TVB freezes 2009 rate card

TVB has frozen its rate card in 2004 after the Sars crisis and in 2007, and it is the lowest rate since it launched MU in 2003.

Last year, MU advertisers were required to increase their 2008 budgets by 8 per cent compared with their 2007 actual spending if they wanted to enjoy the rate card discounts given to MU members, but for 2009 advertisers are required to spend only the same amount of advertising dollars as their 2008 actual spending in order to get the same benefits.

Advertisers planning to use shorter-duration commercials (under 30 seconds) in 2009 will receive extra discounts, ranging from 7 per cent for 25-second spots to 42 per cent for 5-second spots. There are no additional premium costs for shorter TVCs, as there were in the past.

“2009 is expected to be a very challenging year for all Hong Kong marketers. TVB, being one of the dominant advertising media, is prepared to embrace the coming financial challenge together with the advertisers,” said KW Leung, controller of the Marketing & Sales Division at TVB.

TVB has extended the deadline of its 2009 commitment schemes from the first week of December to 12 December.

“TVB usually needs their loyal clients to increase their increments,” said Margaret Ho, deputy GM at Starcom Hong Kong. “Until now, most clients have not shown any commitment for their 2009 adspend plan, as they may run more short-term incentive promotion campaigns, and are more reserved about their advertising spending.”

ATV’s 2009 rate card is straightforward with no increment, as it tries to attract more TVB advertisers. It is offering one-station-buy advertisers on TVB a 50 per cent additional bonus if they advertise on ATV.

Both stations are emphasising their new digital channel offerings.

“We expect them to provide more discounts and bonuses and a wider entry level. The TV stations seem to be more flexible, and advertisers and media agencies will have a stronger negotiating power, as it’s not just TVB versus ATV. The terrestrial TV stations are also facing challenges from online, mobile, outdoor TV and other new media,” said one media agency source.

Now TV will release its 2009 rate card next week.