TV Airwaves to Cost Advertisers More
After a general price increase of 40-45 percent this year for national television ad time, worse can be expected next year, as indicated by the price list just published by NTV Media. For the average advertiser, buying up to 10,000-20,000 gross rating points, the cost will rise by 74 percent, and for over 10,000 points, the price will rise 77 percent, according to the Magic Box agency.
The actual cost per GRP is falling at NTV, as well as at TNT, REN TV and TV Center, the other channels NTV Media sells advertising for. Only at 7TV will it rise, by about 9.5 percent. One GRP at NTV will cost 99,000 rubles in March 2008, compared to 127,500 in March 2007. A GRP on TNT will drop 16 percent in price, to 110,000 rubles in March of next year. The price rise will come from changes in the system of discounts.
Previously, NTV Media gave its ad agencies discounts based on the total GRP they bought on all its channels, which ranged from 42 to 56 percent. In 2008, the discount will be based on the client's budget for each channel, with a maximum of 15 percent for any one of them. NTV Media president Sergey Piskarev promised that the new system would be “more convenient for the clients.” NTV Media competitor Video International, which controls over 60 percent of the market for the sale of television airtime, has announced similar pricing changes. NTV Media, the second largest agency in Russia, is owned by Gazprom Media, which is in turn owned by Gazprombank. According to the bank, NTV Media's receipts for 2006 were almost 632.8 million.
Television remains the cheapest media per contact with audience member, costing $2 per 1000 contacts in 2007, compared to $6.15 for radio, $9.75 for newspapers, $16.17 for magazines and $105 in movie theaters.
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All the Article in Russian as of Oct. 22, 2007
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Photo: Alexey Kudenko
