ADVERTISER FUNDED PROGRAMMING ON MTV INDIA-

AN ANALYSIS

MANIPAL UNIVERSITY

Research project submitted to the Manipal University in partial completion

of

II Semester, MBA in Media and Entertainment

By

Mr. Shashank Aggarwal

Under the guidance of

Mr.Sudarshan

Faculty

DEPARTMENT OF MEDIA AND ENTERTAINMENT

MANIPAL UNIVERSITY

BANGALORE – 560 038

TABLE OF CONTENTS

1. INTRODUCTION

1.1 PROJECT TOPIC

1.2 SUBJECT MATTER

1.3 SIGNIFICANCE

1.4 OBJECTIVES OF THE PROJECT

1.5 LIMITATIONS OF THE STUDY

2. REVIEW OF LITERATURE

2.1 INFORMATION PUBLISHED EARLIER

2.2 EARLIER FINDINGS

2.3 RESEARCH BEING CARRIED OUT

3. EXPLANATION

3.1 ADVERTISER FUNDED PROGRAMMING

3.2 MTV AND ADVERTISER FUNDED PROGRAMMING

3.3 PRODUCT INTEGRATION AND AFP

4. METHODOLOGY ADOPTED

4.1 METHOD OF DATA COLLECTION

5. DATA ANALYSIS

5.1 DETAILED PLAN FO ANALYSIS

5.2 DATA REPRESENTATION

6. CONSLUSION

7. BIBILIOGRAPHY

8. ANNEXURE

DECLARATION OF THE STUDENT

I, Shashank Aggarwal hereby declare that the work, which is being presented in the

project entitled “ADVERTISER FUNDED PROGRAMMING ON MTV INDIA-

AN ANALYSIS” in fulfillment with the project requirement for MBA in Media and

Entertainment during the year 2009-2010, is an authentic record of my own work and

carried out under the supervision of the guide Mr.Sudharshan, Faculty at Manipal

university.

CERTIFICATE FROM THE GUIDE / CO-GUIDE

DEPARTMENT OF MEDIA AND ENTERTAINMENT

MANIPAL UNIVERSITY

BANGALORE – 560 038

MANIPAL UNIVERSITY

This is to certify Shashank Aggarwal has successfully completed his research project

entitled “ADVERTISER FUNDED PROGRAMMING ON MTV INDIA-AN

ANALYSIS “assigned by the university for MBA in Media and Entertainment during

the year 2009-2010.

Name : Shashank Aggarwal

Register Number : 092516032

Date :

Place :

Signature of the guide

(Mr.Sudarshan)

ACKNOWLEDGEMENTS

I am firstly thankful to the faculty of Manipal University, MBA in Media and

Entertainment for giving me an opportunity to carry forward this project work. I am

indebted to Mr.Sudarshan, my guide in this entire process, for his constant scrutiny and

standards thus ensuring that this project becomes practical and successful.

Had it not been for my industry mentor, Mr. Pradeep Prabhu, Co-Founder Zapp

Entertainment and various others from the advertising fraternity, my project would have

been incomplete. Thanks for their interesting insights, opinions and positive criticism

which guided me throughout my research and compilation. There are also scores of well

wishers and friends without whom this project would have remained a ephemeral

vision.

Thanks to Google, for helping me throughout the project for important references to

previously published works, interviews of people from the branded content industry,

industry reports and opinions and for the user-friendly survey resources. Being an

industry that hasn’t been talked about much in books and journals, the internet gave me

a reason to go ahead with this project, thus instilling in me inspiration and enthusiasm.

1. INTRODUCTION

1.1 PROJECT TOPIC

Advertiser Funded Programming on MTV India- An Analysis

1.2 SUBJECT MATTER

Advertiser Funded Programming is still in its nascent stage in India after having been

tried and tested successfully abroad, especially in UK and USA. It is a trend wherein the

entire concept of the show is created in a strategic manner so as to communicate certain

product attributes and brand values through dialogue, communication and engagement

with the viewer; with the advertiser directly paying for the content or paying certain

amount while buying several secondages of ad spots. It is a way to subtly communicate

special brand attributes and insights to the audiences and nurture your property for the

long run.

Also called as Branded content, it is still in its nascent stage in India. It is a step ahead

from the traditional form of advertising. With about 160 TV channel licenses still

waiting for approval from the I&B ministry, strategic marketing communication efforts

of the advertisers have become fragmented and AFP provides a focused communication

tool.

Branded content is not pushing a product to the consumer. Consumers are smart enough

to identify that something is being advertised. This may harm the channel directly apart

from the advertiser. Therefore, it is a strategic and subtle way to communicate the

client’s brand message through strategies such as audience engagement, brand

integration & product placement. It is a challenging concept as the brand has to pitch to

the channel as well as the audience. However, strategic communication efforts can lead

to superior brand recall and audience preference for the product.

The need for Advertiser Funded Programming has further increased with the surge of

distribution platforms like DTH and IPTV and the presence of digital recording devices

such as Personal Video recorders (PVR’s) wherein the viewer can record his favourite

shows, jeopardizing the entire concept of Prime time. In short, this means he can skip

advertisements all together.

In the Indian context, the use of PVR’s is still not yet a huge debate with the advertisers

as the penetration is low. However, the restless Indian viewer, the surge of the internet

and the variety of options available to the audiences has been a point of concern.

Television channels have however experimented with branded content and shows such

as wheel Smart Srimathi on DD, -------------------------------------------------------------

have featured on Indian Television. However, in the recent couple of years, MTV India

has been experimenting big time with Advertiser Funded Programming in its reality

based shows such as ----------------------------------------------. Such experiments have

certainly shown that Indian television has grown and such options have a market.

1.3 SIGNIFICANCE

The significance of this study lies in the fact that brand managers who are always on the

lookout for effective options to invest their marketing budgets can actually consider

branded content as an option from the qualitative and quantitative data gathered from

MTV India’s tested strategy as well as from what advertising agency owners opinionate

about AFP.

