Financial Daily from THE HINDU group of publications
Tuesday, Apr 15, 2003
Financial Daily from THE HINDU group of publications Tuesday, Apr 15, 2003 |
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Marketing
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Brands Brand preferences: What's chalk for Star News is cheese for Aaj Tak Rina Chandran
MUMBAI, April 14 WITH a plethora of news channels on air, it is getting hard for the viewer to tell one from the other. But media planners have figured out who is watching, so when it comes to advertisers on these various news channels, there are very distinct differences, according to TAM Media Research. A recent analysis indicates that BBC, CNN, CNBC and Star News remain the favoured destination for corporate campaigns, automobiles, and airlines, while Aaj Tak and Zee News are attracting lower-value categories such as hosiery, footwear and writing instruments. And, while Star News attracts upscale global and national brands, Aaj Tak is preferred by regional and local brands. The top product categories on Aaj Tak are footwear, hosiery and pan masala. On Star News, the biggest categories are corporate campaigns, cars/jeeps, and insurance. On BBC, the top categories are corporate campaigns, cellular phones and airlines, while on CNBC, corporate campaigns, cellular phones and events rule. On CNN, the top advertisers are corporate campaigns and travel & tourism, while on Zee News they are hosiery, suitings and entertainment zones, according to the research. All these channels, except Aaj Tak, feature corporate campaigns among their top advertising categories. When one looks at the top brands on these channels, the differences become even more stark: while the top advertisers on Star News are Hyundai Sonata, Allianz Group, Reid & Taylor and MRF Tyres, the top advertisers on Aaj Tak are Action Synergy, 502 Pataka tea and Manikchand Parimal Tea. On Zee News, the top advertisers are PP Jewellers, Fun Republic, Topaz and Rupa, according to TAM Media Research. The different approaches adopted by the news channels means that while close to half of the Star News channel's ad revenues come from just 49 brands, while it takes 93 brands to account for 46 per cent of on Aaj Tak's revenues. Star News currently has a total of 495 brands on air; of these, the top 10 brands account for 18 per cent of its revenues, according to TAM Media Research. In comparison, Zee News has a total of 661 brands on air, with the top 10 brands accounting for 14 per cent of its revenues. Aaj Tak has 935 brands on air, but its top 10 brands account for only 11 per cent of its revenues. "The stark differences in the kind of brands that advertise on one versus the other brings us to the age-old argument of broad-basing versus narrow-focusing," said Mr Atul Phadnis, Director, S-Group, TAM Media Research. "Aaj Tak offers a different perspective to channel selling: it allows the kind of broad-basing where even the largest spenders will not be formidable, thus weakening the buying strength of those advertisers." On Star News, in comparison, the narrow focus means less clutter on the channel. Also, fewer advertisers exercise greater control on the channel's bottom line, and thereby have greater bargaining power. It remains to be seen which way the new news channels will go.
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