Mumbai : The Indian Premier League seems to have beaten the ongoing cricket World Cup, at least on television ad rates. Multi Screen Media, the official broadcaster of IPL, is selling initial 10-second match-time ad spots on television for Rs 4.75-5 lakh each, 15% more than the previous edition, contrary to the perception that IPL rates could be lower this year because it is scheduled right after the World Cup. And, as the tournament progresses, the rates could go up.
Top advertisers who have stayed away from the World Cup citing steep rates charged by tournament broadcaster Star, are in the process of closing deals with MSM’s Sony Entertainment Television at even higher rates. This is primarily because of the prime-time factor and the fact that star players would be seen consistently through the tournament, top media-buying executives said.
Talks on for More Sponsorship Deals
Star charged on an average Rs 4.5 lakh for the initial World Cup matches, but the rates were far higher when India played, they said. “We are in talks with MSM to advertise on IPL. We did not advertise on the World Cup on Star because we did not see value in the kind of rates Star was asking,” said Mayank Shah, deputy marketing manager at biscuits firm Parle Products. Shah, however, said Parle has chosen to advertise its brands on Doordarshan during the World Cup. The state-owned channel is also live telecasting World Cup Matches in India.
Beverages maker Coca-Cola, conspicuous by its absence in World Cup, too, plans to go big on IPL, an executive aware of its plans said. “Coca-Cola wasn’t keen on the World Cup because of the ad rates. But IPL is prime time and the beverages maker is currently negotiating with MSM to pick up significant inventory on the channel,” this person said.
IPL is happening during the peak season for beverages firms. The league this year will start on April 8 and the final is on May 24. Coca-Cola’s rival, PepsiCo, is IPL’s title sponsor. MSM President Rohit Gupta confirmed the ad rates and said the company has closed 10 sponsorship deals. “We might have to increase sponsorship slots to 12 or 13 if all deals we are negotiating go through,” he added.
HIGHER AD REVENUES LIKELY
Sponsors MSM has signed on include Amazon, Vodafone, Hero MotoCorp and Paytm. Media buyers said the company could rake in close to Rs 950 crore from ad sales this IPL, up from Rs 800 crore last season when the tournament had 60 games.
At the World Cup, apart from India-specific matches which were mostly on weekends, most other matches were during early mornings on weekdays, which doesn’t influence television ratings much. And, in fact, India’s good run at the World Cup could help IPL’s popularity. “Since India is doing well, there is a positive rub-off on IPL. This time, pricing for the league is the highest ever,” said Vinit Karnik, national director (sports & live events) at media buying firm GroupM ESP.
He said in 2011, when also the World Cup and IPL schedules clashed, rates for the World Cup were higher than IPL because the tournament was held in India. What had also impacted IPL rates then was overall fatigue, especially for prime time, as almost 100 days were blocked by cricket, he said. “This year, though, things have changed. World Cup matches this time have been in the non-primetime zone.”
MSM’s Gupta said the broadcaster has sold 70-80% of its inventory and will have to increase prices soon. “More sponsors mean less clutter on TV eventually (as there will be fewer spots available for other advertisers). Prime-time fatigue is less this time. In the World Cup, India matches are once every week, because of which there is very little fatigue around cricket.”