1.4 OBJECTIVES OF THE PROJECT

To explore and analyze effectiveness of AFP as a part of strategic marketing

communication efforts for advertisers

To see how brands have done with their association with programmes on MTV

India

To explore risks and drawbacks that have been hindering advertisers from using

AFP models and find potential solutions

To come up- with qualitative data that can be of help to brand managers while

making advertising decisions

1.5 LIMITATIONS OF THE STUDY

The study is purely academic, the inexperience makes this report less precise if

compared to some professional report. The inevitable limitations of the study would be

as follows:

TIME

The project was carried out in a short span of 3 months.

GEOGRAPHICAL

The survey and assessment is limited to Bangalore only

AGE

The age group used for the study purpose is limited to 18 to 35 years of age.

REVIEW OF LITERATURE

2.1 INFORMATION PUBLISHED EARLIER

http://www.indiantelevision.com/special/y2k6/

branded_entertainment_india.htm

Recall the Rishi Kapoor-Dimple Kapadia teen romance Bobby way back in 1973. The

Rajdoot motorbike the two lovers cavort around on in the film became a rage with a

nation's bedazzled youth.

Of more recent vintage of course is Star Plus' Kaun Banega Crorepati that had iconic

host Amitabh Bachchan handing over ICICI bank cheques to the winners.

And there hangs a tale. Which is that though the Indian entertainment industry appears

to have only recently woken up to the concept of branded entertainment, it's been

around a lot longer than many are aware.

According to industry estimates compiled by Media

e2e, the direct product placement market in India

(which also includes branded entertainment) in 2005

was pegged at Rs 700 million and is estimated to

touch Rs 935 million this year. "The base of overall

product placements in television has improved from

1.3 per cent last year to 1.6 per cent this year.

Currently, two per cent of total television revenues

come from direct product placements," says Media e2e chief evangelist Atul Phadnis.

Through brand content programming, advertisers have the opportunity to engage with

consumers in the context of entertainment that reflects their brand values, and to turn

that engagement into dialogue.

While branded entertainment content on Indian television can be dated to as far back as

the launch of Bournvita Quiz Contest; the space recently got an impetus with WPP's

Group M inking a JV with Raveena Raj Kohlli for the same.

The JV company - Show M - has launched a show called Wheel Smart

Sreemati on Doordarshan for Hindustan Lever Limited. "It's about finding one

smart housewife through the game of 'chausar' as smartness is also a

proposition of the brand. In fact, there is very little branding in the programme,

through the show we have tried to convey what the brand is all about. There

are various ways of integrating the brand or creating branded content. As long

as there is creativity, we can always find more and more ways of reaching the

consumer," says Group M Media India Pvt. Ltd general manager - content and

entertainment Rajeev Berry.

Branded programming is the

skillful symbiosis of brand

strategy and programme

context to elicit greater brand

engagement within a target

demographic. It is not

primarily a focus on product

placement or overt brand

editorial.

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Smart

Sreemati'

on DD

Show M will be involved with brands not just on the visual but also on the audio

medium. While TV will be a key component in the branded content space; the company

will also look at other mediums like mobile, home viewing, internet and radio, which

would be strategically in line with the brand communication or funded by the brand.

"The idea is to take a brand out of advertising stream and put it into the communications

stream," says Kohlli.

The agency is in talks most channels in the general entertainment space like Zee, Sony

and also with DD. "Our responsibility is to sell our ideas not only to the network but

eventually to the audience," Kohlli adds.

Broadcasters are also waking up and smelling the - shall we say - Nescafe!! Star

recently launched a special division to cater to advertiser funded content and product

placement.

Other than Star and Group M, Interpublic Group's Lodestar Universal is also looking at

this space and has already inked a JV with marketing firm Direct Access and television

production house Contiloe Films. Talks are on with Nerolac and Garnier for advertiser

funded content in the television space. Also, with the recent merger of Lodestar and

Universal McCann, more brands have come under the ambit of Lodestar Universal and

hence opportunities are on the rise in the branded entertainment space.

Contiloe Films CEO Abhimanyu Singh says of the JV formed for branded

entertainment, "Direct Access has got its core strengths in marketing and together we

brain storm and create the product while they go and speak to the clients along with

Lodestar Universal. They help us market that product and there is a clear synergy with

Direct Access, Contiloe and Lodestar."

Plans are to venture into branded content which provides

brand engagement that will take care of not only advertiser

funded programming but will also look at things like tag-ons

in trailers. For example - "Krissh brought to you by Power."

"This will include in film product placement and in-show

product placement. The concept of brand engagement is huge

in the west and contributes to about 50 to 60 per cent

currently of all advertising revenue. In India it is still very small but the whole pie is

growing. What's more, even advertising spends are growing where the traditional form

is complemented with newer forms of advertising and this a reinvention of how you can

advertise," adds Singh.

Direct Access, Contiloe and Lodestar are soon planning to launch a separate agency for

the JV, which will have a dedicated team on advertiser funded content and brand

engagement.

Since clients are keen to enter this space, many of them are setting aside spends for the

same. Lodestar Universal CEO Shashi Sinha says, "While some clients are at present

allocating 10-15 per cent of their ad spends in this arena; this figure is expected to touch

more than 50 per cent in the next five years. Nerolac, for example, has now starting

allocating 20-25 per cent of spends to the branded entertainment space."

Speaking on the potential of the space in India, Starcom Mediavest Group South Asia

CEO Ravi Kiran says, "Planned and executed well, branded entertainment can be very

effective in getting crucial consumer attention. But there is a lot of haziness around the

way the concept is understood in India, perhaps because our media industry is still

evolving."

'Krrish's' Power

Starcom's entertainment marketing unit - Starcom Entertainment - advises marketers on

using entertainment to market brands. "The services included in this unit are brand-

script integration and branded entertainment. Many of our clients such as Heinz,

Western Union, Elf Lubricants, Singapore Tourism and WorldSpace Satellite Radio

have used this unit's services," says Kiran.

