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Business – Advertisers rush to jump on IPL3 bandwagon

Meenakshi Verama Ambwani

NEW DELHI: The Indian Premier League 3 has proved a smash hit four months its start with official broadcaster Multi Screen Media — formerly Sony
Entertainment Television — already signing six of the 10 sponsors for the tournament that returns to the country after a South African edition.

Telecom operator Vodafone and consumer durables maker Videocon have signed on as the two presenting sponsors, while PepsiCo, LG Electronics India, Hyundai Motor India and Samsung India have come on-board as the associate sponsors for the 45-day tourney that begins on March 12 next year.

“IPL is now an established cricket property and advertisers want to be part of it well in advance so they can get enough time to plan their campaigns as well as other ground activities,” said MSM president Rohit Gupta. He said discussions are on with some last year’s sponsors and brands in the FMCG, insurance, two-wheeler and direct-to-home segments and the rest of the sponsors will be identified soon.

The tournament did away with the concept of category exclusivity last season, when it had nine sponsors. The sponsors are expected to shell out Rs 35-50 crore each on IPL with the two presenting sponsors paying more than Rs 50 crore.

Back of the envelope calculations indicate that the broadcaster is expected to earn an estimated Rs 600-625 crore as advertising revenues from IPL 3, up from an estimated Rs 500 crore in the second season.

In 2009, the MSM-World Sports Group combine had renewed its IPL deal with BCCI for an estimated Rs 8,200 crore for nine years.

The broadcaster believes that the advertising outlay for the third season is going to be substantially higher than season 2.

Deals have been stuck at an estimated Rs 4.75 lakh per 10 seconds compared to an estimated Rs 4 lakh per ten second in the last season.

“The rates for spot buys would only go higher as IPL second season’s reached 123 million audience up 20% from the first season. Also, it reached 80% of the male population in cable & satellite homes,” added Mr Gupta.

“This year most sports broadcasters finalised their sponsorship deals much in advance, especially with big ticket cricket properties, to avoid last minute glitches as advertisers have become more stringent with their buying decisions,” said Sai Nagesh chief growth officer, Dentsu Media, India.

With at least five new telecom players entering India, this category could witness huge media spends, he added. Also, with the tournament returning to India, the on-ground advertisement is expected to see a spurt. In the South African edition, most on-air and team sponsors completely skipped the ground activities.

As per BCCI’s latest announcements, four cities — Nagpur, Vishakhapatnam, Ahmedabad and Dharamsala — have been added to the IPL venues, taking the total to 12 venues.

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October 30, 2009 - Posted by | Uncategorized |

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