Are advertisers taking a break from non-fiction shows?

The sponsorship ecosystem for non-fiction shows across Hindi General Entertainment Channels (GECs) appears to be undergoing notable shifts. Industry experts reveal there has been a decline in the demand for non-fiction properties among advertisers. This waning interest, according to experts, is due to lack of innovative formats, competition from OTT platforms and increasing content costs. Under pressure to maximize the value of their non-fiction properties, broadcasters and planners are now devising strategies to mitigate the impact on ad revenues and attract more advertisers.

Industry watchers say that while there has been a decline in demand for non-fiction properties among advertisers, the overall impact on sponsorships and ad revenues remains manageable. Broadcasters are actively implementing strategies aimed at enhancing advertiser appeal and maintaining revenue streams.

According to sources, advertising rates for non-fiction shows range from Rs 4 lakh to Rs 7 lakh per 10 seconds. Depending on the show, channels can fetch anywhere between Rs 40 crore and Rs 50 crore for title sponsorships and Rs 20-25 crore for associate sponsorships.

According to Hema Malik, Chief Investment Officer at IPG Mediabrands India, the rates for non-fiction shows are not decreasing. However, she noted a definite slowdown in demand for such properties. As a result, the traditional commitment of securing sponsorships for the entire duration of a show, such as 80 seconds per episode throughout its run, is no longer the norm. 

She said, “Broadcasters are now breaking down entry barriers that previously required high investment for sponsorships. They are adopting strategies such as offering sponsorships for the first six weeks or the first half of a show's season to attract more advertisers, making the packages more appealing to clients and advertisers alike.”

Another media planner on condition of anonymity noted that reduced entry costs have made sponsorships more accessible. “Previously, a commitment of four crores for a season might have included three active integrations for one advertiser; now, three advertisers can share co-powered and active integration opportunities, maintaining revenue levels. This approach aligns with digital and CTV trends, offering platform-agnostic packages that enhance visibility and value. Thus, it's not rate reduction but increased value per investment that drives current strategies.”

This strategy might hold particularly true for broadcasters who manage multiple non-fiction formats and prioritize profitability for these properties. However, for broadcasters such as Zee Entertainment Enterprises Ltd (ZEEL) which currently have one non-fiction show, SaReGaMaPa, slated to launch in September, advertisers are looking at the full season sponsorship. 

Ashish Sehgal, Chief Growth Officer, ad revenue, ZEEL said, “We are selling SaReGaMaPa now and most advertisers coming on board are looking at the full season sponsorship. So, there is no half or weekly kind of system. It all depends on the total viewership which is mostly discussed while making such decisions.”  Further speaking on the rates he added, “As far as sponsorship rates are concerned, they are always three times more than the fiction property.”

Among the big four broadcasters, Sony TV and Colors TV air the highest number of non-fiction shows such as KBC, Indian Idol, Bigg Boss, India’s Best Dancer, India's Got Talent, Khatron Ke Khiladi, and Laughter Chefs. Following closely is Zee TV, known for shows like SaReGaMaPa and Dance India Dance. It's noteworthy that non-fiction shows are the flagship programs for GECs and continue to command a premium compared to fiction shows.

Manesh Swamy, CCO of LS Digital, pointed out that there hasn't been a significant increase in sponsorship for Hindi origin non-fiction shows. He attributed this to the lesser innovation in formats and content, alongside a gradual shift of TV audiences towards OTT shows. Swamy noted that the success of shows like Laughter Chef (ColorsTV) which introduces a new genre combining comedy with cooking, highlights exceptions to this trend, demonstrating significant audience engagement.

Swamy added, “Brands always look for an organic way to interact with the audience, non-fiction shows like Big Boss give brands more opportunities to be part of the story. If there are new innovative formats available that will help reach out to newer and wider audiences, I don’t think brands will hesitate.” He also shared that broadcasters are open to weekly sponsorships, demonstrating their willingness to be more flexible towards brands. This approach aims to attract a variety of brands, catering to their respective spending capacities.

Adding on the above, Anil Solanki, Senior Director, Media Lead, Dentsu X explained with the growing content making cost of the programs, the sponsorships have to bear the cost of the price hike. “To make sure advertisers don't lose interest this strategy of offering sponsorship for shorter duration has been created. Also, it will attract a wider array of advertisers who may be hesitant to commit to long-term investments or don't have deeper pockets, thereby increasing the overall sponsorship uptake.”

In the past year, Hindi GECs faced challenges in obtaining the correct value for their properties, as their shows often competed with major events such as the ICC Men’s World Cup, Asia Cup, or IPL. However, stakeholders are optimistic about the upcoming festive period, as these shows will not face competition from other major sports properties.

Solanki said, “The festive season usually drives higher consumer engagement and spending, prompting advertisers to invest more in high-visibility platforms. Non-fiction shows, with their wide appeal and engagement potential, are likely to benefit from this trend as brands seek to maximize their reach during this peak period.”