordingly. When Colors got launched and did well and Sony, Star and Zee ratings started tumbling, there was hectic reshuffling of spends from other GECs to Colors.
This time, advertisers haven’t made any long-term commitments and have asked their planners to be ready for an immediate change in spot buying.
Real given the current market situation and Business Environment, will still take time to put s strong foot hold, as the article rightly suggests on the position that Colors have adopted to. once the make a dent, then only this will also effect the ad spends of advertisers, but not in the short term.
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