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Dear
advertising, media professionals, advertisers and broadcasters,
(Warning!!!!
Please treat this as constructive criticism because the views of
your own fraternity and industry bigwigs have been taken into consideration)
 After
spending nearly eight hours at the "Advertising
Meltdown: A CASe of Conflict" summit organised by
indiantelevision.com on 4 July at Mumbai's Hyatt Regency, this writer
feels that a new chapter has opened in the era of media planning,
buying and advertising. One just hopes and prays that you don't
get CAStawayed!
You
are about to enter a new phase totally different from
* the days in which legends such as Roda Mehta, PRP Nair solved
complex reach and frequency related problems on sheets of paper;
* the days when number crunchers such as Pravin Tripathi, Lynn D'Souza,
Kalpana Sathe, Meenakshi Madhvani combined psychographic, demographic
profiles with their gut feeling;
*the days when professionals and veterans such as Amit Ray and Suku
Murti urged rookie media professionals to let go of their computer
screens and venture outside - even as media pros turned research
specialists such as LV Krishnan fed them with infinite interpretations
of data;
*
the days when 'clients turned media professionals' such as Vikram
Sakhuja urged media trainees to think from the client's perspective
and place this above all;
* the days when buyers such as Ravi Kiran, Jeffrey Crasto, Harish
Shriyan extracted the best deals at rock bottom prices, obtained
value for money and had airtime sellers smiling as they walked out
of the cabins!
However,
some people feel that you are still not giving your 100 per cent
despite all the late hours that you put in.
 Madison
Communications CMD Sam Balsara, one of the first ad professionals
to take a calculated risk and create a collaborative partnership
between clients and TV producer for an innovation called Shanti,
spoke from the heart when he said: "Media planners and buyers
will also have to unlearn the past because the standard marketing
formula is dead. There will be no single solution that will fit
all needs. CAS will take segmentation to greater heights. There
is a great opportunity for little but measurable fragmentation.
Media planners and buyers who have failed to don the mantle of 'media
consumers' have given advertising a bad name. They have added to
the kitty of broadcasters and stopped being media professionals.
They earned themselves the tag of 'TAM rating consumers',"
he says.
 Lodestar
Media executive director Shashi Sinha wants you to treat the next
six months as a learning experience. He is adamant that one has
to take a long term view or perspective as the short term glitches
are understandable. "The next six months should be treated
as aberrations or glitches but the fraternity has to set sights
on the long term impacts. The interim period should be used as a
learning cum testing process," says Sinha.
 Media
Reach Research VP Kapil Anand points out the deficiencies in the
current system which you are oblivious or pretend to ignore: "The
Indian market is already used to a certain form of CAS. But no planner
or buyer speaks about it. In several regions outside of metros,
CAS is enforced even now as cable TV depends on the type of television
sets and the frequency on which channels are delivered. Several
homes in these areas have black n white TV sets and the frequencies
don't go beyond 450MHz," adds Anand.
 MindShare
Fulcrum MD Vikram Sakhuja gives you a 'scary glimpse' or 'sneak
preview' of the futuristic convergence era: "Viewers will be
empowered to seek out, choose - similar to the manner in which present
day Internet surfers behave. Ways will have to be found to address
focused or segmented viewers; to devise a stimulus that has to elicit
response; to
create integrated communication solutions in the true sense; to
lure the viewer who will be passive to programmes that he doesn't
want. The communication has to stand out."
Well,
listen to the wise men as your world is about to change. If you
don't want to be left behind and listen to what the new "CAS
age gurus" have to say then read on about 10 mantras to remain
CAS-savvy!
1)
Your universe will change - rather get metamorphosed:
 Media
expert Meenakshi Madhvani tells you what is in store: "The
media planning scenario post CAS will not be very different than
the existing one. There will be three different audiences - terrestrial,
FTA C&S audiences and CAS C&S audiences. Pay channel homes
will definitely be seen as the premium households but there is no
clear cut evidence that products targeting mass media will be affected
to lesser extent than those targeting niche segments."
