Home >> Marketing >> Article

Sports sponsorship in India grew by 14% last year: ESP Properties Report

21-March-2018
Font Size   16
Sports sponsorship in India grew by 14% last year: ESP Properties Report

Year 2017 turned out to be a great year for the business of sports in India. While demonetization and GST hit overall ad expenditure in 2017, the sports sector has been able to ride the storm with a steady and positive trajectory.

The overall sports sponsorship in India grew by 14% in 2017, according to a report released by ESP Properties, the entertainment and sports arm of GroupM and SportzPower.

Media investments contributed to the largest portion of the pie (55% of overall spends), followed by ground sponsorship, according to the report. Sports advertising rose to Rs 7,300 crores, a substantial leap from Rs 6,400 crores in the previous year. Year 2017 was a milestone year in sports sponsorship, as the US billion-dollar mark was crossed for the first time.

As per GroupM’s ‘This Year, Next Year’ advertising investment forecast, Indian advertising expenditure in 2017 was Rs 61,263 crores, and this report estimates that 12% contribution to the overall ad spends are from sports sponsorship alone.

Interestingly, sponsorship of non-cricketing sports grew in 2017. India’s second biggest sport by participation and attendance, football grew by a considerable 64%. India hosted its first ever FIFA U-17 World Cup which became the most attended in the history of the event. Attendance for this Football World Cup was a record 1,347,133, surpassing China's 1985 audience of 1,230,976.

Since last year, ISL has become a 10 team, 18+ week showcase, up from 8 teams and 10 weeks in the last season. ISL sponsorship has grown by 22% from the previous year. The gap between PKL & IPL TV ratings is narrowing - PKL delivered 1.5 TVR with 312 million reach and IPL delivered 2.7 TVR with 411 million. Football has a tremendous reach in West Bengal, the North East, Kerala and Goa, similarly PKL delivers well in Patna, UP, Jaipur and Hyderabad among others.

Year 2017 also saw the birth of five new franchise based leagues – UTT, SBL, SFL, Cue Slam and P1 Power Boating. Brands are bullish about investing in emerging sports; 25% increase in franchise fees came from developments in other sports, as cricket remained unchanged. Thirty-six new franchises were added across all new and existing leagues.

All major sporting leagues managed to bring on board sponsors at a 100% or more incremental value for the title sponsorship. Specifically, the IPL has emerged as one of the top five most valuable global sports properties in the world, according to the report.

Talking about the report, Vinit Karnik, Business Head, ESP Properties, said, “2017 was truly the big year for the business of sports. With Pro Kabaddi League emerging as the second-most popular league in India after the Indian Premier League, and the India edition of U-17 Football World Cup creating history in terms of audience attendance, sports sponsorship enjoyed a bull run.”

“As popularity of sports grows in India, sports stars also expand their brand endorsement portfolios. Virat Kohli led brand endorsements with 19 brands and 150+ crore in value, while PV Sindhu leads the non-cricket endorsement space with 11 brands and 30+ crore in value,” Karnik said.

Thomas Abraham, Co-Founder, SportzPower, said, “With the 2017 momentum and the economy also looking up and set to grow at 7.3% in 2018-19, sports is looking at an even bigger year. As the industry anticipates clarity on the structure of club football in India, among the new leagues on the horizon, volleyball seems the most promising. In the media firmament, while new revenue benchmarks are expected from television, it will be traction in the digital arena which provides real pointers to where the industry is going over the next few years.”

Based on media events across various leagues and tournaments, 2018 looks like a good year for cricket and other sports, which will give rise to deeper engagement with brands and sporting fans in India, the report concludes.

Kartikeya Sharma says that June has been the best month for sales in the 11 years that the brand has been in India

The newly appointed CEO of ZEE5 on how he aims to have the widest appeal in the OTT space amongst Indian consumers

The VP, Marketing and Communications (South Asia), talks about the company's growth strategy, its focus areas, impact of demonetisation on consumer behaviour and much more

Siju Prabhakaran, South Cluster Head, Zee Entertainment Enterprises Limited, talks about channel's rebranding, extending fiction shows to weekends and much more

right
left
RADIO CITY CELEBRATES ITS 17TH ANNIVERSARY WITH CONCERT, AWARDS AND FUN 5TH EDITION OF TIMES NOW & ICICI BANK’S NRI OF THE YEAR AWARDS GLOBAL INDIANS PITCH CMO SUMMIT BENGALURU SEES TOP INDUSTRY LEADERS AND MARKETERS IN ATTENDANCE DISTINGUISHED JURY COMES TOGETHER TO PICK WINNERS FOR PITCH’S TOP 50 BRANDS PITCH CMO SUMMIT BANGALORE SEES TOP CMOS ACROSS INDUSTRIES IN ATTENDANCE 1ST REPUBLIC TV GULF INDIAN LEADERSHIP SUMMIT & AWARDS HONOUR STALWARTS OF INDIAN GULF BUSINESS COMMUNITY SONY YAY! CELEBRATES ITS FIRST BIRTHDAY WITH PARTY FOR TRADE PARTNERS THOUGHT LEADERS AND TOP DIGITAL MARKETERS SPEAK @ EXCHANGE4MEDIA GROUP’S TECHMANCH 2018 IN MUMBAI EXCHANGE4MEDIA’S IDMA 2018 RECOGNIZES INDUSTRY’S BEST DIGITAL MARKETING CAMPAIGNS REALTY PLUS UNVEILS COFFEE TABLE BOOK AT 10TH CONCLAVE & EXCELLENCE AWARDS @AHMEDABAD EMINENT JURY CONGREGATES TO PICK WINNERS OF INDIAN DIGITAL MARKETING AWARDS 2018 OFF THE CUFF SEES ‘SWACHH BHARAT ABHIYAN’ MAN PARAMESWARAN IYER IN CONVERSATION WITH SHEKHAR GUPTA EXCHANGE4MEDIA’S LOUDEST.IN HOSTS INAUGURAL EDITION OF MUSIC INC. IN MUMBAI EMINENT JURY CONGREGATES TO PICK IMPACT’S 40UNDERFORTY ACHIEVERS PORTER PRIZE & INSTITUTE FOR COMPETITIVENESS RECOGNIZE STRATEGIC ACUMEN IN COMPANIES DELHI AD CLUB-SAARC AWARDS 2018 RECOGNIZE EXCELLENCE ACROSS CREATIVE, MEDIA & DIGITAL AGENCIES BSNL & CALL2ACTION COMMUNICATION INDIA LAUNCH MOBILE ADVERTISING PLATFORM, INFOMO IN NEW DELHI CHILDREN’S RIGHTS ACTIVIST KAILASH SATYARTHI LAUNCHES BOOK ‘EVERY CHILD MATTERS’ SENIOR JOURNALIST VIJAY TRIVEDI LAUNCHES BOOK ‘YADA YADA HI YOGI’ BASED ON YOGI ADITYANATH EMINENT JURY CONGREGATES TO PICK IMPACT’S 40UNDERFORTY ACHIEVERS

In the same week, in BARC's Top 10 Advertisers FMCG brand Hindustan Lever continued to reign the category

Hero Motocorp remained the leading advertiser followed by AMFI, Honda Motorcycle & Scooter India.

Ali Hussein talks about the platform's consumer engagement strategy, relationships with telco-partners and what made the 40-year-old film company want to march in the OTT space