It’s not the first time that the World Cup and IPL have been pitted against each other. With the end of a slow fiscal and odd match timings to consider, will advertisers opt for IPL 8 over World Cup 2015?
BY SALONI DUTTA
It’s that time again! The first half of 2015 spells a back-to-back treat for cricket fans all over India, what with the International Cricket Council (ICC)’s World Cup starting in mid-February and following its final by over a week’s breather, the Board of Control for Cricket in India (BCCI)’s Indian Premier League (IPL) 8. While expectations from the Indian team’s performance at the World Cup are on a low, fans are nonetheless excited for the tournament in spite of odd timings owing to the host countries Australia and New Zealand. Fans’ excitement aside, ICC’s and BCCI’s targets are no less in terms of revenue and reach.
World Cup vs IPL
This is not the first time that the two tournaments are coinciding. They were first pitted against each other in 2011. Back then, not only did ICC exceed its targets by raking in more than Rs 700 crore, but IPL broadcasters and sponsors too were not disappointed by the cricket hungry nation as the tournament attracted a record Rs 800 crore in marketing spends the same year.
This time around, it is a different ball game altogether. We’re nearing the end of a slow fiscal, profits haven’t met targets and just before the financial year closes, a massive marketing investment is called for from advertisers. While for some brands, the World Cup is a tournament they simply cannot let go, for others this would be the first World Cup when their advertising spends would be floating between the two cricketing events. Giving an insight on the sentiment, Gautam Kiyawat, CEO, Madison India says, “Companies are finding it tough to make that investment versus the kind of profitability it would give. Similarly for IPL, the stakes are much higher. They have to compete for whatever money is there. It is difficult to expect that completely fresh money comes for the IPL.” Another factor acting as a downer for advertisers is the timing of the matches. Since the tournament this year is being hosted by Australia and New Zealand, six hours ahead of Indian Standard Time, the matches here will be telecast at odd hours. Many are wondering whether the World Cup will be a safe bet, a profitable one or an expensive affair. With two weeks to go, as many as 90 brands that are expected to buy slots on television are still in a fix: split the budget or opt for the better of the two tournaments. Commenting on marketers’ dilemma, Vinit Karnik, National Director – Sports & Live Events, GroupM ESP says, “There isn’t much stress on the decision between the two. It depends on the campaign and when one wants visibility. If someone wants visibility in February or March, they will most certainly opt for the World Cup. Most of our clients have campaigns during the summer so they will pick IPL.” Kartik Sharma, MD, South Asia, Maxus feels that advertisers who have always looked at cricket as part of their media mix will continue to explore both events. He says, “The opportunity to capitalize on either event would purely depend on the campaign’s requirements and the creative route decided. Many brands often have a World Cup or IPL driven campaign.” On the other hand, Sandeep Sharma, President, RK Swamy Media says, “The period of February-March is advantageous from a client spend point of view. For MNCs, it is the beginning of the year with fresh budgets, and for Indian clients it is the last fiscal quarter so very important from that aspect.”
Aiming for the stars
In October last year, the ICC announced cricket’s biggest-ever global broadcast partnership by jointly awarding its audio-visual rights for ICC events from 2015 to 2023 to Star India and Star Middle East. Making the most of this partnership, Star will telecast the World Cup tournament in four regional languages apart from English and Hindi, hence tapping a new set of audiences. The network will also broadcast select matches in the 4K (ultra-high definition) format. The revenue generated by regional broadcast may act as surplus, apart from its Digital revenues that will be an add-on this year.
Talking about Star’s strategy, Sanjay Gupta, COO, Star India says, “The last edition was watched by 90% of TV viewers in the country, making it the largest aggregation of consumers possible. At Star, we plan to make this World Cup, a ‘Cup for All’. We will introduce many firsts and innovations in sports broadcasting, taking the game to the next level and provide an unprecedented viewing experience.”
While Star Sports has signed on several brands such as Maruti, Nestle, Raymond, Marico, Pidilite, YepMe and Paytm, the real challenge for Star is to fetch what they had targeted. Sources suggest that Star started at 10-second spot charges of Rs 5.5 lakh, which have already come down. The way Star is approaching the market closer to the tournament is not the same as it was a month earlier. The general sense in industry corridors is below expectation. An insider comments, “It will make about Rs 1,000-1,500 crore, but not at the kind of rates they expected.”
