The ICC World Cup Caused a Decline in TV Ad Revenue in 2023: Report

There was a reported decrease in television channel advertising income in 2023. It further claims that a revolution in box office receipts was brought about simultaneously by the film industry. There has been a notable decrease in advertising income for broadcasting businesses such as Zee Entertainment and Sun TV. The 2023 ICC World Cup is thought to be the cause. According to the statistics, ICC World Cup cricket broadcasting brought approximately 25% more money for advertising than anticipated. The FMCG industry saw a decline in advertising revenue despite growing expenditure. The overall income dropped to Rs 980 crore due to a 3.3% decline in advertising revenue.

The IIFL Finance Limited predicts that television providers’ ad income would continue to decline in the third quarter of the year as more companies decide to link their commercials with ICC cricket. Zee Entertainment has already said that, although it is hopeful that it would recover, the World Cup will lessen the likelihood of ad income recovery.

According to predictions made by international media investment company Magna, television firms would make around Rs 36,500 crore in total income from advertising in 2023, an increase of 8.9 percent. Additionally, it was projected that income would reach Rs 40,100 crores by 2024. Additionally, gaming businesses boosted their advertising budgets. India’s overall advertising expenditure decreased from 17.4% in 2022 to 11.8 percent in 2023. It is predicted that by 2024, it would probably drop to 11.4 percent once again.

The Covid19 epidemic earlier in the year caused a huge fall in box office earnings for Bollywood. However, there was a rise of Rs 4,700 crore in the film business this year. Experts estimate that this rise is close to twenty percent. However, this development may not continue in 2024. Between January and June, just seven significant Bollywood films are slated for release.

Zee-Sony is making an effort to get its money back from broadcast and OTT advertising. After increasing by 20% in 2021–2022, India’s OTT viewership fell to 13.5% in 2022–2023. Currently, there are 48.11 crore OTT viewers in India.