TV saw 25% drop in active advertisers in April-June over same period last year
According to the Pitch Madison Advertising Outlook H1 2020, FMCG has increased its dominance in TV AdEx with a share of 56%, higher than the 2019 figure of 49%
The TV business has been the first to show signs of quick recovery, says the Pitch Madison Advertising Outlook H1 2020.
This is despite the fact that TV dropped by more than 40% in H1’20 with a total AdEx of Rs 8,084 crore and registered a share of 38% of the advertising pie.
The enforced lockdown and work-from-home policies led to the AMJ quarter ’20 seeing a spike in TV consumption despite there not being original content. However this rise in viewership has not translated into TV AdEx, says the report.
The close-down of the economy did not enable broadcasters to monetise this increase in viewership. TV AdEx dropped more than 60% in Q2 ’20 and the FCT drop on TV was much less. This disparity was primarily because of broadcasters offering handsome discounts to large and regular advertisers. This degrowth was not just due to absence of tentpole properties like IPL and World Cup and even otherwise the drop in Q2 ‘20 over Q2 ’19 was as much as 42%.
The sharp drop is on account of the fact that many advertisers, skipped advertising altogether and many large advertisers who continued to advertise brought down their advertising budgets.
June has brought in cheer for TV AdEx, signifying that some categories cannot afford to stay away from TV advertising for too long to sustain their shares and for fear of losing share to competition. This revival has sustained in July and indications are that it will do so also in August.
It is also significant to note that TV AdEx in JFM quarter, pre-COVID, registered a decline of as much TV as 13% in Q1’20, which does not reflect well on the state of our economy, pre-COVID. As a result, TV dropped by more than 40% in H1’20 with a total AdEx of Rs 8,084 crore and registered a share of 38% of the advertising pie, though its share was as high as 51% in Q2 ‘20, because of absence in spends in other traditional media.
FMCG increased its dominance in TV AdEx with a share of 56%, higher than the 2019 figure of 49%. This is primarily due to increase in advertising by newer COVID categories in personal hygiene, such as sanitiser, hand wash liquids, disinfectant sprays and multiple products related to immunity building. E-commerce including OTT and other social media platforms also contributed to 8% in the overall TV pie.
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