Commercial break for TV ads? 14% dip in duration as FMCG tightens purse strings

A significant cutback in advertising spends by fast-moving consumer goods (FMCG) companies has led to notable softness in ad revenues for India's leading TV broadcasters in the first quarter ending June 30, 2025.

This shift, driven by subdued consumer demand, an extended sports calendar, and altered media consumption patterns, has raised serious concerns about the short-term viability of traditional television advertising.

According to TAM data, accessed exclusively by e4m, ad duration on television during January to June 2025 saw a decline of 14% compared to the same period in 2024. While FMCG brands declined by 6% in H1 2025 to 2140 from 2359 in H1 2024, FMCG advertisers declined by 9% from 895 to 837.

According to the data, in the first half of 2024, Hindustan Unilever led television advertising with a dominant 24% share in ad duration on TV, maintaining its long-standing position as the top spender. Close behind was Reckitt Benckiser (India), contributing 18% of the ad volume, reflecting its continued investment in hygiene and home care categories. Godrej Consumer Products followed with a modest 6% share, while both P&G and Cadbury’s India rounded off the top five, each accounting for 4%.

By the first half of 2025, there were subtle yet telling shifts in the advertising landscape. Hindustan Unilever remained at the top, though its ad share dropped slightly to 22%, possibly indicating a more targeted or optimized media strategy. Reckitt Benckiser, on the other hand, increased its share to 19%, reflecting a marginally more aggressive advertising push. Godrej Consumer Products maintained its 6% share, suggesting consistency in its communication efforts.

The notable change was the entry of Coca-Cola India into the top five, replacing Cadbury’s India with a 4% share. This could be attributed to a stronger advertising focus during the summer months, aligning with seasonal demand. Meanwhile, P&G held steady at 4%, maintaining its visibility across its product range.

Speaking to exchange4media, Nitin Khanna, Vice President, Marketing, Acko, said, there's definitely a shift in media mix that's happening.

“There’s definitely a shift happening in the media mix. TV is still very important, especially for large FMCG players. But there’s a lot of movement towards new-age media — whether it's leveraging the creator economy or using sharp targeting on OTT platforms and connected devices, including connected TVs.

“Broadly, I believe this shift is simply a result of brands following where the consumer is going. The next wave of consumers — those influenced by creators or those belonging to high-income groups — are often found on these newer platforms. It would be a missed opportunity if brands weren’t present there,” he said.

He added that it all stems from a fundamental belief: be where your consumer is.

“Capture their attention in the right environment. With attention spans shrinking, brands have to adapt quickly. So, the directional shift we’re seeing is likely informed by what their brand and research teams are also observing — that consumer behavior is evolving,” he said.

ZEEL, which has historically depended heavily on FMCG advertising, reported a 16.7% year-on-year dip in ad revenues in the first quarter of FY26. Its advertising revenue fell to Rs 758.5 crore during the April–June 2025 period, down from Rs 911 crore in the same quarter of the previous fiscal. Domestic advertising alone saw a 19% decline. The broadcaster attributed the slump to reduced FMCG spending and heightened competition from sports programming.

"During Q1 FY26, the linear advertisement spending environment remained soft due to the extended sports calendar and slowdown in spending by FMCG companies," said Mukund Galgali, Deputy CEO and CFO of ZEEL, during the company’s earnings call.

JioStar, which posted record-breaking revenues of Rs 11,222 crore for the same quarter, also acknowledged the adverse impact of reduced FMCG ad spends. Though the company did not disclose exact advertisement revenue figures, it described the TV entertainment ad market as "challenging."

While ad revenue faltered, both companies saw varying fortunes in their subscription businesses. JioStar indicated that subscription revenue had become a silent growth engine in Q1, though specifics were not detailed. In contrast, ZEEL's subscription revenue showed a marginal decline, dropping from Rs 987 crore in Q1 FY25 to Rs 981.7 crore in Q1 FY26.

ZEEL explained, "Increase in digital subscription revenue was offset by decline in linear subscription revenue due to fall in PayTV subscribers." This drop mirrors a broader trend in the Indian media industry, where cord-cutting and audience migration to digital platforms are becoming increasingly prevalent.

Despite the challenging start to the fiscal, ZEEL management has retained its guidance of 8% advertising revenue growth for FY26. CEO Puneet Goenka noted that visibility on recovery remains limited but stressed the company's efforts to stabilize its performance.

