The broadcaster has officially signed on four co-presenting sponsors and seven associate sponsors so far
Advertising revenue for Star Sports, the official broadcaster of Indian Premier League (IPL) 2020, may marginally exceed last year’s revenue of about `2,000 crore. Mogaé Media chairman Sandeep Goyal points out the broadcaster will match or marginally exceed last year’s revenue because the tournament, which kicks off on September 19 and ends on November 8, coincides with a part of the festive season. While Durga Puja will be celebrated October 22 onwards this year, Diwali will be celebrated on November 14.
As much as 25-30% of total consumer spends on products such as two-wheelers, cars, consumer durables, apparel and even homes, takes place during the festive season.
The broadcaster has officially signed on four co-presenting sponsors and seven associate sponsors so far. The title sponsor is Dream11, Amazon, PhonePe and Byju’s are the co-presenting sponsors, while Modelez, ITC Foods, Polycab, RummyCircle.com, Kamla Pasand, McDowell’s and Coca-Cola are among the associate sponsors.
The profile of advertisers is expected to be skewed towards digital and FMCG brands this year. After Dream 11 becoming the title sponsor, Star signed on CRED and Unacademy as official sponsors. As per industry sources, these partnerships have been signed at half the 2019 rate.
The IPL is a premium property that advertisers look forward to leveraging every year. However, this year the pandemic has turned even the most generous advertisers into conservative spenders. The broadcaster, which is expecting a record number of viewers for this edition of the IPL, is said to be steadfastly holding its pricing of about `12 lakh for 10 seconds, which is about 10% higher than last year, say industry executives.
Dream11’s bid of `222 crore for the title sponsorship, which is half of what previous title sponsor Vivo was paying, is influencing other tie-ups. “The halving of the title sponsorship value has added to the lukewarm mood among advertisers and is being quoted in negotiations. The Dream11 deal has become somewhat of a benchmark for other closures. And a barometer directionally,” Goyal said.
Smartphone brands and automobile manufactures are conspicuous in their absence from the list of broadcast sponsors for now. “Large spenders are deciding to remain on the sidelines in 2020 on account of several factors, not limited to the pandemic alone. Star Sports may hit its 2019 revenue figure and with some probability rake in a little more than last year after selling all of its inventory as viewership is expected to be far higher than earlier,” Santosh N, managing partner, D and P Advisory LLP and external adviser, Duff & Phelps, said.
Advertisers are working out various strategies to make the most effective use of their media spends this IPL. The quantum of media buy from every advertiser may decrease in terms of frequency and duration of the commercials as the tournament progresses. However, this could change if consumer interest picks up as matches progress.
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