Mumbai: Broadcasters are staring at a drop in advertising revenues despite Indians spending more time at home watching TV during the ongoing lockdown after top spending companies put many planned campaigns on hold or even cancelled them.
Top broadcasters, media buyers and advertisers ET spoke with, feel that if the situation doesn’t improve by end of April, the TV industry will end up with a 30-40% drop in ad revenues in April and May.
Experts say that while March is usually a slower month for advertising, many top spending categories — like auto, consumer durables, retail, and mobile phones— spend heavily during these two moths on IPL and the summer season.
With IPL getting suspended and a nationwide lockdown in force, advertisers aren’t keen on spending marketing monies and broadcasters feel that the continuing uncertainty might bring more pain. “The media industry, which depends heavily on advertising revenues, is going to take a massive hit because of economic disruption. It’s tough to estimate the scale and size of impact and it will depend on how long and deep is the disruption,” acknowledges Uday Shankar, president, The Walt Disney APAC and chairman, Disney & Star India. “There is a massive impact on TV advertising in the Month of April.”
For broadcasters, 60-65% of their top-line comes from ads.