While FMCGs may be cagey about putting money into Twenty20, telecom, insurance and finance firms may do so
While FMCGs may be cagey about putting money into Twenty20, telecom, insurance and finance firms may do so
NEW DELHI: The advertising trend is set to undergo a change with the Indian
Premier League (IPL), the brainchild of the Board of Control for Cricket
in India (BCCI), getting into action with its Twenty20 matches starting in April.
A closely fought bidding war recently saw business tycoons and film stars putting in big money to buy the eight IPL teams for anything between Rs272 crore and Rs441 crore.
The next round of auction on February 8 will determine which cricketers will join which team. Media planners are keenly watching the development, and would decide their exact game plan soon. But they are already saying that the advertising pie will grow with IPL coming in.
Ravi Kiran, CEO-South Asia of the Starcom MediaVest Group, said the media advertising budget will grow by around 2% post-IPL.
Currently, the total ad pie in India is estimated at Rs 16,000 crore. And, an additional budget of 2% would mean that the ad pie would grow by anything between Rs300 crore and Rs400 crore because of the IPL matches.
But Ravi Kiran didn’t term it as a dramatic impact on the advertising budget.
Mona Jain, executive vice-president at India Media Exchange (Publicis Group), also
indicated that the ad pie is expected to increase post-IPL, but refused to hazard a guess on the extent of impact it could have.
According to Jain, with so much money gone into bidding, the ad rates will be high for the IPL matches. While FMCGs may be a bit sceptical of advertising in the league matches, those likely to put in their money are companies in the telecom, insurance and finance sectors, Jain said.
For India’s tour to Australia, the ad rates on television for test matches have been anything between Rs 50,000 and Rs 75,000 per 10 seconds. One-day matches command much more — around Rs1.5 lakh to Rs1.6 lakh per 10 seconds.
Media analysts that DNA Money spoke to denied that other sports would suffer because of the ad pie getting split even further.
“People are earning more and spending more. With the economy booming and the ad spend growing significantly, there’s no reason that one should lose because another is gaining,” said Ravi Kiran. On the other hand, other sports may benefit indirectly after IPL, because sports consciousness is growing in the country, he said.
Another media analyst pointed out how the Bharti group had recently announced its support for football, despite the fact that cricket is attracting so much corporate money.
On television alone, the annual ad spend is estimated at Rs5,500 crore to Rs6,000 crore. Of this, cricket captures around 8 to 10% a year on an average. However, in a Cricket World Cup year, the cricket ad spend goes up by around 5%.
BCCI recently notched up over Rs7,000 crore from bidding for eight IPL teams and selling broadcasting rights to Sony. Reliance Industries’ Mukesh Ambani paid the highest at Rs441 crore for the Mumbai team. Other winners were Vijay Mallya, Shah Rukh Khan, Preity Zinta, Deccan Chronicle, GMR, India Cements, and UK’s Emerging Media.
m_nivedita@dnaindia.net
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