Top broadcasters pin hopes on regional channels as Hindi GECs face music from OTT

New Delhi: The regional markets are not only holding the fort for television but also offering double-digit growth for the broadcasters struggling with sluggish Hindi-speaking markets amid the rise of OTT.

BestMediaInfo.com last month reported that the top GEC players refrained from any major hike in their ad rates for their impact properties this festive season. However, they are expecting sustainable and robust growth on the back of their regional play.

Top broadcasters Zee and Star dominate the regional market. 

While Zee is currently the only broadcaster with the widest presence across languages, Star and Viacom18 merger is expected to change the regional play of the top broadcasters. 

For both Star and Zee, more than 50% of their revenue comes from regional channels.

Industry veterans suggest that insufficient or less-than-adequate OTT content in regional languages continues to push television viewership up resulting in better ROI for advertisers and hence better ad rates.

“We have seen ad rates increasing in regional channels and it has generally been proportionate to the growth in their reach and impact,” said Srinivas Rao, Chief Investment Officer, Wavemaker India.

However, Navin Lalchandani, EVP, Starcom India, believes that the growth in rates has not always been proportional to the surge in viewership. 

“Regional channels typically start with lower base rates compared to national channels, but as they demonstrate higher ROI, some channels, especially in regions with booming viewership, are experiencing double-digit growth in ad rates. However, many advertisers still see these rates as cost-effective compared to national channels, particularly given the targeted nature of regional advertising,” Lalchandani said.

Regional channels often offer more cost-efficient advertising options compared to national channels while providing high returns in regional markets. 

“Brands see this as an opportunity to stretch their media budgets while maximising impact in smaller, focused areas,” Lalchandani added.

Rise of ad spends on regional television in the TV adex mix

In the past couple of years, regional TV content has seen a significant boost in ad spending, driven by the increasing importance of local languages and culturally relevant programming. 

“Brands have been reallocating their TV ad budgets to include a larger portion of regional content, recognising the untapped potential in regional markets. As viewership in Tier 2 and Tier 3 cities has grown, regional TV has become a critical component of advertisers - TV Adex. FMCG, telecom, and auto sectors are particularly focusing on regional channels to connect with diverse linguistic audiences,” said Lalchandani of Starcom.

According to Rao of Wavemaker, there have been various reasons that could be attributed to it, some of which would be overall growth in viewership of regional TV content. 

“There has been a definite increase in the skew of viewership of local language content over the years in comparison to national content. In fact, regional TV broadcasters have invested in diverse and varied content which has seen the expansion of properties like Bigg Boss and KBC into other regional languages. Brands have increased their penetration in regional markets leading to a shift in their strategy to have a more localised approach,” added Rao.

What’s working in regional language markets?

Regional reality shows have emerged as a powerful driver for brands' investments in regional channels. 

These shows, ranging from talent hunts to game shows, are popular with local audiences because they tap into regional culture and language. 

“This local appeal often translates into higher engagement, which is attractive to brands looking for deeper connections with consumers. Furthermore, reality shows generally attract more affluent, urban viewers within regional markets, making them an appealing platform for brands targeting niche audiences. Popularity spikes during live events and reality show finales also lead to premium ad slots,” said Lalchandani of Starcom.

These shows also give an opportunity for brands to use the protagonists / stars as influencers thereby enhancing their reach, credibility and brand persona. 

Explaining why similar formats on regional channels perform better than national channels, Wavemaker’s Rao said, “It has been observed that brand integrations provide an opportunity that helps in creating organic and memorable brand placements, which most of the times is a relatively tougher one to crack on national channels.”

“From an advertising opportunities perspective, what most of these channels are doing currently to get brands to spend more is to provide targeted/customised advertising solutions, integrated deals (TV+digital/OTT), access to influencers in the form of popular TV protagonists and engagement thru Social media (integrating social media engagement as part of TV deals),” Rao added.

Starcom’s Lalchandani noted that the channels are offering innovative ad formats like interactive ads and branded content integrations tailored for regional markets, making it easier for brands to reach their audience effectively.

“By collaborating with OTT platforms to create hybrid campaigns, TV channels are attracting brands interested in a multi-platform strategy, blending regional TV and digital presence,” he added.

The regional ‘dynamics’

The regional portfolio, especially in the southern markets, continues to drive TV viewership. 

The four southern states—Tamil Nadu, Kerala, Karnataka, and Andhra Pradesh—are particularly strong for TV, often referred to as 'TV Land.' These markets still hold a dominant position in the TV business. 

The data shows that the time spent and the total GRP (Gross Rating Points) in these regions is significantly higher than any other medium, including YouTube.

According to Ashish Sehgal, Chief Growth Officer of Advertisement Revenue at ZEEL, “One reason for this growth is that TV penetration in the southern markets is about 90%, the highest in the country. In contrast, other regions, such as Maharashtra, Gujarat, and Bengal, have lower TV penetration. For instance, in Bengal, even though digital penetration is growing, TV still has a bigger impact. TV advertising in Bengal, even for e-commerce and digital-heavy brands, delivers immediate results, and brands are spending more on regional TV, especially in the South.”

“In the South market, TV advertising rates have been rising. The CPRP is still competitive due to a lack of competition in regional markets like Bengal, Maharashtra, Bihar, and Orissa, where only Star and Zee set the pricing,” Sehgal added.

In Maharashtra, a language-driven market, people still watch TV because of quality content, unlike OTT platforms, which lack a strong Marathi offering. This is why regional channels are holding their ground in TV. 

Sehgal believes that it’s mainly Hindi channels that have been impacted by YouTube and OTT platforms because most OTT content is produced in Hindi.

“OTTs haven't yet made substantial revenue from Hindi content, so they haven't expanded much into regional languages. As a result, TV continues to dominate regional markets. Advertisers are spending more on regional channels, allowing them to produce high-quality content like KBC, Bigg Boss, and Saregamapa, which perform very well,” Sehgal said.

Sandeep Mehrotra, Head – Ad Sales, Network Channels at Sony Pictures Networks India (SPNI), said, “At SPNI, we consistently deliver high-quality regional programming, adapting marquee properties to meet evolving consumer preferences. This approach has expanded our viewer base, increased engagement, and attracted strong advertiser interest.”

“Despite market shifts, our revenue share from the regional portfolio has remained steady over the past two years, driven by our differentiated content strategy and client-centric approach. Our focus on profitability and innovation continues to create exclusive opportunities for advertisers,” Malhotra added.