Lintas Media Services director Lynn de Souza offers her take, "Advertiser funded

programmes have the ability to go beyond the 'plug' into actually weaving in the

brand promise and the brand insight into the communication in a subtle yet effective

way. Branded entertainment doesn't just have to be about soaps and quizzes and

reality shows. Cricket has been one of the best examples of branded entertainment."

The agency's client Idea recently partnered with CNN IBN's Citizen Journalist

initiative. "It works extremely well for the overall theme of the brand, which is - the

common man communicates - and this has been a pioneering and successful effort,"

adds de Souza.

While on Hindi general entertainment channels (GEC) the concept is now picking

steam, the southern television market is actually dominated by branded

entertainment.

Some of the shows that Mindshare has done for its clients in the south are: Pepsi

Maha Daham, Horlicks O-Podu, Horlicks Sandad Sandadi, Hero Honda Naalaya

Natchitram, Kurkure Kalale Nijam Aithe and 7 Up Tisco Basu.

One of the latest initiatives in advertiser funded content in the GEC space will be

seen in September in the form of Rin Mera Star Super Star on Star Plus. The kids'

talent hunt show is funded by HLL and is being produced by Endemol India.

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The show, somewhat based on the lines of Boogie Woogie, is a nationwide talent hunt

with an aim to unearth talent in children aged 5-14 in the areas of singing, acting and

dancing. The winner will be awarded a scholarship of Rs 500,000 to help him/her

pursue the dream of becoming an artist or to take up future education.

Endemol India managing director Rajesh Kamat says, "Rin Mera Star Super Star is a

combination of entertainment and branding, a concept which will be brought alive on

TV in a fun and exciting show. This is one of the first local formats that we have

developed."

Star India ad sales and distribution president Paritosh Joshi informs that brands from

various segments such as automobiles, fast-moving consumer goods and

telecommunication had evinced interest in advertiser funded programming.

While the concept of branded entertainment sounds all good and exciting and is also an

additional source of revenue for agencies and broadcasters alike, there are some things

to be kept in mind in order to do it right. Lodestar Brand Experience consulting partner

Dhruv Jha cautions, "We have to be careful that it should not become a documentary or

intrusive material that hurts the brand equity. The intention is to make the brand

friendlier more relatable and relevant to different target groups."

Kiran adds, "The cons largely come through overuse of branding, ill fitting placements,

and the inherent risk in creating content."

Another concern in the area is that 'brand fit' and 'engagement' are terms that are often

bandied about in the context of branded entertainment. However, the thumb rule seems

to be to position brands 'emphasizing the way they are consumed in real life.' But is this

really possible in an environment of fast multiplying brands and multiplying media

touch points? Jha says, "If done with a strategy and high quality creative inputs, I don't

see any reason why it can't be done in a highly engaging way. Even multiple media

touch points are chosen with the brand profile in mind and they can be made to work in

tandem to serve the brand objective. We at Lodestar Universal have done it for our

clients like Nerolac and L'Oreal."

Brands do have a lot to gain from this space as they are concerned about lower attention

spans and increasing clutter in the traditional media environment. "Branded

entertainment can help in gaining attention of consumers, who are getting increasingly

more adapt at avoiding ads. It can also help brands in drawing value through the

lifetime of the program, through re-runs and syndication. What's more, brands also get

'quasi endorsement' value from the stars in the show," says Kiran.

On the other hand, he points out; the entertainment content also stands to gain from this.

"In the case of placements, it provides credibility to the story because it becomes real

through brand presence. Whereas in the case of advertiser funded programming, it

provides funding and security of promotional support," Kiran adds.

Cadbury director sales and marketing

Sanjay Purohit says, "Life before the 1990s

was simpler for the brand manager. Today

there is a great need for brands to be a part

of entertainment. Brand communication

today is changing by becoming more

entertainment than the operating milieu

itself. This is also happening due to the

increasing footprint of media and by greater integration with popular culture."

Derek O'Brien has been hosting 'Bournvita Quiz Contest'

for years

"On television there is a greater opportunity for creating branded programming that

will work. The match of brands and entertainment will be made in heaven only if it is

done right by the people involved. It will work only if brands are integrated into a

storyline in an actual way that they are consumed in life. It is about integration and not

saliency," he adds.

However, Purohit was quick to point out the issues that one faces in this space. They are

as follows:

1. Lack of scale

2. Issue of appropriate measurement metrics

3. Lack of transparency

4. Lack of right balance (random association because of money at the last minute)

5. Lack of Ethics

According to Motorola executive director marketing Llyod Mathias, apart from movies

and television, branded entertainment can be taken into the areas of sports, music and

live shows. "One has to leverage the property across all levels. The question to address

is how to make your brands relevant?" Mathias says.

An area of concern for the parties involved in the branded entertainment space is that

brands are looking at it in order to get a cheaper medium than television and print media

to gain exposure. On the other hand, producers are using advertiser funded content as a

medium to cover costs. Zee Telefilms CEO Pradeep Guha voices an important question,

"Is this the right way to start on a medium that has great potential?"

Brands today are spending close to 70 per cent on television today and the rest on other

media. "The aim is to use entertainment creatively in a way in which it magnifies the

core brand message. However, it eventually boils down to cost," Guha says.

Kamat adds, "At the moment the share of branded entertainment in an annual budget is

still low, but over a period of time it's likely to rise. Currently 80 per cent of the ad

budget of a product is still earmarked for traditional media, while 20 per cent is for non-

traditional media, which itself has seen a rise over the years."

Branded content also allows for a lot of ancillary activities to be weaved around it. HLL

has undertaken a massive on-ground initiative for Rin Mera Star Super Star. "The show

integrates 'mom' as a concept and integrates it in the show in a way that the brand's

value comes through. In Rin's case the values coming through are: whiteness,

impressive, pushy and advanced. All these aspects of the brand are integrated in the

show," offers Kamat.

Singh adds, "For the shows that we have in the pipeline, consumer engagement will

come through interactivity. With the advantages of having a mobile phone and the

Internet, interactivity automatically comes in and adds another layer to advertiser

funded content. What is important is that you want the audience to be involved."

