Yes, some of the top Indian TV Channels demand a price tag of Rs. 3,50,000 for a 10 second spot during primetime. The ad rates are even higher during highly viewed Indian cricket matches.
Do you think it is worth it?
It sure must be, because advertisers do pay that kind of money !
Infact, the channel broadcasters are increasing the ad rates even further by 25%, much to the disappointment of major advertisers.
The Indian advertising market has been growing at extremely fast pace since last 5 to 7 years, thanks to consistent economic growth of around 9% and huge rise in the number of Multinationals entering India in last few years. What better medium for these multinationals to reach out to growing Indian middle class consumers.
One advertisement during the telecast of India Pakistan cricket match ensures that your product / brand is seen by atleast 200 million TV viewers (approx. ).
Do you think Rs.3,50,000/- tag is justified then?
If you calculate, it comes to roughly 2 rupees per 1,000 viewers. Thats dirt cheap, I must say!
However, it is not all rosy for broadcaster in coming years. The number of TV channels are growing by hundreds. In this year alone more than 100 TV channels are going to get launched and many more in pipeline. With so many channels in fray the competition to acquire ads from advertisers is going to be fierce, thereby pulling down the ad prices.
Do you know the number of TV channels that will be available to cable viewers in next 2 years?
A whooping 700 TV channels !
Who is going to watch so many channels? And are there enough viewers to watch?
Yes, there are! India is likely to see nearly 70% growth, with the subscriber base reaching nearly 77 million households by 2010, from existing 46 million.
With those kind of TV channels, India is set to become the largest advertising market in the world.
I am excited!