 "Localised ads market gets its shooting STAR")
The country's leading broadcasting network STAR India will step into the locally-targeted advertising space next month by launching a dedicated service. It will allow it to insert ads on behalf of its advertisers addressing a city-specific or local audience. Called AdSharp, it will split its television beam according to regions. This would allow the broadcast of STAR's channels to include ads that may now be tailored for an audience of a city, or even a neighbourhood, with offers and other tactical advertising.
While targeted advertising is not new to television advertisers and broadcasters, it has hitherto been undertaken by third-party players such as Amagi and Rediff's Vubites. These companies act as intermediaries between broadcasters and advertisers, helping the latter reach a specific group of consumers, by inserting ads at the last mile with the help of multi-system, direct-to-home (DTH) and master cable operators.
The entry of a key broadcaster such as STAR, say industry experts, will give this business the necessary boost and will also increase its profile. Amit Chopra, president, sales, STAR India, who is spearheading the initiative, was not available for comment. Calls and text messages sent to him remained unanswered.
The split feed will be available in cable & satellite homes located in Punjab (including Chandigarh), Haryana, Himachal Pradesh, Maharashtra (including Mumbai), Rajasthan, Gujarat, West Bengal, Delhi-NCR, Uttar Pradesh and Uttarakhand. The service will also be available on DTH in markets such as Bihar, Jharkhand, Chattisgarh, Orissa, the Northeast and southern parts of the country, industry sources say.
A senior media planner, who was made a presentation recently by the STAR team, says that the service will be available on channels such as STAR Plus, STAR Gold and STAR Pravah to begin with, after which channels such as Movies OK and Life OK will also carry the split beams.
Ad rates on AdSharp are estimated to be at least 50-60 per cent cheaper than rates for national advertising on the network's key channels, according to media planners.
Advertisers are predictably excited since costs come down with services such as AdSharp, allowing small and medium advertisers, besides the larger players, to advertise on mass-reach channels.
STAR is pushing the service to increase its traction among small-time advertisers, say media planners who have sat through the presentations. The initiative is expected to help STAR improve its ad revenues.
Angshu Mallick, chief operating officer, Adani Wilmar, owner of brands such as Fortune Cooking Oil and Raag Vanaspati, says, "This is a cost-effective way of reaching people. If you want to target people in a region or town, why spend money for spots that are beamed nationally? Instead, you could pay a fraction of that for spots beamed in that particular city."
Vijay Narayanan, vice-president, marketing, Havells India, says, "This can be used for specific purposes only. We may not need this service when rolling out national campaigns. However, it will help improve efficiency. It is worth a try."
Saurabh Baisakhiya, business head, air conditioners, LG Electronics India, says, "If my message can find the right target audience then I would certainly be interested in this."
Eric Braganza, president, Haier Appliances India, says, "This is something that has to be tried out. Television typically gives you reach. Slicing this down to the last mile is something that has to be tested."
But experts say that targeted advertising will increasingly gain ground as advertisers look to minimise wastage. Of the Rs 30,000-crore total annual advertising pie, nearly Rs 9,000 crore or 30 per cent of ad money misses achieving the intended objective, according to a recent study by market research company Nielsen. The global average of media wastage is between 15 and 30 per cent; hence, India's media wastage is clearly at the higher end.
Experts say that targeted advertising can help companies narrow down their focus to smaller localities, within cities, though it may take time for advertisers and broadcasters to adapt to it in a market such as India.
Regional advertising (dubbed ads and region-specific creatives) rake in about Rs 4,500 crore a year, according to estimates, and such localised advertising would add to its growth.
"STAR's entry, in a sense, is a vindication of our stand," says LS Krishnan, chief executive officer, Amagi Media Labs, one of the earliest operators in the segment. "We have been pushing this concept for the last five years and the entry of more players will only grow the market," says Krishnan.