'Branded Entertainment Suite' hinges on Q-Ratio

The quantitative metric, known as a Q-Ratio, reflects the quality

of product placement or branded entertainment exposure.

It is based on the simultaneous calculation of 50 variables.

The JV between Media e2e & iTVX will help advertisers, media

planners, content producers & TV stations with valuation &

quality of product placements & other forms of branded

entertainment.

The summary output at the end of a product placement is Q

Ratio, a single metric that represents the quality of the product

placement.

This ratio can be applied in a number of ways to privy costs the

client typically uses for media measurement to guide prognosis

or diagnosis of what clients got for their money.

Since branded entertainment is a new concept in India, until now there were no

measurement metrics to evaluate the effectiveness of the activity. "A concept like this is

done to break the clutter and it has been there in the print medium for quite some time

now. TV channels are hitting upon this idea to see whether a brand can be weaved into

the plot. But this also gives rise to a question: Is it measurable? How much mileage does

an advertiser get out of such a concept and how to measure this are some questions that

will have to be answered by the industry through debate. Branded entertainment, to be

fair, is still in its nascent stage in India," opines Kamat.

"The metrics to measure this so far only consist of what Tam provides (at an extra cost)

of the appearances of brands within programmes and other edit environments (print).

But for such efforts, the appearance is hardly a measure - it's the overall impact on the

consumer that matters," is de Souza's woe.

However, in February this year, Media e2e launched an ITVX tool called the Branded

Entertainment Suite for the Indian market. This is a product placement valuation metric

service for media professionals in the branded entertainment industry.

The tool can trace the quality in all forms of branded entertainment, including

television, radio, movies, games, print, live entertainment and sports sponsorships.

All said and done, a lot more content is likely to be seen in the branded entertainment

space in India over the next few months. "I believe integration of brand messages into

programming will rise in the near future, whether in terms of placements, full

integration or advertiser funded programming. The main reason is that consumers are

already in great control of what they watch and they are becoming experts at switching

off mentally, even when they 'appear' to be in front of TV," says Kiran.

But Kiran also has a word of caution to offer -- "If branded entertainment gets out of

hand, it is likely to cause much more damage to the brand-consumer relationship than

30-second television ever has. In this era of consumer choice and control, we must

remember that intrusion and irritation will be rejected by consumers, sooner or later.

http://www.indiantelevision.com/interviews/y2k6/executive/

rajeev_berry.htm

Branded entertainment is slowly gaining pace in India and one of the active players in

the space is WPP's Group M. The company has inked a joint venture with Raveena Raj

Kohlli's Sundial called Show M. While until now the strategies were being put in place,

the action is all set to hot up in the next few months when the programming on

advertiser funded content will hit television screens in India.

Group M general manager - content and entertainment Rajeev Berry spoke at length to

Indiantelevision.com's Hetal Adesara and Renelle Snelleksz about the concept of

branded entertainment, advertiser funded content and the way the space is shaping up

in India. (Excerpts):

 

Branded Entertainment is slowly gaining pace in India. Group M has got into a JV

with Raveena Raj Kohlli for the same. How effective do you think this is and

whatkind of potential do you think it has in India?

I think everyone is aware of the fact that there is immense fragmentation in the

televisionspace with so many new channels coming in. With this, new media platforms

have also emerged. As a result, clients are also looking at new engagement strategies

with the consumer. Increasingly, brands want to create new touch points with the

consumer andmove away from interruption to engagement

With new technologies like DVRs (digital video recorders) and PVRs (personal video

recorders) coming in place, obviously one has to look at new avenues to reach the

consumer. Hindustan Lever has been active on the branded entertainment front for some

years now and has also been successful, so it's not something new that India has woken

up to.

At Group M, we were actively looking at non traditional ways of engaging the

consumer and as a result I have been working in this area for the last three years in

different forms.

As far as branded content is concerned, we have our JV with Sundial, which is headed

by Raveena Raj Kohlli. As a result we are looking at more and more engagement

strategies and ways of reaching the consumer effectively. The aim is to see how we can

bring in the vision and science into this space.

 

What kind of potential does this area have? This seems to be just the beginning

wherein a lot of vigour is being put in by channels, agencies and brands in the

branded entertainment and/or advertiser funded content space.

That's right; it has not even taken off right now and is at a very nascent stage here in

India. Many players, including both channels and agencies, are planning to get into this

area now. The space is just raring to go. There are no set benchmarks as such because it

is a new field in India that has a huge potential.

This is nothing dramatically new as such because product placements in programmes

have been there for a long time, but the more important fact is that now it is not just

about the placement of products inside the content. It is about strategic and seamless

integration of the brand with the content. It is not just about placement of the brand logo

in the background. It is about making the consumer feel through the root of content how

the product is consumed.

 

What are the challenges that one might face while developing branded

entertainment and what are the things to be kept in mind to do it the right way?

The challenge is to make sure that the brand message is conveyed without interruption

and without irritating the consumer while at the same time, keeping the entertainment

value. The challenge is not just about saliency, it is about strategic and seamless

integration.

Essentially, the challenge is to establish the fact through the film or television content,

as to how the brand is consumed in real life. The brand proposition has to be

established.

 

While brand fit and engagement are terms often bandied about in the context of

branded entertainment, the thumb rule, like you said, is to position brands

"emphasizing the way they are consumed in real life". While all this sounds great,

how much can you really do in an environment of fast multiplying brands and

multiplying media touch points?

We have just started looking at this space now. So we will have to learn along the way.

But if you have seen our first branded show called Wheel Smart Sreemati, which airs on

Doordarshan. It is all about finding one smart housewife through the game of 'chausar'

as smartness is also a proposition of the brand. In fact, there is very little branding in the

programme, through the show we have tried to convey what the brand is all about.

There are various ways of integrating the brand or creating branded content. As long as

there is creativity, we can always find more and more ways of reaching the consumer.

