Pressure on media buyers for spot discounts

A day after their face-off with advertisers, the pressure is now on the media buying houses. Advertisers who have bought spots in the World Cup are now increasing pressure on media agencies to get them discounts on the existing contracts from cricket broadcaster SET India and the state-owned DD.

"There has been a tremendous value erosion that has taken place and clients are not happy about being entirely at the receiving end of this loss. More so as the amounts invested are large.

"We are working with the broadcasters to see how the contract can be honoured and at the same time, create further value for the clients.

Talks are on, but we cannot comment on specifics at this point," said the head of a large media buying house.

The advertiser backlash has been strengthened by findings that viewership is going to decrease sharply, at least, for now.

An overwhelming 69.58 per cent of 5,480 respondents to a Business Standard online poll said they will not watch the Super-8 telecast.

"All the advertisers are asking for discounts, but SET India is not agreeing to any such proposal," said a senior media buyer. As a result, media houses are trying to work out alternate deals for their clients by trying to shift the inventory to other shows on the channel.

Meanwhile, a group of media buyers met today in Delhi to discuss the best deals for their clients who are believed to have allocated a combined spend of around Rs 250 crore in the World Cup.

The agencies on behalf of major advertisers such as Maruti, Pepsi and Hyundai are already believed to have put forth demands on spreading the client spends on other Sony properties postWorld Cup.

"Large advertisers would pitch for getting ad-spots on prime time band for Sony, SetMax and SAB TV. The quantum and volume of discounts will be discussed on future dates and as desired by the clients," said a media buying source.

However, media buyers have committed that all long-term deals will stay.