'Television lacks in ad revenues'

Television has seen phenomenal growth to become the biggest medium but it remains under-indexed when it comes to advertising revenue growth, experts said here Wednesday.

Wednesday, March 13, 2013 | 1:06:08 AM IST (+05:30 GMT)
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Television has seen phenomenal growth to become the biggest medium but it remains under-indexed when it comes to advertising revenue growth, experts said here Wednesday.

Speaking at a session titled 'Revisiting Content in Digitised Space and Impact of Ratings in the Changed Scenario', they said that while digitisation is a challenge for broadcasters, monetisation of content is the key.

Experts expressed their views on various aspects related to digitisation and the ratings that follow owing to the changing dynamics of providing content.

The session was a part of second day of the 14th edition of Ficci Frames, the annual convention of the Media and Entertainment (M&E) industry here in Mumbai organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).

"We are adding 15 million television consumers every year but we are still under-indexed when it comes to advertising revenue growth. Broadcasters are not getting the benefits of additional eyeballs," said Rohit Gupta, president of Set India, MSM.

Gupta called for the industry to work together to create a new television measurement system, which is in the interests of both, broadcasters and media agencies.

Experts said that broadcasters shall have to device other revenue models apart from advertising to monetise their content.

Natpe president Rod H. Perta said the problem of inadequate measurement system and fragmentation of market is not unique to India and the US too has gone through the same path.

Digitisation, he said, will lead to emergence of new business models and opportunities. The question is whether broadcasters are ready for this change, he asked.

He said ratings are an equally "contentious" issue in US but the market over there has matured and advertisers now don't just look at ratings while making advertising decision.

"In fragmented markets, advertisers don't just look at ratings. They also look at the quality of content," Perta contended.

Speaking on the reliability of data, ratings vis-a-vis digitisation and revenues, TAM India chief executive officer (CEO) L.V. Krishnan said the issue of reliability of data comes only when the ratings starts falling.

"Broadcasters, he said, don't complain when the numbers are in their favour," he said.

Fremantle Asia managing director Paul O. Hanlon said: "We have to rethink the way we produce content which made us look at different formats in different ways and segment it to make it flexible for broadcasters.

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