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The TV industry started the new year under the impact of third wave of Covid, but the sector is hopeful of a good growth going forward. January 2022 saw a flat growth as compared to January 2021, but February has already picked up pace, and the industry expects this trend to continue till the end of current fiscal year.
According to TAM AdEx data for TV, the overall ad volumes grew by 33 per cent and 32 per cent during Jan 2021 and Jan 2022 respectively, compared to Jan 2020. Industry experts say the ad volumes in January 2022 may have declined marginally by 1 per cent compared to January 2021, but the ad revenues are expected to grow in single digits and the growth trajectory in February and March looks positive.
Ashish Sehgal, Chief Growth Officer – Ad Revenue of Zee Entertainment Enterprises Ltd (ZEEL), said the year 2022 opened up under the impact of the third wave of Covid. “However, February picked up and it was better than January,” said Sehgal. According to him, as we move towards the end of the fiscal year, advertisers may spend more from their budgets, and this will have a positive impact on the overall AdEx of the industry.
“In the last few days, we have seen brands like Thums Up, Coca-Cola, and Surf Excel launch new campaigns on a large scale,” he mentioned.
As per the TAM data, the toilet cleaning category jumped to the top position in January 22 from second position in January 2021.Additionally, in January of this year, three new categories entered the top 10 list– chocolates, tea and e-com-education. The tea category saw the highest surge in terms of ad volumes with a growth of 61% in January 2022 compared to January 2021, followed by ecom-education with 57% growth. Over 170 growing categories were present on TV in January 22.
The data also stated that among advertisers, HUL and Reckitt Benckiser were the top two during both January 22 and January 21. Amazon Online India was the new entrant in the top 10 advertisers’ list.
On the brand side, during January 22, over 4100 brands appeared on TV with Harpic Power Plus 10x Max Clean leading the list, followed by Dettol Antiseptic Liquid. The top 10 brands had 10% share of ad volumes. In the list, two brands belonged to HUL and five to Reckitt Benckiser.
Ramsai Panchapakesan, Senior VP & National Head – Integrated Media Buying, Zenith Media, India, said in terms of ad revenues, TV saw a growth of 5-8% in January. This growth, he says, is driven by a combination of multiple factors, including a change in the mix of advertising categories. “The new-age advertisers, like start-ups, which never had a benchmark with broadcasters, have started advertising now and hence there could be a little bit of reduction of ad volumes, but revenue is growing. I believe more than 5000 new brands have come up ever since the pandemic started, and it’s a huge number.”
Panchapakesan explained that the composition of advertisers in January of the last three years have been totally different. “For instance, in January 2019, it was a very healthy mix from a broadcaster angle, with FMCGs leading the space. FMCG brands are one of the most cost-effective advertisers for the broadcasters because of their year-long presence and ad volume. Apart from FMCGs, there were other giants like consumer durables, auto, ecommerce, and travel. Therefore, broadcasters would see a balance of these categories in their 12-minute advertisement duration.
“Advertisers are used to commanding a little bit of advantage on pricing, I won’t call it a premium, because the benchmarks have been established like that traditionally. Compared to categories like consumer durable and auto, FMCG has always been lowest in terms of pricing. With a mix of these categories, broadcasters don’t have to increase too much ad volume to achieve revenue.”
He further added that the mix of categories in media planning didn’t see much deviation in 2020 compared to 2019 because the first few months of 2020 were normal for everyone. He also explained that in the last two years, the media landscape has changed. The digital has evolved and this has also affected the ad volumes on TV. The shift from TV to digital started happening and digital started taking more money.
Also, another factor adding to lower volumes on TV was major FMCG players cutting down their advertising spends in Q3.
Karan Taurani, SVP, Elara Capital, highlights that January 2022’s momentum still remains strong with e-commerce, tech and digital advertisers on television. “ We are seeing crypto companies doing heavy advertising and this is going to be a trend for a couple of years at least. He also said the decline of FMCG ad spends did not impact TV.”
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