While advertisers who already have existing advance commitments will see an effective rate increment of 4.3 per cent, the city’s leading broadcaster has also upped the entry level for its ‘Mega Upfront’ scheme.
“TVB is very aggressive this year in view of the improved economic condition, said OMD buying director Feli Tam. “The eight per cent increment is quite substantial, as we are facing a four to seven per cent inflation rate.”
“TVB is very aggressive this year in view of the improved economic condition, said OMD buying director Feli Tam. “The eight per cent increment is quite substantial, as we are facing a four to seven per cent inflation rate.”
The rate hike comes two years after TVB upped prices by five per cent; last year’s ratecard did not contain any increases.
TVB marketing and sales division KW Leung defended the increase, pointing out that advertisers who participate in TVB’s 2008 advance commitment schemes will not be affected by the new ratecard. “The new ratecard comes into effect in 2009 for most advertisers,” he said.
However, GroupM CEO KK Tsang said with increasing media fragmentation, advertisers were already reducing spend on TV. “If clients have already fulfilled their Mega Upfront commitments, they face more difficulty with the eight per cent increment.”
HK2As chairwoman Celine Ho, meanwhile, declined to comment. “It is not convenient for (us) to comment on the rate card of individual TV stations.”
TVB’s new ratecard was followed by disclosure of ATV’s new rates for next year, which have been restructured so that higher-rated programmes cost more, while lower demand shows offer better discounts. “I think they are applying a confusing strategy, as no one can estimate the actual rate increment,” said a source who wished to remain anonymous.
