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TV, print ad volumes picking up as festive season nears

The ad volumes for both television and print media were up by 10% and 8%, respectively, as per the latest data.

, ET Bureau|
Aug 30, 2019, 06.31 AM IST
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Personal care, food & beverages, services, household products and hair care were the top categories on TV, TAM AdEx data shows.
MUMBAI: Television and print media companies have started noticing improvement in volumes and are hoping for a robust revival in the coming festive quarter after a weak first quarter of 2019 in terms of advertising revenues.

Though the first half of 2019 (January to July) was weaker in terms of spends compared with the previous year, data sourced from TAM AdEx clearly shows an uptake in the April-June quarter over the preceding quarter.

The ad volumes for both television and print media were up by 10% and 8%, respectively, as per the latest data.

Education, services, auto, retail and personal accessories were top spenders on print media during the second quarter, while on TV, personal care, food & beverages, services, household products and hair care were the top categories, TAM AdEx data shows.
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Initial bookings for the festival season have cheered ad sales executives.

Print and TV — the two largest mediums — corner over 66% of the total advertising pie. As per the revised forecast by Madison Media Group, advertisers are expected to spend ₹69,073 crore overall in 2019, of which almost ₹46,500 crore will be on TV and print media .

Various experts ET spoke with said that festive season accounts for almost 35-40% of annual advertising budgets and this year should not be any different.

“There is no doubt in my mind that we will see a spike in ad spends in the festive season. This is the time when brands will invest to maximise the opportunity with the festival-related demand growth. We are already seeing some increase across key categories. Some new launches in auto category are also there,” said Anand Chakravarthy, MD, India at Essence, GroupM’s data and measurement-driven media agency. “So despite the consumer sentiment so far, there will be jump in ad spends across TV, print and digital media.”

While the first two quarters have been slow for various reasons, there are clear signs of revival across sectors, said one of them.

Sivakumar Sundaram, president – revenue, at Bennett Coleman & Co. Ltd (BCCL), which also publishes ET, said that he is hopeful of a good festive season. “I am very optimistic looking at the initial bookings. Festive period will set the pace and a momentum will be built on the positivity.”

He added that there was a slowdown visible in the large categories in the first quarter and a perceived slowdown in the economy, but given the recent stimulus through additional credit expansion to PSBs, liquidity support to HFCs as well as reduced interest rates for housing, vehicle and other retail loans on account of directly linking repo rates to interest rates, are all measures which would boost the economy, and stimulate demand and consumption this festival season.

“Overall, the demand for peak festival days is as strong as last year. Sectors like travel and tourism, airlines, FMCG, retail are already spending money on print,” Sundaram added In the television industry, experts are expecting spending to pick up during the festival season.

“With stability post new tariff order (NTO), wherein TV homes have increased (as per IRS survey) and consumer spending sentiment at its peak – specially during the festivals – coupled with the government taking necessary steps to boost economy, an upsurge in consumption across both urban and rural India is a certainty,” said Ashish Sehgal, chief growth officer – Advertising Revenue, Zee Entertainment Enterprises.

He added that ad volumes are “well poised” to showcase healthy growth by the end of this year.

Experts say that sunrise categories this festive season will be - online consumer services and gadgets, and clothing. Also, auto sector (both two-wheelers and four-wheelers) is expected to show a bump during the festival (with price reduction expected).

“With blessed rainfall and government initiatives, FMCG and consumer durables will revive its growth, especially in rural India as we progress towards the end of this year. All in all, cheers to a positive and healthy outlook,” Sehgal said.

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