MAM
After 2 years, Star ups ad rates
MUMBAI: Advertisers will need to cough out more to place their ads on television as two leading Indian broadcasters have indicated that they would be upping their rates this fiscal.
After a gap of two years, Star India said Tuesday it would increase the advertising rates for its bouquet of channels by 20 per cent with immediate effect.
“We expect our revenues to grow by around 15-20 per cent this fiscal as compared to 12-13 per cent in the last year. Since advertisements are the major source of income for this industry, the increase in rates will help us achieve the target,” says Star India COO Sanjay Gupta.
The other leading broadcasting company, Zee Entertainment Enterprises Ltd (Zeel), has forecast a 12-14 per cent ad revenue growth in FY‘12.
Star‘s decision has come amid rising content costs, an increase in market share and a leadership position of its flagship Hindi general entertainment channel Star Plus.
Says Gupta, “We have achieved an unprecedented growth of 30 per cent in the last two years. Today we are leaders in 18 key states of India. This unstoppable growth is riding on the back bone of significant investments, innovative content and delivery of quality of experience through technologically advanced platforms.”
Broadcasters have been pressing for a fair rise in ad rates as the cable and satellite homes in India have increased from 90 million in 2009 to 116 million in 2011, while the digital homes have almost double (from 15 million in 2009 to 26 million in 2011).
Star claims that its market share and reach has gone up substantially. However, the advertising revenue growth has not kept the same pace.
Says Gupta, “The total viewership share of the network in 2009 was 12.4 per cent, which today stands at 16.1 per cent. Advertisers should accept our increase.”
Star justifies the increase in ad rates as it has come in the backdrop of spiraling cost of talent, increased investments in technology, advanced delivery and distribution platforms as well as increased production costs.
Says Star India ad sales president Kevin Vaz, “Our network reach has increased and at the same time for the advertiser, the cost of reaching 1000 people has reduced by 38 per cent in the last two years. This rate increase of 20 per cent is just a part correction in lieu of the phenomenal growth the network has shown in the past two years.”
Some senior industry executives do not find sense in Star making a public announcement. “Why do you need to announce the hike in ad rates when you don’t do business on rate cards? The deals are signed after negotiations and advertisers always try to beat down the price. This announcement is amusing,” says a senior ad sales executive from a rival network.
Media buyers feel the pricing will be determined by the demand-supply equation.
Says Madison Media Group COO Punitha Arumugam, “The television rates are decided by the TVR performance and not by rate cards. As Star is performing, it can charge premium. It all depends on the ratings and not on rate cards.”
On the point of CPT (cost per thousand) going down, RK Swamy Media Group president Chintamani Rao believes that in India deals are not signed on the basis of CPT. “Deals are done on CPRP (Cost Per Rating Point). If deals would have been signed on CPT basis, the rates would have been much higher,” he says.
You have spent weeks researching, test driven a few options, finalised the colour and variant, and are now days away from taking delivery of your new car. It feels like the hard part is over. But there is one step that most buyers skip entirely, and it is the one that protects everything else. Understanding what PDI meaning covers and why it matters could save you from discovering a Rs 20,000 to Rs 80,000 problem after you have already signed the papers.
PDI stands for Pre-Delivery Inspection. It is a structured check that happens before your car is handed over to you. A proper PDI car service covers everything from paint quality and panel alignment to electrical systems, fluid levels and tyre pressure. Dealers are supposed to conduct this before delivery, but the depth of the check varies widely. And if the buyer does not know what to look for, problems slip through.
What Does a PDI Actually Cover?
A thorough PDI checks the car across four broad categories:
| Category | What Gets Checked | Common Issues Found |
| Exterior | Paint quality, panel gaps, glass, lights, tyres | Paint chips, uneven panel alignment, scratched glass |
| Interior | Seat upholstery, dashboard, AC, infotainment, switches | Loose trims, non-functional buttons, squeaks and rattles |
| Mechanical | Engine bay, fluids, battery, brakes, steering | Low fluid levels, minor leaks, battery not fully charged |
| Electrical | All lights, windows, central locking, sensors | Malfunctioning sensors, flickering displays, USB ports |
Each of these categories can hide issues that are minor at delivery but expensive if left unaddressed. A small paint chip near a door edge, for example, can lead to rust in a humid city like Mumbai or Chennai within 12 to 18 months.
What It Can Cost You to Skip the PDI
Here is a realistic look at what buyers have discovered after delivery that a proper PDI would have caught before:
• Paint defects requiring respraying: Rs 8,000 to Rs 25,000 depending on the panel
• Misaligned panels or doors that need workshop adjustment: Rs 3,000 to Rs 8,000
• Non-functional infotainment unit needing replacement: Rs 15,000 to Rs 40,000
• Scratched windshield that needs full replacement: Rs 6,000 to Rs 18,000
• AC not cooling properly due to low refrigerant: Rs 2,000 to Rs 5,000
• Tyre with a slow puncture from storage damage: Rs 3,000 to Rs 6,000
The total exposure from a single missed PDI can range from Rs 5,000 for minor issues to Rs 80,000 or more if multiple problems are found post-delivery. More importantly, proving that a defect existed before delivery becomes significantly harder once you have taken the keys.
Why Dealer PDIs Are Not Always Enough
Most dealerships do conduct a pre-delivery check on their own, but the process is not always as rigorous as it should be. There are a few reasons for this:
High Delivery Volumes
During festive season or at the end of a financial year, dealerships handle a surge in deliveries. When a service team is processing 15 to 20 cars a day, the depth of each check inevitably suffers.
Incentive Misalignment
Dealership staff are often incentivised on delivery speed and customer satisfaction scores. Finding a defect and sending a car back for rework delays delivery and affects scores. The incentive to look harder is not always present.
Buyer Unawareness
Most buyers arrive at delivery excited and in a hurry to leave. Without knowing what to look for, they miss things that a trained eye would catch immediately. Dealers know this, and the pressure to be thorough is lower when buyers are not asking questions.
What You Should Check Yourself at Delivery
Even if the dealer has completed their PDI, spend 20 to 30 minutes doing your own check at delivery. Here is a quick reference:
Check How to Do It Time Required Walk around in daylight Check all panels for scratches, chips and dents 5 minutes Open every door Check seals, check for rattles, test all windows 3 minutes Check interior thoroughly Test every button, switch and screen 5 minutes Start the car Look for warning lights, check AC, check all lights 5 minutes Check the boot Look for spare tyre, tools, jack and damage 2 minutes Inspect tyres Check pressure and look for sidewall damage 3 minutes
The Bottom Line
A PDI is not a formality. It is the last line of defence between you and a problem that the manufacturer or dealer should have fixed before you paid for the car.
Take the time to understand what the check involves, ask your dealer for confirmation that it has been completed, and do your own walkthrough at delivery. Twenty minutes of attention at this stage can save you weeks of workshop visits and tens of thousands of rupees down the line.
