Dd Pips Satellite Channels In Ad Revenue

Despite the flutter created by the entry of a number of satellite channels, Doordarshan (DD) still manages to bag a lions share of advertisement spending in the country. Even with less ad hours last year (almost 50 per cent less compared to satellite channels), DD advertisement revenue increased by about 40 per cent.

According to a note prepared by Mandi House, of an increase of Rs 322 crore in advertisement spending in 1996 over 1995, DD earned Rs 125 crore, an increase of 40 per cent over its 1995 figures.

Doordarshans earnings are not affected by the low availability of ad hours due to higher ad rates which have not been resented by advertisers, if the number of advertisers clamouring for DD ad time is any indication.

 

In other words, the ad spend on DD is nearly two-thirds of the total ad spend on TV media with less than half the commercial time (available), the Mandi House note, prepared on the basis of figures made available by IMRB, HTA and HLL, states.

While the total ad time available on satellite channels stood at 2427 hours, the figures for DD was 1096 hours a difference of 50 per cent.

It is a conscious decision (the decision to keep the ad hours to a minimum). Being a public broadcaster, (DD has) to see to it that commercial considerations do not overtake the public broadcasters role, the note says.

The DD paper also takes note of the fact that over the last three years the share of advertisement revenue from the electronic media, compared to other media, has been on the increase. From 24 per cent in 1994 (equivalent to Rs 768 crore), the share of ad revenue on TV increased to 30 per cent in 1996 (Rs 1,470 crore).

While the cost of acquisition of programmes in satellite channels gets reflected in the revenue, in case of DD the cost of acquisition of programmes gets added to the revenue. This is because of the fact that DD does not purchase programmes. The cost of production is met by the advertisers.