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The Indian Premier League (IPL) received the most severe jolt last week when the Supreme Court proposed that two franchises - Rajasthan Royals and Chennai Super Kings - tainted by the spot-fixing controversy, last year, should be kept out of the tournament. Coming on the back of the IPL venue-change, which had rattled advertisers, the proposal mooted by the apex court could not have come at a worse time. It helped that the Supreme Court eventually decided against keeping the two teams out, in an interim order on March 28.
Advertisers have been on a roller-coaster ride with the IPL in the last few years. Yet, it remains a key property in their annual calendar with all the big spenders in FMCG, telecom, IT, banking & finance, travel & tourism and e-commerce, parking their money behind the tournament.
B Thiagarajan, president, air conditioning and refrigeration products group, Blue Star, says, "IPL offers reach, which is critical to advertisers. This is one reason why it remains critical to most companies in the first half of the year. The holiday season is normally a time when you prefer to go out, shop and travel. If there is a property that forces consumers to stay back, switch on their TVs and watch the show, it obviously excites the brands."
According to Rohit Gupta, president, MSM, which has rights to broadcast the tournament, IPL cumulatively reached around 185-215 million viewers last year, with the figure expected to grow this year. "IPL has matured as a property and it is not one where you can do much to change the format of the tournament. Yet, people continue to tune into it. This is critical," he says.
From a high of about 5-6 television ratings in earlier editions, IPL's TVRs (TV ratings) were down to a little over half in the sixth season, yet media planners say that it is good enough. "It is a stable property," says Shubha George, chief operating officer, South Asia, MEC. "Something that advertisers understand."
Which is why despite all the hurdles, MSM continues to find takers for the property. Besides title sponsor PepsiCo and on-ground sponsor Vodafone, who are expected to advertise on air, MSM, according to media planners, is talking to last year's associate sponsors including Karbonn Tabs, Usha International, Godrej, Panasonic, Havells, Cadbury-Kraft, Samsung Mobiles and Tata Docomo for a possible renewal of their contracts this year.
Gupta says that 40 per cent of the ad inventory has been sold. "Now that the interim order has been passed, the fence-sitters should come on board. There were many with whom we had shaken hands, but who were unable to commit. They will hopefully come forward now," he says.
Almost 100 advertisers make themselves visible on IPL every year either through spot buys or sponsorships. Gupta says he expects this number to stay steady given that IPL's ability to deliver reach has not been affected significantly, despite its maturity and endless controversies. MSM expects to make Rs 900 crore in ad revenues this season, up from Rs 750-800 crore it did last year.
While advertisers are said to be bargaining hard on ad rates since a part of the tournament will be held in the UAE, ad rates for spot buys are still steep in the region of Rs 6-7 lakh per ten seconds. Sponsorships are in the region of Rs 4-5 lakh per ten seconds, media planners in the know say.
Title sponsor PepsiCo, which forked out Rs 400 crore for the rights, double the amount paid by predecessor DLF, is demanding additional visibility at IPL venues as compensation for the change in venue of the tournament.
A PepsiCo spokesperson says, "Our plans for IPL this season will be focused on exploring the equity and connect for brand Pepsi in season, while driving consumption across our portfolio by giving value to consumers and trade in different and interesting ways. Deals include merchandise, tickets, fan experiences in the Pepsi VIP box and special edition packaging, besides visibility on ground. We will also use our exclusive pouring partnerships with the franchisee teams to not only refresh fans, but also sample new products across our food and beverage range. '#That Pepsi Intern' will be a unique digital fan experience for Pepsi drinkers giving them never before access and experience at the tournament."
PepsiCo is expected to spend heavily on digital this year, integrating it seamlessly with its marketing across other platforms. "IPL will be the anchor of our plans for brand Pepsi and we will be leveraging it extensively in offline and online media," the PepsiCo spokesperson says. For now, IPL continues to benefit from the saying 'there is no such thing as bad publicity'.
