Questions linger over TV's ads break

By Dita De Boni

'Twas the night before Christmas, when TVNZ decided to lob a political hot potato through fax machines into skeletal-staffed ad agencies throughout the country.

The December 24 fax announced the start of a radical "experiment." TV One would cut the amount of commercial time from 12 minutes to 8 minutes on weekday nights between 9.30 and 10.30 pm, the hour that prime-time slowly dwindles into the Zzz zone.

The plan was developed by TV One's general manager, Shaun Brown, after many years of feedback from advertisers and viewers, and coincided with Saatchi & Saatchi's efforts to redefine TV One as the cerebral choice for discerning viewers.

The "experiment" has also fortuitously popped up between the former Government's commercial directives and the present Government's still undefined ideological expectations for state broadcasting.

From January 31 advertising in "the zone" will take the form of two, four-minute ad-breaks, in response to viewer dissatisfaction with the number of ad breaks and agency concerns about repetitive ad clutter obscuring their messages.

Several weeks later, cautiously happy media directors and cynical industry commentators are still trying to work out the real motives behind "the experiment." Is it, as the channel maintains, a move to placate viewers irked that their complex dramas are being continually interrupted?

While the move is bound to please advertisers, will heavy premiums placed on rate cards covering the timeslot be justified as viewers latch on to the low advertising hook ? Is the action a sop to the new Government, a way of mollifying the more radical views to have emerged from the Labour Party concerning the role of state broadcasting?

Mr Brown says the move was mainly motivated by viewers telling TVNZ they would watch more TV if there was less interruption.

"The evidence is anecdotal, but not surprising. TV One viewers are more selective and discerning," he says.

"We decided that these viewers would be worth investing in."

"It sounds like a stunt but it isn't a stunt," he says, adding that the zone will also be different in content. He hopes that with a lift in programme quality and fewer ads, an exclusive zone could be created which would bring more viewers.

Mr Brown says the rich plot lines of the dramas and documentaries preferred by TV One's archetypal viewer - generalised as a 25 to 54-year-old in the higher socio-economic bracket - require high viewer involvement.

This higher involvement extends into ad breaks, unlike low viewer involvement of "lighter" television fare which leads to a similar low involvement in advertising on those channels.

"So TV One viewers really notice heavy advertising, even though TV One actually shows less advertising anyhow - about 13.5 minutes an hour compared with 14-14.5 minutes an hour on other channels."

Ads will be packaged in four-minute slots, compared with the present 3-3.5 minute blitzes, raising the question how this will bring TV One's promise of less clutter.

David Innes, executive director of the Advertising Agencies Association, says that despite "lots of grumbling from the chattering classes," viewer "fall-off" during ad breaks rarely rises above 12 per cent.

"The key points for an ad break are the ads themselves - if the first couple are good and make pleasant viewing, it has a major effect on the whole pod."

Alana Storey, media director at DDB, agrees that "clutter" is not such a problem if advertising quality is good.

"More effective ads depend on the content of commercials and are not just a result of [less] clutter," she says.

TV One remains cagey about ratecard rises from making the zone more attractive, focusing instead on the benefit to viewers.

But Mr Brown says there has been "no mandate from the Government to cut revenues" and commercial concerns predominate.

But the Business Herald has learned there will be average ratecard increases of between 23 and 26 per cent over the first five months of the "experiment."

A 30-second advertisement in the 9.30 to 10.30 time zone at present priced at around $3000 will rise to $3800 as TVNZ applies a premium for less ad "clutter."

Anna Chitty, general manager at the Media Palace, says that while TV One has hit on a great concept for getting close to consumers "and should be applauded for that," she has worked out that the overwhelming majority of Palace placements in that timeslot are not paid for anyway.

"In that timeslot [TVNZ] have traditionally honoured their bonuses commitments to us - those time slots are not sold," she says.

"The value-premium argument, given the history of the time slot, is disproportionate - we could question the motivation behind the premium - is this just a way to exact a price increase?"

Mr Brown: "Our rates are not bumped up on a whim. The rates respond to demand from ad agencies."

"As the old licensing fee shrinks by the day, ad revenue continues to be very important to TV One - we need to keep the commercial level up as well."

"Some agencies pointed out that they would be willing to pay more for ads placed in an environment with less repetition and our feedback from agencies so far has been very good."

The issue of Government involvement is obviously one TVNZ and Mr Brown are well used to fielding. "The idea predates a change of Government," he sighs.

"Obviously, I knew there would be no political opposition to the move - it is entirely consistent with the line the [new] Government has taken."

If the Government was not aware of the experiment - Mr Brown says he "told Marian [Hobbs'] office we would be issuing a press statement" - advertisers had few clues that a definitive change in advertising structure was imminent.

* The Minister of Broadcasting, Marian Hobbs, said yesterday that she was not concerned by the number of advertisements on TV, but that advertisers "control programmes."

"The first step will be the drafting of a charter for TVNZ which will lay out clearly that the cultural/democratic aspect of broadcasting is as important as the commercial return."

Ms Hobbs confirmed she had not been told of TV One's advertising reduction until December 23. The decision was TV One's and not the result of a directive from the Government, although she welcomed the move.