With JioCinema adding the FCT option for advertising on mobile in the upcoming season of IPL, advertisers have not only begun weighing the options between FCT and CPM but also between digital and TV.
Last week, JioCinema floated a rate card with advertisers introducing FCT on mobile at the rate of Rs 16 lakh for a 10-second slot while reducing CPM rates.
On the other hand, Star Sports came out with its rate card earlier this week seeking a marginal increase in ad rates. The broadcaster pitched for a 10-second slot on both SD and HD at Rs 16.4 lakh.
Shashank Srivastava, Senior Executive Director, Marketing and Sales, Maruti Suzuki, told BestMediaInfo.com that buying ads on Spot (FCT) is better as it gives 100% visibility of your ad to all users in the cluttered environment.
“Also, we can define visibility by ensuring a threshold level of spotting for each match,” he added.
When it comes to value for money, advertisers see TV as a cost-effective medium that yields better ER (effective rate).
“TV is relatively cheaper due to overall reach and one spot reaching almost all the audience,” said Srivastava.
In its pitch to the advertises, Star Sports claimed that TV delivers 3X scale, brand impact and ROI for brands when compared with digital.
Considering this, advertisers told BestMediaInfo.com that Mobile/Web is overpriced at Rs 16 lakh for a 10-second slot which is about 25% more than the SD rates on TV at 12.8 lakh.
When it comes to a comparison of the advertising rates between CTV versus HD, CTV advertising costs Rs 6.5 lakhs on JioCinema for a reach of around 60 million.
On the other hand, Star Sports is offering HD advertising at a reduced rate of Rs 5.5 lakh/10 seconds. HD offers a reach of around 150 mn which is 3X of CTV.
As advertisers are shifting towards premiumization, there is rapid growth in CTV and HD advertisers.
When asked why Star Sports lowered the HD rates despite a 3.8X growth in HD reach vs 2022, a senior media planner said that the broadcaster might be eyeing to increase the advertisers’ base by lowering the entry cost.
Srivastava said that Maruti Suzuki was one of the first advertisers to buy FCT on CTV for IPL 2023 on Jiocinema.
At a combined level, the digital rate is Rs 22.5 lakh (Mobile + CTV) vs 16.4 Lakh (SD+HD) on TV.
According to JioCinema’s numbers, IPL 2023 had recorded a peak concurrency at 3.2 crore. On the other hand, BARC data recorded a peak concurrent viewers on television in excess of 6 crore.
Srivastava pointed out that if advertisers want to reach a specific targeted TG then there is a huge spillover on TV.
“In such cases as soon as we go to specific markets and specific TG, digital medium starts to become cheaper,” he said.
“Moreover, even when JioCinema is selling FCT on mobile, the rates offered should translate to equivalent eCPMs,” he added.
Info@BestMediaInfo.com
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