Television

Broadcasters see regional adex space growing

Regional and Hindi GECs continued to lead advertisement expenditure in FY18.

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2018/11/19/tv.jpg?itok=7O7xrSUu

MUMBAI: Now that the Hindi fervour has died down, broadcasters and advertisers have latched on to the regional segment. It's no wonder that the adex in the space is expected to grow as well.

According to the global ad growth forecast of GroupM, India’s adex is expected to grow at 14.2 per cent compared to the global growth average of 3.9 per cent in 2019 and is likely to change. Indian adex has grown by 13.2 per cent in 2018 as per estimates by the media agency network. Moreover, according to the KPMG report 2018, regional and Hindi GECs continued to be the leading genres in terms of advertisement expenditure in FY18. However, the adex on Hindi GECs declined by 9 per cent in FY18 as compared to an increase of 5.4 per cent in adex on regional channels, outlining the overall growth of the regional market in India.

Throwing light on the Tamil and Marathi genre, they saw a marginal decline of 2 per cent and 9 per cent respectively while other major regional languages such as Telugu, Kannada, Bengali, Malayalam and Oriya, saw a growth in their contribution to the overall adex in FY18. This indicates that other regional languages are picking up quick.

In Februrary 2018, Viacom18 entered the Tamil GEC market with the launch of Colors Tamil, with an availability across 11 million households in Tamil Nadu and 22 hours of weekly original content at launch.  

Commenting on the same, Viacom18 head regional entertainment Ravish Kumar said that part of it could possibly be caused by the FTA channels which have come up in Hindi. The viewership has moved to them and that has led to margin dilution as opposed to margin accretion. “On the regional space, you must have seen a lot of consolidation on the top end so where the strong are getting stronger and the weak are getting weaker, more margins are analysed which normally means that the ability to command high rates are high.” He added that it is backed up with a lot of investment in formats like reality, movie premiers or events which typically tend to command higher rates.

He further added that the growth in regional space is in double digits. Commenting on the decline in Tamil and Marathi, Kumar said that the ratings of regional channels have only increased steadily over the years and short term ups and downs are expected.

The other factors that would aid adex growth are big ticket events such as several state elections, government advertising and cricketing events. FMCG continues to contribute 51 per cent to the total television spends followed by telecom 12 per cent and auto 8 per cent that helped reach a growth of Rs 820 crore in television adex in 2017. Hindi GECs, including FTA, contributed 28 per cent of overall television adex and Hindi is by far the largest contributor to television adex.

As per the report, Times Network MD and CEO MK Anand said, “2018 will be a good year for adex overall. The economy has more or less come to terms with the earlier disruptions. We don’t expect any major new policy changes since it’s an election-eve year. And not to forget, the 2017 base is a depressed one. So growth will be decent.”

Speaking about the Bengali cluster, Zee Bangla had recently refreshed its channel’s campaign by observing a wide surge in the viewership off late. Meanwhile, in an interview with Indiantelevision.com, ZEEL business head for Zee Bangla and Zee Bangla Cinema Samrat Ghosh said that in terms of ad space, it has observed a good amount of contribution to the national players as well as the local players and it sees a lot of opportunity in West Bengal in the GEC space in terms of viewership. “As I have already said that the Bengal TV viewership is growing at a CAGR of 5 per cent whereas the ad expenditure is growing at 13 per cent.”

Adding more relevance to Ghosh’s point, ZEEL cluster head regional markets Amit Shah said that the total Bengali TV ad market is pegged at Rs 1000 crore with 90 per cent of the spends going towards Bengal GECs. “National advertisers are seeing a lot of merit in choosing Bengal for their incremental purpose where the national brand is concerned. Now, most companies divide the country into zones. According to that division, East zone in most cases is growing faster than the rest of the country which itself means that there is some good momentum in the market.”

Whereas, in terms of Kerala market ZEEL CMO Prathyusha Agarwal said that South GECs is a larger universe with larger audience. “It actually contributes 33 per cent viewership of the network and 23 per cent of the adex share. Hence, there is scope to grow there. The total adex in the Kerala market is estimated to be Rs 650-700 crore.”

As per the reports, with increasing focus on quality content in the regional markets, the production costs also saw an increase in FY’18. The production cost of a single original episode in the southern languages ranged between Rs 1.75-2 lakh and the acquisition price for a single ready dubbed Hindi series episode was between Rs 35,000-50,000 per episode. The proportion of local advertisers in regional channels ranges from 40-60 per cent, with the remaining being national advertisers, and this mix is skewed in favour of local advertisers for regional GECs outside the top three to four.

