What IPL-4 got right: a study with VivaKi Exchange

In collaboration with VivaKi Exchange, exchange4media analyses the Indian Premier League, and the impact it had on television and advertising industries.

e4m by Fatema Rajkotwala
Updated: Jun 15, 2011 9:40 AM
What IPL-4 got right: a study with VivaKi Exchange

After the taste of the ICC Cricket World Cup and the Indian Premier League season four, not many television events are poised to grab as much media and advertiser attention. While the World Cup emerged a clear winner with the Indian audience for obvious reasons, the IPL left some questioning the success rate of the tournament this year.

A detailed study by VivaKi Exchange, in collaboration with exchange4media, breaks down the tournament to the bone…

A game changing television event that originally began with eight teams, had a total of ten teams, with two new additions in 2010. Starting out with 59 matches in 2008, the IPL moved to 60 matches in 2010 and finally to 74 matches in 2011.

Through the years, the larger chunk of the matches has been scheduled in the 8 pm prime time slot. In 2008, 15 matches were telecast at 4 pm and 43 at 8 pm. In 2011, the break up saw 24 matches being telecasted at 4 pm and 49 at 8 pm.

2009 was the only year the tournament was held in South Africa, while the rest have been held in India.

Viewer Ratio
While ratings have seen a 30 per cent drop, Reach has grown by average of 17 per cent Year-on-Year. The study shows a clear viewership skewing to Male 35+ SEC B and D/E. Women still form a large chunk of the viewership and there has been close to 240 per cent female viewership growth in the IPL.

IPL Season 4 viewership has seen a decline, while Hindi GEC is on the rise. Also, viewers moved from sports channels to MAX for IPL.

Market Watch: IPL vs. WC
The study reveals that the six metro markets contribute up to 43 per cent of the ratings while the rest 32 per cent (37 per cent for WC) come from lesser than 10 lakh population towns. In terms of Hindi speaking markets, IPL sees a viewership of 81 per cent as compared to 76 per cent for World Cup.

While the key markets for World Cup and IPL are Maharashtra, West Bengal, Delhi, Uttar Pradesh, Gujarat and Karnataka and remain the same, the overall contribution percentage differs. Overall contribution from the South markets has declined with Kerala remaining the lowest watching state despite the creation of a home team in 2011.

Super Teams
IPL Season 1 was bagged by Rajasthan Royals, Season 2 by Deccan Chargers, while the winners for the third and fourth season have been team Chennai Super Kings. The brand value of Chennai Super Kings is estimated at Rs. 70.16 million.

Inventory on IPL
As depicted by the study, the league has seen an exponential increase of inventory over the years in each season. Beginning with a roster of 80 advertisers and 158 brands on board, sharing a FCT of 32 hours, IPL Season 1 is pegged at television revenue of Rs. 250 crore.

With the recession in 2009, IPL 2 had managed television advertising revenues of Rs. 460 crore with 49 advertisers and 130 brands on board. In 2011, the total television revenue pie has grown to Rs. 1000 crore with 161 brands and 69 advertisers.

The league has also seen a decreasing dependence on top 10 advertisers over the years from 64, down to 48 per cent in 2011. The overall advertising basket has also added new advertisers this year.

Of Franchises and Deals
In 2008, the base auctions began at a price of Rs. 400 million, finally fetching up to Rs. 700 million. The second franchise auction obtained Rs. 703 million, with team Kochi at Rs. 333.3 million and team Pune at Rs. 370 million. The IPL is predicted to bring BCCI an income of Rs. 1.6 billion over a period of 5-10 years. Sony Entertainment Television’s deal with BCCI is for Rs. 1.93 billion for 10 years.

Kingfisher signed deals worth Rs. 26.5 million as the beer and airline conglomerate and a branding deal worth Rs. 106 crore as the official Umpire partner during 3rd Umpire decisions. DLF signed a five-year deal worth Rs 50 million for title sponsorship and for the official website. Hero Honda and Pepsico signed similar tenure deals worth Rs. 22.5 million and 12.5 million respectively. ITC Welcome group is the hospitality partner in most cities.

Key Observations from the study:
• On an average, IPL reached 2.27 million viewers per match
• IPL 4, in terms of Brand Value is estimated at Rs. 4.13 billion, up 100 per cent from IPL 2
• IPL is the second highest paid league (1st is NBA – based on 1st term salaries on a pro rata basis: Global Salary Survey)
• In 2010, IPL was the first ever sporting event to be broadcast on YouTube
• Sponsors on World Cup got more salience than those on IPL 2011

While the IPL remains an expensive buy, impact on brand metrics across categories remains positive. As brand loyalties grow stronger, IPL promises to remain a strong multimedia platform for brands to leverage their offerings.

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