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COVID-19 impact: News, movies and general entertainment bring large ad volume to TV

In terms of categories, personal care/personal hygiene, food & beverages, e-commerce, and personal healthcare saw strong rise in ad volumes.

July 09, 2020 / 09:27 PM IST
While there is an expectation of a strong ad revenue growth in the second half of FY22, there could be some challenges the broadcasters would have to face. (Representative image)

While there is an expectation of a strong ad revenue growth in the second half of FY22, there could be some challenges the broadcasters would have to face. (Representative image)

 
 
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On TV, channel categories such as news, general entertainment and movies operated at higher ad volumes and showed strong growth momentum for the month of June.

Ad volume for news channels grew from 34 million in May to 39 million in June, according to recently released data by BARC.

In fact, the ad volume in the news category for June 2020 is higher than that of June 2019, which was at 35 million.

While presenting the data, BARC CEO Sunil Lulla said, “There has been a big growth in inventory.”

Same is the case with GEC (General Entertainment Channel) and movies categories, as ad volumes jumped from 23 million in May to 32 million in June and from 19 million in May to 29 million in June respectively.

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A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

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Hindi GEC saw 26 percent growth in ad volumes in June 2020 as compared to June 2019. Similarly, Hindi movies saw 19 percent growth in June 2020 as compared to last year.

Besides, the top-10 advertisers have increased their ad volumes significantly.

For instance, Hindustan Unilever’s ad volumes grew from 16 million in May to 28 million in June this year –a jump of 75 percent.

Also, if we consider the first first half i.e. January to June, the share of the top-10 advertisers has increased from 34 percent in 2019 to 39 percent in 2020.

In addition, ad volumes of the next 40 advertisers have also shown an upward trend – growing from 15 million in May to 27 million in June.

In terms of categories, personal care/personal hygiene, food & beverages, e-commerce, and personal healthcare saw strong rise in ad volumes.

Another interesting aspect pointed out by BARC data was higher ad volumes witnessed this year across corporate and education categories as compared to 2019.

Ad volumes in the corporate category grew by 62 percent in 2020.

While ad volumes are growing, Lulla said that there has been no value appreciation so far.
Maryam Farooqui
first published: Jul 9, 2020 09:27 pm
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