D-Day for 10+2 ad cap is here. What now?

Recent developments have revealed that the b'casting industry is clearly divided on the ad cap issue. Will it be implemented tomorrow – is the question of the hour

e4m by Priyanka Mehra
Published: Sep 30, 2013 9:32 AM  | 4 min read
D-Day for 10+2 ad cap is here. What now?

The year has been anything but dull for the broadcasting industry; and if the last week is anything to go by, far more eventful times lie ahead.

There has been much talk of whether the much-debated 10+2 ad cap will be applicable or no, with broadcasters clearly divided on the issue. The Indian Society of Advertisers (ISA) took a firm stand earlier last week by issuing a formal notice to Indian Broadcasting Foundation (IBF). A notice sent by ISA Chairman Hemant Bakshi stated: “Members of ISA have brought to the notice of ISA that they have received letters from some members of IBF about their proposal to impose an ad cap self-regulation and, thereby, ration inventory available to the members of ISA on the channels of these IBF members.”

The notice also added among other points: “We will advise our members to abide by the law and the judicial pronouncements. Any unilateral decision that some of your members take to renege on the existing contracts under the so called self-regulation while the matter is sub judice would virtually amount to showing contempt of TDSAT’s order.”

Additionally, News Broadcasters Association (NBA) managed to get a stay against the TRAI order in August by filing a petition in TDSAT, till the next hearing on November 11, 2013.

In another development last week, select music channels have also joined this bandwagon. It may be noted that these broadcasters have been quite open about their large dependence on advertisement for revenue, citing reasons of limited content, coupled with low subscription revenues and high carriage fees. 

The channels that filed a petition against Telecom Regulatory Authority of India’s (TRAI) order on ad cap include Mastiii, 9XM, MTunes and B4U, following which TDSAT imposed a stay on the TRAI order till the next hearing on October 21, 2013.

In the latest development, Sun TV joined these channels with its appeal for an exemption from the ad cap. Sun TV filed an appeal on September 25 with TDSAT seeking exemption from implementing the ad cap on October 1, and is waiting to hear from the Tribunal on its appeal.

Given the current scenario and developments, what happens from October 1 still remains unclear. The D-Day for the ad cap is upon us, but every channel seems to be dealing with the ad cap restriction on an individual level, as opposed to the industry as a whole.

My understanding is some channels have a clear reprieve; until the final decision comes through, clarity is yet not here. Some may choose to do so, some may not (follow the ad cap diktat). There is still ambiguity till the final order,” said Ashish Bhasin, Chairman India and CEO South East Asia, Aegis Media.

His sentiments are echoed by Pradeep Iyengar, President Indian Operations, EMM, “There has to be parity, otherwise there will be a postponement of the ad cap. It cannot be applicable to some and not applicable to the others; otherwise there will be a re-think. In terms of the ad rate hikes, the deals will be stuck because the ad cap has not been finalised across the board and advertisers will not want to pay increased rates.”

It is learned from industry sources that Sony will refrain from implementation of the ad cap, while Star Plus, Zee TV and Colors will follow the mandate.

Taking advantage of the impending ad cap, few channels have already hiked their ad rates, but given the current economic scenario, this move has been ill received by advertisers.

“From a business angle, given the economic scenario, this is absolutely the wrong time for a rate hike. It just means more trouble. The clients are in no mood to pay more. If the festive season goes off well, it will be good news and things will look up for the whole industry. Yes, post the festive season, there can be collective discussion on rate hikes in a bilateral fashion, not the unilateral way it is currently happening,” added Bhasin.

The chances of the implementation of the ad cap indeed look bleak, predict industry insiders. Whether or not the ad cap will be implemented, we will know tomorrow…

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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