Ad volumes on TV on an up-swing on the back of festive season and IPL

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Updated: Oct 22, 2020 1:42 PM

As per analysts, even as volume of ads have increased, rates are still low at 25-30%

TV adex, TV ad ratesFMCG as a category continues to dominate the advertising space in GEC and movie genres.

The on-going festive season along with the current season of the Indian Premier League (IPL) seems to have brought advertisers back to television. According to the media research firm TAM, TV posted a 10% growth in volume of advertising in September 2020 as opposed to September 2019. Interestingly, the rise in volume of advertising has led to a rise in ad rates especially in case of general entertainment channels (GEC) and movies channels, which were operating at a discounted rate of 40-50% in April-May. “In the April- June quarter most broadcasters gave attractive discounts to advertisers which helped the ad volumes bounce back however ad rates were down due to the discounting. July-September quarter has witnessed a strong revival in pricing with September discounting down to zero for these two genres and ad rates returning to pre-covid levels,” Mahesh Shetty, head, network sales, Viacom18 told BrandWagon Online.

One of the most active categories on television has been consumer tech firms such as e-tailers besides edu-tech companies such as Vedantu and Whitehat Jr and online gaming platforms such as RummyCircle.com. For instance, Viacom18’s reality show Bigg Boss has Mobile Premier League (MPL) as the presenting sponsor. Similarly, Sony’s Kaun Banega Crorepati (KBC) has roped in Vedantu as co-sponsor. At the same time, FMCG as a category continues to dominate the advertising space in the two genres. “Most of our advertisers are back because of the festive period. Further, because of KBC, this year is looking very good for us,” Rohit Gupta, president, Sony Pictures Networks, said.

According to Gupta, while the ad rates for the prime time shows are back to what it was last year, the channel’s reality show KBC has managed to command 5-6% higher rates. According to industry estimates, the cost of a ten-second ad spot during prime time – that is between 9 pm to 11 pm on popular GECs such as Star, Colors, and Zee ranges between Rs 75,000 – 1 lakh. While the cost of a ten second ad spot in reality shows ranges between Rs 2 – 2.5 lakh.

For Ashish Sehgal, chief growth officer, advertisement revenue, ZEEL, the ad rates might’ve returned to normalcy but the growth is stunted. “Ad rates will not grow at the level it was growing earlier but we will manage our share. We expect the growth to come post Diwali or in the first quarter of next year,” he stated. Sehgal also stated that the company is looking forward to IPL’s adex which spillovers to the next few months thereby increasing overall adex. “November and december should be good months for us,” he claimed.

As per industry analysts, due to IPL and the festive season, the overall adex might show a return to normalcy however regular inventory is still operating at 25-30% discount. “There will be a rise in ad rates around reality shows but if we take regular inventory into consideration, ad rates are yet to bounce back for overall adex to gain momentum,” Sujata Dwibedy, group trading director, Amplifi India, dentsu.

Read Also: Brand Dhoni packs a punch; estimated to have earned Rs 120-150 crore this IPL from endorsements

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