Maybe due to not charging viewers, Vietnam Television (VTV) is trying to recover its capital spent on buying the 2018 World Cup’s TV rights by raising advertisement prices. A 30-second slot during the finals now goes for VND800 million ($35,242).
|VTV now charges VND800 billion for a 30-second advertising slot during the World Cup finals |
On June 28, VTV’s Television Advertising and Services Centre (TVAd) announced adjusting some advertising slots during the finals and the closing ceremony of the 2018 World Cup.
Accordingly, the price of a 10-second advertising slot increased from VND250 million ($11,013) to VND400 million ($17,621), a 15-second slot went from VND300 million ($13,215) to VND480 million ($21,145), a 20-second slot rose from VND375 million ($16,519) to VND600 million ($26,431), and a 30-second slot rose from VND500 million ($22,026) to VND800 million ($35,242).
In addition, advertising prices during football commentary programmes also fetch a decent price, even more than during the 2014 World Cup. The sums include VND375 million ($16,519) for a 10-second slot, VND450 million ($19,823) for a 15-second slot, VND562.5 million ($24,779) for a 20-second slot, and VND750 million ($33,039) for a 30-second slot.
Regarding the 2018 World Cup closing ceremony, prices are similar to football commentary programmes, but a 30-second slot will go for VND10 million ($440) less.
VTV’s price hike could be an attempt to recoup its expenses on buying the broadcasting rights. The exact price of the deal has not been revealed, but zing.vn stated that it is about $14-15 million, and Vingroup contributed $5 million.
In addition to recovering the capital via advertising, broatcasters in many countries have been charging viewers since the 2002 World Cup.
To watch the 2014 World Cup, Singaporean viewers paid S$112 ($82.08) per person to enjoy all 64 matches of the football league, while viewers in Hong Kong paid HK$380 ($48.03) each to enjoy the league.
As digital advertising steadily replaces television advertising as the dominant form of advertising due to its higher popularity and more reasonable prices, this could be VTV’s last World Cup that viewers can enjoy for free.
According to the survey of IPG Mediabrands, in 2017 spending on digital advertising reached $207 billion, equaling 41 per cent of the total value of the global advertising market, and spending on television advertising hit $178 billion, equalling 35 per cent of the total value.