The demonetization sucked out the currency in circulation which hit the consumer sentiments and sales and resulted in the television advertisements to plunge. But slowly the advertisement market is surging again. There was a huge rise in the advertisement sectors by 20% in January immediately after the demonetization of the currency notes.
But now, there has been a sudden rise in this sector prior to the demonetization. The ban of Rs 500 and Rs 1,000 notes created a huge cash crunch in the advertiser’s sector including FMCG, consumer goods, automobiles, retail, and ad budgets. According to BARC India, advertisers placed about 4.79 Million ads across various channels in January in comparison to 3.98 Million in December and 4.56 Million in November, 2016.
October was a month where the TV advertisement revenue was at its peak and the broadcasting network had expected November and December to be a win-win situation but that’s not what Mr. Narendra Modi had in mind, which got the whole plans crashing down.
Even though the demonetization step was a huge jerk for the broadcasting network it lasted only for a short span and later improved.
Things are getting better and February seems to the month for more business and revenue. The regional channels down south are slow in pick-up compared to the national channels but are expected to rise in the coming months. The broadcasters planned to give freebies to the advertisers and reduced rates to get numerous ads in order to increase the volumes of TV advertisements.
Thus, February is going to be the month for popping champagne for the TV advertisers.