Counting on the big day: News channels expect up to 50% jump in revenues for poll results
The vote counting day for Lok Sabha elections is around the corner and almost every household is expected to tune into television news to witness the big result. The day of counting holds particular importance for news channels, influencing both their revenue and advertisement rates. Advertisers are keen to leverage the country’s big moment to enhance their brand visibility and connect with a politically engaged audience. The Lok Sabha elections of 2019 are a testament to the importance of the counting day for news channels. According to BARC data of May 2019, the counting day (May 23) recorded 59 billion viewing minutes for the news genre, which contributed to 38% of total TV viewership for the day. In south Indian states, news viewership saw a 416% hike. English channels jumped by 449% on the counting day of May 2019. This surge is expected to be even more significant in 2024.
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According to Rupali Fernandes, Chief Revenue Officer of ABP, for news channels, the counting day is one of the most crucial days during the elections, and it typically results in a significant spike in revenue.
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“The elections represent a unique opportunity for brands to connect with a broad and engaged audience. The sentiment among advertisers is overwhelmingly positive, as they recognise the value of associating with credible and widely watched election coverage,” shares Fernandes.
Revenue jump “Given the intense viewer interest in election results, the revenue on the counting day is expected to see a substantial jump, reflecting the peak in both viewership and advertiser investment,” Fernandes predicted. NDTV expects a growth of more than 30 per cent on their topline over Q1’24, considering the substantial premium that channels command on important days like polling, exit poll, counting and government formation. Varun Kohli, Chief Executive Officer of Bharat Express, expects the revenue to grow by 50 per cent on the day of the counting.
Ad rates The competition among brands to secure advertising slots during elections, especially the counting day, means that many advertisers are willing to invest significantly to ensure their presence, which ultimately results in higher ad rates. The counting day ad rates for a leading Hindi news channel generally stand at Rs 80,000-1,00,000 for a 10-second slot. On a normal day, this slot is sold at Rs 5,000. Smaller news channels, which sell 10-second slots for Rs 1,000-1,500 on a normal day, hike their rates to up to Rs 30,000. “During the election period, ad rates go up significantly due to the surge in viewership and the critical nature of the content being broadcasted. On polling days and particularly on counting day, ad rates typically go up by 40% to 50% compared to non-election periods,” revealed Fernandes. Experts suggest the ad rates during elections can go as high as three-five folds, depending upon the brand slots. The L-band, which appears as a banner on the horizontal and vertical bar of the news screen, can even cost lakhs. According to NDTV’s Revenue Head Mandeep Singh, the inventory for counting day remains robust due to the strong advertiser interest. Channels see their ad rates shoot up 3-4x of the regular rates during this period, says Singh. Ultimately, the counting day marks a critical peak in revenues, reflecting the immense value brands place on reaching a vast and engaged audience. With strategic content planning, enhanced digital integration and robust sponsorship deals, news channels can capitalise on the big day.
Tags : Lok Sabha Elections 2024 New Channels Tv Advertising Counting Of Votes