The Indian television industry is becoming a bit like the ‘K-serials’ – a web of complications. While media planners are worried about the growing ad avoidance on television, advertising spend on television is also on the rise and it is the primary revenue for each and every broadcaster. A research done by Lintas Media Group titled ‘Engross’, reveals that in 2006, ad avoidance on television was as high as 78%.
According to a PricewaterhouseCoopers report on the Indian entertainment and media industry, the compounded annual growth rate (CAGR) of advertising on television is about 20%. In 2005, the growth rate was about 15% and in 2006-2007, it recorded a 21% growth rate. In terms of market share, television advertising has lost 1% and now stands at 41% from the previous 42% in 2005. Even then, television advertising enjoys the maximum market share. The question that remains unanswered is, how can both, ad avoidance on television and ad spend on television grow simultaneously?
Analysts say that despite ad avoidance, ad spend on television is growing because advertisers are now forced to invest more on television advertising. Earlier, advertisers could book just three ad spots (30 seconds each) in a day and create brand retention in the mind of the consumers. Today, the same advertisers need to buy multiple ad spots with the hope that the commercial may gain some eyeballs.
Said Yogesh Shendye, vice-president, Lintas Media Group, “Ad avoidance is increasing and that is for sure. But the media planning community don’t work on ad avoidance. We work on the number of people exposed to a particular channel. We measure the number of people sitting in front of the screen when a particular ad is running irrespective of the fact whether the person sees the ad or not. The increase in the number of channels has led to an increase in the number of audiences. Today, the number of two-television homes is also on the rise. All this has increased the advertising pie on television.”