IPL in the time of Diwali has broadcaster upbeat

Banking on the IPL happening around Diwali for the first time, this is a Rs 3270 crore question IPL’s broadcaster is cautiously optimistic of dealing with.

How much can Star India make from this year’s Indian Premier League (IPL) being held during a severe economic crisis? Banking on the T20 tournament happening around Diwali for the first time, this is a Rs 3270 crore question IPL’s broadcaster is cautiously optimistic of dealing with. Rs 3270 crore is what Star India pays every year in a five-year deal worth Rs 16,347.5 crore.

File image of the IPL trophy. (BCCI Image)

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Covid-19 has depressed the market but making matters worse is the anti-China sentiment in India following military tension between the two countries along the Line of Actual Control in eastern Ladakh. Chinese mobile phone companies Vivo and Oppo were two of the 10 biggest advertisers in last year’s IPL, according to a report by the Broadcast Audience Research Council (BARC).

This year, Vivo has put on hold its annual Rs 440 crore deal as title sponsor. It cost the Indian cricket board, which owns IPL, nearly Rs 220 crore as fantasy sports company Dream 11 bought the rights for Rs 222 crore. Media buyers told this paper that Chinese companies were planning to spend over Rs 500 crore on advertising in IPL this year. That changed after June 15 when violence on the border led to the death of 20 Indian soldiers and an unspecified number of Chinese troops.

IPL will be held in the UAE from September 19 to November 8. Before the dates and venues were confirmed, Star India boss Uday Shankar had spoken about difficulties in getting advertisers. The company is more upbeat now. “The tournament is coinciding with the festive season making it a massive opportunity for advertisers to take advantage of. There is pent-up demand and positive sentiment amongst the marketers and we are confident of them making the obvious and the surest choice,” says Gautam Thakar, CEO, Star Sports.

Usually held in summer, IPL got deferred this time because of Covid-19 and will be held at a time when advertising is at its peak. “The positive is the festive season. Everyone wants to come out of negative sentiment. So, they will pump in money,” says Shashi Sinha, CEO, IPG Mediabrands India. “Yes, the economy is under pressure, the beverages are under pressure, this isn’t the season for ice-creams. So these categories have been affected. But globally we have seen wherever sport has resumed the viewership has gone up.”

Experts say IPL being available in Star’s regional channels will attract advertisers from all over India. “Also, festive advertising in GEC (generalist channels which have varied content), news and movie channels is fragmented. IPL is the highest viewership and reach builder. One big game and the whole country sees it,” says Sinha.

Closed-door games have ensured that the broadcaster gets its preferred 7.30pm start in the competition which will also have 10 double-headers.

“We are geared up to make IPL 2020 the biggest-ever and the most-watched tourney in history. With matches beginning half-hour early, lesser doubleheaders, and the sheer size of the captive audience, we are assertive of setting a new viewership record,” says Thakar.

This explains why the broadcaster is seeking inventory pricing of pre-Covid levels. Buyers in the market say it will be Rs12 lakh for a 10-second slot, a price comparable to World Cup rates. Also, there are plans to increase pre-match programming from 60 to 90 minutes to facilitate more non-live advertising which is cheaper.

According to media watchers, IPL will also get the advertising reserved for World T20 and Asia Cup both of which have been deferred. “This is a great opportunity to unlock the true potential of IPL and expand the horizon by inducting a new set of audience to the sporting festival,” says Vinit Karnik, Business Head, ESP Properties, a sport and entertainment agency.