New Delhi, Aug. 18 -- The removal of the 12-minute-per-hour advertising cap for television channels may provide only a limited boost to the industry's advertising revenue, with gains estimated at around 1-3 per cent even in a best-case scenario, according to an Elara Securities report.

The report said that while the regulatory change gives broadcasters greater flexibility to sell advertising inventory, the bigger challenge facing the television industry is weak advertiser demand and declining viewership rather than a shortage of advertising slots.

"The key issue is not how much additional inventory broadcasters can offer, but how much advertisers are willing to absorb and at what price," the report said.

A significant part of the telev...