TV to post a 10% increase in advertising spend this festive season at Rs 18,500 crore

By: |
Updated: September 15, 2021 11:03 AM

GECs to lead the pack followed by Sports and other genres such as news and movies

The ad rates of GEC’s premium properties have seen a marginal rise of 10% this year vis-a-vis last year.The ad rates of GEC’s premium properties have seen a marginal rise of 10% this year vis-a-vis last year.

With the second phase of Indian Premier League (IPL), ICC T20 Cricket World Cup in addition to reality shows such as Kaun Banega Crorepati (KBC), Bigg Boss Tamil, Bigg Boss, Sangeet Er Mohajuddho, Saregama, among others being telecast on TV across sports channels and general entertainment TV as a medium is set to hit a jackpot in terms of advertising revenue, this festive season. Industry estimates suggest that TV is expected to post a 8-10% increase in ad revenue to Rs 17,900 – 18,500 crore, when compared to last festive season. “There has been a progression in growth in advertising and the upcoming cricket properties coupled with the festive season is expected to drive growth in ad spends on television,” Ashish Sehgal, chief growth officer – advertisement revenue, ZEE, told BrandWagon Online.

To give perspective, overall advertising expenditure in 2019 amounted to Rs 82,900 crore and recorded a decline of 22% to Rs 65,053 crore in 2020, as per Group M’s annual TYNY (this year next year) report. Of this, TV accounted for 66-68% at Rs 42,000-44,000 crore, as per industry estimates. With the return of marquee properties on TV — all genres put together, is expected to see an increase of 25-30% to Rs 54,600 – 55,000 crore.

Within TV, GEC is expected to garner the maximum ad revenue between Rs 9,000- 9,500 crores. Sports as a genre is expected to account for Rs 3,000-4,000 crore during the festive season followed by movies and news. Starting with the Tokyo Olympics 2020, Tokyo 2020 Paralympic Games, India vs England Test Series and the upcoming second phase of IPL and ICC T20 Cricket World Cup, sports channels are packed with live content. “With major cricketing events like WCT20 and IPL phase -2 in festive quarters, the sports genre is expected to witness a higher share of growth as the entry costs for these events are far higher than other genres. Sports will register 35% to 40% growth over 2020,” Ramsai Panchapakesan, SVP and national head – media buying, Zenith India, said.

As for news, while the genre may not register a spike in viewership during the festive season, it is benefitting with the line-up of sporting events. “During any sports property, brands launch a new campaign with the aim to capitalise on the viewership. However, these campaigns are run across channels outside of sports. Due to this, we see an increase in our ad revenue during sporting events,” Vivek Srivastava, president- strategy and operations, digital and broadcast, Times Network, highlighted.

GECs including Hindi and regional, on the other hand, have released tentpole properties during the festive season. On the back of such content, it is believed that broadcasters are expecting a double digit growth in AdEx this year despite competing with the sports genre for viewership. For Mahesh Shetty, head-network sales, Viacom18, most broadcasters are very bullish around the festive season and have a strong content strategy. “Media spends are linked to properties and this year GEC has a lot of impactful properties. We are seeing positive sentiments for the festive season,” he said.

As per industry experts, the ad rates of GEC’s premium properties have seen a marginal rise of 10% this year vis-a-vis last year. The cost of a ten-second ad spot on Hindi GEC channel ranges between Rs 3.5 – 4.5 lakh during prime time for premium properties such as Bigg Boss, KBC, Saregama, among others. As for regional GEC, the ad rates range between Rs 90,000- one lakh. Further, for IPL, the spot-buy rates vary from 14-15 lakh per ten second ad. This further goes up to Rs 16-18 lakh for ICC T20 Cricket World Cup.

Read Also: It’s raining ads! Spends to go up by 10-15% to Rs 27,500-34,500 this festive season

Follow us on TwitterInstagramLinkedIn, Facebook

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

BrandWagon is now on Telegram. Click here to join our channel and stay updated with the latest brand news and updates.

Next Stories
1Viacom18 appoints Anil Jayaraj as CEO-Sports
2Big Cash introduces live video feature for Indian gamers
3MyGlamm launches new TVC featuring Shraddha Kapoor