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TV ad share of consumer durables sector drops by 83% post demonetisation

16-January-2017
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TV ad share of consumer durables sector drops by 83% post demonetisation

The advertising industry was slated to be massively impacted by the demonetisation drive with nearly 20% of ad spends of the last quarter being affected. There was a dip in advertising spends across all industries because of a decline in discretionary sales. Of all the industries negatively impacted by move, the automobile, and real-estate were the major losers. The consumer durables sector was equally hit with the sales of commodities like televisions, washing machines, refrigerators, etc absorbing a massive blow.

According to a survey by SilverPush the television advertising share of the consumer durables sector was 5.81 per cent before demonetisation. However, following the invalidation of high value currency the advertising share of the consumer durables sector fell massively and settled at a mere 0.956 per cent. The sector registered a decrease of around 83 per cent in its advertising share on television during the period November 9 to December 25.  

The survey noted that advertising by the automobile sector also dropped by not by as large a margin as the consumer durables sector. The advertising share of the automobile sector on television was a whopping 9.16 per cent. This share fell to 6.84 per cent following demonetisation.

The drops in advertising shares of mainstay sectors like automobile, consumer durables etc were balanced out by the aggressive advertising blitz that emerged from the banking, e-wallet and e-commerce sectors.

According to the survey television advertising for mutual funds saw a sharp decline in the week following demonetisation. At the same time basic banking services and e-wallets increased their ad spends to capitalise on the decision.

Even the advertising spend of the FMCG sector was expected to be hit by this decision. But data collected between November 9 and December 25 showed that television advertising shares from the FMCG sector for products like hair care products, washing detergents, and skin care products did not see any massive increase or decrease in advertising share. The share of hair care products like shampoo was 3.46 percent, followed by washing detergent at 3.29 per cent and skin care products like soap at 3.26 per cent. The three categories were in fact among the top five television advertisers during the period.

According to industry experts and independent observers, ad spends have moved from the traditional media to the digital space and of the mainstream media advertisers are focussing their spends on TV news channels and Hindi and channels for children. The digital space is where consumers have are spending more of their time making transactions. While more people are glued to television news channels awaiting demonetisation related news. Advertisers are also focussing spends on Hindi channels and kids channels to target home makers.

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