According to media buyers, in the channel’s latest communication, it has said that its ad rates will now go up by nearly 20-25 per cent starting from today. With plans to hit an ad revenue target of Rs 500 crore this year, Max is expecting its balance inventory of 20 per cent to help achieve the targets it has set from this season of IPL matches.
Mr Rohit Gupta, President, Network Sales, SET India, said, “This time since we have opened up the categories the number of sponsors has gone from seven to nine, and there are spot buys happening at multiple levels. On an average we sold 10 second spots for Rs 4 lakh, while last year it sold for between Rs 2.5 lakh and Rs 3 lakh. IPL has become an established property today. Having sold 80 per cent of the inventory we expect rates to go up now for the balance that is left.”
Even media buyers are hopeful that Max will achieve its targets in spite of its business dynamics going astray due to a host of controversies. According to Ms Mona Jain, Executive Vice-President, India Media Exchange, “Max should see ad revenues in excess of 40 per cent this year. While the BCCI has become stringent with it in terms of increasing ad breaks, it should be able to increase its rates by almost 20 per cent for its balance inventory.”
With 2,200 seconds allowed for ads per match, Max should be able to notch up revenues which could double its ad revenues of last year. “In spite of the business going awry this year, MAX should be able to reach its target of doubling its revenues to between Rs 450 crore and Rs 500 crore this year,” adds Ms Jain. Meanwhile, team sponsors Bajaj Allianz, which backed out of Rajathan Royals’ team this year is also looking at spot buys going forward. Mr Akshay Mehrotra, Head, Marketing, Bajaj Allianz, said, “We may not have closed a deal with Max as yet, but we are definitely looking at having a presence in the on-air component of the matches.
“Our relationship was strained with the franchisee due to differences in expectation of remuneration. Money is not a problem for us as far as the IPL is concerned. In fact, this year we have increased our overall ad budget by three times and have assigned an annual budget of Rs 70 crore.”
