It’s no gainsaying that the IPL is the biggest money-spinning event in a marketer’s calendar. The last season saw record viewership on TV and digital (over 500 million on each) and advertisers anticipate that this year’s tournament will be even bigger with the combined might of Viacom and Disney Star.
Advertiser response for this season has been strong so far from the FMCG sector, driven by the anticipated tax-cut-fueled spending bump, say industry experts. Brands from categories such as beverages, auto and consumer durables are also in the queue for various sponsorship rights (Tata Sons has the IPL title rights for five years till 2028). Reliance’s Campa Cola recently acquired the co-presenting TV and digital rights for the season at `200 crore, beating Coca-Cola’s Thums Up that held the rights last year.
JioStar is eyeing an ambitious `5,000 crore in ad revenue this IPL, say insiders, around 20-25% higher than last year (which saw estimated ad revenues of `4,000-4,200 crore across TV and digital put together).
Karan Taurani, senior VP at Elara Securities, believes this is an achievable target, despite the fact that overall TV ad spending has gone down over the years. Further, if the IPL stays free yet again on JioStar, the platform could really scale up in terms of ad growth.
Kumar Awanish, chief growth officer, Cheil India concurs, pointing out that the combination of data flex and tech expertise will allow the newly unveiled JioStar platform to ensure an immersive IPL viewing experience. “The almost flawless streaming of the Ahmedabad Coldplay show on the platform has already demonstrated the power of tech and Jio’s intent to deliver an enriched experience,” he says. With IPL set to be streamed in 12 languages, smaller regional advertisers are also likely to come on board.
JioStar’s recently announced partnership with media audience measurement firm Nielsen has added a layer of trust for advertisers offering better insights and optimised efficiency, adds Cheil’s Awanish. Nielsen ONE’s Volumetric Ad Measurement will provide advertisers with more accurate and transparent insights. The platform has also announced advanced targeting mechanisms to reach specific audience cohorts and new ad formats designed to maximise engagement.
The numbers game
A mammoth ad revenue target means that JioStar’s ad rates are expectedly steep. As per media agency sources, the ask for a 10-second slot on SD and HD TV is around `15-16 lakh, while CTV rates are `8-9 lakh per 10-second slot. On JioStar, the ad rate is `250 to 350 per mille (thousand impressions).
However, an industry observer points out that advertisers are concerned that the growth in viewership may not be much higher than IPL 2024 and on TV, a lot depends on the number of regional channels that will broadcast the tournament. That said, if the numbers continue to stay as high as last season, advertisers are likely to queue up even during the tournament. He explains that most returning advertisers lock in their deals before the tournament commences, because they can negotiate better rates.
According to projections from the ITW Core research desk, TV viewership for the IPL this year will rise marginally from 555 million last year to 570 million for IPL 2025. While reports indicate that OTT viewership grew by 38% last year over 2023, this season may not see such a steep increase. “This is because Jio has already captured the large mobile universe and mapped ‘on the go’ content consumption, This, backed by quality 5G will increase watch time on mobile and we are expecting around 625- 630 million viewers for OTT,” says Karthik MB, head, ITW IO.
The figure is not much higher than last year’s viewership of 620 million (as per JioCinema) and a lot depends on whether the IPL streaming continues to stay free. JioStar has not yet clarified if it will be paid content this year.
Most advertisers understand that the IPL is not a regular TV or entertainment property, argues Mayank Shah, vice-president, Parle Products. “It’s a marquee property that is the equivalent of the Super Bowl in the US and brands tend to build their campaigns around the IPL. Alternatively, they may use them as a medium that drives impact for a new product launch, relaunch or a big corporate campaign,” observes Shah.
Parle Products was the biggest TV advertiser during the IPL last year, capturing 10% of the ad space, according to TAM Sports. The brand also advertised on JioCinema last year and Shah is confident that with Jio and Disney Star joining forces, this year’s reach may be even better. Parle Products is still in discussion with JioStar for this season, and hasn’t yet signed a deal.