Commercial advertisements have been airing on Public Television in Armenia since 2020. Private TV stations are permitted to broadcast up to 14 minutes of advertisements per hour, while the First channel is only allowed to air up to 5 minutes of commercials in the same timeframe.

Earning revenue through advertising is a concept that has been introduced previously for Public TV. Before 2014, H1 could air commercial advertisements as long as they didn’t exceed 7% of the programs. However, starting from January 1st, 2015, the TV station was no longer permitted to do so.

We sent a written request to the First Channel to gain information on their earnings from commercial advertisements after 2020 and how they utilized those funds.

Public TV responded by providing the following breakdown of generated revenue from commercial advertising:

•     In 2020 – AMD 154.2 million, including VAT
•     In 2021 – AMD 517.8 million, including VAT
•     In 2022 – AMD 689 million, including VAT.  

As we see, over three years, Public TV received a sum of approximately 1 billion 361 million drams, including VAT, for broadcasting commercial advertisements.

Major advertisers on Public TV include banks, commercial centers, import companies from various industries, and communication sector organizations, among others.

According to the survey, the Public Television Company uses advertising revenue to cover expenses that are not included in the annual financial allocations received from the RA state budget.

The focus is primarily on upgrading the TV facilities, constructing new buildings and pavilions, paying back loans, distributing dividends, and covering other essential expenses.

According to Hovhannes Tovmasyan, director of the “Nork” advertising agency at Public TV, the television company’s solid rating helped it quickly establish a strong presence in the TV advertising market.

“Compared to private TV companies, Public TV is subject to strict limitations on how much advertising it can broadcast. By law, it is allowed to air almost three times less advertising, which naturally hinders its ability to compete with larger private TV companies in terms of potential advertising revenue,” says Hovhannes Tovmasyan.

He stated that Public TV has undergone significant improvements. Viewers now perceive the First Channel as more engaging and dynamic.

“Over time, more advertisers are recognizing Public TV’s true value and potential. This has led to increased attention towards Public TV when planning marketing activities. As a result, content with educational and cultural components that benefits the public has become more attractive. The Armenian language is now favored in TV series, movies, and everyday life,” says Tovmasyan.

You can find details about the funds received by Public Television through the state budget and other sources in the annual report published by the Public Broadcasting Council.

Tigranuhi Martirosyan