India's state assembly elections expected to trigger surge in ad spend

India’s news channels are predicting a 20-25% increase in advertising revenue in Q1 when assembly elections are taking place in five states. 

Why it matters

TV news viewership generally increases during election periods, with commercial advertisers and political parties following. Outside of a general election this is normally limited to the states in question, but the presence of Uttar Pradesh – the most populous state and adjacent to the capital – in this round of elections gives them a national interest, so attracting greater interest from advertisers.

What it means

• Advertisers will spend Rs 500-600 crore incrementally on news networks from January until the day governments are formed, the CEO of one such network tells Exchange4Media.
• Government spending will also increase, with a proportion of that directed towards political campaigning ends. 
• Zee Media is predicting an upswing in spending of “at least” 20-25%. News Nation Network expected a similar increase in spending by political parties, with commercial advertisers coming in at 10-15%. 
• ABP anticipates offline and digital platforms will be used equally.

Quote

“Parties tend to behave like large corporates, making good use of TV, digital and local platforms like print, outdoor and radio” – Manoj Jagyasi, chief revenue officer at Zee Media.

Sourced from Exchange4Media