Vivo IPL 2019: Hotstar seeks Rs 50 crore for Digital Co-Presenting Sponsor

For Rs 50 crore, Star India will give the advertiser the option of choosing between mid-roll and/or pre-roll ads, social media branded cards, or the gaming feature of Watch n’Play

e4m by Venkata Susmita Biswas
Published: Feb 6, 2019 8:21 AM  | 3 min read

Star India is selling the digital sponsorship for Vivo IPL 2018 at a whopping 60-70% markup this year as compared to 2018. The rate for the Co-Presenting Sponsor is said to be around Rs 50 crore as compared to the final rate of Rs 30 crore at which it was sold last year. 

For Rs 50 crore, Star India will give the advertiser the option of choosing between mid-roll and/or pre-roll ads, social media branded cards, or the gaming feature of Watch n’Play. The Associate Sponsor package, which is priced at Rs 25 crore, also offers an option of the three broad inventory formats. The only difference being that the impressions for mid-roll and pre-roll ads and branded cards on social feed for Associate Sponsor will be lower than that for Co-Presenting Sponsor. Ad inventory on Hotstar is being sold independent of the television inventory as Star India as unbundled the two.  

Some advertisers are unhappy about having to choose between the three options. “We would surely want to have one of the features like gaming or social branded cards in addition to the video ads,” said a marketer who saw immense success with Hotstar’s Watch N’Play gaming feature introduced last year. 

One digital media buyer said that while marketers are trying to negotiate for packages that club at least two advertising features, “video ads (mid-roll and pre-roll ads) will see the highest investment among the formats available.”

As per the rate card that Star India has shared with brands and agencies, "the CPM for a 10-second mid-roll or 6-second pre-roll ad has been set at around Rs 120," one media buyer told exchange4media. "On a pro-rate basis, the CPM for a 30-second mid-roll ad will be Rs 360," he added. In comparison, the CPMs for video ads on YouTube ranges from Rs 200 to Rs 250, as per a KPMG study on media ecosystems.   

In addition, the cost of the Hotstar Masthead, which is around Rs 10 lakh per day, “is expected to go up to Rs 15-20 lakh during the period of the IPL spiking on the day of the final,” said the digital media buyer quoted above. 
This year, Hotstar will allow advertisers to target 24 different cohorts during the live streaming. These cohorts will include geo targeting based on: Mumbai, Delhi, Bengaluru, Hyderabad, Kolkata, Chennai, Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, Telangana, Maharashtra, Gujarat, Madhya Pradesh, Punjab, Haryana, Bihar, Uttar Pradesh, West Bengal, Bihar, Orissa, Hindi Speaking markets and demographic targeting to Female (all age group) and males. 

Given the strong viewership numbers for Vivo IPL 2018, Hotstar is promising advertisers high ROI. In 2018, as many as 202 million people logged on to Hotstar to watch IPL compared to 130 million people in 2017, registering a jump of 51 per cent.

According to multiple digital media buyers and marketers who are in talks with Star India to seal deals, the broadcaster is fiercely promoting the online streaming portal to brands. In 2018, Hotstar is estimated to have earned between Rs 300 and Rs 350 crore in ad revenue and Star India is said to be aiming at securing a 15-20% increase in ad revenue overall.   

Hotstar claims to have 110 million monthly active users and as of March 2018, Hotstar accounted for nearly 70% of the total video streaming apps installs in India.

The Vivo IPL 2019 will be held between March 29 and May 13.

exchange4media's email to Star India seeking confirmation on the details mentioned in this article went unanswered until the time of publication. 


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