Star eyes big moolah from IPL 2018 with 95% ad inventory sold
MUMBAI: Star India has sold 95% ad inventory for the India Premier League (IPL) 2018, which kicked off on 7 April. The broadcaster has got on onboard 14 sponsors including three co-presenting and 11 associate sponsors. Altogether, it has got more than 100 brands on-board for the cash-rich league.
The co-presenting sponsors are Vivo, Coca-Cola, and Jio. The associate sponsors include Asian Paints, Polycab, Parle Products, AMFI, Make My Trip, Vimal Pan Masala, Big Bazaar, Swiggy, Dream11, Haier, and MRF.
Almost 60% of the ad inventory will be consumed by sponsors while spot buyers will consume the remaining inventory. The broadcaster has retained 5% of the inventory to be sold at a later stage.
The prominent spot buyers include Vodafone, Amazon, PepsiCo, Mondelez, Samsung, Nivea, Honda Motors and Scooters, Policybazaar.com, Shaadi.com, Madura Garments, Berger Paints, Blue Star, Ceat Tyres, Crompton, Dollar, Domino’s, Ford, Luminous, Pidilite, Sleep Well, Vanessa, Voltas, Colgate, Amul, Elica,Kent, and Vu TV.
On Hotstar, there are six sponsors on-board including Vivo, Jio, Dream11, and Coca-Cola as co-presenting sponsors and Royal Challenge and fbb as associate sponsors.
According to an industry source, Star sold TV and digital together to get the maximum value for the property. The broadcaster has a plan to reach 700 million viewers across TV and digital. It has mounted an ambitious broadcast plan which includes six language feeds and a special feed for a more evolved audience on Star Sports Select.
There is a lot of speculation over the ad revenue that Star will generate from the IPL. According to one conservative estimate, the broadcaster will generate Rs 1700 crore ad revenue from the tournament. Another source stated that the ad revenue number will be more than that.
Havas Media Group CEO Anita Nayyar said that the ratings should increase with three regional channels coming on-board. Star she noted expects a rating of 4.5-5 on television compared to 3.7 that SPNI had delivered. The issue for her is whether or not such a big jump in rates is justified. One will know this only when the ratings come out she points out.
Dentsu Aegis chairman, CEO South Asia Ashish Bhasin noted that to get a hike on a like to like basis will be very difficult as the market is not in a position to bear it. But he is pleased about the fact that digital and TV are with one player. “The way the IPL is being sold this year is very different compared to the past. TV and digital are with one player and so the platforms are being sold together. It is a new concept. This allows us to do video planning instead of only TV planning.”
At the same time, he is cautious in terms of the jump in rates that advertisers are willing to pay. “On a like to like comparison, it will be difficult to get a big jump in revenue compared to last year because the market is not in a position to bear a big hike. The good news is that digital does not have a five-minute delay. So consumption on Hotstar should rise as a lot of people will be out of the home. Clients have different needs. Some brands only want TV, others want digital while some want a combination of both. There is no one size fits all solution,” he added.
Lodestar UM India CEO Nandini Dias noted that Star India having bid high for the rights is being innovative in selling. There is an effort to boost reach through language feeds. TV and digital have been combined. The aim is to get the same value. The CPT should not rise even if the outlay rises.