Ad spends on news channels back to normal ahead of festive season

Four state assembly elections spread across the entire festive season are expected to drive the growth of the news channels as the advertising on the genre has almost returned to normal after a two-month-long lull following the general elections, a large media agency head told BestMediaInfo.com. 

“Male-targeted advertisers, like auto brands, remain significant spenders on the news. Ad spending on news has normalised after the general elections earlier this year, returning to the usual eight to 10% of brands’ overall advertising budgets,” the media agency head said.

"News is essential for reaching internal audiences and sustaining dealer sentiments. The male demographic you find on news platforms is unique and not available elsewhere. Plus, the cost of entry for advertising on news channels is relatively low, making it easier for brands to allocate funds to news media," added the agency head who chose not to be quoted.

The 2024 festivities are set to further the growth of news channels on account of no major sporting event such as the Men’s Cricket World Cup, which cornered over Rs 2,500 crore during last year’s festive season.

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, ICC Women’s T20 World Cup, Pro Kabaddi League and Premier League.

“Brands would focus on impact properties on GECs and the news genre to make the most out of this festive season. Advertising works on a quarterly basis. Contrary to the popular narrative, the festive budget was not spent in the first quarter owing to IPL, T20 World Cup and general elections. Some mediums may experience a little lesser growth over the last year but largely news and GECs are expected to grow in healthy double digits,” said a senior media agency executive.

Responding to the question as to whether the brands have already started festive planning, the media agency head quoted above said, “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.”

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

“News channels perform well during live events such as elections or the budget as it is majorly event-driven. During the festive season, however, these channels take a back seat due to the improved and relatable programming that is brought forth by general entertainment channels (GEC), thereby attracting more advertising dollars,” Krishnarao Buddha, senior category head-marketing, Parle Products, said. 

Buddha further added that state elections would offer a significant revenue prospect for news channels, owing to their scale and importance.