Indepth: How Broadcast & Radio took the demonetisation bull by the horns
India is nearing the first anniversary of introduction of demonetisation on November 8, 2016. The policy move saw almost 86 per cent of the country’s currency, especially 500 and 1,000 denomination notes, becoming invalid overnight.
On the completion of one year of demonetisation, Adgully looks back on the chaotic times following introduction of the policy move, how the broadcast and radio industries coped with the fast-changing developments, the steps taken to overcome the negative effects and more...
The initial phase
Avinash Pandey, Chief Operating Officer, ABP News Network, too, conceded that demonetisation was extremely negative in terms of advertising revenues and added that the industry suffered a lot for the first two months after the police was implemented and the impact was still going on.
On the other hand Siddharth Zarabi, Executive Editor, BTVI, remarked that media companies didn’t have negative impact in a large way post demonetisation. This is because they all are organised in a formal way, Zarabi maintained. He added, “Demonetisation has been a spectacular move to formalise India’s economy.”
Impact on ad spends
Sony’s Gupta also said that the growth rate of around 15 per cent for the television industry came down to around 8-10 per cent post demonetisation. “It took some months for the industry to stabilise,” he added.
How the radio industry fared
Speaking about the immediate aftermath of the introduction of demonetisation, Panday said that almost all advertisers immediately cut back on their campaigns. “There was a lot of uncertainty and a fair degree of panic in the market. The long queues in front of ATMs being broadcast continuously on TV created a mindset of fear and uncertainty in the minds of the people. The lack of availability of small currency notes at that time added to the problems. Advertisers saw their businesses take a quick hit, and decided to cut back on ad spends.”
He further added, “There was a ripple effect all over and various sectors got affected. Having said that, we were always positive about the long-term effect of these policies. With back to back festive seasons, we witnessed an upsurge in advertising, which helped us overall in maintaining balance in this year.”