Business channels set to make hay while FM delivers B-speech

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On the Budget day, business news channels will earn at least five times higher ad revenues than what they earn on an average day, although the television rating points (TRPs) may not show a substantial increase in the viewership. “The premium charged in the Budget season is not based on an increase in actual viewership reflected in TRPs but on expected increase in out of home, day time television viewing that cannot be captured in the prevailing TRP mechanism,” said Kunal Jamuar, general manager, Madison Media.

Budget and elections are two occasions for the news channels when their prime time extends for the entire day. English business news channels are charging a premium of 400 to 500 % on their ad space during the budget season. A leading business channel which sells a 10 seconds slot for Rs 4,000-5,000 during normal times has raised its ad rates to a range of Rs 25,000 to Rs 30,000 per 10 seconds for the Budget period. The channel also unsuccessfully tried to sell the 10 seconds slot of the B-day for Rs 1 lakh, according to a source.

The day also sees general news channels charging a premium of 100 % on the ad space. But citing the top seven news stories of 2007, Farokh Balsara, leader, media practice, Ernst & Young feels that the importance of news related to politics and government regulation is on a decline for general news channels. “Business news channels are charging a premium in the period of January to March, which is not only the season of Budget but also coincides with the last quarter of the financial year when the public is under pressure to invest in tax saving instruments. This results in the insurance sector and mutual funds booking a large chunk of ad space in these months.”