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As festive TV ad revenues expected to hit 20-25% mark, e-commerce & auto to drive spends

As festive TV ad revenues expected to hit 20-25% mark, e-commerce & auto to drive spends

Author | Collin Furtado | Monday, Oct 05,2015 7:58 AM

As festive TV ad revenues expected to hit 20-25% mark, e-commerce & auto to drive spends

It’s no secret that TV has always been the ‘apple of the brand’ pie’ during the festive season.  During the last festive season broadcasters benefited from a windfall as their ad revenues had increased by as much as 20-50% from the previous festive period. This year TV broadcasters are expecting it to grow by around 20-25% from the festive period. While categories such as ecommerce, automobile, handset and FMCG saw an increase in spends last festive period, this year ecommerce, automobile and handset are expected to lead the festive ad spends on TV. Some TV broadcasters even feel that telecom companies will increase their festive spends this year and could see categories such as BFSI returning to the fore in terms of advertising.

Festive TV ad revenues expected to grow by 20-25%

Rohit Gupta, President, MSM said that they expect to see a 20-30% increase in ad revenues during the festive period this year. This would be across the network’s channels. While Ashish Sehgal, Chief Sales Officer, ZEEL said he expected an overall 25% growth in ad revenues during the festive period this year.    

Anuj Poddar, EVP, Project Head – Regional Channels (Colors Marathi & Colors Gujarati) said, “We’ve seen a growth in September itself. And in October though we are yet at the start but we have seen a significant growth over September.” He said that they are expecting the advertising revenues to grow by 20% over September. 

“The industry, overall, is expected to increase ad spends by 10-15% during the festive season. The prime time ad spots for TV are expected to increase by about 20 – 25%,” said Ashwin Padmanabhan, COO, Reliance Broadcast Network Ltd. (RBNL).

According to a revenue head in Times Network, they are expecting a revenue growth of certain leading channels in the group to be around 12-18% during the festive period. While a few of the other channels in their group are expected to see a 10% ad revenue growth during the period.

The Chief Revenue Officer (CRO) of another TV broadcaster said that he expected at least a 20% growth in ad revenues during this festive period over the last year. “One of the main reasons for an increase in ad revenues is the extended festive period. Last year the festive period was chock-full into two months, this year it is spread across three months,” he said.

According to some senior media planners they expect a 15-20% growth in the festive ad spends on television this year. This is primarily due to the ecommerce spends on TV.

e-commerce an auto sectors to lead the ad spends

Like last year, ecommerce as a category is expected to contribute the largest share to the ad revenue pie of TV broadcasters this festive period. Apart from this, the automobile industry is also expected to contribute a significant portion of their ad spends towards television. In recent articles on exchange4media we saw ecommerce festive spends increasing by 20-30% this year to Rs.1,300 crore, while automobile festive spends could go up to Rs.1,500 crore.

According to the CRO the ecommerce category would spend more this year as this is the second festive season and unlike last year their spends are well planned. He gave the example of ecommerce companies coming up with their pre-festive advertising campaigns and then will be expected to spend more during Diwali and Dussehra with more campaigns. Apart from that he said that automobile festive spends are expected to grow higher due to the number of new launches during this period. He also said that there would be new categories such as the BFSI category advertising this festive period with a large repo rate cut of 50 basis points.

“I think ecommerce followed by automobile will be the two big spenders in this festive period. This would be followed by the handset category. We will also see a lot of festive spends from the telecom brands this year,” said the revenue head from Times Network.

Sehgal too expected a major portion of the festive revenues for TV broadcasters to come from the ecommerce and automobile category this year. FMCG he said will continue their spends during this time. 

Poddar said, “Ecommerce for regional channels were a bit shy earlier but now they have started to spend on these channels. FMCG also across the board, both in terms of each player spending more, and more of them getting active. I think the jewellery brands will pick up now which are more seasonal. Films will also see a lot more advertising this season. Auto spends have been soft but now with this rate cut I am hoping we will see more action.”

“Ecommerce, FMCG and consumer durables will be the top spenders on TV during the festive period,” said Padmanabhan.

Ad rate on the rise by minimum 10-15%

Another reason for the rise in festive revenues for broadcasters is the hike in ad rates during this time due to more demand and limited inventory.

“We have taken a rate hike last month in September and despite that we are running full (inventory). We have taken an average rate hike of about 30-50% in September. This has been as a result of the channel’s performance and has doubled from the time BARC started till now,” said Poddar.  

Sehgal said that ad rates always see a hike during this period. This year he said it would be around 10-15% increase in the ad rates during this period. Gupta too expected a similar rise in ad rates during the festive period.

Padmanabhan said that the prime time ad spots rates for TV are expected to increase by 20-25% during this period.  

While the CRO said that the ad rate would be to the tune of 15-20% during this festive season. He said the reason for this would be due to the inclusion of rural ratings data of BARC which would result in a hike in rates of most genres of channels.

With such a windfall in spends by brands TV broadcasters will definitely have a lot to celebrate during the festive season this year.  

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