Blog Post

HT Media, Dainik Bhaskar, Dainik Jagran And NDTV To Sell Ads For Equity

Would you sell stake in your company in exchange for advertising inventory? After Bennett, Coleman & Co. Ltd (BCCL), publishers of the Times of India and Economic Times, and JV partners of the TV Channel Times Now, other media groups including HT Media, Dainik Bhaskar, NDTV and Dainik Jagran are setting up a Private Treaties division. Business Standard reports that Dainik Bhaskar has closed three deals. They’ve also hired Arvind Mittal from UTI head its treaties division. Meanwhile, NDTV set up its division six months ago, Jagran Prakashan is preparing a proposal for the board’s approval, while HT Media is reportedly setting up its team, though CEO Rajiv Verma has declined to comment. Network18 also signs shares-for-advertising deals under different group companies.

We’ve heard that BCCL has, over the past three years, done close to 175 private treaty deals, though the website lists only 120. Some familiar names there: Affle India, IOL Broadband, World Phone, You Broadband, Media Video, Percept Pictures, Holiday IQ, Travelguru, Travelmasti, SatNav, Sobha Builders (IT arm – SRIT), Spice Limited and Videocon. The list, surprisingly, doesn’t include group companies Times Internet Limited and ENIL (which runs Radio Mirchi), which Business Standard mentions.

More in the extended text.

Now taking up equity in companies in exchange for advertising inventory is fine, as long as editorial coverage remains independent of marketing and investment. BCCL has been criticized for formalizing the sale of editorial space — Mid-Day had, four years ago, published rates (cached page) for BCCL group company Medianet. What does the company get for a private treaty deal from the Times Group? From their website: Advertising Support, Branding Support and Corporate image development. BS adds that BCCL helps bump up valuations for future fundraising as well. Ravi Dhariwal, CEO (Publishing)for BCCL, rubbishes criticism, but I wonder if he considers this editorial space, or marketing space. Note that there are no disclaimers from BCCL either, when covering companies that they’ve invested in. The money appears to be good, which is what is attracting other media companies into the private treaty business. A former BCCL exec has told BS that profits from Private Treaties amounted to Rs. 500 crores last year. NDTV, for its part, claims that their deals have a clause that no editorial support will be offered to clients.

So would you sell stake in your company in exchange for advertising inventory? And for editorial inventory? Why or why not? Some responses to this question from our readers, when BCCL had picked up stake in Holiday IQ.

Update: Editorial coverage appears to be a part of the deal. Abhi, in the comments, points us towards a Sucheta Dalal article which quotes the following from an email (dated Novemer 29 2007) from The Economic Times editor:

17 Responses to “HT Media, Dainik Bhaskar, Dainik Jagran And NDTV To Sell Ads For Equity”

  1. sarkar kahti hai bikash hua hai.aap gaon me jaakar kyo nahi dekhete.jaha na sadak hai na pani na hi naali. ek gaon ka pata likhiye .nirmal girdhar, dhingwas, pratapgarh. jahan ek varsha me pradhan ne narega ke tahat shirf 20000 rs. ka kaam karaya hai.bdo ,dm sansad vidhayak koi sunta hi nahi,                
              aapse bahu umeed hai,                                                                                                                  
                                             vijay dwivedi

  2. anshul grover

    hello,this is anshul grover from meerut. rite now i am working in a hindi daily newspaper and want to switch the companyand also i had performed very well . please give me chance for your newspaper as i want to go for a great brand.

    Anshul Grover

  3. Ganesh kumar

    hello sir/madam,i m GANESH KUMAR i have same experience in marketing &sales sector so i want to do work with Dainik Jagaran ,Please give me chance
    Thanks &regards
    Ganesh kumar

  4. shivani shukla

    sir,my name is shivani shukla i m working with mnc for last 3years at lucknow.i want to work with dinik jagran news paper.i m very anthosistic to do my work…….so sir please try to look up my this note.thankyou..

  5. siddhantsoni

    sir /mam
    mera naam siddhant hai aur mai 11th (bio) class mein hoo main sirf depression pe ek article likhna chata tha ,aur main aapka news paper ke zaria student ke upar depression ko batna chatha tha thatha . study ka depression se students ke upar prabhav ko batana chatha hoo .
    institute mein test accha na hone se vo khana nahi khata vo rota ha in sab chizo ko darshana chatha hoo
    sucide pe sucide hote za raha hain inko darshana chatha hoo
    parents ke lagaya hooa paiso ka pressure ,agar selection na hooa to loog kya kahanga iska pressure darshana chatha hoo
    we cant say that siksha pranali is wrong but we can say its tough magar ise easy way mein nahi padha jata aur na hi padhaya zata. so thats why all these things leds to a huge pressure on studentand after that leds to death sucide and a horror sleep for whole the life

  6. hrdeepsinghbedi

    namaskar sir (mam) mera naam hardeep singh bedi hai.
    mujha bachpan say he media mein job karne ki cahat rahi hai.
    meri qualification 10+2 hai sir mein apka news paper dainik jagran mein.
    prees reporter ke job karna cahta hoo sir plz mujha job dai di jiya dhanyawaad.
    cell no.(9780480008)

  7. meenakshi gautam

    sir / mam
    i am meenakshi gautam.Diploma in Aviation & Hospitalit Management from AHA, Delhi.Diploma in Art from Meera Bai Poly Techniques, New Delhi.Have User Knowledge of following packages:
    Dos, Word Star,Windows 95 & 98, 2000, MS-Office (Word, Excel, Power point) PageMaker,Internet etc.German Lanuguage (Learning Basics) from AHA.To strategically utilize strengths, academic qualification and knowledge to achieve both my personal and corporate targets and a positive relationship with the organization.

  8. sir, i want frm ur newspaper to start a compaign to awaken the public not to waste the electric power……i have seen in cities,hostels..power is being wasted and where as in villages people dont get even 8 hrs power supply per day……….it is only media that can prevent wasting oe power……i hope we r going to see a compaign against wastage of power in near future

  9. dharmvir kumar singh

    i am Dharmvir kumar singh,doing my final year mba from asia pacific institute of management studies.
    sir,i am interested in media sector.kindly give me a chance to work with your organization,i would be thankful to you.
    my no is :09999894806

  10. loveleen

    Respected Sir,
    I,Loveleen kaur studying in Bsc.2nd year Medical in Jalandhar.I write poetries as well short stories.I want to send online these poetries.Please tell me online site.
    thanking you.

  11. Pradeep Sharma

    Respected Sir,

    I, Pradeep Sharma read in B.A. 2nd year from Rajasthan University. I am live in Jaipur. I have good typing speed in Hindi & English.

    So, I want to work your News Paper.

    Thanking you,

    With Regards
    Pradeep Sharma

  12. When you have unsold inventory (as in the case of the TV business) or infinite inventory as in the case of newspapers (just print another page). This is a good plot.

    I dont know if its good for the businesses themselves. I guess this is one way for the VCs to protect themselves for the huge marketing spends of 2000 that went wasted (remember

    The real issue is that for the reader when these interests start creeping into editorial and you can seperate reality from hype/self interest. I really must compliment MINT for that and ofcourse Rafat/Nikhil.