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Sony targets Rs 1,300 crore ad revenue from IPL 10
MUMBAI: Sony Pictures Networks India (SPNI) is targeting advertising revenue of Rs 1,300 crore from the 10th edition of the Indian Premier League (IPL) and has locked in nine sponsors for the event that is set to kick off on 5 April.
Speaking to TelevisionPost.com, SPNI president Rohit Gupta said, “We are looking at a 10–12% revenue growth. We should touch Rs 1,300 crore. IPL has become a very big property.”
It has been learnt that long-time partner Vodafone, e-commerce giant Amazon and mobile handset maker Vivo are the co-presenting sponsors. While Vodafone has been present since the first edition of the cash-rich T20 league, Vivo is also the title sponsor of the IPL.
The associate sponsors on SPNI’s broadcast are Ceat Tyres, Yamaha Motors and Vimal Paan Masala. According to sources, the other sponsors signing up are Parle Agro’s Frooti, Yes Bank and wire-maker Polycab.
Sony, which is looking to close this edition of the IPL with 13 sponsors, is in talks with RB (formerly Reckitt Benckiser).
Madison World COO buying Neelkamal Sharma noted that demonetisation is less likely to affect IPL revenue as things are easing and the league is scheduled for the next fiscal.
In terms of IPL brand awareness vis-à-vis cost, Sharma noted that the IPL as a property is high impact delivery. “Many brands have done a repeat purchase as it is tried and tested across many categories over the last nine seasons. While its effectiveness would depend on the product category and also communication object, it does delivery result in terms of creating quick awareness and building reach across audiences and across geographies,” Sharma said.
Shedding light on the IPL, Dentsu Aegis Network South Asia chairman, CEO Ashish Bhasin said, “Cricket has always been a mass sport. However, the IPL, for the first time, brought in female and family viewers, which broadened the audience base further. It is a great way to connect with viewers as it combines entertainment and sport.”
In terms of the cost-effectiveness of the IPL, he said that the spend is not about an absolute amount. “It depends on the objective and the audience that you are trying to reach. For mass brands, looking to build quick reach and impact the IPL has so far worked. I would recommend clients to use the IPL as long it fits their budget and their objectives.”
Bhasin’s one concern is that the ongoing overhang of the flux within the BCCI administratively should not affect the IPL. “Promotions have been slightly late. By now, we should have been seeing promotions. I hope that the external issues don’t affect the IPL.”
While downgrading the ad expenditure on television for 2017, GroupM CEO South Asia CVL Srinivas had earlier told TelevisionPost.com that the IPL and other high-impact properties would continue to do well. According to him, sports, free-to-air (FTA), and high-definition (HD) channels would do well compared to other genres.
“This year we expect sports to continue to do well. We expect HD to do well. We are seeing a lot of growth in HD although it’s a very small base. We also expect some FTA channels to do well considering the reach and the value proposition that they deliver,” Srinivas noted.
Media agency GroupM has said in its recent forecast report that TV broadcasting advertising expenditure would grow at 8% in 2017 to touch Rs 27,378 crore, which is slower than the 10% growth that the segment achieved in 2016. In 2016, TV AdEx rose 10% to Rs 25,530 crore.
In comparison, total advertising expenditure in India is expected to grow at 10% to touch Rs 61,204 crore in 2017. In terms of media mix, TV’s share of total AdEx is expected to fall to 44.7% of total expenditure in 2017 from 45.5% in 2016.
Demonetisation has hit overall ad expenditure in 2016, digging a hole of about 2%. Though demonetisation’s impact is also being felt in the first quarter, GroupM expects ad recovery to start from March-April.