New Delhi: MTV India Ltd is targeting a growth of 100 per cent in advertising sales for the year 2000. Says Sanjay Puthli, vice-president, advertising sales, MTV India : ``The performance in the first quarter was already up by 50 per cent and at present we're well ahead of our targets.''Since MTV launched an intensive India-centric programming and set up an elaborate ad sales infrastructure in Mumbai, Delhi and Bangalore, MTV sales in 1998 increased by 240 per cent over 1997 and grew by 100 per cent in 1999.
``We expect a host of new categories-like dot.com entities, image-savvy public sector companies and automobiles-to drive the ad sales growth,'' says Puthli. ``This year we'll also explore sales opportunities in neighbouring countries like Bangladesh.'' At present, only Nestle from Pakistan has taken position in MTV India.
Puthli says that MTV's thrust will be to establish itself as a No.1 youth marketing partner. This entails: helping advertisers build properties on air as well as on the ground for brands exclusively launched on MTV (like Cofitos). For instance, AXE's debut with MTV was complemented with an on-ground event-the world's longest 50 non-stop hours of dance party. MTV has 35 exclusive advertisers and at any given time, around 100 advertisers are active of its roster of 250.
MTV's ad sales thrust will be on renewals. Says Puthli, ``Since nobody has infinite bank of foreign exchange, our strategy will be to focus on renewals so that clients keep coming. Around 80 per cent of our clients have been retained on annual commitments.''
At present, ad sales account for overall revenues of MTV India, but its foray into licensing and merchandising this year is expected to open up a new revenue stream. At a later stage, MTV may also consider subscription to complement its ad revenues.
Driving MTV's ad sales growth will be an India-centric music bed-Indian music already accounts for around 70 per cent of music content. Also, MTV will continue to focus on the programmes created in India. Says Puthli, ``At any stage 90 per cent of our India-only programming (in all, 21 programming blocks) is sold out.'' He adds that newer categories like Latino music (Ole programme) will also be vigorously promoted-Pernod Ricard is already aggressive with spirits brand Santiago.
Having raised ad pricing by 80 per cent in January this year, MTV's focus is now to sell its inventory optimally across all time-bands by offering value-added services-like helping advertisers in their media plan and convincing them to move away from classic advertising model. Says Puthli, ``Noon viewership is getting higher and so are vignettes.''
MTV India has a reach of over 13.4 million homes. MTV India leads the pack with an average weekly cumulative viewership of 37.49 per cent amongst 15-34 years olds (according to MARG INTAM, SEC ABC, Peoplemeter, C&S, eight cities during January-December 1999).
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.