With big-ticket properties such as the ICC World Cup and the fourth edition of the Indian Premier League slated to be held next year, advertising spends on cricket are set to go up by 54 per cent in 2011. Cricket events are projected to account for nearly a fifth of the overall television advertising pie next year, up from the current 13 per cent.
Sudha Natrajan, president & CEO, Lintas Media Group, said: “As Indian Premier League (IPL) is expected to be played among ten teams, the number of matches would increase, compared with the tournament held this year. This would translate into additional ad revenues for the broadcaster. Besides, the ICC World Cup is coming to the Sub-continent after 15 years and is also generating a lot of interest among advertisers.”
According to industry estimates, a minimum of Rs 2,000 crore in advertising will be spent on cricket tournaments next year. Cricket will account for as much as 85 per cent of ad spends on all sporting events in the country in 2011. In the current calendar year, around Rs 1,300 crore has been spent on cricket.
The lion’s share next year, industry observers reckon, would go towards IPL-4.
| LUCRATIVE ITINERARY | |||
| Series | Broadcaster | Schedule (2010-2011) | Advertising revenues* |
| India-South Africa | Ten Sports | Dec 16-Jan 23 | 130 |
| ICC World Cup | ESPN Star Sports | Feb 19-Apr 2 | 750 |
| IPL-4 | SET Max | Apr 8-May 22 | 1,000 |
| India-West Indies | Ten Sports | Jun-Jul | 100 |
| Champ League | ESPN Star Sports | End 2011 | 120 |
| *Industry estimates (Rs cr) | |||
Rohit Gupta, head of sales at SET Max, said: “We have already sold 75 per cent of our inventory. We have signed on 10 sponsors for the matches and another six for ‘Extra Innings’. Our revenues would go up significantly, depending on whether 60 or 74 matches are played in the fourth season. We will have more clarity on our overall revenues from ad sales in a week’s time.”
Industry sources said SET Max could make as much as Rs 1,000 crore if IPL is played in a 10-team format. The broadcaster has signed on Vodafone and Videocon as presenters for IPL-4, while Hyundai, Pepsi, LG, Samsung, Tata Photon, Godrej, Cadbury’s and Havells have been roped in as co-sponsors. For ‘Extra Innings’, SET Max has lined up sponsorship deals with Axis Bank, Colgate, Park Avenue and Kent RO, among others.
According to one media agency head, who did not wish to be named, IPL is the most premium slot at this point, delivering ratings of close to 5.2. “Advertisers can’t afford to be off this, no matter what happens off the field.” Ad rates for IPL-4 have reportedly increased 30 per cent for the upcoming season and stand at Rs 6 lakh for a 10-second slot.
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“Compared to 2007, ad rates for the World Cup have also doubled,” added Natrajan. ESPN-Star Sports (ESS) is understood to be selling 10-second slots at Rs 4 lakh. Overall, the channel stands to rake in Rs 750 crore in advertising revenues during the tournament. Sponsors such as Sony, Pepsi, Maruti Suzuki, CEAT, Phillips and Nokia have already come on board and negotiations are on with some others.
Manu Sawhney, managing director, ESS, said, “The World Cup has returned to the Sub-continent after 15 years. We will telecast 150 hours of original programming, in addition to the highlights package. Production is being done in high-definition format. Besides, live coverage of the matches would be available through 3G mobile streaming. The coverage would bring home the World Cup to 1 billion viewers across 200 territories.”
Ten Sports, which is telecasting matches between India and South Africa between December 16 and January 23, and has in its portfolio the India-West Indies series to be played in June-July 2011, is expecting Rs 250-300 crore in ad revenues next year.
Atul Pande, CEO, Ten Sports said: “We have signed up 12 sponsors for the South Africa series. This is a record of sorts, with advertising bookings in excess of Rs 130 crore. Ten Cricket is already booked to capacity inventory and there is a continuing demand.”