Shanghai TV changes to blanket rate plan

SHANGHAI: Newly-formed media cartel Shanghai Media & Entertainment Group (SMEG) has been accused of playing hard ball with advertisers as it moves to tighten credit terms and reduce discounts for 2002. Media agencies, who have been asked to sign contracts containing the new terms by November 25, said they were surprised that SMEG would introduce a blanket rate policy in a weak market. "They are being far less flexible, which leaves negotiation to specific terms," said a media agency director. Agency sources said the new policy would result in media inflation of 10 to 20 per cent, depending on the package an agency had previously secured for its client. SMEG has proposed granting discounts only on volume - after an advertiser's booking has reached a minimum level, possibly from Rmb20 million upwards. It has also proposed chopping credit terms from 60 to 30 days next year. However, not all agencies have been critical of the new policy. Derek Kwok, general manager of Zenith, said the blanket policy would level the playing field. "(Previously), if the advertiser is a friend of the media owner, it would be given advantages." A SMEG spokesman said the company unified the rate card as it valued smaller advertisers and believed the policy would help it to attract more of them.

Sign In

Trouble signing in?

Reset Password: Click here

Contact Customer Support at

Customerservice@campaignasia.com