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IPL, KBC and Bigg Boss may boost ad spends by 13% YoY in H2 2020

The recovery in the second half of this year is expected to grow at a dramatic rate of 60-72 percent in comparison to the first half of this year

August 19, 2020 / 07:29 PM IST
Representative image

Representative image

In the first half of 2020, brands shied away from spending on advertising due to the coronavirus impact on the economy. But it is expected that advertisers will return with a bang in the second half of 2020.

According to a Pitch Madison 2020 report that was released on August 18, advertising expenditure will grow by six percent to 13 percent as compared to second half of 2019.

The recovery in the second half of this year is expected to grow at a dramatic rate of 60-72 percent in comparison to the first half of this year.

Degrowth for this year is estimated to be between 14 percent and 18 percent, which could have been higher if not for the estimated strong pickup in advertising spends in the second half.

Advertising spends on TV and digital, which is showing early signs of recovery, is expected to get back on track by September and October, aided by the launch of Indian Premier League (IPL), quiz-show Kaun Banega Crorepati (KBC) and reality show Bigg Boss.

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Among the traditional mediums like TV, print, radio and outdoor, TV is showing strong signs of recovery. Hence, advertising spends on TV are projected to drop by 12 percent to 17 percent this year as compared to 8 percent growth in 2019.

The number of advertisers on TV are also expected to return to the pre-COVID numbers by September. Most TV advertisers are regular advertisers and depend on high salience for their offtake, and therefore cannot afford to be off advertising beyond six months, the report said.

The damage on TV has been the least as compared to print, outdoor and radio. From June onwards, TV started attracting more advertisers, indicating that some categories cannot afford to stay away from TV advertising for too long.

In the first half of 2020, TV dropped by more than 40 percent, with total advertising expenses of Rs 8,084 crore, which was Rs 14,199 crore in the first half of 2019.

In the first six months of 2020, FMCG increased its dominance in TV advertising expenses with a share of 56 percent, higher than 49 percent during the same period in 2019. This is primarily due to increase in advertising by newer COVID categories in personal hygiene such as sanitiser, hand wash liquids, disinfectant sprays and multiple products related to immunity building.

e-commerce including OTT and other social media platforms also contributed eight percent to the overall TV pie.

Digital like TV also faced minor contraction in advertising spends at seven percent, but its share in the overall advertising expenses grew from 20 percent last year to 30 percent in H1 2020.

Categories that outperformed on digital include e-commerce, entertainment, education technology, FMCG, gaming, among others.

Overall, 13 new players entered the list of advertisers that advertised across mediums in the first half of 2020. These advertisers include are Hotstar, Pepsi, Rohit Surfactants, Shaadi.com, SBI, Abbott, UltraTech Cement, Nivea, Vicco Labs, Himalaya Drug, Torque Pharma and PolicyBazaar.
Maryam Farooqui
first published: Aug 19, 2020 07:29 pm
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