How does a TV channel earn money…?

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I am in to Advertisement business so I know it precisely….

TV channels earn by running advertisements.

The TV channels have 2 kinds of ratings one is GRP & other is TRP….

GRP stands for Gross Rating Point. A standard measure in advertising, it measures adverising impact. You calculate it as a percent of the target market reached multiplied by the exposure frequency. Thus, if you get advertise to 30% of the target market and give them 4 exposures, you would have 120 GRP.

TRP stands for Television Rating Point, is a tool provided to judge which programmes are viewed the most. This gives us an index of the choice of the people and also the popularity of a particular channel. For calculation purpose, a device is attached to the TV set in a few thousand viewers’ houses for judging purpose.

Now a TV channel has GRP and the TV show has TRP…. Which means if the channel is viewed a lot irrespective to the show running on it, its GRP goes up giving it an opportunity to charge more per second for each ad pllaced on it…

Now when a TV Show is viewed a lot then its TRP goes up, giving the channels to charge more per second for the ads placed in between the show…

Another way of charging the product companies for the air time is whether they place the ad during the prime time ( 8pm – 11pm), or in between a cricket match depending upon how popular the match is, India-Pakistan matches fetch them up to 100000 rupees per second, depending if its a world cup match or a normal series….

So even if the GRP of the channel is low but the TRP of one of the shows is high, they can ask for more money per second for their air time……

I remember when we made ad films we were asked to cut the ads in 45 seconder, 30 seconder, 15 seconder & 10 seconder, the 10 seconder to show when the batsman has hit a sixer and retrieving the ball is gonna take time, 30 seconder if any player gets injured or change of over or batsman….

And it is we consumers who pay for these ads, it is this marketing cost that makes a cola bottle costing 60 paise to manufacture sell for 14 rupees…..

Aalok Singh

 

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පෙර ලිපියෙන්Early Television How to Work 1928 ….!!!
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