‘TV festive spends to degrow by 5%’

10 Oct,2019

 

The response to the first part of this series where veteran media agency professional Shripad Kulkarni focused on festive spends in print (https://www.mxmindia.com/2018/01/exclusive-to-mxmindia-irs2017-top-5-takeaways-by-shripad-kulkarni/). In the second part, he trains his research lens on spends on television:

 

By Shripad Kulkarni

 

Shripad Kulkarni

The Rs 1000 crore-plus additional ICC World Cup adspend seems to have taken the sheen of festive TV growth. The festive kickstart phase (week before Independence Day till Shradh) has registered a decline as compared to the same period last year. Based on weekly the average, compared to 2018, the degrowth in TV advertising this year is 6% on All India NGRPs across all advertisers and 6.5% on duration.

 

A study of genre-wise growth clearly showcases classical cost optimisation. Planners seem to have increased the focus on cost-effective genres, cut duration on high cost/GRP genres and maintained GRP delivering Channels at 2-4% over 2018. Thus, second line GECs, Regioinal Movies and Kids Channels get more emphasis, the low cost/GRP genres of long tail of Television Genres, Regional News and English Channels get a shave. GRP delivering-channels of Top GEC, Long Tail Hindi GEC, Regional GECs and Hindi News have been maintained around a 2-4% growth over last year.

Personal Hygiene and Health, Durables, BFSI and Fashion and Textiles have shrunk drastically, while Services, Telco, Retail and Personal accessories have shown a massive growth.

 

So what’s the Outlook for festive 2019 looking like?

My forecast for the festive 2019 is that with a normal last-minute surge aided by the 6-Week Diwali Week period, TV Spends will recover a little. Assuming no rate increase over last year, I forecast TV festive spends to degrow by 5%.

 

 

Veteran advertising professional Shripad Kulkarni has been leading consulting assignments in the fiels of strategy, content and adsales. Having helmed teams at Carat, Percept Media and Vizeum and also running a media training and consultancy company called M:Ideas which was bought over by Carat Integra, Kulkarni is set to launch AdXforce, an end-to-end software solution for adsales, which facilitates sales process, Call calendar management and CRM.

 

Using AdXforce, Kulkarni undertook the unenviable task of forecasting the festive season spends for MxMIndia. This is the second of a three-part series. The first focused on print, and the other two will be on television and other media (outdoor, radio and digital). This report is part of a comprehensive white paper the veteran professional and his team have worked on. For more on that, please refer to ShripadKulkarni.com. The detailed TV white paper will be uploaded on the site by noon on Friday, October 11.

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