Ashish Sehgal, Chief Growth Officer at ZEEL, acknowledged the advertising slowdown but expressed hope that conditions will improve in the coming months.

"There was definite softness in the first quarter, until around July. But from August onwards, things are already looking better, helped by a good monsoon and the trickle-down effect of tax benefits announced last year. I believe we could see a strong Diwali season after many years," Sehgal said.

He added that TV remains a potent medium for FMCG advertisers, especially for mass brand recall. "The GRPs that brands need are still best delivered by television. I believe we've seen the worst of this cycle, and the outlook is finally turning positive."

According to Rajiv Khattar, broadcast expert, "The FMCG industry is not growing, it is facing headwinds and especially the monsoon has dampened the sales. It grew less than 4%, and cold drinks, which are the biggest spenders, grew less than 2%. So, they have cut down on the ad spends and will continue to do so.”

He also expressed concern about the impact of floods in certain parts of the country, which could hinder festive sales and, consequently, festive advertising.

Experts believe that content will play a crucial role in retaining subscribers and maintaining revenue.

"It is essential that programming takes importance at all broadcasters. The TV role still remains significant for its reach and ease of viewing. The free-to-air content will gain more as its content is good with masses, unless something unique comes up on pay channels," said a broadcaster.

Industry data supports the view that FMCG ad spending has been under strain. According to TAM AdEx, television advertising by FMCG brands declined by 12% in FY25. Major advertisers such as Hindustan Unilever Ltd. (HUL) and Dabur cut back significantly.

HUL reported a 5.5% decline in ad spends for Q1 FY26, reducing its expenditure from Rs 6,380 crore in Q1 FY25 to Rs 6,028 crore. Dabur India saw an even more pronounced 14% reduction, with spends falling from Rs 236 crore to Rs 202 crore during the same period.

Despite these reductions, both HUL and Reckitt Benckiser retained their positions as leading TV advertisers, accounting for 22% and 18% of FMCG ad durations, respectively. Their flagship brands like Harpic, Dettol, and Lizol continued to maintain a visible presence on television screens.

The movement of advertising budgets from television to digital reflects an evolving media landscape where consumer attention is fragmented across platforms. For broadcasters like ZEEL and JioStar, this signals the need for a dual strategy: doubling down on content quality to retain and grow subscription bases, while also innovating on monetisation strategies that span digital and linear platforms.

Khattar echoed this sentiment, warning that unless pay channels offer something truly unique, viewers will gravitate toward free or digital alternatives. "Good content only will be able to retain subs. The role of traditional TV remains strong for now, but broadcasters must not be complacent," he said.

For broadcasters, the upcoming festive season could be pivotal. If FMCG companies rebound in time for Diwali, advertising budgets could see a seasonal uptick, offering some relief to TV networks. Sehgal from ZEEL is hopeful that a positive monsoon and earlier tax reforms will drive consumption and thereby advertising.

According to Akhila Chandrasekar, Sr General Manager and Head- Marketing, TTK Prestige, while there has been a significant upswing in digital media and a lot more budget is now being allocated to digital, “compared to earlier, when TV used to be the undisputed ‘hero’, TV’s dominance has definitely faded in that sense.”

However, it still plays a very important role in building reach and connecting with specific consumer cohorts, she said.

“Some brands target Gen Z, but many others focus on Tier 2, Tier 3, or rural audiences — where trust and credibility are critical. Beyond a point, digital doesn't always offer the same level of authority. There’s still a certain trust people place in traditional mediums like print and TV, partly because of their legacy — such as being used for official announcements or government communication.

“While news channels may not carry the weight they once did, TV still lends a sense of credibility to advertising. Ads on television often align with the tone and context of the programming, helping reinforce brand personality. In contrast, digital is more about chasing eyeballs. So yes, the halo around TV may have dimmed, but it’s far from being out of the picture,” she said.

While many in the industry remain cautiously optimistic, the recent setbacks have underscored the vulnerability of traditional broadcasters to macroeconomic fluctuations, consumer demand, and evolving advertiser preferences. To survive and thrive, legacy media companies must recalibrate their business models.

As FMCG brands test new waters with digital and experiential marketing, the battle for ad dollars is far from over.