election, coverage? The medi's dilemma over unified polls

Now, will have every five years to capitalize on election-related ad spending, compared to the current system where polls occur roughly every six months

e4m by e4m Staff
Published: Sep 19, 2024 12:53 PM  | 4 min read
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On Wednesday, the Union Cabinet cleared the ‘One Nation, One Election’ plan which proposes Lok Sabha elections and Assembly elections to be conducted simultaneously, with the local body elections being covered in the second phase within 100 days of the general elections.

“There is unanimous opinion that simultaneous polls beginning from 2029 should be held," the panel headed by ex-President Ramnath Kovind, which included Home Minister Amit Shah as its member, had said in its report submitted to the government early this year.

This ambitious proposal with far-reaching implications and practical challenges, was part of the Bharatiya Janata Party 's manifesto for the 2019 and 2024 general elections .

While a Bill in this regard is yet to be prepared and must pass through both the houses of Parliament-a process that may take time—experts believe that, if implemented, it could significantly impact media platforms. Reason: news publishers, both print and digital, and television channels heavily rely on political advertising .

Industry veterans told e4m, “Media industry may face significant losses in ad revenue as simultaneous polls implications could reshape the advertising landscape, impacting how political campaigns engage with audiences across all channels.”

Elections are currently held throughout the year. This means political advertising, along with the government publicity spends, continues throughout the year. This creates a rich and abundant advertisement cycle with newspapers, news channels and tech giants like Google, Meta and Instagram having windfall gains from both the incumbent governments and opposition parties.

For example, general elections occurred in April-May this year, while Andhra Pradesh, Arunachal Pradesh, Odisha, and Sikkim also held their polls simultaneously. Haryana and Jammu & Kashmir are voting at present (September), followed by Maharashtra in October-November, and Delhi in February.

“Now, the media industry may face challenges as they will have only one opportunity every five years to capitalize on election-related ad spending, compared to the current system where state elections occur roughly every six months,” said a senior industry official.

While some believe simultaneous elections could generate substantial revenue, media experts disagree. "Inventory is largely limited, especially for print and TV. Additionally, political parties will focus on two major elections in their ad campaigns, which restricts the potential for excessive ad revenue unless media platforms alter the typical balance between editorial and sponsored content," noted a media executive.

Continuous polls are fertile grounds for advertisers

Elections also generate substantial content, providing a rich environment for advertisers. For instance, poll debates, on-ground discussions, election trails, rallies and public meetings often provide opportunities for brands to explore sponsorship opportunities.

“The FMCG, auto, mobile phones, quick commerce and food delivery brands often associate themselves with media houses to sponsor such programs. The reduced frequency of elections could mean less content and fewer advertising opportunities for media outlets, potentially dampening growth in the M&A sector as advertisers reassess their strategies in this new landscape,” an FMCG advertiser said.

Hundreds of crores at stake

A lot is at stake for the media sector with the ‘One India One Elections’ plank, considering the country’s increasingly expensive polls.

According to the Centre for Media Studies (CMS), the 2024 Lok Sabha elections witnessed Rs 1.35 lakh crore expenditure, encompassing all spending—direct and indirect—related to the polls, including that by political parties, candidates, the government, and the Election Commission.

Of this total, approximately Rs 50,000 crore were believed to have been spent on advertising campaigns and sponsored content.

This is apart from the Union government’s annual publicity spends which is around Rs 1,000 crore. State governments also incur substantial costs; for instance, the Maharashtra government recently allocated Rs 880 crore for publicity in the lead-up to Assembly elections.

“If elections are consolidated into a single cycle, much of this spending will likely be combined, leading to reduced opportunities for media outlets to capitalize on multiple election-related advertising influxes”, industry experts fear.

Published On: Sep 19, 2024 12:53 PM 
Tags polls