The arrival of television advertisements is expected to slow down in November and December this year. Top media agencies and experts are expressing this estimate. One of the most popular sporting events in the country, the Indian Premier League (IPL) hit an all-time high of five years of TV commercials.
The reason for the sluggish advertising in November and December this year is the unique combination of festive season advertisements and IPL. Due to this, companies spent a lot of money on advertising during the first 10 days of September-October and November so that they could get the maximum benefit from the money spent.
Experts say that the IPL is over now. Because of this, there are not many popular programs that can entice audiences. Karan Taurani, vice-president (research), Elara Capital, said, "Kaun Banega Crorepati is on television at the moment, which will be finished soon and will be replaced by Indian Idol." Bigg Boss will go on for some time. India-Australia will air on sports channels.
Taurani says, "These programs are unlikely to be enough for advertising. I believe the next spring of advertisements will come in March-April. At that time, the 2021 edition of IPL will start. Media experts believe that television advertising in terms of volume is expected to be at least five to eight percent lower in November and December. This may adversely affect the overall advertising growth rate.
Consultant company KPMG recently said in a report that TV advertising will decline nine percent during FY 2021. This will have the effect of reducing the Covid-19 epidemic and the advertising budget of advertisers. The report said the only exception to this would be the IPL, with a lot of money coming from advertising as it is being held around the festive season.
Broadcaster Star-Disney is estimated to have generated more than Rs 2,500 crore in advertising revenue from the 2020 edition of the IPL, up from Rs 2,100 crore in the last year's IPL.
Media buyers said Star Sports raised advertising rates this year by 25 to 30 percent over the previous year despite logistical challenges in the main sponsor Vivo's withdrawal from the tournament in August and the IPL in Dubai. Advertising rates for Star Sports ranged from Rs 12 to 13 lakhs per 10 seconds this time.
Industry sources said the broadcaster was successful in adding a record 110 advertisers in the 2020 edition. It added 18 sponsors this year, including five co-sponsors and 13 assistant sponsors.
The companies that came forward to become co-sponsors include Dream 11, Phone Pay, Amazon, Vodafone Idea, and Baijuze, the main sponsors of the IPL. Supporting sponsors include Mondelese, ITC Foods, Polycab, Diageo, Procter & Gamble, Coca-Cola, Hero, KP Group, Facebook, Daily Hunt, Samsung, Creed, and Amphi.
Sajal Gupta, vice-president (media buying, digital) at Zenith, a national media agency, said, "Advertisers who spend big bucks on advertising after the IPL are taking a break."
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