The Indian team send advertisers for a googly

While fans are dumbstruck and depressed about the Indian cricket team's exit in the qualifying round of the ICC World Cup, the advertisers - people who fund our national obsession - are facing material losses. The Indian team worst ever performance since 1975 will hit the game where it hurts the most, its bottomline.

Advertisers are baying for compensation and media agencies are a jittery lot working overtime to negotiate the best compromise they can with broadcasters Sony and Doordarshan.

Like other advertisers scrambling to do damage control, Visa has pulled its advertising off and has got another version made. Pepsi, which put almost its entire communication budget, some Rs 40 crore during team India has given up the fight. After India's exit, its 'ladega to jitega' Pepsi campaign has been replaced by 7 Up and other brands. Nine year old ICC sponsor LG that has invested up to a fifth of its Rs 250 crore annual marketing budget in the World Cup says it doesn't need cricket anymore.

Head-marketing, LG Electronics,Sandeep Tiwari told CNBC-TV18, "Around 18 years back, when we took our call it was a global call keeping Indian market in mind and for which we chose to associate with the game. But as far as this particular association is concerned, I think today in India out brand objective are very different. So, as far as Indian operations are concerned, perhaps this is not the best of treatment for us, for the next eight years."

While companies like LG claimed they have met their sales target, the spike in television sales that could be expected around an event like the World Cup will be missing, and durable majors will have unsold inventory.

India's exit advertisers estimates will see a 50%-70% dropped in ratings that would have peaked to 15 on India matches and 2.5 on non India ones. The main sponsor, Videocon which spent nearly Rs 20 crore this World Cup is now feeling every penny pinching. As it has to stick till the end, it has gone back to old favourites like filmstar Shahrukh Khan over MS Dhoni, who is its brand ambassador till 2008.

Chairman and Managing Director, Videocon Group, Venugopal Dhoot says, "They will play some time, till the time they are not playing, we are not going to make advertisements with them. Once they start playing, we can again consider maybe Dhoni, maybe Rahul Dravid or anybody else."

Sony which has signed bulk deals for sets of 51 and 21 matches claims no contracts will be renegotiated. But the main sponsors are hoping that the beleaguered network will budge keeping in mind its long term interest.

Director, Marketing, Nokia, Devender Kishore explains, "As a set of advertisers we also have certain leverage with Sony, while IBF has said that we will honour contracts, which we totally endorsed. We, advertisers are going to Sony and say that it cannot be a one-way street. There has to be results which needs to be looking at in the interest of both parties and not only for the short term, but over a longer period of time also."

The IBF and AAAI are siding with the broadcaster, claiming no deals should be renegotiated. Sony claims to have reserved a third of its inventory for Network Sports. While that could have been redistributed amongst irate advertisers, sources say with six channels to choose from the No. 3 network, there maybe not enough inventory to go around.

Instead what advertisers are expecting is as Chairman, P&G, Bharat Patel says, "If there is substantial lost like this there should be consideration of improving the value. I think everybody looks at long term customer relationship. What ICC, Sony, advertisers and all people should look at is long term customer value."

Advertisers expect Sony to chalk out an alternative plan this week and if they don't make any headway, advertisers may collectively turn to BCCI. What they expect the BCCI to do is not clear. 

How can the world's richest cricketing body help them? The entire ad and media industry seems to be in the grip of a crisis, the immediate problem and how will advertisers who put their money on the ICC world cup 2007, make good their loss, how much will Sony give in and will buying cricket change after this? Only time will tell. 

Ramya Ramamurthy and Tina Tandon