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News broadcasters see a slight slump in ad spends post festive season

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News broadcasters see a slight slump in ad spends post festive season

This festive season the newest entrant in the league of big spenders was e- commerce; this category dominated the prime time slots of all the leading television channels. This is not surprising given that most players were flushed with funds in recent past, ready for expansion and growth.

This year was one of the best years for news broadcasters given the background of election. The first and second quarters were overwhelming and currently with no such mega events and post the festive season,  it is interesting to find out how the current quarter going for the news genre.

The news broadcasters feel the current quarter is average as of now but market will go up during the last week of December.

M K Anand, MD & CEO, Times Television Network said, “We are doing very well in this quarter too. We are doing better than previous quarter.” When asked, which sector is advertising extensively he replied, e-commerce.

While R K Arora, Group CEO, ITV Network feels this quarter is down. He said, “Post festive season the coming quarter automatically goes down. There is 25 % dip in revenue in compare to last quarter.”

Though Arora feels last week of December will pick the momentum but as of now government and e-commerce is advertising in the business.

Earlier this month we had reported that the e-commerce industry is likely to spend Rs 250- 300 crore on advertising. E-commerce festive ad spends on TV was said to increase by 257 per cent since last year according to audience aggregation platform for TV, SureWaves. Apart from e-commerce, heavy spending was expected from automobile and mobile companies besides traditional big spenders such as FMCG.

The quarter went well and broadcasters are betting heavily on e commerce in the current scenario too. Though there are mixed reactions from different broadcasters but on an average none of them are doing badly. The inventories are full and lined up to go on air.

Avinash Pandey, COO, MCCS shared they are doing tremendously well but he also agrees that there is a slight slowdown in the news genre as of now.” He reveals e- commerce, banking and insurance are investing a large amount of money.

While MD and Chairperson of BAG Network, Anurradha Prasad feels there is nothing unusual in this quarter. She also added, “The festive season has gone and the revenue has seen a marginal dip of around 8 %. This quarter is going average currently.”

When asked about the sectors advertising in the channels she replied automobile ad spends are a little down and FMCG, e-commerce is back in action.

Talking to exchange4media India TV Spokesperson said, “On an average this quarter is not doing great. We are seeing a slowdown of around 10-15 Per cent. Citing the reason behind this slowdown, Spokesperson further added that this is due to the fatigue that has set in after the festive season got over. On the sector-wise trends, it was said that e-commerce is doing good and automobile, FMCG are advertising on an average rate.

It is normally said that third quarters never go well as advertisers don’t see much return during this period. But on the other hand with new emerging sectors such as e-commerce and digital start-ups, it may not be fair to say that any quarter has to lose hope when it comes to preparing the balance sheet.


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