IPL: Star hikes ad rates by 25-30%; 10 seconds to now cost Rs 18 lakh
The broadcaster has so far roped in 12 sponsors for the second leg of the tournament
Indian Premier League (IPL)’s official broadcaster Star Sports has increased ad rates for the second leg of the tournament by 25-30% owing to massive demand and positive sentiment in the market ahead of the festivals. The rates have been increased from Rs 13-14 lakh to Rs 18 lakh per 10 seconds, according to sources in the industry. The sources also say that the inventory is almost full for the remaining 31 matches.
We reached out to Star Sports for an official comment, but are yet to receive a response.
The broadcaster has so far roped in 12 sponsors-- Dream 11, PhonePe, and Byju’s as co-presenting sponsors; Bingo, Kamla Pasand, AMFI, Asian Paints, Cadbury Dairy Milk, Amazon Prime, Thums Up, Garnier Men, and Cred as associate sponsors. The channel is said to be in the process of closing more sponsors before the game starts.
For the first phase, held in April, the broadcaster had onboarded 17 sponsors. But some of these sponsors, including Just Dial, Vodafone- Idea, Groww, Frooti, and Havells Fans, decided to discontinue their association after IPL got postponed during the second wave of Covid-19.
Talking about the hike in the rates, a senior media planner, on the condition of anonymity, said, “There is considerable demand. With festive period coming in and markets opening up, brands are very aggressive with their marketing plans.” He also shared that Star is likely to sell the remaining 10-15% inventory, which is usually kept for the final match, now only.
As earlier reported by exchange4media, in the first phase, spot buyers had to pay between Rs 14.1 and 14.3 lakh for a 10-second spot. The cost of co-presenting sponsorship was is in the range of Rs 110-125 crore while associate sponsorship was priced at Rs 65-70 crore. The broadcaster charged Rs 13.2 lakh per 10 seconds from co-presenting sponsors and Rs 13.6 lakh per 10 seconds from associate sponsors. Spot buyers had to fork out Rs 14.1 to 14.3 lakh for a 10-second spot.
Meanwhile, a source close to the development said, “Star is quoting rates around Rs 16-18 lakh, but is likely to close the deals for less than the amount. “Both IPL and T20 World Cup are important properties, and so inventory for the series is filling up fast. Also festive period is working in the favour of the broadcaster.”
According to another media planner, there are some advertisers who want to be associated with IPL at any cost. “The new-age fintech advertisers, who are not into negotiations so much, are ready to spend this kind of money on IPL. Also, festive time is when some brands spend up to 50 per cent of their annual ad dollars, and rest of the budget is for special events like big shows or sporting properties like IPL. Since the second instalment of the game is coinciding with the festive season, it’s great for the advertisers. They are putting their money on IPL with the confidence of gaining access and reach the festive season audience as well as the regular IPL audience. It’s a win-win situation for both brands and the platforms, be it TV or digital.”
Last year, the broadcaster had roped in 18 sponsors for the tournament and signed up 117 advertisers. Among the associate sponsors were Dream11, PhonePe, Byju’s, VI, and Amazon, while the co-presenting sponsors were Mondelez, ITC Foods, Polycab, Diageo, P&G, Coca Cola, Hero, Facebook, KP Group, Daily Hunt, Samsung, Cred and AMFI.
As per TAM data on IPL 13, for the first 52 matches, the count of advertisers and brands grew by 12% and 2% respectively when compared to the previous season. The total count of advertisers and brands stood at 115 and 237 respectively in IPL 13 as compared to 103 and 232 for IPL 12. However, the total category count (89) for IPL 13 has been less than the last season’s 91.
In terms of viewership, IPL 13 registered 7.0 billion viewing minutes for the first 41 matches aired across 21 channels in the last five weeks (Week 38 -42), which is 28% higher as compared to IPL 12 that garnered 5.5 billion viewing minutes for 44 matches aired across 24 channels. The data indicates that the performance per match of IPL 13 was higher than the previous season. The cume reach of IPL 13 for 41 matches was 108 million, 11% higher than IPL 12. The previous season registered 98 million cume reach.
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