‘Acche Din’ Return to Indian TV Channels
BARC data for January shows 20% increase in TV ad volumes; media experts feel the scene is likely to improve further with liquidity crisis easing
Mumbai: Television advertisements, which plunged as demonetisation sucked out currency in circulation and hit consumer sentiment and thereby sales, are surging again. Compared with December 2016 — the immediate month after the note ban on November 9 — broadcasters witnessed a 20% rise in advertisement volumes in January.
In fact, total ad insertions across TV channels in January surpassed that of November too, when the demonetisation started to have an impact on the medium. According to data from TV viewership monitoring agency BARC India, advertisers placed 4.79 million ads across channels in January, compared with 3.98 million in December 2016 and 4.56 million in November.
“There has been a definite pickup in advertising. National channels are back to 70-90% of fill rates of pre-demonetisation levels,” said CVL Srinivas, CEO-South Asia, GroupM, a media agency conglomerate.
The demonetisation of ₹ 500 and ₹ 1,000 denomination notes on November 9, 2016, created a cash crunch which had a casca- The domestic fast-moving consumer goods sector witnessed a noticeable slowdown in the wake of the sudden withdrawal of high-value currency notes late last year, as sales growth in value terms decelerated from a high of 9.9% in October to around 3% in the rest of the quarter, according to data put out by consumer analysis firm Kantar Worldpanel. Although sales growth for the full December quarter was more than last year’s, it was lower than in the preceding three quarters. Neha Tyagi reports...
Oct Nov November showed a drastic drop in value growth Dec ding impact on spending and advertisers across sectors, including FMCG, retail, consumer goods and automobiles, and ad budgets witnessed sharp cuts.
There was a sudden and sharp drop in advertising across TV channels in the months of November and December after a record breaking October. “October was fantastic in terms of advertising revenues across the industry. Our October sales were highest for any month in the last five years. We were hoping that November and December would have a rub-off effect, but PM Modi had other plans,” said a top sales executive at a broadcasting network, before adding that things are improving now. However, top honchos across media and entertainment industry feel that though demonetisation led to a knee-jerk reaction from advertisers, it was a short-term episode. Now, with cash crunch easing, consumers have started spending again, leading to improved sentiment and increased advertising.
“Things are already looking better. We are seeing improvements in ad volumes Jan-Mar Apr-June July-Sept Oct-Dec After showing a healthy growth in the first three quarters of 2016, growth slowed in the last quarter due to demonetisation. November and December pulled down the growth for whole of Q4 2016 month on month. January was better than December; February is looking better than January. I feel there will be a surge in advertising in March,” said Ashish Sehgal, COO at Zee Unimedia, which oversees ad sales for the ZEE Group’s entertainment, news and print verticals.
Srinivas of GroupM echoes the sentiment. “While regional channels, especially in the south, are slow to pick up because of long tail of small and local advertisers, national channels are looking better. Overall business sentiment is up and February is looking better than January.”
Incidentally, broadcasters, in their bid to combat the decrease in advertising, had gone on an overdrive to give freebies to advertisers.
Some channels in Hindi GEC (general entertainment channels) category reduced rates to get more ads. However, experts said, major networks did not give any discounts, but offered some freebies to advertisers who stood with them in testing times. “These offers will be withdrawn once volume comes back,” Sehgal said.
But some executives are still watching the situation unfold cautiously. “I will wait another month before popping the champagne,” said the broadcasting network sales executive quoted earlier.
Top media honchos feel that though the note ban led to knee jerk reaction from advertisers, it was a short term episode
CEO-South Asia at GroupM Ad insertions % Change (MoM) Source: BARC India, All India, All channels COO at Zee Unimedia
There has been a definite pickup in advertising. National channels are back to 70-90% of fill rates of predemonetisation CVL SRINIVAS OCT-16 NOV-16 DEC-16 Things are already looking better. Month on month we are seeing improvements in ad volume. January was better than December; February is looking better than January and I feel there will be a surge in advertising in March ASHISH SEHGAL JAN-17