Reality and format shows to dominate adex in second half of 2024

New Delhi: With no major cricket event like the ICC ODI World Cup this festive season, media spending is expected to shift towards reality and format shows, with a significant portion directed at regional media, according to experts. 

The festive period typically accounts for over 50% of annual ad spending by brands. Last year, the Men’s Cricket World Cup alone generated approximately Rs 2,500 crore in ad revenue during this time. This year, while media experts predict a high single-digit increase in ad expenditure, other entertainment properties are unlikely to match the ad revenue generated by the ICC ODI World Cup last year during the festive period.

Priyanka Kapur, Managing Partner, Zenith India, added, “While there is no similar stature IP this year, the clutter will be even more with a lot of reality/format shows/WTPs lining up for the kill. While not reaching the level of share of the pie that a World Cup could steal, it will be more spread and divided.”

Kartik Sharma, CEO of Omnicom Media Group India, said, “Last year, the Men’s World Cup cornered over Rs 2,500 crore from other genres. This year, General Entertainment Channels (GECs) and OTT platforms are gearing up for a major programming boost, ready to attract brands eager to capitalise on high-impact properties during the festive surge.”

He also said, “Advertising spending on regional media platforms will be seen rising by 15-20% compared to previous years this festive season, according to Kartik Sharma, CEO of Omnicom Media Group India. This shift reflects brands' growing recognition of the potential in regional markets during the festive period.”

TV and OTT platforms are poised for significant traction this festive season, driven by hit shows like Saregama on Zee TV, Indian Idol and Kaun Banega Crorepati on Sony, Star Parivaar Awards on Star Plus, and Bigg Boss on Colors, said Sharma. 

In one of the previous interactions, Mahesh Shetty, National Sales Head at Viacom18, told BestMediaInfo.com that Colors expects a rise of 30-40% in ad revenue this season of Bigg Boss. 

Back then, he said, “A portion of the adex spent on the ICC ODI World Cup will now flow into entertainment, though not all. Brands typically allocate separate budgets for high-impact sporting events, but with no major ICC event during this festive season, a part of that investment will move to entertainment.”

Omnicom’s Sharma also noted that films such as Srikanth, Chandu Champion, and Stree 2 are also positioning them as major high-impact properties during the festive period.

It is worth noting that this year the festive season will host a few small-ticket sporting tournaments, such as the Bangladesh-India test series, the ICC Women’s T20 World Cup, the Pro Kabaddi League and the Premier League.

While adex in other tentpole properties like Bigg Boss and KBC are set to rise, Kingshuk Mitra, Head – Ad Sales, Star Sports, emphasised PKL’s dominance in an interview with BestMediaInfo.com last week. “Any property currently being considered, PKL would be at the top of the pyramid in terms of size and scale,” he said. 

He compared PKL’s reach to other major properties, noting, “Most impact properties draw around 100 million viewers, with major bilateral cricket matches peaking at 200 million. PKL, however, is expected to be 2x, 3x, or even 4x larger this quarter, surpassing other tentpole properties.”

Kapur forecasts a vibrant third quarter of 2024, with October expected to see the most action due to the early timing of Diwali. “Q3 this year will definitely be buoyant, with October seeing most of the action, especially with Diwali being early this year,” Kapur stated. 

Sharma said that the festive season ad spending is set to hit a high this year, following a slowdown in the past two quarters.

He added, “Marketers would be extra aggressive to clear up the piled-up stock of the previous quarters,” underscoring the eagerness of brands to make the most of this critical period.”

Sharma noted that the positive sentiment from a good monsoon is likely to boost consumer spending, which in turn will lead to increased advertising expenditures. He highlights that FMCG, auto, e-commerce, and entertainment are expected to be particularly active and gain momentum in this environment.

However, a media head of a network agency told BestMediaInfo.com that brands are treading carefully with their spending this festive season. 

The head explained the rationale behind this cautious approach, stating, "The elections didn’t unfold as anticipated. Additionally, brands have already allocated a substantial portion of their advertising expenditure towards the elections, World Cup, and Olympics. As a result, only those brands with new launches are expected to spend heavily in the latter half of the year."

The media head anticipates more clarity on festive season advertising expenditure by September-end. The head noted, “The general festive spirit hasn't fully set in yet due to the back-to-back major events like the IPL, elections, Olympics, and World Cup in the first half of the year. Brands need a breather to assess and strategise their festive season ad spend.”

The head further highlighted that July, August, and sometimes even September tend to be lean months for advertising. Additionally, this year, Diwali is scheduled a bit later, on November 1, 2024, which could also influence the timing and intensity of festive advertising campaigns

Kapur anticipates growth driven by traditional sectors like commerce, automotive, and paints.

According to the head, the second half of the year will see significant investments mainly from brands with planned product launches.

Categories like CPG will be heavy on video, while performance-centric categories like Auto and BFSI will be skewed towards performance, as per Sharma. 

With GECs and OTT platforms gearing up for major festive programming, Sharma observed that advertisers will allocate around 80–90% of their budgets to TV and digital media. 

He also highlighted the trend towards video content and performance marketing within digital advertising. Sharma expects Connected TV (CTV) to receive 20-50% of digital video spends, reflecting its growing significance in the advertising landscape.

According to the Disney+ Hotstar Festive Sentiment survey 2024, the four-month period spanning from September to December sees very high advertiser interest for categories such as FMCG, CG, Auto, Fashion & Apparel, F&B. On average, 40-45% of the annual AdEx is spent during these festive months in India.”

The report reveals that women shoppers plan to boost their spending by 70% compared to last year, expanding their purchases across more than two categories. Millennials, especially those aged 31-40, are expected to lead the charge in festive spending, with an average budget of Rs 27,000, outpacing Gen Z shoppers. The report also highlights the growing influence of digital platforms, with 58% of consumers relying on online ads and 37% turning to online videos for product information.