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After three consecutive weeks of growth, ad volumes fall on TV by 26% in April

The scenario for ad volumes was entirely different in the previous weeks. In weeks 11, 12 and 13, ad volumes were seeing a strong spike.

April 17, 2020 / 20:14 IST
Den Networks | The company reported higher consolidated profit at Rs 36.98 crore in Q4FY21 against Rs 24.65 crore in Q4FY20, revenue fell to Rs 326.23 crore from Rs 327.8 crore YoY.

For three consecutive weeks, ad volumes on TV have been witnessing significant growth. However, things took a different turn in the fourth week.

In week 14, that is the week starting April 4, the total advertising Free Commercial Time (FCT) dropped by 26 percent in comparison to the pre-COVID-19 period – January 11 to 31.

The overall FCT dropped from 28 million seconds to 20 million seconds, according to BARC-Nielsen data released on April 16.

Free commercial time is defined as the amount of secondage bought on a channel.

While the drop has been observed across genres, the highest fall is in channel categories like music, youth, kids, movies, GEC (General Entertainment Channels) at 58 percent, 52 percent, 43 percent (kids and movies) and 34 percent respectively.

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BARC CEO Sunil Lulla, during the webinar on TV+ smartphone consumption, said that, “Due to the supply chain getting disrupted, the ad volumes have taken a hit. They are likely to remain lower in the coming week as well.”

Essential product advertising saw a sharp fall on April 1 but, was seen crawling back during the week and went up on April 10. Services have also shown a similar trend. The silver lining, in terms of ad volumes, was social media advertising as it maintained its growth momentum.

In comparison to pre-COVID period, as many as 72 percent advertisers remained active during the COVID-19 period.

The scenario for ad volumes was entirely different in the previous weeks. In weeks 11, 12 and 13, ad volumes were seeing a strong spike.

For instance, take the period between week 11-12, that is the period between March 14 and 24. In this period, average daily FCT grew by six lakh seconds, which is a growth of 15 percent.

During the same period,  ad volumes grew across genres, except sports and youth.

What is interesting is that in the following week, ad volumes even on sports channels went up. In week 13, sports registered the highest growth in FCT  at 86 percent.

In terms of overall growth in week 13 (week starting March 28), FCT grew by nine percent.

Despite the fall in ad volumes, essentials and social advertising continue to be the highest contributor to FCT.

Maryam Farooqui
first published: Apr 17, 2020 08:14 pm

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