Closer home to IPL
On the other hand, Sony is sitting smart as of now with ad rates that are 10-15% higher than last year’s. If India does well in the World Cup, it will only boost IPL’s viewership further. But even if it doesn’t, IPL will not miss out as the tournament is not about the Indian team. If last year’s ad rates as suggested in media reports (Rs 4.5-5 lakh per 10 second spot) are anything to go by, a 10-15% increase would take it to approximately Rs 5-5.75 lakh in 2015. Justifying the hike, Rohit Gupta, President, Multi Screen Media says, “In 2014, we took a 10% increase and there was an 8-10% increase in ratings. So the overall ROI for the client is still at the same level.” The only worry, if any, for Sony is the lack of authenticity of the tournament that may hamper business.
It’s all about the client
The Cokes and Pepsis of the world have already started their associations with both properties. So for either of the properties to get marketers to spend, they will have to show potential and build confidence.
Madhu Dutta, Marketing Head – Lifestyle Business, Raymond Limited says, “The World Cup is a marquee property in cricket for a brand like Raymond to associate with. We feel it’s the ultimate vehicle to carry our brand message at the onset of the Spring Summer season. There tends to be little channel-surfing during a commercial break; therefore a cricket match means a captive audience.”
Samar Singh Sheikhawat, SVP, United Breweries Limited says, “I’m not sure how much Indian marketers can leverage the World Cup simply because it’s not happening in India; so one misses on opportunities such as on-ground and in-stadium activations. As for IPL, it will continue to be big. It’s the biggest reality show in the country as it’s no longer just about sports but also packs in entertainment, glamour and controversies. For us, it comes in the peak season of April and May, so obviously we will leverage that and our IPL campaign will as usual be big and bold.”
Says Pravin Kulkarnii, GM – Marketing, Parle Products, “Unfortunately this year the timings are not suitable for Indian viewers. Viewership is not going to be as good as in the past. IPL will definitely hold attraction for Indian viewers because the format is interesting and exciting. Last year was a disadvantage because it shifted to Dubai, and then later it was brought back to India. This time that problem is not there because there are no elections.”
Talking about their World Cup plan, Vivek Gaur, CEO, YepMe Shopping says, “We will be announcing something during the World Cup. Any brand that wants to advertise should do something clutter-breaking as small advertising will go unnoticed.” Hyundai, one of the brands that has already associated with the World Cup, has planned several World Cup editions to be launched during the season, along with an online campaign called ‘Fans of Brilliance’ that is already running. Another brand already on board the World Cup bandwagon, Paytm, is planning to launch ‘Super-4’ during the tournament.
Sangeetha Aiyer, VP & Head Marketing, A+E Networks | TV18 thinks World Cup 2015 will not be as big as 2011 in terms of viewership in India. “Although most matches will be during waking hours here, they will not be during prime time. A lot also depends on the Indian team’s performance. In spite of its controversies, the IPL has been consistent in performance and buzz. In the long term, brand associations over years tend to stick. For instance, even after all these years, the brand DLF still brings to mind the image of IPL. It doesn’t make sense to put money on both platforms as that usually spreads budgets thin without intensity. Given a choice, I’d put my bets on IPL this time,” she says.
Webcast gains over broadcast
Star has gone a step ahead, keeping its focus on Digital and trying to tap it as a significant cash cow. Lowe Lintas + Partners recently unveiled a campaign for starsports.com titled, ‘Carry the World Cup’. The campaign, targeting young fans in India, seeks to promote video streaming of the cricketing tournament. The network’s multi-sports digital platform, starsports.com, will offer live streaming and video-on-demand to viewers accessible via the web, WAP and apps across devices. “Given the importance of a mobile phone in the life of a young Indian, the ICC Cricket World Cup 2015 is going to be carried round-the-clock on the mobile screen this time,” said a spokesperson from starsports.com.
Digital is expected to be the weapon that will battle effects of the odd match timings. Also gaining from it will be news channels, to which viewers will turn for highlights of the matches they missed. And since ad rates are relatively lower, it’ll be a clever strategy employed by certain brands.
Game of numbers
The two sporting properties together are expected to see combined ad spends by advertisers to the tune of Rs 2,200-2,500 crore, according to leading media buying firms. The World Cup may fetch ICC close to Rs 1,200-1,500 crore, while the IPL is expected to rake in close to Rs 1,000 crore. While the figures are simply projections, IPL will be a champion for broadcasters and organizers if they manage to cross Rs 1,000 crore. As for World Cup and Star, reaching the benchmark of Rs 1,500 crore like in 2011 will be a satisfactory success. Summing it up, Sam Balsara, Chairman & MD, Madison World says, “It is interesting to see that now cricket has invaded regional channels. The World Cup which happens once in four years is a very important and expensive property on the Indian calendar. Not many advertisers can afford to do both IPL and World Cup so I guess it’s like different forks for different courses.” Eventually, Balsara says, “Cricket is cricket and it generally works.”
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