Unveiled earlier this week, the 2006 schedule includes a five per cent increase when applying standard rates, but advertisers who have committed to advance schemes will be hit harder, with rises of up to 27 per cent. Advertisers who commit to a seven per cent increase in spending will find the rate increase significantly smaller at 10 per cent. The discount for the three commitment plans varies from 28 per cent to 51 per cent.
"It seems fair," said David Fung, vice-president of Carat Hong Kong. "Since the economy is still looking positive for the coming few years, although it may slow down, a single digit increase seems acceptable and affordable."
But Fung said the smaller-than-expected rise could foreshadow a larger jump in the next two years in the lead up to the Beijing Olympics.
This week's rate rise follows an outcry last year, after industry figures tipped a double-digit rate rise. Media agencies called for a 'goodwill' bonus from TVB, after it emerged the broadcaster would increase rates on the back of a resurgent economy, despite five years of deflation and stagnating growth.
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TVB rate hikes less than feared
Local media agencies have reacted with cautious optimism after the territory's leading terrestrial broadcaster TVB revealed a less-than-expected five per cent increase in its standard rate card for 2006.