Lodestar Media executive vice president Shashi Sinha says: "To
segregate audiences into FTA or pay TV audiences will be misleading.
Media planners and buyers have to look at genres and examine whether
they are exploiting them to reach the desired objective."
 Doordarshan
Mumbai DG Mukesh Sharma makes an interesting observation: Three
main categories will emerge - FTA, pay premium and pay popular.
However, there will be a need for regulating software in addition
to hardware. People will watch the DD channels as they won't have
much of a choice.
2)
Get out of the rut of screen based media planning
but not too much!
 A
veteran of 20 years in media planning and buying, BroadMind national
director Suku Murti warns: "Smart marketers have realised the
need to go beyond TRPs and GRPs. They are asking for ways to strengthen
and supplement their ad spends. The market has to move beyond the
obvious."
 Starcom
MD (west and south) Ravi Kiran points out that the current postponement
or deferment will ensure that there are grey areas. "There
would also be intrinsic complexities wherein subscribers would invest
in a set top box, subscribe to pay channels and then even stop subscribing
in the next month. However, the overall, TV viewership will not
drop," says Kiran.
 WPP
Marketing Communications director (marketing and corporate affairs)
Sai Nagesh has a piece of relevant advice: "The longevity of
TRPs will shift from the quarterly mode to a daily or weekly or
monthly mode. So be prepared to be flexible. Plans will have to
be updated on a daily basis."
 TAM
India CEO LV Krishnan however believes, "With CAS, India is
moving in the direction that several developed countries are already
heading towards. However, it is important 'to take life as it is
and just live with it' in the post CAS scenario. Well, in the post
CAS scenario, rating agencies will incorporate some minor changes
in the universe of C&S households to provide information on
those households that invest in set top boxes to watch pay channels.
Tracking of the CAS homes will start from day one. However, the
readings will not alter dramatically till an optimum level of adoption
of set top boxes is reached. The representation will not change
much unless penetration reaches a certain level."
3)
Ask your rating agency research provider difficult
questions and one that you have never asked:
 Media
researcher Prashant Sanwal has some ready made questions: "The
post CAS scenario will be ruled by complexity, cut throat competition
and constant change. However, rating agencies need to offer holistic
solutions rather than incomplete ones. The rating agencies have
to offer qualitative aspects and psychographic insights. For instance,
things such as "why do certain people watch a certain programmes?";
"why do certain people invest in STBs?"; "since lower
SECs are conscious about status and prestige, won't they invest
in an STB earlier than the elite that has access to several forms
of entertainment?" amongst others."
Sanwal
adds: "Rating agencies must understand that 'watching is not
involvement'. There is an eternal issue of 'solidarity versus power'
- certain individuals in households take control of the remote at
different times during the day; the other family members are forced
to watch certain channels. Rating agencies have to measure the co-relation
between message effectiveness and placements of brand within programmes.
After all, every surface message has
meta-messages."
 Optimum
Media Solutions senior V-P Amit Ray sees the brighter side of things:
"CAS provides an opportunity for the media fraternity to go
beyond ratings. Rating agencies or other institutions will have
to install consumer panels. There is a need to test consumers and
find out how many of them remember advertising and respond to them.
The heterogeneity of audiences is much more complex and it cannot
be tackled by minimal amount of data; one needs to add supplements.
Advertisers cannot cut costs or investments in research when they
seek so many answers."
 Media
expert Raj Nayak has a word of caution: "Rating agencies must
remember that OTG Update is related to connectivity and therefore
to subscription. Ratings will always be important and cannot be
ignored. Advertising is linked to the quality of the content. In
India content is king while distribution is God. Both has to be
given equal importance. There is a need to re-examine the traditional
definitions of SEC A. In the current system, certain niche channels
get ignored. Industry constituents must join forces to look at research
related issues."
4)
But don't depend excessively on the set top box:
Nayak points out: "Having a set top box in a house doesn't
imply that the members of the household will buy all the pay channels.
It is possible that they will use the box to view merely one or
two pay channels - perhaps just a Star Plus."
