Downward revision of Pitch Madison Report attributed to NTO impact

Industry experts say the New Tariff Order did bring some uncertainty, and that GECs are facing a threat from OTT platforms & FTA channels

e4m by exchange4media Staff
Updated: Aug 9, 2019 8:02 AM
Madison

The Pitch Madison Advertising Outlook Report 2019 revised its forecast for ADEX 2019 downwards on Thursday. It was attributed mainly to a drop in TV Adex in the first quarter of 2019.

According to the original report, released in February 2019, Adex was forecast to grow by 16.4 per cent, but the agency has revised it downwards now to 13.4 per cent.

As per the report, the decline is majorly due to the impact of the New Tariff Order (NTO). The whole shift took some time to come into effect during which BARC had advised advertisers not to use the ratings for planning and buying. Another aspect that was highlighted as the reason was the pull out of certain GECs from DD Free Dish which led to a loss of 275 GRPs per week in the Hindi GEC + Movies market.

We spoke to experts to know what the industry felt about this revision.

Vikas Khanchandani, CEO, Republic TV, agreed that the NTO order has slowed down the investments. "The tariff order did bring some amount of uncertainty because of which there has been a slowdown in investments and Adex. High impact sponsorships around IPL, Elections and World Cup had increased the advertising investments but not necessarily the Adex," he said.

Joy Chakraborthy, CEO, Enterr10 Media, however, has a completely different view. He pointed out, "Not just in Adex, the mainline pay GECs are also seeing stress being posed from two quarters - OTT platforms like Netflix and Prime Video are a huge attraction for viewers to view their choice of content at their convenience and the other threat has been posed by Free To Air players led by channels like Dangal and Enterr10. So the 6,000 crore+ GEC revenues see realignment."

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