Corporates go into a 'depression'

MUMBAI: Millions of cricket lovers across the country were not the only ones who felt cheated by India’s defeat to Sri Lanka on Friday night.
Advertisers, broadcasters, media planners went into a tizzy as fortunes of their multi-crore brands changed drastically overnight. Pepsi, Diageo, Nokia, Hero Honda, Maruti, Hutch spent a troubled Saturday trying to work out the economic fallout of India’s defeat and cut losses.
“This is very unexpected. It’s possible we will cut down on the advertising, or may negotiate lower rates,” said Ravi Naware, chief executive, ITC Foods, promoting Sachin’s Fit Kit and Bingo.
‘‘There is bound to be a rethink on the value clients will now get out of their money. Come Monday, the meetings will start,’’ said Ajit Varghese, MD, Maxus, a Group M media-buying outfit which represents Nokia, Hutch, Hero Honda.
Said a source at a leading auto company, ‘‘Contractual commitments are restricting us from completely exiting the remaining matches.’’
Some are planning to reduce their ad spends on the remaining matches by as much as 30%. As for the remaining slots, they are negotiating with channels and media agencies to have the campaigns re-slotted during other channel shows.
Sony Entertainment TV, holding the rights, says that most of its ad time has already been sold and it shall not be affected financially.
‘‘The contacts remain binding irrespective of whether India eventually makes it or not,’’ said Kunal Dasgupta, CEO, SET.
Ground realities though will be different say industry watchers.
‘‘At best, now it becomes a snacking channel attracting sporadic viewing and advertisers are sure to renegotiate even if it means going to court,’’ said an industry source.
‘‘Typically either an ad is yanked off or substituted with another. Like Pepsi may replace a Sachin Tendulkar promo with a Shah Rukh Khan one if it feels this would work against the brand,’’ said a source. Industry estimates peg the direct World Cup spend at over Rs 600 crore.