RCom to pump 150 crores to advertise its GSM Service

Reliance Communication or RCom as it is popularly known in media circles is planning on a major advertising campaign for its GSM services. The campaign has already gone live on media with television ads promoting the product. It has also hired Hrithik Roshan as its brand ambassador for the Mobile and DTH service in a high profile deal which itself is going into crores.The ad campaigns planned itself is to the tune of Rs.150 crores.

According to Afaqs, The three-year deal with Hrithik is believed to be worth over Rs 5 crore annually and excludes the fees payable for appearances and events, sources said, adding that the overall deal could touch Rs 10 crore annually. This is a first for RCom since it moved beyond the CDMA business. Remember the Virender Sehwag and Sehwag ki Maa commercials? The GSM service that launched in January has had relatively less advertising and promotion on part of Reliance compared to its other products, and I guess that this deal will more than make up for it.

Setting Higher Sights

The service already has 13 million subscribers and there are reports that the company is aiming at more than 100 million subscribers this year. Bharti is the only mobile service provider in the country right now which has crossed this landmark and is also the fastest growing one in the niche. Incidentally, Bharti is also a strong competitor for Reliance’s DTH service. The two had earlier been involved in a TV commercial war by bringing out ads that looked eerily similar to each other. Bharti of course has banked heavily on celeb endorsements beginning with Sachin and SRK when it launched its mobile service earlier in the decade, and with Saif, Madhavan, Vidya Balan, Zaheer and Gautam Gambhir, only A R Rahman and Kareena Kapoor have remained in their celeb roster since the beginning.

watbog-rcom-ad

Reliance had also signed a $100 million deal with ICC recently. The eight-year deal with International Cricket Council (ICC) to be its global partner for all cricketing events till 2015 beginning with the  ICC T20 matches are scheduled to be held in England from June 5th to 21st. With the deal in place Reliance would have sole rights to stream cricket on the mobile platform for any ICC event. Which gave them the leeway to announce the launch of many cricket-centric exclusive value-added services (VaS) for its customers, such as live streaming of matches and live commentary.

This is good news in general for the digital market because of the many facets involved:

  • More advertising revenue pouring in, expect competitors to also pump in money for promotion
  • More push for value added services, because data costs are already too negligible to cut further
  • More subscribers added to the medium, which is what the above two seem to target anyway

One Response to “RCom to pump 150 crores to advertise its GSM Service”

  1. June 3, 2009 at 3:55 pm #

    Reliance Telecom or any other sector of reliance initially provides the service at a very cheap rate to capture the Indian market. But it doesnot provide that quality service. For example look at the GSM service, every second person carries this GSM card but it has got no network service.

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