Television ad revenue set to clock ₹34,100 cr this year
The return of original programming on general entertainment channels and the IPL will help the platform’s recovery despite the rapid rise of digital media, which is expected to clock revenues of ₹23,600 crore, according to a report
Television as a medium is expected to make advertising recovery by the end of 2020 and command revenues of ₹34,100 crore, despite the hit expected by the shift to digital platforms especially during the pandemic.
The return of original programming on general entertainment channels (GECs) and the Indian Premier League (IPL) will help the platform’s recovery despite the rapid rise of digital media, which is expected to clock revenues of ₹23,600 crore, according to a report by financial services company Edelweiss.
Burgeoning digital advertising is undoubtedly taking a toll on TV, but the electronic media is not likely to go out of vogue soon, the report said. The spurt in tactical digital consumers, people who own pay TV subscriptions plus an over-the-top streaming (OTT) service, is way higher than digital only consumers in India.
Further, the daily average time spent on TV viewing has remained constant for the past three years at a daily average of 220-225 minutes and a 62-65% TV penetration in India implies there is enough headroom for subscriber growth over the long term.
That said, TV is expected to lose some share of the advertising pie as digital gains ground (37.3% by 2022 versus 40.2% in 2019).
“As the amount of fiction content grows, advertising will come back to TV and to primetime slots," said Nina Elavia Jaipuria, head, Hindi and kids TV network, Viacom18 Media Pvt Ltd, which owns channels such as Colors. However, consumers in India have entered a phase where TV and OTT co-exist and the fragmentation between the two markets after the coronavirus outbreak is higher than ever.
TV remains a medium for mass marketing and big categories such as fast-moving consumer goods (FMCG), for whom rural growth is key, will continue to be dependent on it, according to the Edelweiss report. More than 50% of advertising on TV comes from FMCG companies, though the pandemic has seen categories such as edtech, e-commerce and e-wallets also become active, Jaipuria said.
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