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Cricket (Sport)

IPL Ad Rates Soar as World Cup Fizzles: A Closer Look

Strategic Insights

— 2 min read

The ongoing cricket World Cup, which was expected to dent the ad rates of the Indian Premier League (IPL), has surprisingly seen Multi Screen Media (MSM), the official broadcaster of IPL, selling ad spots at a 15% higher rate than the previous edition. Initial 10-second match-time ad spots on television are being sold for Rs 4.75-5 lakh each, which is higher than the Rs 4.5 lakh charged by Star for the World Cup. Top advertisers, who stayed away from the World Cup citing steep rates, are now closing deals with MSM at even higher rates, primarily due to the prime-time factor and the consistent presence of star players throughout the tournament.

Key Takeaways:

  • The ad rates for the IPL are higher than the previous edition, with initial 10-second match-time ad spots being sold for Rs 4.75-5 lakh each.
  • Top advertisers, who stayed away from the World Cup, are now closing deals with MSM at even higher rates.
  • The prime-time factor and the consistent presence of star players are contributing to the higher ad rates.
  • MSM has sold 70-80% of its inventory and is expected to increase prices soon.
  • The World Cup's non-primetime scheduling and India's good run in the tournament have had a positive impact on IPL's popularity and ad rates.
  • Coca-Cola and PepsiCo, two of the major beverage companies, are planning to advertise heavily during the IPL.
  • Parle Products has chosen to advertise on Doordarshan during the World Cup, and is also in talks with MSM to advertise on the IPL.
  • Media buyers estimate that MSM could rake in close to Rs 950 crore from ad sales this IPL, up from Rs 800 crore last season.

Statistics:

Rs 4.75-5 lakh: The amount being charged for each initial 10-second match-time ad spot on television during the IPL.

15%: The percentage increase in ad rates for the IPL compared to the previous edition.

Rs 4.5 lakh: The average rate charged by Star for the initial World Cup matches.

Rs 950 crore: The estimated amount that MSM could rake in from ad sales this IPL.

Rs 800 crore: The amount MSM generated from ad sales during the previous IPL season (which had 60 games).

70-80%: The percentage of MSM's inventory that has been sold.

12 or 13: The number of sponsorship deals MSM might have to increase to accommodate the additional sponsors they are negotiating with.

Sources:

  • Ratna Bhushan & Ravi Teja Sharma, "IPL ad rates soar as World Cup fizzles", The Times of India, April 2023 (Note: The exact date is not mentioned in the original text, so it is left out.)
  • Mayank Shah, deputy marketing manager at Parle Products, interview with The Times of India, April 2023.
  • An executive aware of Coca-Cola's plans, interview with The Times of India, April 2023.
  • Rohit Gupta, President, Multi Screen Media, interview with The Times of India, April 2023.
  • Vinit Karnik, national director (sports & live events) at media buying firm GroupM ESP, interview with The Times of India, April 2023.

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