The following paragraph is a boring set of calculations. You can choose to skip it and read only the last line of the paragraph.
A 10 second advertising slot during prime time sells for anywhere between Rs. 50,000 to Rs. 2,00,000. Let's assume an average price of Rs. 1,00,000 per 10 seconds. It means that for every 30 second commercial aired on TV, the cost is Rs. 3,00,000. Considering that in 4 hours of prime time (7p.m. to 11p.m.), the commercial is aired 20 times, the cost goes up to 60,00,000. If the primetime shows air 4 times a week, the price per week is Rs. 2,40,00,000. The price per month per prime time slot per channel assuming a 4-week month is Rs. 9,60,00,000. Now let's consider just 4 channels where the commercial airs. Now the cost per month increases to Rs. 38,40,00,000. Assuming the ad agency fees, production costs and cost of airing commercials during non prime time to be a measly 11,60,00,000: the total cost per commercial comes to be Rs. 50,00,00,000. In simpler terms: Rs. 50 crores per month for every 30 second commercial.*
You may be thinking that the money is not going from Khetu's pocket, so why is he so freaking bothered? I am bothered because some of these commercials are so stupid that they make me cringe. If the company is spending so much (even in these times, 50 crores is a lot) to advertise its products, then they better make sure that it is well spent and the advertisement is not ridiculed! It will invariably create a sub-conscious mindset which will ridicule the product itself.
A few examples of bad commercials:
1. Visa Debit Card:
The Plot: An auto-rickshaw driver refuses to ride a passenger to the ATM. Why? Because he believes that withdrawing cash is a waste of time. Why? Because all payments should be done through the visa debit card.
Response: Somebody needs to remind the auto-driver that he needs to install a visa-card machine in his auto, otherwise people who are not allowed to withdraw cash from the ATM will not be able to pay him.
2. Sprite:
The Plot: Few students who are living on rent want to trick aunties in their building to cook food for them. They invite the aunty for dinner, buy Sprite to please her, purposely botch up the cooking so that the aunty feels sorry for them and makes the dinner herself!
Response: This not only bothers me as a consumer, but also as a marketing student. There is a concept called positioning in marketing. Positioning means creating a particular image about the product in the customer's mind. After spending years to position Sprite as a "Seedhi Baat, No Bakwaas" product which describes Sprite's brand personality as a frank, straighforward drink, they come up with this stupid commercial where what the paying guests do is anything but straightforward. This is not only an advertising mishap but a major marketing blunder.
3. Airtel DTH: (added 28/09/2009)
The Plot: Saif Ali Khan compares the telecast of our 'regular' cable TV with that of Airtel DTH. The TV screen is split into 2 halves, the half showing Airtel's picture quality obviously more clearer.
Response: A classic example of insulting the consumer's intelligence. Do I even need to explain how our intelligence is insulted, humiliated and left to the dogs? If you haven't still got the glaring error, then let me explain and before I explain let me suggest that you need to go buy a bigger brain! Here goes: If my picture quality is as bad as shown on the TV since I supposedly do not use Airtel DTH, then HOW will I be able to tell the difference between the blurred and the clear picture quality? Even the doggone Airtel version on the second half of the screen will look the same to me. And if it DOESN'T look the same and DOES look clearer, then I DO NOT need to buy Airtel DTH.
I would blame the marketing managers of companies more for these mishaps than the advertisers themselves. This is because they are the ones approving such balderash which not only costs their company money but also costs their brand dearly.
*-To the best of my knowledge, the cost would be much higher.
A 10 second advertising slot during prime time sells for anywhere between Rs. 50,000 to Rs. 2,00,000. Let's assume an average price of Rs. 1,00,000 per 10 seconds. It means that for every 30 second commercial aired on TV, the cost is Rs. 3,00,000. Considering that in 4 hours of prime time (7p.m. to 11p.m.), the commercial is aired 20 times, the cost goes up to 60,00,000. If the primetime shows air 4 times a week, the price per week is Rs. 2,40,00,000. The price per month per prime time slot per channel assuming a 4-week month is Rs. 9,60,00,000. Now let's consider just 4 channels where the commercial airs. Now the cost per month increases to Rs. 38,40,00,000. Assuming the ad agency fees, production costs and cost of airing commercials during non prime time to be a measly 11,60,00,000: the total cost per commercial comes to be Rs. 50,00,00,000. In simpler terms: Rs. 50 crores per month for every 30 second commercial.*
You may be thinking that the money is not going from Khetu's pocket, so why is he so freaking bothered? I am bothered because some of these commercials are so stupid that they make me cringe. If the company is spending so much (even in these times, 50 crores is a lot) to advertise its products, then they better make sure that it is well spent and the advertisement is not ridiculed! It will invariably create a sub-conscious mindset which will ridicule the product itself.
A few examples of bad commercials:
1. Visa Debit Card:
The Plot: An auto-rickshaw driver refuses to ride a passenger to the ATM. Why? Because he believes that withdrawing cash is a waste of time. Why? Because all payments should be done through the visa debit card.
Response: Somebody needs to remind the auto-driver that he needs to install a visa-card machine in his auto, otherwise people who are not allowed to withdraw cash from the ATM will not be able to pay him.
2. Sprite:
The Plot: Few students who are living on rent want to trick aunties in their building to cook food for them. They invite the aunty for dinner, buy Sprite to please her, purposely botch up the cooking so that the aunty feels sorry for them and makes the dinner herself!
Response: This not only bothers me as a consumer, but also as a marketing student. There is a concept called positioning in marketing. Positioning means creating a particular image about the product in the customer's mind. After spending years to position Sprite as a "Seedhi Baat, No Bakwaas" product which describes Sprite's brand personality as a frank, straighforward drink, they come up with this stupid commercial where what the paying guests do is anything but straightforward. This is not only an advertising mishap but a major marketing blunder.
3. Airtel DTH: (added 28/09/2009)
The Plot: Saif Ali Khan compares the telecast of our 'regular' cable TV with that of Airtel DTH. The TV screen is split into 2 halves, the half showing Airtel's picture quality obviously more clearer.
Response: A classic example of insulting the consumer's intelligence. Do I even need to explain how our intelligence is insulted, humiliated and left to the dogs? If you haven't still got the glaring error, then let me explain and before I explain let me suggest that you need to go buy a bigger brain! Here goes: If my picture quality is as bad as shown on the TV since I supposedly do not use Airtel DTH, then HOW will I be able to tell the difference between the blurred and the clear picture quality? Even the doggone Airtel version on the second half of the screen will look the same to me. And if it DOESN'T look the same and DOES look clearer, then I DO NOT need to buy Airtel DTH.
I would blame the marketing managers of companies more for these mishaps than the advertisers themselves. This is because they are the ones approving such balderash which not only costs their company money but also costs their brand dearly.
*-To the best of my knowledge, the cost would be much higher.
One Major Correction tht i wud like to make in your calculation. The assumption of the price range per 10 secs of 50,000 - 2,00,000 is faulty.... The price range is anywhere from Rs 200 (yes it is just 2 zeros) to 4,50,000/-... A lot of ur assumptions should change. Sometimes it isnt tht expensive to get a 30 sec commercial on air... Obviously depending on the channel.
ReplyDeleteAnother thing i want to clarify. Unfortunately the extremely stupid ads have a better connect & recall with the TG. Ever wondered y all the ads of HUL are so basic, simple, strictly informative (exceptions r there of Surf Excel which are clearly for awards)... But in the indian audience context advertisers need to make stupid ads to translate the money spent on advertising to sales...
From a media professional ;)