Star India south business MD K Madhavan said, “The content costs saw an increase in FY18 on account of significant improvements in the quality and production value of regional content. For non-fiction properties like Big Boss Tamil, the content costs were significantly higher, an indicator of the quality that audiences are now expecting.”

It remains to be seen what does the year 2019 have to say to the broadcasters about adex in the near future.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/14/travel.jpg?itok=R0H1aNTr
Travelxp 4K announces its Denmark launch on Waoo

MUMBAI: Expanding its reach in European countries, Travelxp 4K strengthens its reach in the Scandinavian country, Denmark now. Starting 01 September 2019, Travelxp’s premium shows are available to the audience on Waoo TV on Channel number 134. Among the recent launches of Travelxp include the...

Television TV Channels English Entertainment
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/14/abhishek.jpg?itok=zPr4vWTp
Abhishek Dutta appointed as network head for Cartoon Network and POGO in South Asia

MUMBAI: Abhishek Dutta has been named Senior Director and Network Head -Kids, overseeing Cartoon Network and POGO in South Asia. Based in Mumbai, his responsibilities include programming, channel operations, acquisitions and promotions, as well as the content direction for the two brands.

Television TV Channels Kids
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/14/colors.jpg?itok=3yolvWub
Viacom18 launches Har Din Diwali campaign with exclusive pricing for COLORS & COLORS Kannada

Spreading the cheer this festive season, Viacom18 announces a-la-carte price for its flagship Hindi GEC COLORS and Kannada GEC COLORS Kannada at Rs 12/month each.  In line with this special festive price, Viacom18 is launching a consumer awareness campaign ‘Har Din Diwali’ encouraging viewers to...

Television TV Channels GECs
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/14/amazon.jpg?itok=ca4q-ezU
BARC week 40: Amazon, Flipkart’s festive season sales make them the top two brands

The Broadcast Audience Research Council (BARC) India has released its data for top advertisers and brands for the period between 28 September 2019 and 4 October 2019. The data reflects top 10 advertiser and brands across genre on Indian television, including OOH screen, (U+R): 2+, Individuals NCCS...

Television TV Channels Viewership
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/12/barc.jpg?itok=06IbAd09
BARC week 40: No changes in Marathi and South GEC space

MUMBAI: In week 40 of BARC India ratings, no changes were observed in Marathi, Tamil, Telugu, Kannada and Malayalam space. In Bhojpuri space, Bhojpuri Cinema took the leading position and B4U which was leading last week has slipped to second position. In Bhojpuri space, Bhojpuri Cinema, B4U...

Television TV Channels Viewership
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/12/spider.jpg?itok=wEvm7VUj
Explore the Spider-verse with the &pictures Hindi premiere of ‘Spider-Man: Into The Spider-Verse’ on 12th October at 8 pm

MUMBAI: Imagine, one morning you get up to discover that you have special powers like a superhero. Sounds interesting right! Well, similar is the story of a young lad Miles Morales who is stunned on finding out about his spider like abilities. But just when he thinks that he is the only one with...

Television TV Channels Movie Channels
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/12/Zee.jpg?itok=pKLKs3DQ
Marking its 27th Anniversary, Zee announces attractive Festive Bonanza Offer on its leading entertainment channels

MUMBAI: The television industry has successfully managed to transition to the New Tariff Order (NTO) regime. Zee, as the leading television network of the country has collaborated extensively with industry players to ensure a smooth transition. To mark its 27th Anniversary, Zee has taken yet...

Television TV Channels GECs
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/12/2.jpg?itok=y-LjTNSW
BARC week 40: Star Plus slips to third position, SET continues to lead in urban market

In the week 40 of BARC India ratings, the leading Hindi GEC Star Plus slipped to third position, last week the channel was seen at second position but the channel continues to hold first position on pay platform. In the urban market, Sony Entertainment Television and Colors were seen at first and...

Television TV Channels Viewership
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/12/star-india.jpg?itok=6GbY0IlJ
Star India announces festive offer for a-la-carte channels

In keeping with the festive spirit, Star India announces ‘Tyohar ka Upahar’, a promotional offer for its 16 a-la-carte channels including its popular channels -- Star Plus, Maa TV, Star Jalsha, Vijay, Asianet and Hungama TV. The festive offer prices will be available with immediate effect.

Television TV Channels GECs

Sign up for our Newsletter

subscribe for latest stories