Ravi
Kiran warns: "Till date, no MSO has claimed to provide data
on individual viewership. Media planners and buyers will still have
to depend on audited TV ratings. In the initial phase, TV audience
data will not even report CAS homes. One million is too small a
figure."
5)
Support FTA channels in their drive for better content by sharing
risks:
Balsara
asks for your support: "The immediate short term (one year)
will provide opportunities for FTA channels. FTA channels have to
generate good content and this is a challenge for them. FTA channels
should be supported in their drive for content. Ad agencies, clients
must capitalise on this opportunity and be prepared to share risk
with the broadcasters. The entire chain has to share the risk. We
had taken this risk long back with the afternoon show Shanti
on Doordarshan that was sponsored by Godrej. It created a whole
new audience and redefined the concept of prime time. This was innovation
too. Ad agencies will have to take the lead or else an outside trader
will grab the opportunity."
 TV
Today's Aaj Tak CEO G Krishnan makes a valid point by saying: "The
FTA channels will provide eyeballs; pay channels will provide stickiness.
Pay channels will increasingly depend on subscription revenues and
will divert their attention from ad revenues in the long term."
Madhvani
adds: "Terrestrial channels will be taken far more seriously;
Doordarshan will grow. It is possible that the FTA channels will
occupy prime bands."
DD
Mumbai's Sharma offers: "Regional terrestrial channels will
emerge out of the shadows to become strong contenders for the ad
pie. After all their audience shares are comparable to the mass
entertainment channels."
6)
Acknowledge regional cable channels as a big
opportunity:
Balsara laments: "Cable channels are an opportunity lost as
ad agencies haven't really understood their true potential."
 INCableNet
IndusInd Communications vice president George Sebastian makes a
CASe: "Media planners and buyers need to seriously look at
the organised cable business as against the entire regional cable
channel business because the former has certain attributes such
as a controlled environment; better supervision; and is tracked
by the rating agencies. TAM tracks the FPC based centrally capsuled
network channels such as CVO. Several MSOs such as INCableNet have
augmented their fibre optic networks in metros in order to improve
quality of transmission. Their preference for movies will increase
post CAS given the fact that there are no FTA movie channels."
Live
Satellite Media CMD Atul Saraf extolls the virtues of regional cable
channels: "Regional cable has never got its due from media
planners and buyers. Regional cable TV offers guaranteed viewership
and has a higher retention capacity. Its availability on the prime
band is a big advantage. Post CAS, one hopes that it will get recognition
amongst the media planning fraternity. Monitoring agencies will
have to track these channels seriously. More viewers will watch
these channels and the eyeballs will bring in more revenues."
OTS
Update's Hemant Diwete seeks testimonial marketing: "Advertisers
must follow the example of several top advertisers such as Hindustan
Lever have started using the regional cable channels simply because
their research showed that these channels could not be ignored.
In several areas or localities, these regional cable channels give
100 per cent reach and are highly popular."
 Euro
RSCG's media independent Media Planning Group president Sandip Tarkas
is still unconvinced but... "The size of the pie is between
Rs 3 billion and Rs 7 billion at the headend level. I don't see
the share of the ad pie increasing phenomenally. However, if MSOs
are able to really localise the content and innovate - for instance
local news channels, local sports channels, local events channels
(festivals) - then one can expect the pie to grow."
7)
Make broadcasters realise that they need to unlearn:
Balsara foresees: "In the medium term, broadcasters with niche
content will do well. There will be real innovation in terms of
focused channels such as fitness channels, health channels, game
show channels amongst others. All these channels will be targeted
at a certain kind of audiences and there will be takers. Also, powerful
content ideas with low content costs will become the order of the
day. A programme such as Rajani or Buniyaad made more impact
and delivered greater value than a Kyunki Saas Bhi does now.
Broadcasters have to understand that advertisers don't make huge
profits or get high returns from placements of ads."
Sakhuja
redefines thinking to which the post CAS broadcasters have to be
attuned: "Media planners have to get broadcasters to think
in terms of unique content ideas and deliver the same at lower costs.
Broadcasters have to work on smaller viewer bases. The Big Ticket
items will come from programmes that appeal to the lowest common
denominator such as cricket or an idea such as KBC."
