ATV steps up offer in HK TV ratecard battle

The station, which has increased rates by an average five per cent for 2006 -- matching the hike proposed by larger competitor TVB -- will give advertisers guaranteed rating slots during which their ads will be screened, rather than pre-selected time slots. "ATV is offering exactly what advertisers are looking for," said Anthony Lau, senior advertising and branding manager, marketing Asia-Pacific at HSBC and 2As spokesperson. "Advertisers have no problem paying by rating points. If you deliver more, advertisers will pay more for spots." However, media agencies believe the impact on ATV's ad revenue will be minimal, as the rating guarantee offer's coverage is small, according to KK Tsang, CEO of MindShare Hong Kong. ATV's move, which has taken the industry by surprise, comes as the Hong Kong 2As urges advertisers to strike individual deals with TVB, which has been accused of presenting a false picture by claiming to have increased rates by five per cent when, in reality, advertisers could be required to spend 10 to 27 per cent more if they want to keep budgets flat. In addition, the station is seen as increasing rates at a time when it faces lower ratings. Tsang added that TVB was seeing a drop in ratings after a spike earlier this year thanks to Korean drama, Jewel in the Palace. "The ratings do not justify (TVB's) rate hike. The (economic) environment doesn't warrant a price increase across the board," added Lau. "The station is using a complicated rate card and bonus to force advertisers to spend the maximum amount or face hikes." Last year, Hong Kong advertisers' efforts to boycott television broadcasters failed after some advertisers negotiated individually with stations. "I will not be surprised to see (drastic action) taken in 2006/07 at negotiations. If there was one major advertiser who came out and said 'we won't play by this game anymore', the scene will change completely. Advertisers are at breaking point now," said Lau. The 2As is also conducting a survey on members' opinion on category exclusivity, which does not permit two consecutive ads for products from the same category within the same ad break. TVB's controller of marketing and sales division, Leung Kin Wah, said: "We are open-minded in this issue. Recently, we talked to a number of advertisers...they insisted that TVB should continue with the present product protection practice." sm