After two pandemic-impacted years, the festive months of 2022 are expected to bring advertisers back to the television screen. With most sectors turning the corner, TV ad spends are likely to increase by a good 8-10%.
Since last year’s festive season, advertising expenditure (AdEx) growth has been strong, says Shekhar Banerjee, chief client officer and office head, West, Wavemaker India. He expects TV AdEx to grow by around 20% compared with 2019 festive season spends, especially with big-ticket properties such as the T20 World Cup and the FIFA men’s World Cup scheduled for later this year.
Though Zee Entertainment saw a decline of 49% in consolidated net profit in Q1 of FY23, its advertising revenues grew marginally by 5.8%. During the company’s earnings call, Punit Goenka, MD & CEO, ZEE Entertainment, attributed the decline to macroeconomic headwinds. “We remain hopeful of a quick recovery and as the tide turns, we will reap the benefits of higher market-wide advertising and promotional spends,” he said.
Viacom18 Media saw ad sales, subscription and programme syndication revenues increase by 22% to `3,908.5 crore from `3,205.4 crore last fiscal. “Advertising demand saw a big revival right from last year when we came out of the second wave. The last festive season was one of the best we had with most traditional and new categories being active. We are currently operating at max-fill rates and expect ad demand to go up as we enter the festive season, providing the base for ad rates to move northwards,” says Mahesh Shetty, head of network sales at Viacom18.
Kavita Sagar, head, revenue (broadcast) for IN10 Media Network, also expects a healthy growth in ad revenues this season: “The market expects to see an upside in advertiser count in the next two months as more brands plan to advertise and ride the festive wave along with existing brands. We are curating and adding to our content offerings during the festive season,” she says.
Karan Abhishek Singh, News18 CEO for Hindi news, too states that the company has been engaging with partner advertisers and agencies well ahead of the festive months and the response has been encouraging.
The recovery in ad revenues got a boost from global sporting events and fresh content, which were in short supply during the pandemic years, a key reason why broadcasters saw poor viewer and advertiser interest. This year looks promising with many brands coming back with innovative formats, says Ramsai Panchapakesan, senior VP and national head, integrated media buying for Zenith Media India. “Around 32-35% of the annual spend happens during the festive season, that is, `32,000-34,000 crore. Of the total festive spends, TV is expected to take up 41-43% share, digital will account for 33-36% and print 15-17%,” he notes. The rest will be split between OOH and other media. Panchapakesan points out that digital is growing at a faster rate, though TV dominates the ad spends.
This festive season will see segments like OOH, movie theatres, restaurants and retail increase spending. Hema Malik, chief investment officer, Mediabrands India, adds even the auto segment, which is grappling with chip shortage that has crimped manufacturing, is showing signs of a recovery. “Durables, paints and discretionary products that have traditionally added to the market momentum, are seeing a comeback.”
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