'The Bournvita Quiz Contest is a fabulous example of

branded entertainment. It is not in your face and is a

property that has been nurtured over many years now'

 

The primary concern among clients today seems to be that one should be able to

qualify and quantify performance of media activity. There are no metrics in place

as yet, so how does it work?

We are getting into those measurement metrics wherein to measure the impact not only

in terms of how many seconds/minutes the brand appeared or was mentioned in the

programme, but also in terms of where the brand was positioned.

This metrics model is ready in the international market and we are planning to bring it

to India very soon.

This will enable us to measure the effect of brand presence in a programme.

 

Can you explain that a bit further?

There is a model, which is developed by a foreign company, which measures not only

the exposure secondage in terms of verbal or visual but also the placement which will

help you measure and give adequate weightage to each of these. It is a complex formula

whereby you arrive at benchmarks to determine what is good and bad and what is

working and not working.

 

Can this tool be applied to films too?

Yes it can. Until now we haven't been able to measure all the work that we have done in

the films space with regard to product placement. Therefore there was a need to bring in

some measurement such as this to create benchmarks in the space.

Branded entertainment is about the partnership of commerce and entertainment. As we

realise that the entertainment industry is getting more organised and professional, more

and more brands are ready to engage with the industry now. Moreover, the government

has also recognised the entertainment space as an industry.

 

When is it likely to be unveiled in India? Is it a Group M proprietary tool?

We are looking at bringing it to India towards the end of this month. It hasn't been

developed by us.

 

At what stage do you think that you have been able to convey the brand value and

proposition through an entertainment property - is it just based on the fact that

your brand has been noticed or would you measure it in terms of sales going up?

It depends on the parameters that we have set for the brand along with the client. One

could be the viewership of the programme, the second can be awareness levels of the

brand after the show has been launched and the third could be sales. Different brands

use different parameters for evaluation.

 

What are the pros and cons of branded entertainment for the brand and for the

entertainment content?

As far as cons are concerned, the first thing is that if it is not entertaining then it's not

going to work. One has to understand that it is not an ad. It has to be entertaining and if

the brand is in your face then there is no future in it.

If it is only for saliency, then you have a typical sponsorship model, wherein you

sponsor a particular show and you can get saliency out of it. Branded entertainment has

to be strategic and more importantly entertaining.

The end result is viewership. One has to find ways to engage the consumer and to

demonstrate the brand proposition and usage.

One of the drawbacks is that many people are looking at short term saliency routes but

they have to develop the property as a long term one around the brand proposition and

effectively communicate it. One has to be very clear that branded entertainment content

is not an ad.

To my mind the Bournvita Quiz Contest is a fabulous example. It is not in your face and

is a property that has been nurtured over many years now.

Another art in the branded entertainment content space is to take it across various media

and not just television or films. There has to be a 360 degree approach and activation

around the property.

 

'As compared to Hollywood where they spend about 40

- 50 per cent of the film budget on marketing, the top

200 Indian films spend only about six per cent on it'

 

What are the parameters that differentiate title sponsorship from branded

content?

There are lots of examples of title sponsorship in which there is only saliency and

absolutely no strategic fit.

For example, Close Up Antakshari is still remembered by that name, when the fact is that a

couple of other brands have also come after that as title sponsors, but how many of us

remember those?

So the question to ask is - are brands looking at only saliency for that period or are they

looking at conveying that brand proposition in a strategic manner in a long term

investment?

As far as sponsorship is concerned - whether title or associate - there are some good

examples and some bad ones. But title sponsorship is not branded content.

 

Can you name some of the recent in-film placements that Group M has done for its

clients?

As compared to Hollywood where they spend about 40 - 50 per cent of the film budget

on marketing, the top 200 Indian films spend only about six per cent on it. So there is a

huge scope for marketing their product and that is where brands can bring in that

liquidity, partnerships and their activation platforms to co-create the marketing

activities.

Some of the recent in-film placements that we have done are ICICI in Baghban, Kodak

in Hum Tum, Lenovo in Corporate and Nike in Kabhie Alvida Na Kehna.

All these have strategic fits and are not in your face. Most of the time, the brand name is

not even mentioned by the actors.

We have also done close to 60 - 70 marketing tie-ups with films in the last two years.

For example: LG with Rang De Basanti and Fanaa and Horlicks with Ice Age.

 

Since branded entertainment is a new concept in India, are clients more involved

than they would be in traditional campaigns?

Clients' interest levels are very high as most of them are looking at new avenues to

reach the consumer today. Branded entertainment is a long term strategic investment

and a property that is being created for the brand. It is not a short term practical

campaign.

Clients are pretty much involved from the concept stage to the final airing stage as it

talks about the brand proposition. If something goes wrong and you convey the wrong

message, then all is wasted. This is a new field for marketers as well as it is all about

being the creative partners and creating entertainment content.

 

Can this sometimes act as a hindrance as a client may want a particular thing in a

certain way and it may not suit the sensibilities of the producer? In short, is

creativity affected when there is a third party involved (the client) apart from the

broadcaster and the production house?

Nothing is done at the expense of creativity or entertainment or for that matter even at

the expense of the brand. It has to be a win-win situation and we have to keep in mind

what will look good for the brand and the content in a strategic way.

So when the branded content is conceived around the brand brief, creativity will

automatically be affected. But the end result has to be successful, it has to draw those

eyeballs and convey the brand message. I don't see any kind of conflict in the creative

and brand integration. It can even happen between ad agencies and clients when an ad

campaign is being made.

 

What are the costs involved in making an advertiser funded programme? Would it

be more than a regular television programme?

Not really. Branded entertainment can be produced in different budgets depending on

the format and the platform of the show. There is no premium on it. It could range from

Rs 100,000 to Rs 8 million per episode depending on what you want to show. It can be

a reality show, fiction, non-fiction or game show.

It is about creating a show around the brand proposition.

 

What are the budgets that clients are setting aside for advertiser funded

programming?

