Despite hit to consumption, TV advertising grows in second wave: BARC

The dent in consumption demand did not deter TV advertisers during the second wave of the pandemic, and the volumes in April and May have grown to go back to being at with the years before pandemic

The dent in consumption demand did not deter TV advertisers during the second wave of the pandemic, and the volumes in April and May have grown to go back to being at almost par with the years before the pandemic, a report said on Thursday.

When compared with the year-ago period, advertising volumes on television were higher by over 65 per cent because of the low base of the lockdown, the report by the Broadcast Audience Research Council (BARC) said.

However, the volumes were lower in May 2021 when compared to the preceding April.

Policymakers are grappling with how to revive the dent to consumption demand as a result of the second wave of the pandemic, which also impacted vast expanses in rural India unlike the first one which was restricted to the urban areas.

 

The second wave is said to be past its peak now and the lockdowns imposed are opening up now.

"The year 2021 began on a high note for television ad volumes. Despite a marginal dip from April 2021 due to the ongoing pandemic, ad volumes in May 2021 have witnessed a significant growth of 64 per cent as compared to May 2020.

"They have remained at par with previous years," Aaditya Pathak, head for client partnership and revenue function at the body, said.

There was an 85 per cent growth in advertising volumes if one were to combine April-May and compare it with the year-ago period's performance. However, the same falls to 64 per cent when the figures for May are compared with the year-ago period, the data said.

The ad volumes in April and May were marginally higher than the ones seen for the same period in 2018 and 2019, before the onset of the pandemic in 2020. But, if the performance of May alone were to be compared, the performance is a shade lower than the pre-pandemic years.

Advertising on the largest genre of general entertainment channels and movies genre continued to grow and outperformed the same period for the previous three years. They have registered a growth of 74 per cent and 76 per cent, respectively, if compared to May 2020.

Owing to the increasing consumption of regional content, advertising on southern language general entertainment channels (GECs) registered a growth of 103 per cent, while the rest of the regional GECs witnessed 53 per cent growth in May 2021 versus May 2020.

Out of the total of 2,142 advertisers in May 2021, 1,347 (63 per cent) were new advertisers and the FMCG (fast-moving consumer goods) category continued to dominate ad volumes with 72 per cent share, followed by e-commerce with a 10 per cent share in May 2021, the report said.