Panasonic wrangles with Japanese broadcasters over 'banned' smart TV ad

The move has fueled heated online debate in Japan, with observers suggesting broadcasters are afraid of the implications of connected TV for their business model. IPTV (smart TV) is still in its early stages and rules for broadcasting and transmission are currently being drafted, according to a statement from Panasonic.

The company told Campaign Asia-Pacific that it is currently communicating with broadcasting companies on the matter to work in the best interest of its customers, but was unable to share any further details.

In Japan, a 15-second TVC is the most popular slot and broadcasters gain the bulk of their revenue from it. However, it is easily skippable as it is still sold by gross rating point (GRP).

“It’s not difficult to understand why the broadcasters in Japan banned the ad,” Nori Takahiro, CEO of Sukedachi & Marketing Engine, told Campaign Asia-Pacific. “The device allows viewers to skip out to the online and the viewership might fall down enough to threaten the broadcasters.”

Although the TVC is banned by every Japanese broadcaster, consumers are already familiar with the Smart VIERA through online news and social media. “That means Panasonic won the exposure without any investment for TVC, which is impressive,” Takahiro said.

“The consumers are apparently much smarter than the broadcasters,” he continued. “It’s much easier for the users to find and share the information on emerging technologies, which may change their media consumption style ever. Then they can purchase the devices online if they want. The broadcasters can't stop it.”

According an anonymous source, Panasonic was and is still seeking opportunities in online advertising, such as ads on YouTube or NicoNico TV.

Takahiro agreed. “The audiences who enjoy TV programmes and online content are the target consumers for the TV set,” he added. “In such cases, brands should employ the marketing strategy that focuses on online media more than traditional media from the launch of the campaign.”

Despite the increasing revenue of online advertising, TV advertising was growing slightly again from 2012. “It is difficult to see online advertising can work enough to satisfy advertisers' demand with regard to the exposure of brands in replace of TVC,” he said. “I believe they will be integrated, and we will find other issues when the advertising revenue of broadcasters declines.”