TV viewership variation worries advertisers

Ad agencies estimate viewership to fall 15-20% as households in metros shift to set-top boxes

Mumbai (October 9, 2012): It may be a dull Diwali for advertisers betting big on television channels for promotions. Viewers who do not switch from analogue to digital cable before October 31 in the four metros—Mumbai, Delhi, Kolkata and Chennai; and there will be some who don't make the shift in time— will not be able to see their favourite shows or the advertisements that ride on them.

Under a new law, the government has made it mandatory for cable operators to deliver only digital signals that can be accessed through a set-top box. Advertising agencies that buy media for advertisers are feeling a bit lost as they estimate total television viewership to drop by about 15% to 20%. According to estimates by media buying executives, the four metros account for around a fifth of the 148 million television households in India. And according to the Telecom Regulatory Authority of India, which also oversees the cable business, as of last month, 32% of the households in the metros were yet to move to digital cable systems.