It is quite usual and general that corporate companies dominate the commercial breaks on television channels which claim to hold their flags high with higher TRPs. Now, the prominent advertisers step back showing the demonetisation as the cause and hold their flags low.
The most affected were the jewellery and textile sectors due to demonetisation and now, it is the advertising industry that goes through the shock waves of recent demonetisation of the two high-value currency notes.
It is evident that most occupying advertisements are of the jewelry and textile trade and when demonetisation stuck, both these sectors are reported to have got affected. During this 3rd quarter of the financial year, the festive boom goes up and advertisers come forward to buy ad spaces in order to capture consumers mind spaces. Quoting demonetisation as the cause for a considerable business setback, several advertisers have chosen to withdraw or withhold their scheduled ad campaigns. Consequently, advertising agencies strive on to recompense by other means, television channels look forward to keep their commercial pitch uninterrupted and balanced. Even the real estate business is facing a sizeable drawback as claimed by a senior media planner.
Observers opine that the crunch may lead to about 600 – 700 crores worth of advertising could be withheld or canceled in the next 6 weeks across the media.
Recentlt, The Indian Broadcasting Foundation (IBF) has now issued a letter to advertisers/advertising agencies after it has been observed that several advertisers/agencies have started sending cancellations to its members on existing deals, which include both short term and long term deals following the demonetisation initiative of the Government.
According to the Chief of a leading Media Companies Sales team, the cancellation trend is a temporary phase but it will easily take away at least Rs 500 crore from the TV advertising alone.
He also points that the real estate, FMCG and jewellery sectors will definitely cut ad spending, but at the same time sectors like BFSI (banking, financial services, insurance), and e-payment companies will spend more.
But the Tom, Peter and Harry among the common folk have their own say.
Some reported to have witnessed that immediately after the announcement on demonetisation, the jewellery sales was tremendously high. Almost all the top most jewellery showrooms have accepted Rs. 1000 and Rs. 500 currency notes for the benefit of their beloved customers. So, they have got their target line covered.
On the other hand, some, among the wise public, who are known as seculars (laymen or laywomen) hold this question. How does demonetisation affect when the rich buyers can pay online or by way of cheque? Here comes the war between the white and black in terms of money.
Those who want to play safe hold their cards and wait for the moment. Let’s sincerely hope that the aftermath of demonetisation makes it all good for the common folk and enjoy advertisements that flow in colours during the commercial breaks between their favourite television programmes.