Like I said, it depends on the format and also the duration of the show. Right now there

are no set benchmarks for the kind of budgets that are set aside because there are very

few properties in the branded entertainment space. It depends on the platform too,

whether it is a national or a regional platform. If you go down south, then the economies

will be much cheaper and on a national platform it will be expensive.

The budget is usually finite for brands and within that they work out how much they

would want to set aside for TV, print, radio or any other media, which may include

branded entertainment.

 

Can you name the brands that you are working with and the projects you have on

hand?

It's a bit premature to talk about it and I can't give too many details. But we are in talks

with a whole lot of clients who are interested in this space and are looking at it as a long

term strategic investment.

We are working with a set of Unilever brands and also with the likes of Hero Honda,

Seagrams, Perfitti, Hutch, ICICI and Frito Lay.

 

What are the genres that you are tapping in the space?

The one genre that we are actively working on is that of nonfiction

 

Is nonfiction better to deal with than fiction in the branded entertainment space?

I would not say better as such, it all depends on the brand brief and what they want to

do. Soaps are slightly difficult to integrate the brand with.

Whatever gels better with the brand brief is what we do. At present we are working on

talk shows, game shows and reality shows.

 

So how does it work - do you take a property to a client or does the client come to

you and ask you to weave something around his brand?

It could work either ways. At Group M we handle more than 200 clients and we

understand what the brand stands for, its propositions, what the clients are looking for

and their strategies. So at this stage itself, we identify and work along with the client,

whether a branded entertainment property is a strategic investment or not. Therefore, if

we have a format in hand and there is a brand proposition, we could go to the client and

pitch it to them.Similarly, they can also give us a brief as to what they want and we

develop a format around it.

 

In today's fragmented and cluttered environment, will branded entertainment

overtake the traditional 30-second TV spot?

No it won't. Not every brand can afford a media property and not every brand needs a

branded property.

2.2 EARLIER FINDINGS

http://www.marketingweek.co.uk/news/branded-content-case-

studies-prove-effectiveness/3013022.article

Branded content case studies "prove" effectiveness

Wed, 5 May 2010 | By Branwell Johnson

The body tasked with promoting branded content has completed two case studies and

will use the findings to promote the effectiveness of the medium.

The Branded Content Marketing Association (BCMA) secured cross-industry support to

provide measurement for all forms of branded content activity through its Branded

Content evaluation system (BCes) last November.

The first case study was commissioned by ITV to evaluate children’s show Farm Camp.

The show was funded by Morrisons to support its “Let’s Grow” initiative and the

accompanying campaign targeted both parents and children. The BCMA analysed four

elements - the programme, promotional trailers, the website and press ads.

The BCMA was able to measure each individual element of the campaign and how

different elements of the campaign worked together. For example, of those in the test

group who saw one episode of Farm Camp, their association of Morrisons with Let’s

Grow increased by 24% compared to those in the control group.

A second case study evaluated HSBC’s campaign targeting high net worth individuals

that included a two-minute clip on CNBC called “Alternative Investing” during editorial

time together with a branded online guide. Over two-thirds of the test group recorded

positive reactions, with 67% saying “I’d like to see more of this type of thing in the

future”.

Andrew Canter, BCMA managing director and CEO of Contentworx, says: “The BCes

has finally given us the evidence the industry desperately needed that branded content is

a powerful marketing solution. It gives marketers the accountability and decision

support system they require to sign off branded content campaigns.”

The BCes was developed by Contentworx with OTX and Pointlogic

2.3 RESEARCH BEING CARRIED OUT

3. EXPLANATION

MTV Hero Honda Roadies

MTV Hero Honda Roadies is a popular youth targeted reality show that has all elements

fo adventure, expedition, drama, human interest and voyeurism. It is a programme

integrated with hero Honda wherein the selected Roadies or contestants are provided

with Hero Honda Karizma bikes and travel to a specific pre-determined route. The

Roadies stop at various places throughout their expedition on bikes and perform certain

number of tasks in a particular episode. These tasks are usually Money tasks in groups

or Immunity tasks which prevent the contestants from being voted out. They are usually

group tasks or individual tasks. Each episode has a vote-out in the end, thereby reducing

the number of Roadies in each episode, before going to the next location. In the end,

one lucky person who performs tasks, handles situations smartly, builds trust, shows

good interpersonal skills and survival instincts becomes the Last Roadie. He/She is

adjudged the winner of the season and also takes away a cash prize with him/her apart

from a Karizma bike. The show format varies at times, with a new season in order to

ensure sustained viewer interest.

Pepsi MTV Wassup

Pepsi MTV Wassup is a show hosted by popular hosts on MTV to give the viewers their

daily dose of ‘Taza Khabar’ in a small, swift and fresh bulletin with small vox-populi,

interview teasers, role plays and satire. Popular hosts such as Gurbani Judge, Jose, Rhea

and Ayushmann Khurrana keep the viewers excited and bring to them a special lingo

and opinion of Youngistaan (Youth), integrated within Pepsi MTV Wassup.

Segments like ‘Rightbackatcha’, ‘The Big Dope’, ‘WTF’ and ‘What Say Youngistaan’

are youth oriented and discuss all issues and latest happenings with them through polls,

opinions, interviews in an appealing manner while maintaining the integrity of the

news.

Don’t miss daily segments like ‘Rightbackatcha’ which covers national / international

or local happenings with young consumers across cities commenting on these issues in

their own unabashed manner. ‘The Big Dope’ features issues close to the hearts of

Youngistaan. ‘Wat say Youngistan’ is a daily poll conducted on topics that impacts,

affects, concerns or irritates the youth and finally get updated on the all the bakwaas

news of the week with ‘WTF’

There are also monthly segments like ‘1 Rule’ that are aimed at honouring the citizens

of Youngistaan who have changed things around them in an unconventional manner.

Product Integration and Advertiser Funded Programme

A. Background

An hour of air-time on television is divided into 3 segments:

Programming ( normally 48 minutes)

Commercial ( normally 10 minutes)

Promos ( normally 2 minutes)

 

Traditionally, main selling proposition, as well as that of the broadcast industry in

general, has been conventional ad spots (normally a 30 second spot during commercial

air-time either before the start of a programme, at the end of the programme or during

breaks in the middle of the programme). 

