AdEx falls to 65% in the Q2 of 2020 – Pitch Madison Report

The COVID pandemic has taken a great toll on the advertising industry and advertising expenditure has fallen to 65% in the second quarter of 2020. The first half of 2020 witnessed a decline of 39% leading to a loss of Rs 14,000 Crores in the ad industry.

The industry has never seen a drop this big and traditional media like newspaper and radio’s revenues are much worse. In the second quarter of 2020, Print media accounted for just 18% and radio declined to 1% of the total Advertising Expenditure. Due to the pandemic and lack of business advertisers stopped giving advertisements in newspapers and radio.

Despite successful re-runs of popular mythological shows the Television channels failed to sustain their advertisers which led to a loss of 40% of ad revenue in the first quarter. Television and Digital medium accounted for 80% of the AdEx share and OOH and Cinema theatres were reported as “nil.”

Adex has declined from Rs 35,110 Crore in 2019 to Rs 21, 298 in 2020. Now as the country is returning to normalcy, the report shows that things are looking up for TV and Digital medium. With the festive season soon approaching, business is booming and advertisers have started returning in the past month. The launch of IPL and other to shows like Big Boss, Kaun Banega Crorepati shows a 60-72% rebound in the AdEx in the second quarter of 2020.

Amidst the pandemic, brands like Hindustan Unilever, Amazon, Procter & Gamble, Reckitt Benckiser, Maruti Suzuki have been advertising well to stay connected to their customers.