Ad revenues may fall with IPL going abroad

The Board of Control for Cricket in India (BCCI) may have saved the Indian Premier League (IPL) from getting cancelled, but taking it abroad has put paid to all the advertising and media planning exercises that had been completed so far.

 

First, advertisers were on edge, waiting for the BCCI to decide on which broadcaster would telecast this season of the IPL. Now they are worried that all the planning of on-ground promotional activities and on-air advertisements will come to nought. With the event going abroad, Media planners say TV advertisement rates may also fall.

 

Shashi Sinha, CEO, Universal Lodestar said, "The entire IPL eco system would collect about say Rs 650-700 crores. Rs 350-400 through television, rest through ground sponsorships, badges, as a ground promotion. My personal opinion is atleast 15-20% of the entire Rs 700 crore will be affected which is easily a crore and fifty."

 

Even in-stadium advertising opportunities may be lost but experts say cheaper avenues have opened up like halls and clubs where people will watch the matches.

 

Lynn D'Souza, Chairman & CEO, Lintas Media Group said, "Since people wont be able to congregate at stadium or at different places, lot of opportunities will be thrown up such as multiplex viewing, special offers around multiplexes, other forms of viewing in clubs, in pubs, in other eating places, at offices perhaps at the evening and around these, promotional activities will be built."

 

Even team owners, who were worried about losing out on the local advertisement revenues, have found a silver lining.

 

B Vanchi, Director, GMR Sports said, "By shifting venue outside India, there is definitely loss of local revenues and increased cost to shift the venues. But compensation will be made on open book basis by IPL to the team owners."

 

Adding to the optimism is the view that this year's confusion will not hurt long-term returns.

 

With inputs from CNBC-TV18's Pritha Mitra Dasgupta and Shruti Rajkumar