In response to increasing viewership fragmentation, a recently emerging trend has been

the introduction of concepts like Product Integration and Advertiser Funded

Programmes as key components of an integrated advertising solution offered by

broadcasters to advertisers.

B. Product Integration (PI)

B.1 The Concept

Placement of a Client’s product/brand within programming content (outside of

commercial time) and which is paid for is called PI. In order to be successful, the PI

must largely be subliminal (i.e., transmitted in a manner that is sub consciously

perceived by the viewer and non-intrusive).

There are 3 types of PI as follows -

(i)Passive PI: Where the product/brand is placed within a show & there is no discussion

or actor involvement with it.  It is passively placed in a shot or series of shots.  This can

also be placement or branding in format shows.

(ii)Active PI: Here the product/brand is handled by the actors and may be discussed by

them.

(iii)Hyperactive PI: The plot or the entire show is designed with the product/brand in

question. The product/brand becomes the main item in the story line.

B.2 The Sale

The value of the PI is based not so much on the length of time that the product/brand is

shown in the show, but rather on the manner and extent of integration.

Further, since research shows that PI is more successful if the commercial of the

product/brand is also aired in the break of the same show, by and large PI is sold in this

manner. Therefore there are two elements to the value –  the in-content part and the

commercial spots part.

While some deals may identify the value of these two elements separately, a greater

number of deals may have a consolidated amount, to avoid negotiating with the client

on the length of time the product/brand is shown. 

For such consolidated deals, the important fundamental principle is to properly record

the value of the commercial time (by splitting the premium for the in-content part) so as

not to vitiate the Average Spot Rate (ASR) and Cost Per Rating Point (CPRP)

calculations for that client/time slot.  This could be based on a standard ASR/CPRP

value either for the time band or for that client based on the latest deal.

The payment terms for the PI deals are also likely to be different, where we would

prefer to collect some amount in advance (due to the effort involved in integration). 

The commercial spots portion will be based on existing credit terms.  Our position to

the client is that reason for the break up is more to do with affording the client expected

credit terms for the spot sales rather than the actual value for the two portions.

C. Advertiser Funded Programme (AFP)

C.1 The Concept

Sometimes advertisers conceive of a show that they believe promotes their brand value

and they need a slot from INX to air such programmes.

The client could directly contract with a Producer to get the show produced and deliver

the recorded programme to INX.  In such a case, INX has the right to provide creative

inputs to ensure audience fidelity and be consistent with the look and feel of the

channel. Alternatively, the client could commission INX to produce the show for them;

something akin to a one stop shop.  INX in turn would outsource this to another external

producer.

As in the case of PI, the commercial of the product is also aired in the break of the same

show.  INX would also have the right to sell the balance inventory to other clients,

subject to certain exclusivities.

Therefore there are three elements to the AFP –

 (i)The slot sale for the programme

(ii)The commercial spots aired during the break of the programme

(iii)Production of the programme itself.

The progamme also gains marketing mileage from the reference made to such

programmes by advertisers in their print and other media campaigns.

C.2 The Sale

As in the case of PI, while some deals may quantify the price for each portion

separately, some deals may have a consolidated amount of consideration.

Also as in the case of PI, the important fundamental principle is to properly record the

value of the commercial time (by splitting the premium for the in-content part) so as not

to vitiate the ASR and CPRP calculations for that client/time slot.  This could be based

on a standard ASR/CPRP value either for the time band or for that client based on the

latest deal.

Since the time slot is being committed by INX, the payment for this is likely to be

collected in advance, whereas the amount apportioned for the commercial time sales

would be on standard credit terms.  Further, where INX has been commissioned to

produce the show, this payment is also likely to be collected in advance.

4. METHODOLOGY ADOPTED

4.1 METHODS OF DATA COLLECTION

Questionnaires were the predominant method used as a means of data collection. the

questionnaire used is objective type which mainly focuses on the primary objective of

my project . The questionnaire in itself helped me in gaining better clarity and

understanding as to the subject matter and thereby helped in the analysis and

interpretation aspect.

The survey was conducted among a sample size of 200 of which 150 were taken

through online and the rest through a ground survey. The ground survey again was

primarily done in Bangalore city itself.

The survey included professionals from various fields and students where also made to

attend the survey. The survey where generally focused on the analysis of consumers

mind on viewing Films and Television in Mobiles.

The Questionnaire contains 8 important questions, where each set of questions

determine the necessary mind set of each questioners. The questioner where basically

objective type and to make them focus on the answers only a few options where given.

5. DATA ANALYSIS

5.1 DETAILED PLAN OF ANALYSIS

DATA PREPARATION

It involves checking or logging the data in; checking the data for accuracy; entering the

data into the computer; transforming the data; and developing and documenting a

database structure that integrates the various measures

DESCRIPTIVE STATISTICS

They are used to describe the basic features of the data in a study. They provide simple

summaries about the sample and the measures. Together with simple graphics analysis,

they form the basis of virtually every quantitative analysis of data. With descriptive

statistics you are simply describing what is, what the data shows.

INFERENTIAL STATISTICS

The investigate questions, models and hypotheses. In many cases, the conclusions from

inferential statistics extend beyond the immediate data alone. For instance, we use

inferential statistics to try to infer from the sample data what the population thinks

5.2 DATA REPRESENTAION

150 questionnaires from the target group based in Bangalore, aged between 18-35 years

opinionated as follows:

1. Are you aware of these shows on MTV associated with a specific brand?

A. MTV Hero Honda Roadies 142

B. Pepsi MTV Wassup 89

C. Vodafone MTV Splitsvilla 112

D. No, None of them 5

142

89

112

5

Column1

MTV Hero Honda RoadiesPepsi MTV WassupVodafone MTV SplitsvillaNo, None of them

2. Do you associate a specific show with a brand? (Ex. Stunt Mania with Pulsar)

A. Yes 89

B. No 61

89

61

Column1

YesNo

3. While watching a TV programme, if you observe a product being advertised

within the show, do you swap the channel?

