GEC ad volumes drop 6% in H1 2024: TAM AdEx

The advertising landscape of GECs in India has undergone notable shifts between the first halves of 2023 and 2024, reflecting changing consumer behaviors, economic factors, and industry dynamics.

In the first half of 2024, General Entertainment Channels (GECs) in India witnessed a notable 6% decline in advertising volumes compared to the same period in 2023, said the TAM AdEx Half-Yearly Advertising report, which reveals key trends shaping the future of advertising in the GEC space.

This downturn marks a significant shift from the previous year, which saw a 5% growth in ad volumes, reflecting a robust advertising environment bolstered by a three-year cumulative increase of 9% from 2021 to 2023.

The reversal in 2024 raises important questions about the underlying factors driving advertisers to reassess their strategies.

According to industry experts, general elections, IPL, T20 World Cup and lack of new content, adversely impacted the ad volumes on GECs.

Speaking to exchange4media, Rajiv Dubey , Vice President, Dabur, said, that ad volumes on Hindi General Entertainment Channels (GECs) have been steadily declining, as per TAM, with subdued activity from major FMCG advertisers over the past two quarters, leading to reduced TV ad spending.

He also said that stagnant content is also causing viewer fatigue due to which GECs are not able to perform well

“The underperformance of GECs is largely due to stagnant content, as many long-running soap operas have failed to innovate, causing viewer fatigue. The rise of Connected TV (CTV) and OTT platforms offering fresh content, along with major sports events like the IPL, two World Cups, and elections, has further slowed GEC growth.

“In the first quarter, elections and sports events diverted audience attention and ad budgets, while the typically slow second quarter saw weak demand, keeping ad rates flat,” Dubey told e4m.

He added that as the festive season wraps up next week, ad inventories remain “under-booked”, reflecting cautious advertiser sentiment.

“Even with potential improvements, the impact will be delayed due to advance campaign planning cycles,” he said.

According to TAM, the advertising sectors contributing to GEC ad volumes also saw significant changes.

In the first half of 2024, 3,300 brands were featured on General Entertainment Channels (GECs), marking a decline from the 3,700 brands that appeared during the same period in the previous year. This represents a reduction of 400 brands, highlighting a notable shift in brand engagement on GEC platforms.

Sharing a similar view as Dubey, Elara Capital’s Karan Taurani said, “The decline can be partly attributed to the heavy election season in H1 2024, which has shifted audience consumption toward news programming. Additionally, the rise of OTT platforms has drawn viewers away from linear TV, as many prefer to watch content digitally at their convenience. This shift is particularly pronounced for Hindi GECs, which are losing relevance as prime-time slots become less significant.”

Talking about ad rates on GECs, Taurani said that the decline in GEC ad volumes has indeed put pressure on pricing.

“Currently, pricing for GECs is facing challenges, and we haven't yet returned to pre-COVID levels, particularly for prime-time slots of large non-fiction properties,” he said.

As per other findings of the report, in H1’ 24, while Food & Beverages maintained its position as the top sector with 31%, Personal Care/Hygiene saw a slight decline to 21%.

The Banking, Finance and Insurance (BFSI) sector made a significant entry into the top 10 sectors, highlighting a growing emphasis on financial services advertising amid increasing financial literacy and market competition.

Diving deeper into product categories, Toilet Soaps dominated the advertising landscape in 2024 and 2023.

In 2023, they accounted for 8% of the total ad share; in 2024, they maintained their lead with a slightly higher share of 9%.

Interestingly, new growth categories emerged in 2024, with Milk Beverages leading the charge with a 19% growth in ad volumes. Additionally, categories like Wafer/Chips and Cement saw remarkable increases of 75% and 57%, respectively, indicating shifting consumer preferences and possibly a resurgence in home improvement and snack consumption trends.

The competition among brands also saw some intriguing shifts. Harpic Power Plus 10x Max Clean was the most advertised brand in 2023, and this title transitioned to Harpic Power Plus 10x Advanced in 2024.

The dominance of HUL and Reckitt persisted, with five of the top ten brands in 2024 coming from Reckitt and four from HUL.

The genre distribution of ad volumes remained relatively stable, with Hindi GECs consistently leading the market, contributing 24% of total ad volumes in both years.

Tamil and Malayalam GECs followed, highlighting the regional diversity of the Indian television landscape.

The top five channel genres accounted for over 65% of total ad volumes in both 2023 and 2024.

The advertising trends on GEC TV channels between the first halves of 2023 and 2024 illustrate a landscape marked by both continuity and change. While 2023 showcased growth and an optimistic outlook for the advertising sector, 2024’s decline in ad volumes prompts a closer examination of market strategies and consumer behaviour.