News channels gain ground in ad vol, narrow gap with GECs
As per a TAM AdEx report, while the ad volume share of GECs was 30% from Jan to June 2024 same as the previous H1, news channels had a share of 27% in H1 2024, up by 2% from 25% in H1 2023
General Entertainment Channels (GECs) have for long been the showrunners in terms of advertising revenue. However, thanks to the recently concluded Lok Sabha elections, news channels have managed to narrow this gap with GECs with an increase in their ad volume share by 2% compared to the previous year.
According to a TAM AdEx Half Yearly Report on Television Advertising, the ad volume share of GECs was 30% during January to June 2024, same as H1 last year while TV news channels had a share of 27% in H1 2024, up by 2% from 25% in H1 2023.
Industry observers credit the narrowing gap to heightened advertising by brands, political parties, and advocacy groups throughout the Lok Sabha elections held between April and June this year. However, they added that news channels may not be able to surpass GECs in ad volume share due to the sustained popularity of entertainment channels.
According to Anil Solanki, Senior Director, Dentsu X, GECs have outperformed news channels due to their broader appeal and consistent high viewership from popular serials and reality shows.
“While the LS elections did boost ad revenue for news channels, GECs have been attracting a larger, more diverse audience, making them more attractive for advertisers throughout the year. News channels had a brief chance to capitalise on elections, but the sustained popularity of GECs made it unlikely for news channels to outperform them,” he told exchange4media.
Solanki further said that news channels might outperform GECs during major national or global events, but typically, GECs have a broader and more consistent appeal.
Sharing more insights, Mona Jain, former Chief Revenue Officer, ZMCL, said that while the Lok Sabha elections boosted news channels, they also benefited General Entertainment Channels (GECs), as several major political parties made significant investments in advertising across both platforms.
“Lok Sabha elections this time also benefitted GECs as all leading parties spent substantially on GEC and movies genre apart from news. In an ideal situation, during a key cricket event, which builds reach for a brand, news channels can be effective frequency-enhancers and can surpass AdEx of GECs.
“But for the FMCG category, GECs are critical as it enables them to reach their core audience – females. Also, AdEx is dominated by FMCG brands whose spend on the news genre is restricted,” Jain told e4m.
According to broadcast expert Rajiv Khattar, the issue lies in the programming on news channels, which is for a selected audience, and don’t have a viewership like the GECs.
“GEC is always going to be better. Because news channels are not for everyone. News channels are for selected social groups. In terms of viewership, GECs will always perform better. Consider the socio-economic structure of our country: after a long day at the office, people typically want to relax by watching something entertaining.
“They might choose a GEC for relaxation and then switch to a news channel only for brief updates, like breaking news or non-stop headlines. Nowadays, only few people are interested in lengthy debates,” he said.
Sharing a similar view, another broadcast expert said that many news channels often create excessive noise without delivering substantial news, making it difficult for viewers to grasp any clear information which is why the viewership of GECs is more, and hence the brand participation.
According to the TAM report, GECs and news channels had a 57% share in total TV ad volumes between Jan-Jun 2024.
These channel genres were followed by movies with 21% share in ad volumes, then music channels at 11%, down by a per cent from last year, and kids’ genre channels at 4%, up by 1% compared to last year's H1. The remaining 7% were put in the other category.
As per Rahul Satoskar, Chief Investment Officer, EssenceMediacom, “GEC enjoys significant contribution of the TV viewership pie & news viewership is 15-20% of the GEC viewership. It used to be indexed higher in 2019 & the gap has widened over the years. While the 2024 Lok Sabha elections drove an increase in news viewership, the GEC genre continues to be the dominant driver of TV viewership. News consumption behaviour has also transitioned more to ‘on-the-go’ over the past few years.
“Despite the significant events such as the Lok Sabha elections that typically boost news viewership, maintaining a consistent edge over GECs throughout the Jan-Jun period was difficult. The primary reason is the inherent nature of news consumption, which is highly event-driven and subject to fluctuations based on the news cycle.”
During the Jan-June 2024 period, over 7,800 brands were present on television, the report said, adding that five out of the top 10 brands were from Reckitt Benckiser and two were from HUL.
The top 10 brands were Harpic Power Plus 10x Advanced, Dettol Toilet Soaps, Lizol All In 1, Dettol Antiseptic Liquid, Jiocinema App, Ultratech Cement, Surf Excel Easy Wash, Santoor Sandal And Turmeric, Harpic Bathroom Cleaner and Close Up Ever Fresh.
