Hindi GECs Gear up to Increase Ad Revenues

Due to the lockdown, the advertisement industry was hugely affected and led to the loss of its revenues. This has caused a considerable revenue loss for Television channels as they didn’t have a successful sales of ad slots. Now as the country unlocks itself from the restrictions, the situation is looking up and Hindi GECs (General Entertainment Channels) are ready to launch their big shows for the festive seasons.

The channels have also increased their ad rates and stopped giving discounts. With the festive season approaching, they are ready with their top shows like Big Boss, Kaun Banega Crorepati, Indian Idol and so on. Sony Entertainment’s Kaun Banega Crorepati had 6,351 Million viewership last year and was one among the top ten shows in 2019. The famous reality show, Big Boss also had a big reception with 213 Million views last year.

“During the lockdown, they were sorely missing the marquee properties as all shooting and production had ceased. Impact properties like ‘The Kapil Sharma Show’, which returned recently on air, are hugely popular. They provide people with much needed comic relief during these difficult times. So advertising on this and other impact properties is seen as a huge branding opportunity by larger advertisers, who do not mind spending on them. However, smaller brands, especially digital brands that are looking at TV to drive performance at reasonable costs should of course be more prudent and look at ROIs in terms of KPIs like Cost Per Visit, cost per Installs, etc,” said Bindu Balakrishnan, Country Head of DCMN India.

Commenting on the channel’s ad rates, “Owing to COVID-19, the advertisement industry faced severe challenges in Q1, and while Q2 has been better for the industry it is still down from the corresponding quarter in FY20. While these impact properties and the upcoming festive season is likely to see better recoveries for the GECs, it is unlikely that the advertisement rates for these shows will see an increase from last year, as the contributing sectors are facing business challenges. The slowdown in the economy has also been exacerbated on account of COVID. Having said that, we do expect the advertising levels to pick up owing to fresh content on these impact properties, which will bode well in a challenging year for the TV industry,” says Girish Menon Partner and Head, Media and Entertainment, KPMG India.