|As we commented in previous post, November airtime demand not only started very impressively in Greece, but concluded in a 12.5% increase in the number of spots vs. Nov 2015. The already heavily cluttered Prime Time concluded in an even more impressive percentage: +20%.
Many explanations can contain partial reasons for this. But according to us in MEDIARISK, main reason for this is the continuing instability of the TV environment, that led lots of advertisers and especially the multinationals to keep reserves up to the last moment, just in case. Especially the “angeliossimo” 21.5% levy that was abolished (was the main source of income for the Journalist’s pension fund) was a fact … difficult to believe! The market was expecting as a very possible next step, this levy to be replaced by another tax. It doesn’t happen these days a tax to be abolished. Quite the opposite!
But the market players must come to a mutually agreed set of rules, that theoretically already exists. The quotas on allowed advertising airtime are very specific, but not observed. And if the market needs more, then the only way for this is prices to go up.
This last may come as a surprise from an agency like MEDIARISK that caters for efficiency in media buying for the advertisers that serves. But we have seen times and again, wherever we apply market modeling, that correlations are worsening, in line with the increasing clutter. Thus, obviously TV advertising loses its strength to produce tangible results, but also the norms we use to apply, may all need a radical review. Or perhaps, things could be fixed in the most reasonable way, which is to observe the legally allowed quotas. After all it is a perspective that will not be long before the new Radio-TV council takes action. And is much preferable a gradual adjustment to higher nominal cost of effective advertising airtime, than a technically retained low cost/second in an over cluttered environment.
Thus, apart from usual planning practices losing their validity, apart from irritating TV viewers, current state of affairs accelerates the departure from TV of the young audiences, which will be extremely difficult for TV to win back.
Here we must refer to a point made by MILLWARD BROWN: In Japan, twice GRP’s are required to reach the same effect as required in the UK.
PS. Japan is famous for the big number of very short, very dramatized TV commercials and for clutter. So, should we move towards the Japanese, or the UK paradigm?.
CYPRUS: Finally we must say that the “average TV campaign” in Cyprus is usually double the size of the respective one in Greece, so the Cypriot market needs to make a serious reassessment to see if this is really needed, or is simply a self hurting planning practice that is not founded on any evidence.