Pay-TV asks for more

The pay TV industry is pushing for a bigger slice of the advertising pie and is aiming to restore balance to the industry's revenue streams, which are largely derived through subscriptions.

Called the Power of Pay TV, the Cable & Satellite Broadcasting Association of Asia backed initiative, launched with an online and manual resource for clients and agencies across the Asia Pacific.

Paul Corrigan, advertising consultant who developed the resource, said in the past five years the pay-TV industry has been superceded by competing channels such online, mobile and sponsorship and said the pay-TV industry needs to fight harder for clients advertising dollars.

CASBAA data shows that while audience share for pay TV had grown steadily and was now at more than 30% in most Asian markets, its share of TV advertising spend had only reached around 15% or US$4.5 billion (HK$35 billion) region-wide. In Hong Kong, CASBAA estimates that 1.37 million homes, or around 25% of all TV households.

"As an industry it's of growing importance to be creating awareness among agencies and clients. Ten years ago pay-TV was a sexy thing to have on the media schedule, but the over the past five years it has been superceded by online, wireless and even sport sponsorship.

"We're no longer just fighting against free TV or regional print, we're fighting against potentially 30 to 40 marketing channels for clients advertising budgets. Our industry as a whole needs to fight harder," Corrigan said.

Simon Twiston Davies, CASBAA CEO, said pay-TV continues to gather pace across the region with more than a quarter of a billion Asia Pacific homes now taking the multichannel option.

"The new initiative marks an unprecedented collaboration between traditionally fiercely competitive regional pay-TV networks as well as cooperation with local platform operators," he said.

"It's time for the pay-TV industry to further demonstrate to marketers how much has changed in the advertising environment. Most markets with a viable pay-TV advertising medium now have reliable measurement making the industry more accountable than ever to clients."

With pay-TV and traditional media in general now challenged from a wide range of emerging channels, none more so than mobile and online, Hong Kong's many industry associations should be out promoting the strengths of their respective industries. Hong Kong is laggard in this area, with some arguing that more should be done.

But the past month has seen another industry body join the chorus, with the Hong Kong Association of Interactive Marketing launching in late September.

Francis Fong, HKAIM chairman and managing director of Synergy said freedom of speech online, spam control and merging creativity and technology will form the initial focus of new group.

"Next generation online marketing tools, including email, IM and buzz marketing, have acquired a significant role in commercial communications once enjoyed only by such traditional marketing media as television, newspapers and magazines," Fong said.

"Players of both marketing and IT industries see a huge potential in interactive marketing and are keen to contribute to its vibrant growth."

PCCW chairman Richard Li said the interactive marketing body will provide a common platform for interactive marketers looking to share knowledge.

"At the moment most marketers talk in a different language and are seemingly from different planets. Interactive marketing is not something of the future, but is something of today. Innovation and marketing remain at the core of business success," Li said.