Here's how 2024 LS polls are likely to boost news channels' revenues

Following the unprecedented success in attracting a record-breaking audience across connected devices during the consecration of the Ram temple on Monday, news channels are now gearing up to capitalise on the momentum for the upcoming general elections.

On the other hand, advertisers are also aiming to ride on the opportunity as they expect their target audience to remain hooked to the news genre.

Projected growth of adex in news genre during general elections

Sudipto Chowdhuri

According to Sudipto Chowdhuri, Chief Revenue Officer/Executive President Sales at India TV, the adex of top 10 news channels should grow by 25-30% during the elections, as compared to the previous year.

Meanwhile, Gaurav Dhawan, Chief Revenue Officer, Times Network, emphasised that the upcoming general elections hold great promise for the news genre and they are expecting substantial growth in advertising expenditure.

Gaurav Dhawan

“As we approach March 2024, a remarkable surge in demand for advertising space is expected,” Dhawan said.

He also added, "We expect 30-35% of our annual revenue to be generated from the general elections. Additionally, we anticipate that a few new advertisers leverage the election-driven momentum for their campaigns."

Speaking about the premium news channels are seeking, Dhawan said that on average, polling days and counting days are expected to command a substantial premium, ranging between 8x to 10x.

Rupali Fernandes

Rupali Fernandes, CRO, ABP Network, said, “With the current heightened anticipation, increased viewer engagement and historical patterns, the news genre appears to offer a favourable landscape for advertisers. This is likely to result in elevated ad rates, leading to improved returns on investment (ROI) for advertisers and contributing to the overall expansion of adex.”

Fernandes stated that for the upcoming election season, news channels, including ABP, anticipate implementing a significant premium in ad rates.

“Traditionally, ad rates during election coverage and on polling days witnessed an increase ranging from 40% to 50% on both TV and digital platforms. This substantial hike is influenced by the increased demand for advertising slots as political events unfold,” she said.

She added that credibility plays a pivotal role in determining these rates, with reputable channels commanding premium prices for their advertising space.

“This rate increase aligns with industry trends and the strategic value that news channels bring to advertisers during elections, ensuring optimal returns on investment for brands seeking to reach a highly engaged audience,” Fernandes said.

Innovative offerings in store for advertisers on news channels

Acknowledging that actual viewership extends beyond traditional linear TV, as measured by BARC, Fernandez added that ABP’s audience engagement encompasses emerging channels such as CTV, YouTube and various options on smartphones and laptops.

“With India experiencing growth in both TV and digital subscriber penetration, advertisers have significant potential to capitalise on these platforms during the elections,” Fernandes said.

The heightened interest in the elections, fuelled by the anticipation of "Who this Time," further enhances engagement levels, she added.

Through engaging and innovative presentations, complemented by a diverse programming lineup, advertisers have a unique opportunity to connect with a wide demographic range, spanning different age groups and geographical locations, she said.

Dhawan said, “Through powerful content formats supported by technological innovation, high-powered interviews, in-depth on-ground reporting and impactful news stories, our news brands are strongly positioned to offer viewers an unparalleled election viewing experience. Our coverage aims to showcase the world's largest election from now until the end of May 2024 and we have devised a strategic plan that spans across TV, digital platforms and numerous on-the-ground events, providing an up-close perspective on citizens and various candidates,”

Circling back to the premise of elections being an important playground for brands and news channels alike, Dhawan added that with over a billion voters, including 15% first-time voters, the elections present a unique and lucrative opportunity for brands targeting both the core audience and the dynamic youth demographic.

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