The push of "restriction order": satellite TV may welcome a round of advertising price increases

after & ldquo; restriction order & rdquo;, & ldquo; restriction order & rdquo; attacked again.

on November 28th, the State Administration of Radio, Film and Television issued a notice on its official website & ldquo; on the implementation of the Supplementary provisions on the Administration of Radio and Television Advertising & rdquo;, requires TV stations at all levels & ldquo; to broadcast TV dramas from January 1, 2012, no more advertisements & rdquo; in any form in the middle of each episode (45 minutes).

after a period of anxious speculation and waiting, the television industry has ushered in new changes. Statistics show that Anhui Satellite TV, Hunan Satellite TV, Zhejiang Satellite TV which account for a relatively large amount of advertising in TV dramas may become the most affected object in this-ldquo; restriction & rdquo;. Among them, the total amount of advertisements in the TV series that Hunan Satellite TV has finished in 2012 is as high as 940 million yuan.

the latest news is that Hunan Satellite TV said it will re-conduct advertising bidding on December 8. And Zha Daocun, former director of the Advertising Center of Anhui TV Station, believes that after removing the advertisements in TV dramas, & ldquo; viewers prefer to watch TV dramas. If the audience rating can be improved, the media can raise the price & rdquo;.

< strong > Provincial Satellite TV & ldquo; has its own abacus & rdquo; < / strong >

< strong > the advertising time before and after the TV series of Hunan Satellite TV will be increased < / strong >

what should have come has finally come.

on November 28th, the State Administration of Radio, Film and Television issued a long-circulated written notice on its website & ldquo; restriction order & rdquo;. At the same time, the State Administration of Radio, Film and Television also sternly stated that if it violates the notice, ldquo; will order rectification, warning, exhortation talk, suspension of commercial advertising and other processing & rdquo; in accordance with the provisions of SARFT order 61 and other regulations.

this is another major move by the State Administration of Radio, Film and Television following the ldquo; restriction on entertainment & rdquo;. In late October, the State Administration of Radio, Film and Television issued an article requiring that during the prime time period in the evening, satellite TV channels should not broadcast more than two entertainment programs per week. At the same time, the number of closely watched talent shows was also strictly restricted by the State Administration of Radio, Film and Television.

different provincial satellite TV stations have different reactions to this major move by the State Administration of Radio, Film and Television. Jiangsu Satellite TV and Tianjin Satellite TV were the first to say that they would not make up for the losses by increasing advertisements before and after TV dramas.

& ldquo; our station decided that in order to ensure the effect of advertising before and after the play, the advertising time of six and a half minutes in the original three episodes will not be increased to before and after the play, and will be cancelled directly. Gong Libo, deputy director of Jiangsu Satellite TV and director of the marketing center, publicly stated the regulations of the State Administration of Radio, Film and Television (SARFT) on November 29th. However, Hunan Satellite TV, as the benchmark of provincial satellite TV, has made the opposite choice with Jiangsu Satellite TV.

in fact, after the State Administration of Radio, Film and Television issued & ldquo; restriction order & rdquo;, Zhang Huali, deputy director of Hunan Radio and Television Station, said on Weibo that & ldquo;, whether as a television professional or as a viewer, I support standardizing advertising behavior. At the same time, I also advocate strict control over the placement of advertisements to further reduce the length of flat ads, otherwise the advertising time will be rubbish & rdquo;

however, an employee surnamed Zhang in the advertising department of Hunan Satellite TV told reporters that the restricted advertising time in the play will be placed in the pre-and post-drama period. & the advertising time before and after the ldquo; TV series will be increased accordingly. The overall advertising time is the same as that before the launch of the restrictions. & rdquo;

the above statement has not been officially confirmed by Hunan Satellite TV, but the answer will be revealed on December 8. At that time, Hunan Satellite TV will re-bid all the program advertisements except the two trump card programs of "Happy Base Camp" and "every Day up".

< strong > push up the unit price of advertising? < / strong >

< strong > Advertising expenses may partly flow into video websites < / strong >

& advertisements in ldquo; TV dramas have always been the biggest part of TV series advertisements, and TV series advertisements account for the majority of TV stations' revenue. The influence of rdquo; on & ldquo; restriction & rdquo;, a senior executive of 4A advertising company who spoke on the condition of anonymity believes that & ldquo; restriction & rdquo; will lead to a collective increase in advertising prices during the non-drama period of TV series, as well as the result that part of advertising expenses flow into video.

according to the results of Shanghai foreground Advertising Statistics, for the 2012 TV commercials of CCTV and major satellite TV stations, the Golden Eagle Theater of Hunan Satellite TV has won 940 million of the total bid, accounting for 37% of the total number of bids announced. Zhejiang Satellite TV's China Blue Theater won 550 million, accounting for 59%, and Anhui Satellite TV's first Theater, 410 million, accounting for 88%. They have become the three satellite TV stations most affected by & ldquo; restrictions & rdquo;.

while CCTV-1 and Jiangsu Satellite TV are relatively less affected. Among them, the winning bid in the Central Golden Theater was 740 million, accounting for 6% of the total, and the winning bid in the Happiness Theater of Jiangsu Satellite TV was 320 million, accounting for 15%.

& ldquo; based on 19:00-21:00 prime-time ads, calculated according to four breaks, if you do not increase other advertising time, then directly reduce 6 minutes per day, 5 days a week by 30 minutes, a medium-sized satellite TV lost advertising expenditure of 200-400 million. & rdquo; in this regard, bank securities analyst Xu Yaowen pointed out in his report that & ldquo; restrictions & rdquo; 's impact on TV stations is obvious.

however, there are also insiders in the industry who believe that there is no need to be overly pessimistic about the policy of & ldquo; restriction & rdquo;. The consequence of each restriction of ldquo; will make the restricted program resources more scarce. & rdquo; the executives of the above-mentioned 4A advertising company told reporters that & ldquo; and then this scarcity once again pushed up the price of program advertising. & rdquo;

one of the best evidence is that after the promulgation of the ldquo; restriction order & rdquo;, variety shows represented by Hunan Satellite TV and Jiangsu Satellite TV, "Happy Base Camp" and "if you are the one" have won more than 50% advertising premium. Despite continuous growth, CCTV's 2012 tender only achieved a growth rate of 12.54%, which is slightly higher than the growth figure of GPD.

the only thing that can be determined & ldquo; is good & rdquo;, is for the video website industry. At present, the view widely supported by market participants is that under the role of & ldquo; restriction & rdquo;, the shortening of traditional TV advertising time will have a crowding-out effect on advertisers, and this part of advertising is very likely to flow to video websites. This may bring hope to the video sites that are currently struggling on the profit line.