Cricket and entertainment, it’s a match made in heaven. For proof look at the Indian Premier League; in the 10-year period between 2014 and 2023, its value as per Brand Finance estimates has trebled from $3.2 billion to $10.7 billion.
The 16-year-old property is second only to the American National Football League (NFL), which has an estimated brand value of $11.2 billion and is88 years older.
In a perverse way, industry experts attribute the massive jump in viewership and brand value this season to the split in media rights between JioCinema and Disney Star. As Brand Finance indicates, the IPL’s total brand value soared 28% in 2023 over the last season, to secure its place as a decacorn.
The TV and digital broadcast rights for the 2023-27 period were sold for Rs 48,390 crore, compared with Rs 16,347.5 crore for the 2017-22 seasons. The media rights auction played a big role in driving up the IPL’s brand value; 2023 was also the first year since the pandemic that saw packed stadiums. In fact, some teams like Chennai Super Kings (CSK) arranged for fans to travel to multiple locations to cheer their team on.
Experts also point out that JioCinema’s entry into the IPL arena was the disruptive force this year. Jio worked smartly — not only did it stream the tournament free for viewing, it offered the IPL in 16 feeds across 12 regional languages, allowing it to reach more audiences in rural areas. Moreover, IPL was made available not just to Jio users, but to subscribers of all other telecom operators as well.
On its part, IPL’s telecast partner Disney Star left no stone unturned. It offered the IPL in nine languages, which helped widen the audience base. Because the reach and visibility increased, advertisers kept splurging as the tournament progressed.
Many new advertisers came in this season, targeting specific markets and language streams. There were 18 new advertising categories and 83 new brands advertised in the first 54 matches of IPL 16, compared to the same number of matches in IPL 15, according to a TAM advertising report. In terms of sheer ad volume, the pan masala category beat the fantasy sports/e-commerce/ gaming category, which had led the stakes during the last IPL season.
That sent ad revenues zooming. Disney Star and JioCinema are said to have earned between Rs 2,500-3,500 crore each this season from advertising alone. And it’s not just Indian brands; Saudi Arabia’s Aramco has been investing in the IPL for the past couple of seasons, sponsoring the awards for highest run scorers and wicket-takers in the season at a reported investment of Rs 65 crore per year.
Watching out for those booby traps
The format of the 16-year-old IPL remains relatively unchanged and that could potentially cause viewer fatigue, according to Sandeep Goyal, CMD at Rediffusion. Goyal believes the key to success for a property like IPL lies in building up team loyalty. “Fans need to be engaged with not just during season time but through the year,” he said. He cited the example of fans of English Premier League football teams like Manchester United and Chelsea, which have fan communities and events even in Indian metros like Mumbai and Kolkata.
In fact, in the 2022 season, IPL viewership fell to 360 million on television from 405 million in 2020, causing much consternation among advertisers. The fall was attributed largely to poor performances by the two most popular franchises, Mumbai Indians and CSK, and to startups and tech firms tightening their purse strings. However what it signalled was that the IPL brand is not immune to viewer fatigue.
That apart, IPL teams have not been able to make merchandise a major revenue source, unlike older leagues around the world. Also, marketers seem to be grappling with the dual challenge of crafting campaigns that resonate globally without neglecting cultural nuances, and devising strategies to become the go-to platform for global and local brands targeting the same IPL audience, says Gautam Madhavan, founder and CEO, Mad Influence.
Among the things that the Board of Control for Cricket in India needs to keep in mind is that this is a spectator and stadium sport. “The board can take a leaf out of the NBA playbook and rework the spectator experience better,” suggests N Chandramouli, CEO at brand insights agency, TRA Research.
Another pressing issue is the proliferation of fraudulent betting and gambling apps on the advertiser list, despite the ban on 174 such apps. More substantial interventions from the IPL board are needed to stop them having any negative impact on viewers, says Madhavan.
“It would be interesting to see IPL evolve into an e-sport competition. Gamification of cricket, which also appeals to younger audiences at a global level, can create a significant allure towards cricket as a sport, and enable the IPL to become a year-round property,” says Ashish Pherwani, leader for the media & entertainment sector for EY in India.
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