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Star’s new ad strategy to expand market and eat into print’s share

MUMBAI: Star India’s geo ad targeting technology Adsharp will help in expanding the ad market for television while also possibly eating into the print media’s ad pie, media experts said.

The geographical market-wise segmentation of advertising has so far been a domain of print. Star’s strategy is to change all that by offering to its advertisers an option of doing geo targeting ads on its two mainstream Hindi entertainment channels.

Anita Nayar“Geo targeting is much awaited specially in the television environment. While the way it works and delivers is yet to be evaluated, as a concept it will allow a lot of market focus,” said Havas Media India and South Asia CEO Anita Nayyar.

“Considering it will now provide opportunities for market targeting with the most popular shows, entry barriers for many local brands will be broken. It will work both ways. It will help local brands to advertise and allow national brands to focus on specific markets. Thus, on the whole, there is potential to grow the business.”

While Nayyar believes that the move by Star will help in expanding the market, it will also impact print to a certain extent. “The move should help in expanding the market. Print will get impacted to some extent given the availability of geo targeting which has been more a print domain. However, print as a medium will continue to be used for its attributes and environment. Radio will stay cost efficient,” added Nayyar.

PM BalakrishnanAllied Media COO Balakrishna PM believes that the move will throw open a new option for local advertisers: “It’s an interesting and excellent initiative which will help in expanding the market. It will allow SMEs and entrepreneurs with a regional base to advertise on television. So far, these clients were restricted to print, radio or outdoor. But now with television providing geo targeting, print media players will keep a keen eye on the development as the success of this technology will have implications for them.”

Amin LakhaniMindshare Fulcrum head Amin Lakhani believes that geo targeting is happening a tad late in the Indian market: “It’s a brilliant initiative that should have happened much earlier. Nonetheless, it is good for the industry. Geo targeting will help advertisers to focus on geographic areas to sample mainstream channels, while at the same time allowing big advertisers to avoid wastage by targeting specific markets. It will help the industry grow in the long run.”

Lakhani feels that print doesn’t need to worry so much as they had to contend with competition from other mediums like radio, digital and regional channels in the past. He, however, noted that the existing offerings will have to be re-evaluated and everybody will work that much harder.

The key challenges for the broadcaster would be managing logistics and optimisation of inventory. Havas Media’s Nayyar believes that Adsharp’s success will depend on geo reach, pricing, delivery and technology.

Ashish SehgalZee Entertainment Enterprises Ltd (ZEEL) chief sales officer Ashish Sehgal said that geo targeting is the only way for broadcasters to tackle print media. It will allow broadcasters to tap into real estate and education category that generally cater to more focused markets.

“Geo targeting will help broadcasters to eat into print media’s ad market and reduce dependency on a few big advertisers, which is precisely the case currently,” asserted Sehgal.

ZEEL has been working with Amagi that provides targeted advertising on TV. “Our advertiser base has expanded ever since we started working with Amagi. We have got 35 new advertisers since we started working with Amagi,” Sehgal revealed.

Star Adsharp will allow smaller brands to advertise on Star Plus and Star Gold to avoid wastage due to spillover. The advertisers will have to give a minimum advertisement commitment of a year which will ensure consistent exposure for the campaign throughout.

It will cover 10 markets including PHCHP (Punjab, Haryana, Chandigarh, and Himachal Pradesh), Rajasthan, Gujarat, Mumbai, Maharashtra, Delhi-NCR, Uttar Pradesh and Uttarakhand, West Bengal, and all-India DTH.

Also read:

How Star India plans to tap local advertisers on Star Plus and Star Gold

Star India to change market dynamics with launch of geo-targeted advertising