Strong demand is coming from advertisers in the e-commerce, retail and food and beverage segments. There is a high demand for TV advertising, confirms the CEO of the Nova TV Group Jan Vlček.
Nova TV Group has seen a growth in demand for TV advertising since this spring and the interest in it continues to increase as the months progress. The CEO Jan Vlček has not yet commented on how the increased demand will affect the price of TV advertising on the Nova Group's channels next year. But he hints that the trading of TV advertising space for next year has already begun.
Especially in the second quarter of this year, advertising monitoring registered an increase in the volume of TV advertising. From your point of view, how did you see the course of the spring and summer months on the Nova Group stations?
Since spring we have registered a growth in demand not only year-on-year but also above expectations. This trend has continued, causing a complete sell-out of some TV stations in the market.
The coronavirus pandemic has brought changes to the business decision-making of sponsors and the buying behaviour of customers. How has this impacted on what advertisers expect from TV advertising?
In terms of market structure, new business has certainly emerged: a number of clients have been recruited from other media types to newly try out television. There was of course very strong demand from companies in the e-commerce segment, especially fashion. And of course retail benefited a lot from the current situation, with food & beverage growing year-on-year - both food and beverages, including alcoholic ones. And by default, operators are strong.
There's also a new aspect in campaign planning - we've seen a significant reduction in planning time, we have more ad hoc enquiries. Clients have been forced to learn to act quickly and react to the current market situation, and they expect the same from us. So we too are now significantly more flexible in planning and booking campaigns.
Clients who were more cautious about signing full-year contracts for 2021 have now exhausted their full-year contracts and signing additional volumes for the autumn season is more complicated due to high demand.
How are you addressing this?
As far as advertising space is concerned, we don't have a problem with that and we are one of the few on the market with enough of it. However, we no longer offer additional benefits to advertisers who have already used up the given volume of communication, even if they subsequently add additional funds. It is therefore more cost-effective for clients to guarantee the total amount straight away to get to a more attractive price level.
Has the number of clients using TV advertising also increased compared to the pre-Covid period?
Yes, we are seeing an increased number of entities advertising on TV, both compared to 2020 and compared to 2019.
And is that true for this fall as well?
The positive trend that began at the end of the first quarter will continue into the fall months.
Contracting companies that were more cautious about entering into full-year contracts for 2021 have now exhausted their full-year contracts and entering into additional volumes for the fall season is more complicated due to high demand.
How might this affect the price of TV advertising for next year? There are leaks of double-digit increases. Can you elaborate on your estimate of the price development?
We will announce our commercial policy for 2022 during October. Of course, we also see signals about market expectations, but we will not comment on them. In any case, this expectation is also reflected in the decision of a number of clients to conclude contracts for 2022 already now according to this year's pricing policy.
Will you comply with these requests?
Of course, trading for 2022 is already underway.
What level of advertising space sell-out do you consider optimal to maintain the quality of your communications and what will you do to maintain this level?
The optimal level of sell-out is a level that is comfortable for the viewer. It is not beneficial for anyone to make the viewer feel overloaded with advertising.
We do our best to maintain the exclusivity of the programme and also the advertising space: we invest in premium content, maintain a planned inflation level and a stable performance. This summer, also due to strong demand, we have continuously strengthened the programme and added a number of premieres, including, in addition to films, the Hasiči series and the premiere episodes of the Kameňák series. We welcome the fact that the new owner, PPF Group, is supporting us in this endeavour and is not only taking our services further, but also increasing the quality and developing the content. This year alone, we have boosted our investment in programming by around 30% compared to previous years.
This summer, Nova launched two new pay channels, Nova Sport 3 and Nova Sport 4. Will they also be integrated into advertising sales and will the way advertising is sold on the paid channels change?
Nova Sport 3 and Nova Sport 4 are already included in the sale and the sales methodology remains unchanged. These are premium pay channels that are not part of TV measurement and are not sold on GRPs. We are pleased to be able to offer clients exclusive new premium content such as German, Spanish, Italian football leagues, but especially the Champions League. At the moment we are still negotiating to increase the coverage of the stations. At the same time, this autumn we are planning to launch one more full-screen free-to-air TV station - Nova Lady, which will be aimed primarily at women and will be included in the Nova Group's package of metered stations.
What developments do you expect in terms of demand for TV advertising in the first half of 2022?
Our expectations for next year are positive. Television has long been the strongest advertising medium and interest in it is growing steadily.
Source: mediaguru.cz
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