Television news channels are poised for significant growth in 2023 with a string of marquee sports events, festivals and elections on the horizon. With an increasing number of people keen to stay informed on the latest happenings, the popularity of this news genre has surged.
Thanks to the category’s expansive reach and engagement levels, advertisers are also eager to get in on the action. In 2022, there were over 650 exclusive advertisers on national news channels and more than 5,900 on regional channels, according to television audience measurement analysis firm, TAM. Given these trends and the growing demand for the genre, industry experts anticipate a banner year for TV news in 2023.
News as a genre is growing in popularity
While digital media surpassed print, broadcast TV news managed to withstand the transition. According to TAM, the TV news genre saw an eight percent rise in 2022 compared to 2018.
Ashish Bhasin, co-founder and chairman, Rebid, anticipates that the growth trend in advertising in the genre will remain steady unless there are sudden unfavourable circumstances.
“Television news advertising has the potential to benefit many brand categories, particularly during this year, given the state elections’ line up and the limited inventory on news channels. With ad slots limited to around 12 minutes, news advertising offers a cost-effective and engaging way for brands to reach their target audiences,” says Shashi Sinha, CEO, IPG Mediabrands India.
“I expect low double digit growth to happen,” he tells Storyboard18. “News is a powerful genre in India because the level of interest that people have in current affairs, particularly around their own areas, is extremely high. The interest will only heighten and increase because of key political events this year (state elections) and next year (general elections),” Bhasin adds.
Given the transition the media landscape is going through, the category’s resilience and relevance are yet again being spotlighted by industry experts. Advertiser interest hasn’t waned, they say. Sanchita Roy of Havas Media Group India had said in an earlier interview with Storyboard18 that news is regarded as the most effective way to build frequency for advertisers in a diverse country such as India due to its comprehensive coverage of various regional languages and geographical nuances.
How the end of the rating controversy rebuilt trust in the genre
The resolution of the ratings controversy surrounding Broadcast Audience Research Council (BARC) has brought relief to those in the business of news. According to media planners and buyers, with the implementation of new measures to improve transparency and accountability, advertisers can now make more informed decisions, resulting in more effective campaigns and greater return on investment.
“It is election year and hence there may be some uptick in advertiser interest. Again, presuming India’s growth forecasts hold, some advertisers could flock to the genre again,” says Vinay Hegde, chief buying officer, Madison Media
Speaking with Storyboard18 in a previous interview about the return of ratings, Niti Kumar, COO, Starcom India, said BARC ratings are currently the only source for TV measurement providing the kind of data required for media planners to evaluate options comprehensively, including growth across channels, audiences and markets.
“Especially when most clients have a lot of KPIs (key performance indicators) attached to factors like CPRP (cost per rating point), it’s definitely good to have ratings back and all of our clients echo this statement. Everyone is much happier. Conversations have become easier because one knows now where the genre stands. It has become much easier for a planner or an advertiser to make choices and select what works for them,” she said.
Advertiser confidence and expectations from 2023
With the return of ratings and growing advertiser confidence in the genre, advertising expenditure in the category saw positive growth in 2022. Analysts foresee the trend continuing in the current year, too.
“Television news advertising has the potential to benefit many brand categories, particularly during this year, given the state elections’ line up and the limited inventory on news channels. With ad slots limited to around 12 minutes, news advertising offers a cost-effective and engaging way for brands to reach their target audiences,” says Shashi Sinha, CEO, IPG Mediabrands India.
News advertising can also be an effective reach builder, especially with some categories such as automobiles and tech, given the growing popularity of handsets and the return of car sales, he adds.
“News is a powerful genre in India because the level of interest that people have in current affairs, particularly around their own areas, is extremely high. The interest will only heighten and increase because of key political events this year and next year,” says Ashish Bhasin, co-founder and chairman, Rebid.
“For brands targeting lower-income India, news advertising becomes a necessity, presenting a huge opportunity to connect with these audiences and generate significant ROI,” says Sinha.
According to TAM, 210 plus categories saw positive growth in the news genre in terms of increase in ad volumes in 2022. During the year, the Vocational Training Institute category saw the highest rise of 6.4 times in ad secondage, followed by properties/real estate, compared to 2021.
Leading advertisers in 2022 included Reckitt Benckiser India, GCMMF (Amul), Hindustan Unilever, Patanjali Ayurved, LIC of India, SBS Biotech, Godrej Consumer Products Ltd, Mahashiya Di Hatti, Ultratech Cement and Lalithaa Jewellery Mart.
Somasree Bose Awasthi, chief marketing officer, Marico, explains the importance of the category for advertisers.
“News, as a genre, is extremely important for advertisers, especially in certain markets such as Uttar Pradesh, where there is a bit of an over-indexation when it comes to news. I would say the Hindi heartland is where news has a good reach. So, there is no doubt that the news genre definitely has to be evaluated by advertisers when it comes to achieving incremental reach to an extent to build frequency,” says Bose Awasthi.
In 2022, the leading sectors advertising on TV news included the services sector, food and beverages, building, industrial and land materials/equipment, personal healthcare, personal care/personal hygiene, education, household products, auto, banking/finance/investment and personal accessories.
While it’s difficult to predict who will be the biggest advertisers in TV news in 2024, based on current trends, it’s expected that FMCG companies, e-commerce brands, and government agencies will continue to be major players in this category.
Vinay Hegde, chief buying officer, Madison Media, says that FY24 has good chances of seeing a complete ad spend recovery. “It is election year and hence there may be some uptick in advertiser interest. Again, presuming India’s growth forecasts hold, some advertisers could flock to the genre again.”
In fact, according to a recent report, government spending on TV news is expected to increase by 15-20 percent in 2024. This is in line with the government’s push to promote its various schemes and initiatives through TV news channels, particularly in regional languages. With this increased spending, TV news channels are likely to witness a boost in advertising revenue, thereby driving the overall growth of the category.
Additionally, it’s likely that more digital-native companies will invest in TV news to complement their online campaigns.
Bharat market gaining reach and ad money
The popularity of regional news on TV has been steadily increasing, and the trend is expected to continue in 2023. According to TAM, regional news accounted for 73 per cent of the total news genre ad volumes in 2022.
“News, as a genre, is extremely important for advertisers, especially in certain markets such as Uttar Pradesh, where there is a bit of an over-indexation when it comes to news. The Hindi heartland is where news has a good reach,” says Somasree Bose Awasthi, chief marketing officer, Marico.
This growth is largely being driven by the increasing demand for local news and the emergence of regional news channels. With more and more viewers looking for news in their own language, regional news is likely to become even more popular in 2023 and the coming years.