Ravi
Kiran offers clarity: "The debate is not about FTA versus pay
but about what viewers would want to watch in the near future. There
could be channels on gambling, horse racing, court cases amongst
others. Broadcasters have to think in terms of giving viewers better
content."
Suku
Murti offers a word of advice: "There is a need for broadcasters
and publications to come out with integrated offerings - The Times
of India group has already started doing so. Advertisers will have
to align with pay broadcasters and ensure that channel subscription
packages will become part of the offerings during brand promotions.
For instance, buy a television and get Star Plus subscription free
for a year so on and so forth."
Madhvani
however, paints a gloomy picture: "Pay channels will lose revenues
because smaller audiences will definitely imply a reduction in ad
revenues."
 Zee
Cinema business head and ETC promoter Yogesh Radhakrishnan doesn't
rule out the possibility of pay channels totally blanking out ads:
"Eventually, it is also possible that pay TV channels will
decide to do away with ad revenues when the subscription revenues
reaches a certain optimum levels. If broadcasters can sustain the
channel at that point with subscription revenues, they can ignore
advertising revenues completely."
About
niche pay channels, TAM India CEO LV Krishnan says: "The time
spent on channels will decrease as the number of channels increases
or choice increases. It doesn't make sense for advertisers to invest
in research that will focus on niche channels beyond a certain point
as the increase, if there is one, will be marginal. More time has
to be spent on studying impact on the fragmentation at the top end
that reaches out to more people."
8)
Prepare for convergence right now:
Balsara says: "In the long term (five years), if CAS becomes
a success, then convergence will become a reality. CAS will become
the catalyst for convergence. However, nothing will change overnight."
Sakhuja
offers an insight: "Innovation will become more evolved during
the era of choice driven control. The key aspects will be interactivity
and interconnectivity. Till now, media planners and buyers have
been thinking in terms of 'cost per reach point' and 'cost per rating'
point. Post CAS, they will have to give respect to 'cost per action
point'.
9)
Become an adept in creating optional plans and alternatives:
Sakhuja has this piece of advice: "Till now media planners
and buyers have equated innovation with 'marrying message with the
medium'. They must elevate their thinking and take it to the next
frontier with out of the box thinking. Customised plans are the
order of the day. Media planners must come up with alternative media
plans."
10)
Be prepared for rate hikes and premiums that will
change by the day or by the hour:
DD
Mumbai's Sharma reasons: "The national broadcaster's rates
are due for revision now (C&S channels have been raising rates
quite often) and we shall increase them at an appropriate time in
the near future."
 SABTNL
president (sales) Kanta Advani emphatically states: "It is
definite that advertisers will chase viewership. The viewership
of those channels that are available (FTA channels) will definitely
see a surge. Planners and buyers will have to take cognizance of
this increase in viewership of FTA channels. It is possible that
those FTA channels that have more viewers might increase their ad
rates and advertisers will have to pay a premium. However, the spike
will be dictated by market realities - it cannot be unrealistic."
Madhvani
claims: "Pay channels might reduce the amount of advertising
they accept but add a premium value to the existing rates."
Nayak
reminisces: "Whenever, there were blackouts, media buyers have
forced broadcasters to offer discounts. Therefore, rate negotiations
post CAS seem inevitable.
G Krishnan
however, doesn't see the need for FTA channels to hike their rates.
"The important thing is to bring more transparency in the rate
structure," he feels.
CAS
or no CAS, the time has come to introspect and move up the value
chain. Ad agencies must realise that their clients have grown because
they had the inclination to take risks and experiment. It is time
you guys in ad agencies start doing so too.
Yours
faithfully,
Ashwin
Kotian
(for indiantelevision.com)
Also read:
Area-wise
rollout to soften pay broadcasters ad
CAS
- Golden opportunity to go beyond ratings!
'FTA
will give eyeballs, pay will provide stickiness'
'Unsung
heroes' Regional Cable channels could shine post CAS: MSOs
Partnerships
for sharing costs, risks will inspire innovation
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