TV news ad rates to ride high on festive fervour

The festive season uplifts consumer sentiments, sales and ad rates in general. The TV news category also rides the bandwagon and benefits from a heightened interest among advertisers across categories.

According to TAM AdEx, the news genre received 27% of ad revenues from January to June 2024, up 2% from last year. This number is expected to accelerate further this festive season.

Last year, the pre-election buzz, G-20 summit, the Gaza-Israel war among other news events gave the TV news genre a steady growth, fuelled immensely during the H1 of 2024 by polling results and the Union budget.

Rupali Fernandes, Chief Revenue Officer, ABP Network says, “Historically, election periods saw significant spikes in ad rates, and this year is no exception. With the festive season aligning closely with state elections, we expect this heightened interest to persist.”

Viewership of the news genre has also been on the rise, giving broadcasters enough reasons to maintain higher ad rates, observers noted.

Varun Kohli, Chief Operating Officer of Times Network, said they will see a jump of 10-15% in ad rates ahead of the festive celebrations.

Another senior professional at a leading news network opines that news channels are expected to perform well in festive seasons with a focus on new product launches, high-reach campaigns and digital/CTV incremental integration in campaigns.

However, a media buyer from a leading ad agency said the scenario could be a little different. News platforms typically see lower engagement during these periods unless there's a major government announcement impacting people's daily lives, the industry observer said.

“During festive seasons, audience preferences shift towards entertainment content, particularly on TV. Reality shows and movie premieres dominate viewership, attracting both audiences and advertisers.”

Despite a brief slump in July, the early start of the festive season provided momentum that kept ad rates elevated. Additionally, on-ground events, which traditionally see a slowdown post-election, have maintained a strong pace this year due to the early festive calendar.

“As a result, advertisers will likely continue capitalising on the sustained high engagement, further pushing ad rates upward through the remainder of the year,” the ABP executive mentioned.

Category of advertisers

Several advertiser categories have consistently shown a strong presence on news TV channels, particularly during the festive season. These categories focus on high visibility and target an audience that is engaged and attentive to news.

ABP Network sees a strong influx of advertisers from several key categories, with Durables, Auto, and Lifestyle brands being the most prominent.

These sectors are particularly active during the festive season, where promotional offers and heightened consumer interest drive the need for consistent, high-frequency advertising. Other categories like FMCG, e-commerce, and financial services also ramp up their advertising efforts during this period to tap into the festive consumer sentiment.

The growth will largely be driven by demand from auto and durables, as per news network experts.

Tech brands, particularly those in the mobile and gadget space, will also be key players in the festive advertising landscape.

As per Kohli, except for the obvious FMCG, others like cement, automobile, and retail clients will be seen on news channels this time.

News TV trends

Fernandes highlighted advertisers are increasingly adopting a cross-platform strategy that combines traditional TV advertising with digital and social media campaigns. This allows brands to maximise reach and frequency, targeting consumers across multiple touchpoints.

The integration of digital with TV news helps build a stronger, multi-channel presence, especially during key festive periods when consumer engagement is at its peak.

SME brands are also expected to increase their ad spends, targeting specific news audiences with tailored non-FCT advertising, as per the senior professional.

Another emerging trend that has arisen is, with online shopping continuing to grow, e-commerce platforms and tech brands are expected to significantly increase their ad spend during the festive season, shared Fernandes.

Lastly, while prime-time slots have always been in demand, there's a noticeable shift in advertisers expanding their budgets to non-prime time slots as well, Fernandes explained. This is due to the 24/7 nature of news consumption and the increasing value advertisers see in targeting audiences throughout the day.

Brands are realising the potential of reaching a more diversified audience beyond the traditional prime-time window, creating opportunities for higher ad volume across various time slots.

With India’s consumption patterns showing positive momentum, the festive season of 2024 promises to be a robust period for both advertisers and news broadcasters alike.