IPL 2020: India's biggest league to retain its brand value despite UAE venue

After a four-month-long wait, there is finally a decision on one of the biggest leagues in India --- the Indian Premier League (IPL). And looks like the new venue and new dates will bring cheer to all stakeholders.

When it comes to the venue, IPL this year will be played in the UAE, according to the decision taken by IPL Governing Council on August 2. Also, the tournament will start from September 19 and the final will be played on November 10.

There have been concerns around the change in venue and whether that will impact advertisers.

But Sandeep Goyal, Chairman, Mogae Media, a Mumbai-based marketing and communication agency, thinks that change in venue will have limited implications.

“This is a made-for-television event. So, where it is held doesn't really matter. In any case, most of those in the stadium will still be South Asians. Plus, the impact on advertisers too is nil. How does it matter whether it is Delhi or Dubai?” he said.

In addition, he thinks that “it will be pre-Diwali, so demand should be good. And it will be a great window for maximisation for Star.”

This is why he expects ad revenue to be broadly the same as last year. “Last year, the TV channel (Star India) got about Rs 2,000-2,200 crore in ad revenue. Hotstar got about Rs 600 crore. This year too we can expect Rs 3,000 crore.”

IPL and its huge value ecosystem

IPL last year was valued at $6.8 billion, up from $6.3 billion, according to a report by Duff & Phelps.

IPL team sponsorship grew 15 percent in 2019.

As many as 246 brands had advertised during IPL 2019, according to data by Broadcast Audience Research Council (BARC). Also, 158 brands advertised during the live broadcast of IPL matches and also during match highlights.

This year as well Goyal thinks that mobiles, edtech, liquor, two-wheelers and cars will be big spenders. And health supplements will be a new category addition.

Festive cheer

Many experts are saying that advertising during IPL, which will be played this year during the festive period, would be a good time for brands to revive sales. Also, marketers are of the opinion that there will be more improvement in the economy around Diwali.

“I think IPL will serve as a big mood changer because we have gone through a tough time. IPL for the first time is coming around Diwali and it has the potential to uplift the mood. You know that 40-45 percent of the entire year's advertising spend happens between Ganpati festival and New Year. So overall, it will be a mood elevator,” said Ashish Bhasin, CEO & APAC Chairman India, Dentsu Aegis Network, that has clients that are large advertisers and regular advertisers during IPL.

“The Indian advertising market is sentiment driven. At the moment sentiment is down and IPL perhaps is the only property that has the potential to uplift the sentiment,” added Bhasin.

So, it looks like the biggest festival of sports coinciding with a festival like Diwali, will be hard for brands to ignore.

New venue, few losses

While there will be no real change in terms of ground sponsorships, franchises will lose gate money.

"Ground sponsorships should remain good. They actually derive value from TV exposure. But the franchisees will lose on gate money, and ground sponsorships. But I am sure some compensation must have been worked out for that as well," said Goyal.

So when it comes to ticket revenue, 80 percent of the tickets are sold by the IPL franchise for its home games. Ticket sales revenue is around Rs 3 crore to Rs 5 crore for a match or around Rs 300 crore overall.

Even Bhasin said that ground sponsorship won't be impacted from a TV perspective. "But on-ground activities like pubs having promotions near the stadiums will be affected. IPL also breeds a parallel stream of activities such as clubs, restaurants and IPL nights, and all this happens where the matches are being played," he added.

Vivo still on board. What about brand IPL?

IPL retaining all sponsors including Chinese company Vivo is not going well with the fans of the leagues. Social media is flooded with comments criticising this move by IPL Governing Council. Soon after the news of retaining the sponsors, #Boycott IPL started trending on Twitter.

However, brand expert and founder of Harish Bijoor Consults Inc, Harish Bijoor said, "I do not believe retention of Chinese brand sponsors will negatively impact the image of IPL. The IPL brand today is a global property made in India. The brand is so global that it will make even its cricket content in the UAE this year. On UAE soil. Therefore, there is no controversy on this at all."