Sluggish 1Q TV adex forces Madison to revise ad spend growth for the year to 13.4%
MUMBAI: TV’s disappointing performance in the first quarter has made Madison revise its estimates for annual ad spend growth to 13.4%. The figure is now Rs. 69,073 crore. Outdoor also struggled in the quarter.
The Pitch Madison Advertising Outlook Report 2019 had earlier forecast adex growth of 16.4% and the figure was Rs. 70,888 crore.
The first quarter (January – March 2019) was affected by the NTO, which caused chaos in the Television market and led BARC to issue an advisory, not to use Ratings because of major changes in availability of channels. Also having an adverse effect was FTA channels being taken off DD-Free-Dish. This led to a loss of 275 GRPs per week in the Hindi GEC + Movies market. New FTA channels that emerged could not make up the viewership enjoyed by the established FTA channels like Zee Anmol, Star Utsav, Star Bharat, Sony Pal, Colors Rishtey, etc. A few new FTA channels did emerge like Dangal, Enter 10, etc. but these could not make up the GRP loss. As a result for the first time in many years the first quarter of 2019 saw a de-growth of -5% in the TV Adex.
The second quarter saw recovery on the back of Parliamentary Elections, IPL and World Cup. The agency expects the third quarter to also be reasonably strong on the back of the festive season. However the fourth quarter is expected to be soft.
Madison World chairman Sam Balsara said, “It appears that the consumer is looking for reasons to not spend or delay his spending. At a time like this, advertisers should not lose faith in advertising, and use it aggressively but effectively to protect their share.”