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Agencies Fret Over Drop in TV Ratings, Efficiency of Ad Costs 2 May 2014 at 06:04

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Agencies Fret Over Drop in TV Ratings, Efficiency of Ad Costs 2 May 2014 at 06:04 Agencies fret over drop in TV ratings, efficiency of ad costs 2 May 2014 at 06:04 Media agencies are concerned about the lower efficiency of advertising costs due to a decline in ratings for free TV channels in the analogue system. Atipol Ithivatana, chief executive of Starcom MediaVest Group, a unit of Publicis media agency, said free TV channels in the analogue system showed a 8-15% drop in ratings. This might be due to the re- arrangement of channel numbers on satellite and cable TV platforms and the broadcast trials by digital TV channels. The channel number re-arrangement on satellite set-top boxes has created confusion among TV viewers and a half of the TV rating sample comes from the satellite TV platform. The trend of falling ratings on free TV channels was clear in April with a 12% decline and prime-time slots reporting ratings fluctuation. Upper middle-class viewers are likely to be the first group to shift to new digital TV channels, as marketing try to lure them. Atipol: Monitoring ratings closely Voice TV is the most-watched digital TV channel among viewers in Bangkok, followed by Workpoint TV, RS' Channel 8, New TV by Daily News, TNN 24 and Nation TV. Viewers in rural areas favour existing free TV channels, particularly Channel 3 and Channel 7. Nielsen Company Thailand reported the ratings of free TV channels dropped by 6% since the broadcast trials by a number of digital TV channels on April 1. During the first three days after the official launch by many new digital TV channels on April 25, Workpoint Channel was the most-watched channel, followed by Channel 8 and New TV. They took advantage of their previous viewer base when they broadcast on the satellite TV platform. Once they transformed to digital format, their viewership rose slightly. The newly-established TV stations such as THV Channel and Thairath TV have gained around 20,000-60,000 viewers. Ratings for digital TV are still in an initial period as many channels have just began broadcast trials. Media agencies will prioritise advertising expenses on existing top TV shows such as Rueng Lao Chao Nee and soap operas on Channel 3 and 7. "We can see the trend of digital TV ratings after all 24 digital TV channels are launched and broadcast for one to three months," said Mr Atipol. The full-scale launch of digital TV channels will meet the National Broadcasting and Telecommunications Commission (NBTC)’s subsidy coupon and distribution plan. Media agencies forecast that digital TV penetration will rapidly increase to 70-80%, thanks to the NBTC’s must-carry rule. Thai people are quick to adopt new technology, given the migration to 3G mobile services and the proliferation of smartphones. Mr Atipol said the current fluctuation of TV ratings has affected media buying costs as the cost per rating point is higher and the viewers' reach may be lower. Therefore, Starcom will use its evaluation tools to decide on media buying. Media agencies evaluate potential TV channels on their ratings and channel profiles, which should be among the top positions in each content segment. Patamawan Sathaporn, managing director of Mindshare Thailand, said it will suggest its clients allocate about 10% of their ad budgets to digital TV channels, increasing if the ratings warrant it. Copyright © 1996 - 2015 The Post Publishing PLC.
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