Television ad revenue set to clock Rs 34,100 cr this year

Despite the hit expected by the shift to digital media, especially during the pandemic, television as a medium is expected to produce advertising recovery by the end of 2020 and command revenues of Rs 34,100 crore (US$ 4.62 billion).

According to a study by financial services firm Edelweiss, the return of original programming on general entertainment channels (GECs) and the Indian Premier League (IPL) would boost the platform's recovery amid the rapid growth of digital media, which is expected to generate revenues of around Rs 23,600 crore (US$ 3.20 billion).

Burgeoning digital advertising is certainly taking a toll on TV, but it is not probable that electronic media will quickly go out of vogue, the study said. In India, the spurt in tactical wireless subscribers, individuals who own pay TV subscriptions plus an over-the-top streaming (OTT) service, is much greater than wireless only subscribers.

In addition, for the past three years, the daily average time spent on TV viewing has remained constant at a daily average of 220-225 minutes and a 62-65 percent TV penetration in India implies that there is enough headroom for long-term subscriber growth.

That said, as digital gains ground, TV is projected to lose some share of the advertising pie (37.3 percent by 2022 versus 40.2 percent in 2019).

Ms Nina Elavia Jaipuria, head, Hindi and kid’s TV network, Viacom18 Media Pvt Ltd, said, “As the amount of fiction content grows, advertising will come back to TV and to primetime slots". Consumers in India, however, have entered a phase where TV and OTT co-exist and the fragmentation between the two markets is higher than ever after the coronavirus outbreak.

According to the Edelweiss report, Ms Jaipuria noted that TV remains a medium for mass marketing and large categories, such as fast-moving consumer goods (FMCG), for which rural growth is essential, will continue to rely on it. More than 50 percent of TV ads comes from FMCG enterprises, while segments like edtech, e-commerce and e-wallets have also been involved in the pandemic.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.