IPL is one national tournament which every advertiser in India is looking for because it provides exposure that no other tournament can offer. Just to give you some idea about how big IPL is, Star India, which has the media rights for IPL 2020, set a target to earn revenue of Rs 3000 crore in advertising sales from IPL 2020 as per the report by ET.
Here is the Star India Strategy to earn Rs 3000 crore in advertising sales from IPL 2020:
According to the report by ET, Star India is charging Rs 12.5 lakh to advertisers for per 10-second ad spot. And Star India has signed up nine sponsors including Vivo, Coca-Cola India, Amazon, PhonePe, Dream11 and Maruti Suzuki.
Well, now you might be thinking paying 12.5 lakh just for a 10-second is a little too much, but actually, it is worth paying as IPL has viewership of 900 million last year which is going to increase this year.
To garner more views, Star Sports will air IPL on their 7 sports channels including their language feeds and Star Sports Select on weekdays and Saturdays. And on Sundays, Star India will air the matches on its movie and kids channels (Star Gold, Hungama, Vijay Super, Star Maa Movies, Jalsha Movies, Star Suvarna, and Asianet Plus).
And according to AdGully, Star India can easily touch Rs 2400 crores or 80% of its advertising sales target through sponsorships and selling ad-spots. The rest of the revenue will be earned via Hotstar and international broadcast deals like with Sky Sports UK. Hotstar could potentially contribute 15-20% to Star India advertising revenue from IPL 2020. And brands like Swiggy, BYJU’s and OTT players like MX Player, Netflix, Amazon Prime Video and Disney+ are also paying huge amounts for ad-spots.
Shashi Sinha, CEO at IPG Mediabrands India which handles media for Coca-Cola and Amazon said, “IPL is a great property for advertisers to exploit a pan-India presence with the multiple language feeds which Star Sports provides and hence year on year the reach and viewership is increasing.”
So this is how Star India is planning to earn Rs 3000 crore in advertising sales from IPL 2020 from co-sponsors, associate sponsors, digital partners and advertisement partners.
