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Media advertising revenue strain to stretch into first half of FY26

This follows a lacklustre January-March quarter (Q4FY25), where ad revenues continued to fall year-on-year (Y-o-Y), weighed down by a high base last year due to election-related spending

revenue, ad, data — According to a media analyst and a media buying executive, ad revenue is likely to decline in the first half of FY26 and begin recovering only from the third quarter, when consumer spending is also expected to pick up.

Roshni Shekhar Mumbai

4 min read Last Updated : May 26 2025 | 11:27 PM IST

The financial year 2024–25 (FY25) was a challenging one for media companies, marked by a drop in advertising (ad) revenues due to a weak consumption market. Media analysts and executives expect this pressure to continue through the first half of 2025–26, as advertisers remain cautious.

This follows a lacklustre January–March quarter (Q4FY25), where ad revenues continued to fall year-on-year (Y-o-Y), weighed down by a high base last year due to election-related spending.

According to a media analyst and a media buying executive, ad revenue is likely to decline in the first half of FY26 and begin recovering only from the third quarter, when consumer spending is also expected to pick up.

“The (ad) market is still under pressure,” said Punit Goenka, chief executive officer (CEO), Zee Entertainment Enterprises (Zee), during a recent earnings call. “It’s very difficult for me to predict when the market will bounce back. But we expect recovery to begin soon, after the cricket calendar ends for the entertainment network.”

For Mumbai-based broadcaster Zee, ad revenue fell 25 per cent Y-o-Y to ₹837.5 crore in Q4FY25. Domestic ad revenue declined 27 per cent Y-o-Y, hit by a weak ad market, the deferment of the Zee Cine Awards, a packed sports calendar, and a high base in Q4 of 2023–24, the company said in its earnings release.

“Going forward, we’re continuing to explore ways to maximise ad revenue but remain cautious in the near term,” said Mukund Galgali, deputy CEO and chief financial officer, Zee.

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Ankur Bhasin, secretary of the Media & Entertainment Association of India, said geopolitical tensions were a minor concern, with the bigger issue being content fatigue among viewers, which has dragged down viewership and revenue for both pay TV and ad-supported models.

“This is cyclical and should reverse in the next six months,” Bhasin said. “There’s also been a decline in quality content, but that’s expected to improve as new content rolls out mid-to-late this year.”

At Network18 Media & Investments, backed by Reliance Industries, ad inventory consumption in the TV news segment dropped 15 per cent Y-o-Y, hurting TV revenue growth, the company observed in its investor presentation. Its digital business continued to grow ad revenue, albeit from a lower base.

HT Media, which operates in print and digital, saw a 3 per cent Y-o-Y decline in print ad revenue to ₹285 crore in Q4FY25. Both its English and Hindi-language publications saw lower ad revenue.

The media buying executive said the slowdown in ad spending spans sectors. However, Bhasin pointed out that fast-moving consumer goods and quick-commerce firms are most affected by the economic uncertainty, while the gaming sector remains resilient.

“Gaming is growing rapidly — both in terms of audience and ad spend. A lot of eyeballs have moved there. Even Netflix is now trying to push (promote) gaming to its audience,” he said.

In contrast to the broader trend, Shemaroo Entertainment — a content creator, aggregator, and distributor — saw revenue from traditional media rise 3.3 per cent Y-o-Y to ₹147.5 crore in Q4FY25.

“Given ongoing macroeconomic pressures, geopolitical tensions, and major sporting events like the Indian Premier League, the overall ad outlook remains subdued in the near term, especially for the non-sports segment,” said Hiren Gada, CEO, Shemaroo Entertainment, in the company’s earnings call. “The return of major broadcasters and general entertainment channels to the Free Dish platform will also impact viewership across categories and redistribute ad spend.”