Universal report cites MediaCorp for TV adex drop

Universal McCann MD Susie Lim said the eight per cent decrease in overall adex, as reported by Nielsen Media Research (Media, September 23), derives primarily from TV, which is down S$120 million (US$71 million) for the the first nine months of 2005, year-on-year. "This is due mainly to the adjustments in TV bonus airtime/special TV packages/discounts -- MediaCorp TV pulling back on freebies and the closure of Channel I, which had inflated expenditure due to ridiculous bonus airtime given," she said. MediaCorp TV airtime sales and marketing MD Eric Lynge confirmed that there had been a reduction in bonus spots during the time cited in the Nielsen report. He referred to the 2004 merger between MediaCorp and SPH's MediaWorks and said: "Universal McCann's apt citing of 'ridiculous discounting of Channel I' also applied to Channel U. In taking over Channel U, we first rationalised the business and have managed to move the rates from 'ridiculous' to 'realistic'." Universal's analysis further revealed that the categories with the largest decrease in 'real' overall adspend -- taking into account bonus airtime -- were telcos, department stores and travel agencies, whilst those with the largest real increase were jewellery, airlines and real estate. sm