Fears raised as ABS-CBN ups rates with new booking rules

<p>A new booking scheme by the Philippines' leading broadcaster has </p><p>sparked fears that plans could be abused by larger media independents or </p><p>companies with the resources to corner prime time slots. </p><p><BR><BR> </p><p>Launched in mid-October, the ABS-CBN pre-season booking plan requires </p><p>advertisers and agencies to book space on a "non-cancellable" basis for </p><p>2001 before the end of this year. </p><p><BR><BR> </p><p>The station is planning a 20 per cent rate hike next year, but will </p><p>grant early bookers a 10 per cent discount. </p><p><BR><BR> </p><p>However, agencies believe the pre-season buying plan will only benefit </p><p>the growing pool of media independents, which have the resources to book </p><p>early amid the troubled economic climate. </p><p><BR><BR> </p><p>"My concern is that the media independents might reserve a good portion </p><p>of the inventory to the deteriment of medium and small-sized agencies," </p><p>said Campaigns & Grey vice-president for media, Rina Bartolome. </p><p><BR><BR> </p><p>"The independents can always take the risk, reserve space and then pick </p><p>up clients as they go along," she added. </p><p><BR><BR> </p><p>Several other medium-sized agencies echoed Ms Bartolome's comments. </p><p><BR><BR> </p><p>"Besides the media independents, you could even get financial companies </p><p>buying up all the slots and then reselling the space at their asking </p><p>price in the future," said the media director of a medium-sized </p><p>agency. </p><p><BR><BR> </p><p>A newly-established media independent, however, insisted that the scheme </p><p>was clear in discouraging brokering by agencies. </p><p><BR><BR> </p><p>She said the station had clearly-defined terms for both agencies and </p><p>advertisers entering into its pre-season buying arrangement. </p><p><BR><BR> </p><p>In both instances, the media space purchased will be limited to the </p><p>companies' historical volume with ABS-CBN plus a provision for a 2001 </p><p>increase. </p><p><BR><BR> </p><p>ABS-CBN also requires signatories of the contract to be officers defined </p><p>by their charter to enter into a purchase agreement with the </p><p>station. </p><p><BR><BR> </p><p>Agencies are not required to identify advertisers who will be using the </p><p>spot, but they can resell the pre-booked spots at the regular season </p><p>rate to their clients. </p><p><BR><BR> </p><p>Likewise, advertisers are not required to identify brands which will be </p><p>using the pre-booked spots, but they cannot resell the space to other </p><p>advertisers. </p><p><BR><BR> </p><p>Said the media agency chief: "These are clear rules against </p><p>brokering." </p><p><BR><BR> </p><p>Not all agencies were convinced: "ABS-CBN said it is not allowing </p><p>brokering, but there is nothing to stop agencies from getting creative </p><p>in how they dispose of the spots they pre-booked," said the media </p><p>director of the medium-sized agency. </p><p><BR><BR> </p><p>It is understood that the station plans to pre-sell only 60 per cent of </p><p>total inventory, leaving the remaining 40 per cent for walk-in </p><p>advertisers. </p><p><BR><BR> </p><p>Agencies were also concerned that the station's 20 per cent rate hike </p><p>would erode affordability levels for advertisers already suffering from </p><p>a weakened economy and the peso's continued depreciation, as the </p><p>corruption scandal continues to engulf President Joseph Estrada's </p><p>administration. </p><p><BR><BR> </p><p>The Philippines' second-placed station, GMA, is looking at a 15 per cent </p><p>hike for 2001. </p><p><BR><BR> </p><p>ABS-CBN justified the hike, saying it had expanded coverage to six </p><p>provincial areas, which will give it a three per cent increase in </p><p>reach. </p><p><BR><BR> </p><p>The station is estimated to have 43 per cent share of audience, while </p><p>GMA is a distant second with a 24 per cent share. </p><p><BR><BR> </p><p>ABS-CBN announced the rate increase for 2001 as part of a package of </p><p>initiatives to better manage its inventory. </p><p><BR><BR> </p><p>The station also plans to "dechain" programming from February 2001, </p><p>allowing agencies and advertisers the flexibility of buying space at a </p><p>national, cluster (Luzon, Visayas and Mindanao, the three main islands) </p><p>and on a per-city basis. </p><p><BR><BR> </p>