A. Yes 91

B. No 59

91

59

YesNo

4. Which of these shows do you identify with subtle, strategic communication that

offered brand insights and highlighted brand attributes without preaching?

A. MTV Hero Honda Roadies 98

B. Pepsi MTV Wassup 58

C. Vodafone MTV Splitsvilla 64

D. No, none of them 25

98

58

64

25

Column1

MTV Hero Honda RoadiesPepsi MTV WassupVodafone MTV SplitsvillaNo, none of them

5.At the retail level, will you have a favourable recall and preference for a brand that

you associate with a TV programme?

A. Yes

B. No

6. Have you ever recorded a show through a Personal Video Recorder (PVR) or

watched it on the Internet due to time constraint?

A. Yes (PVR)

B. Yes (Internet)

C. No

7. Do you watch advertisements in between shows?

A. Yes

B. No

8. Do you surf the Internet while watching Television?

A. Yes

B. No

6. OBSERVATIONS & CONCLUSION

From the data collected, observed and analyzed, several conclusions in favour of

Advertiser Funded Programming on MTV have featured out.

Most of the viewers, the target audiences for this project, i.e; current Bangalore

residences, aged 18-35 years are aware of shows on MTV associated with a specific

brand and take keen interest. MTV Hero Honda Roadies clearly stands out in their

minds after its successful 7 seasons. Vodafone MTV Splitsvilla is not far behind with

majority of the participants of the survey showing clear awareness to the existence of

this show associated with Vodafone. Pepsi MTV Wassup also has a huge recall amongst

the youth, thus giving the brand owners and media buyers an assurance of a positive

brand recall, reliable strategy and fruitful association.

Also, viewers today are far more accepting. This has been observed when majority of

the audiences who participated said that they would not swap the channel when a

product placement is being done. This may be due to the fact that these shows have

created a place for themselves in the minds of the audiences and the audiences don’t

mind placements. Moreover, brands also get to show that they are ubiquitous and can

make a positive association with the audiences through the show.

Consumers today are smart enough to observe that a product is being advertised in a

show. However, brands have figured out that the way out is subliminal communication,

which is strategic, subtle and still offers important brand insights and attributes. Hero

Honda Roadies is a show that achieved this, the responses show. Vodafone MTV

Splitsvilla and Pepsi MTV Wassup also gathered lots of votes for their subliminal

communication and ability to get across their brand message to the viewers without

preaching about them. Does this lead to consumer preference? Yes, the survey shows

that majority of the people have a favourable recall and preference at the retail level

when they go to purchase a product. This can also be a lesson to advertisers and brand

managers while making crucial investment decisions on TV, considering them as long

term investments.

Whether, the use of recording devices is a matter of concern to the advertisers, Yes,

because majority of the audiences have logged on to the internet to view their favourite

show thus skipping ads and skewing the idea of primetime TV. However, not many said

that they have used a PVR to record shows. This would be attributed to the low

penetration of DTH and IPTV in India, which is expected to rise thus creating a greater

need for AFP in the future. The need for AFP further increases when viewers say that

they rarely watch or totally ignore advertisements in between shows.

This shows that the audiences are far restless today and advertisers may need to

consider another model to reach them, instead of traditional ad spots. Also, the surf-the-

internet-whilst-watching-TV audience can be a point of concern to advertisers who

might need to rework their branding strategy and give a serious consideration to

branded content as MTV has successfully shown.

7. BIBLIOGRAPHY

1. http://www.indiantelevision.com/special/y2k6/branded_entertainment_india.htm

2.http://www.marketingweek.co.uk/news/branded-content-case-studies-prove-

effectiveness/3013022.article

3. http://www.indiantelevision.com/interviews/y2k6/executive/rajeev_berry.htm

4. FICCI-KPMG Media Report

5. Yahoo Media Report

8. ANNEXURE

CONSUMER SURVEY FORM

TOPIC- Advertiser Funded Programming on MTV

India- An Analysis

Disclaimer- This questionnaire is intended to be used only for academic research purposes and the

results obtained will be kept confidential.

* Required

Name *

Location *

Phone Number *

Age *

18-23

24-29

30-35

Gender *

Male

Female

Occupation *

Student

Working

1. Are you aware of these shows on MTV associated with a specific brand * More than one tick

allowed

MTV Hero Honda Roadies

Pepsi MTV Wassup

Vodafone MTV Splitsvilla

No, None of them

2. Do you associate a specific show with a brand? (Ex. MTV Stunt Mania with Pulsar) *

Yes

No

3. While watching a TV Programme, if you observe a product being advertised within the show, do

you swap the channel? *

Yes

No

4. Which of these shows do you identify with subtle, strategic communication that offered brand

insights and highlighted brand attributes without preaching? * More than one tick allowed

MTV Hero Honda Roadies

Pepsi MTV Wassup

Vodafone MTV Splitsvilla

None, branding was apparent and pushy

5. At the retail level, will you have a favourable recall and preference for a brand that you associate

with a TV programme? *

Yes

No

6. Have you ever recorded a show through a Personal Video Recorder (PVR) or watched it on the

Internet due to time constraint? *

Yes (PVR)

Yes (Internet)

No

7. Do you watch advertisements in between shows? *

Yes

No

Rarely

8. Do you surf the Internet while watching Television? *

Yes

No

Occasionally

Thank you for your participation (Any Other feedback)

THANK YOU!

Do you think Branded entertainment is better than traditional ad

spots

. Yes higher recall

. Yes it builds a media property

. Yes it conveys the brand messages

. Yes

If yes, will you recommend your clients

What are the issues, pros and cons for a brand

Why hasn’t it picked up although it is considered effective

---------

Do you think AFP is appropriate way to get across brand

messages as compared to buying ad spots

Are you experimenting with branded content in the near future

What are the pros and cons for the advertiser