Trai repeals regulations imposing 12-minute advertising cap on TV

Ad rates are unlikely to change as increased inventory becomes available; media buyers say the move will help prime-time advertisers and broadcasters during festive season

The Telecom Regulatory Authority of India (Trai) on Thursday repealed the regulations requiring a 12-minute ceiling on advertisements in a clock hour of television programming, following the government’s decision to remove the cap for television channels.

 

TRAI on Thursday issued the Standards of Quality of Service (Duration of Advertisements in Television Channels) (Repealing) Regulations, 2026, repealing the corresponding 2012 regulations along with all orders and directions issued under them. The repeal will come into effect from the date of its notification in the Official Gazette, according to the release by the Press Information Bureau.

 

Media-buying executives say that this will work well for linear television channels during prime-time slots.

  

“It’s good for channels especially during the prime time hour as that is when they charge the most premium across genres. However, advertisement rates will be static as more inventory gets added, but broadcasters will get more advertisers and better value,” Shashi Sinha, a media buying industry veteran and former chief executive officer at IPG Mediabrands India, told Business Standard.

 

Another media-buying executive who spoke on the condition of anonymity explained that advertising budgets are moving from television to digital as the latter gives a real picture of the impact of their ads and the advertiser also knows the number of impressions its ads get.

 

“This move by the government and TRAI will help broadcasters during the festive season and will help them increase their revenues, but advertising rates won’t go up,” the executive added, saying that the 12-minute cap would push advertisers to choose the next day’s advertisement slot since the inventory was limited.

 

“Content for a 30 minutes slot was anyway structured for 20 minutes with six minutes for ads and the remaining four minutes were used to promote other shows now that space frees up, so content will not get shorter,” the executive added.

 

A media analyst who also spoke on the condition of anonymity said that this doesn’t have any material change for broadcasters as the transition for advertisers towards digital has picked up in a strong way.

 

The 2012 regulations had prescribed a ceiling of 12 minutes of advertisements in a clock hour during the broadcast of a programme. They also empowered TRAI to issue orders or directions to service providers to protect subscriber interests and ensure compliance with the regulations.

 

The regulations were primarily introduced to monitor and enforce the advertisement-duration ceiling prescribed under Rule 7(11) of the Cable Television Networks Rules, 1994.

 

The Ministry of Information and Broadcasting (MIB), through a notification published in the Official Gazette on August 21, omitted Rule 7(11), effectively removing the 12-minute advertisement-duration cap for television channels.

 

“The removal of the cap has been undertaken in view of the significant changes in the television broadcasting sector, increased competition and consumer choice, and with a view to enable fair competition and ensuring ease of doing business in the television broadcasting sector,” the release said.

 

With the removal of the advertising-duration ceiling by the Central Government, TRAI said that continuing the corresponding provisions under its regulations would no longer be consistent with the Cable Television Networks Rules, 1994.

 

TRAI said the repeal was intended to maintain consistency with the Centre’s decision.

 

“Accordingly, in order to maintain consonance with the decision of the Central Government, the Authority has decided to repeal the Standards of Quality of Service (Duration of Advertisements in Television Channels) Regulations, 2012, along with all orders and directions issued thereunder, with effect from the date of issue of The Standards of Quality of Service (Duration of Advertisements in Television Channels) (Repealing) Regulations, 2026 in the Official Gazette,” it said.