March to May 2024 will be an action packed period for news as preparations intensify for the 18th Lok Sabha elections. Media planners are strategically securing spots on news channels in various languages, capitalising on the unique window of opportunity that elections offer in terms of unparalleled reach and access.
News AdEx for the period is expected to see at least a 10 percent surge.
“The upcoming national election presents a strategic opportunity for brand associations, and we’ve been in discussions with various brands since October to capitalise on this. Budget allocations and annual planning have been underway, engaging not only political brands but also those in BFSI, male-targeted brands, and even FMCG,” said Niti Kumar, Chief Operations Officer, Starcomm.
Specialised content and premium ad rates
As the elections approach, the content line-up on news channels also expands, making the inventory even more appealing.
“The non FCT (free commercial time) elements you typically find on news channels, like impactful visuals, blurbs and others also increase across all news channels. So all TV networks package their content and ad inventory according to their programming and reach,” added Kumar.
Just as in any other big IP like a World Cup or an Indian Premier League, news channel ad packages are designed according to timings and significance.
While the entire election season will demand a premium in terms of ad rates, the spots on election days will be the most expensive ones.
According to media planners and experts, while news channels demand a 100 percent-200 percent premium for election day spots, with value added, the final settlement is anywhere between a 30 percent and 50 percent premium, depending on the channel and its reach.
Viewership on news genre
“As we approach 2024, we Indians will be on top of news as a genre on a daily basis, not only because of the General Elections but also local / municipal elections in which the whole country will participate. The whole year will be packed with elections and, therefore, there will be curiosity among everyone,” said Dhiraj Khanna, Associate Vice President and Cluster Head, at Mudramax.
This curiosity drives the viewership of news channels.
According to Khanna, in terms of viewership, we will see a huge spike on election day. While viewership will remain constant on the other key days such as pre-poll days, counting days and so on.
As per 2019 BARC (Broadcast Audience Research Council) data, all India GRPs (Gross Rating Points) on news channels was 314 on polling day, 580 during the election and 255 during the post-election period.
GRPs quantify impressions by calculating the percentage of a target audience multiplied by the frequency with which that audience views the ad. This metric is mostly applied in traditional ad formats, especially when precise measurement is challenging.
Advertisers and brand categories
While political ads contribute significantly to the AdEx for news channels, it is just not political parties or individual candidates who fill news’ ad coffers during the election seasons. Brands across categories have interest in the news genre.
“During election season, history shows a significant uptick in news channel viewership and ad revenue. While exact viewership numbers may vary, historical data, such as the 2019 figures, reveals a substantial increase. Categories like automobiles, finance, FMCG, start-ups, and e-commerce are keenly interested in leveraging this election fever, given the diverse opportunities presented by special programming and content,” said Amol Dighe, CEO, Investments and Business Development at Madison Media.
While pan masala, toilet soaps, cars, political parties and paints are the categories that will be the most visible categories in the election season there are some underdogs too that would be making a huge splash.
According to Dighe, local brands in categories such as TMT bars, real estate, spices and others, especially those in the Hindi news category, find value in associating with election coverage.
“Overall, the election period contributes approximately 9-10 percent extra revenue to the news category,” added Dighe.