E-commerce, one of the big spending categories this year, is estimated to contribute 10-12% to the overall adex in 2015. While ecommerce companies are expected to increase their ad spends this year by nearly 20-30%, a significant rise in ad spends will be on the Indian Premier League (IPL) season 8. We saw the number of large ecommerce companies conspicuously absent on the World Cup despite it being one of the biggest properties on TV during the year. (Why are e-commerce majors missing in action from World Cup so far?) It was during the previous IPL that e-commerce brands started spending big bucks.
The e-commerce brands associated with IPL 7 included Amazon, Quikr, Flipkart, Paytm and Go-Daddy. This year the e-commerce brands that have already signed on as broadcasting sponsors include Amazon as the presenting sponsor, CarDekho.com and Paytm as associate sponsors (Brands acquire 65-70% of IPL ad inventory). Apart from this Snapdeal.com and Carwale.com have also signed some big spot deals. CarDekho.com in addition has also brought spots on the Sony Max ‘Extra Innings’ property. Besides this Freecharge has recently associated with the IPL team Chennai Super Kings (CSK) as a sponsor and also looks to advertise on TV with their newly launched campaign. Similarly, ShopClues.com has also associated with team CSK for the IPL. “We are associating with CSK for the IPL. While for broadcast, we are working out for some air-time deals but no sponsorship kind of a deal right now,” said Nitin Agarwal, Senior Marketing Director, ShopClues.com. Indiaproperty.com is another ecommerce company that is said to be associated with the Mumbai Indians team.
Sonia Dhawan, Marketing Head, Paytm said, “Our intent is to establish brand recall and salience for Paytm even more. IPL is a great platform to establish reach, and that is what we aim to do through this initiative. A mass brand just cannot afford to not be involved with it. Cricket attracts high profile personalities from every sphere of life, from Bollywood celebrities to industrialists and from journalists to sports enthusiasts. We will be spending millions of dollars in the upcoming season and will also be considering other sports to build mass connect in India.”
During the previous IPL, Paytm is said to have made investments of around Rs.5 crore. The ecommerce company was giving shopping vouchers up to Rs.2 lakh to lucky shoppers along with some guaranteed cash backs. This year being an associate sponsor the investment could be in the range of Rs.27.5 crore to Rs.40 crore.
Amazon India which was an associate sponsor for the IPL 7 was said to have invested almost Rs.25-30 crore for 100-120 seconds per match. They have upped their spends this season by taking up the presenting sponsorship rights amounting to 210 seconds per match for which they could now have made an investment in the range of Rs.50 – Rs.60 crore. Vodafone and Karbonn which were the presenting sponsors during IPL 7 were said to have invested Rs.55 crore and Rs.45 crore, respectively.
There are also several other e-commerce companies such as Jabong, Policybazaar.com, CarTrade.com, amongst many others which are said to looking keenly at associating with the tournament and are currently in talks regarding various deals.