Ad Spends During The Festival Season Set To Get Happier With IPL

The Indian Premier League (IPL) this year will be benefitted by the ICC’S decision to postpone the T20 World Cup which now has a clear window during the months of September and December, and will be an added incentive for brands to spend since more than half of annual ad spends happen in the festive months says the executive of media companies.

This year’s edition of the league was deferred due to the outbreak of the coronavirus that was originally planned between March 29 and May 24. The on-ground sponsorships of IPL alone are estimated at Rs 600 crore, while team sponsorships are estimated at Rs 500 crore. However, advertisers have indicated at reworking deals if the league duration is curtailed or if matches get played in empty stadiums. 

Owing to fears of the further spread of COVID-19 on Monday, the ICC announced that the T20 World Cup was being postponed for this year. The IPL, a Board of Control for Cricket in India (BCCI) property which had earned broadcaster Star India advertising revenues of over Rs 2,000 crore in 2019, may be held in the United Arab Emirates this year if the Indian government permits.

Ashish Bhasin, chief executive, APAC and Chairman, India, Dentsu Aegis Network said, “An IPL tournament in the festive months can translate into the much needed feel-good factor the economy is looking for. As we move forward, every month is looking better than the previous one and we are optimistic that by the time the festive quarter comes, things would have improved.” 

A senior BCCI official said, “We were waiting for the ICC’s announcement on the T20 World Cup. As the Asia Cup has already been canceled, we can gear up for IPL 2020,”. “We have sent the proposal to the government for approval and will engage in discussions with the stakeholders starting this week.”

Executives at media buying companies said despite the subdued sentiments through the year amidst the on-going pandemic the pull factor for brands would come into play coinciding with spending season.

Navin Khemka, chief executive of MediaCom, a media buying firm owned by Group M, which represents Parle and Dell said, “The duration of the IPL is much more, with 60 games compared to the ICC T20 World Cup. If the BCCI does confirm that IPL is happening later in the year, brands that had planned advertising during the World Cup window will move to IPL since anyway it is a festive quarter – the biggest spending quarter annually.”

Dentsu’s Bhasin said, “Since 40-45% of annual ad spends happen between the Ganpati festival and New Year, the IPL if it happens later this year, will be an added incentive for brands to spend, though the spends and pricing will always be a function of demand and supply,”.

Before the outbreak of Coronavirus, the brands which had signed up as the League’s sponsors were Vivo, Coca-Cola, Amazon, PhonePe, and Maruti Suzuki. 

Executives close to the developments said for example Beverage maker Coca-Cola, has a five-year global partnership with ICC for about Rs 300 crore but may be investing in the IPL.

As ICC’s exclusive non-alcoholic beverage partner, Coca-Cola had inked the partnership last year across all ICC events globally. The investment had marked the return of high-decibel cricket-related advertising by Coca-Cola after nearly two decades.