Often informally referred to as the fifth quarter in media and advertising circles, the festive season typically sees tremendous ad spending across categories. Most advertisers spend over 40% of their annual budgets during the festive months, which is why general entertainment channels (GECs) are eyeing a good 12-14% increase in ad revenues over last year’s festive season. However, the ongoing ICC men’s World Cup might just play spoilsport this year, impacting both viewership and ad revenues.
Historically, big cricketing properties such as the IPL or the World Cup lead to a 15-20% decline in GEC viewership. That figure could be higher — to the tune of 30% — during an India-Pakistan fixture. Navin Kathuria, executive vice-president, integrated media, DDB Mudra Group, notes that GECs can minimise the impact with compelling content but they can’t really avoid it. Since the World Cup commands massive viewership, GECs may not be able to command the premium they normally charge during the festive season. This however bodes well for brands with small budgets.
About 35% of the annual GEC revenues — that is, an estimated Rs 2,700 crore- Rs 3,000 crore — is garnered during the festive quarter, says Kathuria. “In a regular festive season, every category is targeted by GECs, including male-targeted ones like auto and BFSI. This year, with the cricket World Cup, a lot of the ad money from such categories will be diverted to that property. That said, cricket is expensive and many advertisers might not be able to afford it,” she remarks. GECs would do well to tap brands with budget constraints.
On an average, advertising on a prime time show on a Hindi GEC commands between Rs 2.5 lakh and Rs 4 lakh per 10 seconds. In comparison, ad rates during the World Cup are reportedly as high as Rs 30 lakh per 10 seconds.
Minimising the damage
Mahesh Shetty, head of network sales at Viacom18, says this year’s festive outlook is upbeat, compared with the sentiment prevalent last year when advertising revenues faced severe headwinds due to the margin pressures on FMCG companies, a funding winter in the start-up space and inflation. Shetty says that the network, across its GEC channels, has multiple advertisers on board. He argues that the World Cup is likely to have limited impact on the viewership for other TV genres this year — a trend noticed during the ICC T20 World Cup and even in the latest IPL season. “Not all matches garner high viewership. The highest viewership is expected for India matches and that is only nine days of the tournament. Also, most matches will be during non-prime and early prime time since they end by 10pm, and hence the impact will be limited,” states Shetty.
The network is banking on its popular shows like Bigg Boss (Hindi and Kannada) to make up for the loss. “The kind of consistent brand engagement that GECs can provide cannot be done by any other genre,” says Shetty, adding that the network expects to see robust, double-digit growth in ad revenues compared to last year.
Warner Bros. Discovery, which operates 16 channels in India, has set the bar high this festive season. Tanaz Mehta, head of ad sales, South Asia, Warner Bros. Discovery, points out that even with the ongoing World Cup, the network expects a substantial uptake in H2. “We already command a 45% share in the infotainment genre. Our viewership further enhances our appeal to advertisers,” she says. The network has a diverse festive line-up — such as the return of Star Vs Food Survival, Ghostober, and Mission Big Cat.
Disney Star, the broadcaster of the ICC World Cup, has no reason to complain either.
“October started on a great note for us with about 40 advertisers signing up for Star Parivaar Awards on Star Plus. Big Boss in Tamil and Telugu continues to garner a fantastic advertiser interest. We have a dynamic line-up of GEC properties for the festive months, including special fiction episodes, world television premieres and celebratory events aligned with festivals like Diwali,” says Amrutha Nair, head, ad sales and strategy, entertainment network channels, Disney Star.
While most GECs have put up a brave front, Karan Taurani, senior vice-president at Elara Capital, points out that Hindi GECs will struggle to achieve double-digit growth as they are projecting. Regional channels are better positioned to perform well, thanks to local advertising and a lower base. “Hindi GECs may not be able to grow beyond 4-5% over last year because last year’s base was also high. Regional channels may in fact outperform Hindi GECs and see a 10% growth over last year,” he sums up.
Batting for revenue
Why GECs are upbeat this festive season
About 35% of the annual GEC revenues are garnered during the festive quarter,
which is an estimated Rs 2,700 crore- Rs 3,000 crore
Brands typically spend over 40% of their annual ad budgets during this season
GECs are a good bet for brands with smaller budgets. Ad rates on Hindi prime time shows are between Rs 2.5 lakh and Rs 4 lakh /10 sec, compared to the World Cup ad rates that can touch Rs 30 lakh/ 10 seconds for certain matches
Networks are betting big on the reach of high-impact properties like Bigg Boss, Kaun Banega Crorepati and Indian Idol
While most GECs are eyeing 12-14% growth this quarter, regional channels are likely to outperform Hindi ones on the back of local advertising
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