Amagi works with broadcasters such as ZEE, TV18 and Viacom 18. It counts advertisers such as Hindustan Unilever, Hyundai, among other advertisers, as its clients.
While targeted advertising is not new to television advertisers and broadcasters, it has hitherto been undertaken by third-party players such as Amagi and Rediff's Vubites. These companies act as intermediaries between broadcasters and advertisers, helping the latter reach a specific group of consumers, by inserting ads at the last mile with the help of multi-system, direct-to-home (DTH) and master cable operators.
The entry of a key broadcaster such as STAR, say industry experts, will give this business the necessary boost and will also increase its profile. Amit Chopra, president, sales, STAR India, who is spearheading the initiative, was not available for comment. Calls and text messages sent to him remained unanswered.
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But STAR has been making presentations to media agencies and advertisers across cities such as Delhi, Pune, Ahmedabad and Mumbai, say industry sources, in a bid to promote the service.
The split feed will be available in cable & satellite homes located in Punjab (including Chandigarh), Haryana, Himachal Pradesh, Maharashtra (including Mumbai), Rajasthan, Gujarat, West Bengal, Delhi-NCR, Uttar Pradesh and Uttarakhand. The service will also be available on DTH in markets such as Bihar, Jharkhand, Chattisgarh, Orissa, the Northeast and southern parts of the country, industry sources say.
A senior media planner, who was made a presentation recently by the STAR team, says that the service will be available on channels such as STAR Plus, STAR Gold and STAR Pravah to begin with, after which channels such as Movies OK and Life OK will also carry the split beams.
Ad rates on AdSharp are estimated to be at least 50-60 per cent cheaper than rates for national advertising on the network's key channels, according to media planners.
Advertisers are predictably excited since costs come down with services such as AdSharp, allowing small and medium advertisers, besides the larger players, to advertise on mass-reach channels.
STAR is pushing the service to increase its traction among small-time advertisers, say media planners who have sat through the presentations. The initiative is expected to help STAR improve its ad revenues.
Angshu Mallick, chief operating officer, Adani Wilmar, owner of brands such as Fortune Cooking Oil and Raag Vanaspati, says, "This is a cost-effective way of reaching people. If you want to target people in a region or town, why spend money for spots that are beamed nationally? Instead, you could pay a fraction of that for spots beamed in that particular city."
Vijay Narayanan, vice-president, marketing, Havells India, says, "This can be used for specific purposes only. We may not need this service when rolling out national campaigns. However, it will help improve efficiency. It is worth a try."
Saurabh Baisakhiya, business head, air conditioners, LG Electronics India, says, "If my message can find the right target audience then I would certainly be interested in this."
Eric Braganza, president, Haier Appliances India, says, "This is something that has to be tried out. Television typically gives you reach. Slicing this down to the last mile is something that has to be tested."
But experts say that targeted advertising will increasingly gain ground as advertisers look to minimise wastage. Of the Rs 30,000-crore total annual advertising pie, nearly Rs 9,000 crore or 30 per cent of ad money misses achieving the intended objective, according to a recent study by market research company Nielsen. The global average of media wastage is between 15 and 30 per cent; hence, India's media wastage is clearly at the higher end.
Experts say that targeted advertising can help companies narrow down their focus to smaller localities, within cities, though it may take time for advertisers and broadcasters to adapt to it in a market such as India.
Regional advertising (dubbed ads and region-specific creatives) rake in about Rs 4,500 crore a year, according to estimates, and such localised advertising would add to its growth.
"STAR's entry, in a sense, is a vindication of our stand," says LS Krishnan, chief executive officer, Amagi Media Labs, one of the earliest operators in the segment. "We have been pushing this concept for the last five years and the entry of more players will only grow the market," says Krishnan.
Amagi works with broadcasters such as ZEE, TV18 and Viacom 18. It counts advertisers such as Hindustan Unilever, Hyundai, among other advertisers, as its clients.