The broadcaster will announce its 2005 rates at the end of October, and media experts are predicting another big rise, after the station upped rates by eight per cent for 2004.
"It's quite ridiculous," said New World Mobility VP of marketing Melanie Lee. "Hong Kong has experienced deflation for the past five years and is now getting back to normal. I think (rates) should be kept the same or reduced."
The city's media agencies echoed Lee's concerns, and urged the broadcaster to consider a 'goodwill bonus'.
"Although the economy is improving, it is still hard for advertisers to afford such a big increase," said OMD South China general manager Ray Wong. "A 'goodwill bonus' would relieve pressure and keep (clients) using the channel. TVB could also consider discounts and special offers."
McDonald's, one of the most active advertisers on TV, supported the call for "relief":"We are never happy with media rate increases," said David Morita, McDonald's Hong Kong's VP of marketing. "In the past, we've generally been able to work something out."
MindShare Hong Kong CEO KK Tsang said the increase was unsurprising, given the improving economy in Hong Kong and TVB's recent securing of landing rights in Guangdong: "There's no rival that can compete with TVB at the moment," he said.
TVB sales and marketing controller KW Leung said the network's ratecard was based on factors such as economic forecasts for Hong Kong, TVB's ratings performance and its competitiveness compared with other media.
TVB reported a 40 per cent profit rise to HK$217.5 million (US$27.8 million) for the first six months of the year, compared with $155 million in 2003.
Additional reporting by Christy Liu
Double-digit TVB hike riles buyers
Media agencies and marketers are bracing for a double-digit ad rate increase at the territory's leading free-to-air network, Television Broadcasts (TVB).
