ICC World Cup 2023 ad revenue beats estimates, digital scores higher

The game had its last laugh and so has our Cricindex

Advertising revenue generated from the broadcasting of ICC Men's Cricket World Cup 2023 has surpassed expectations, thanks to India's strong performance throughout the tournament.

India's robust performance in the CWC 2023 significantly contributed to Disney Star's increased ad revenues, surpassing the initial estimate of a 25 percent rise to around Rs 3,000 crore, said Abhishek Jain, research head at Arihant Capital Markets. "The heightened viewer interest, particularly in the crucial and final matches, played a vital role in this upsurge," he said.

Also read: ICC ODI World Cup 2023: Virat Kohli breaks Sachin Tendulkar's record, Glenn Maxwell smashes fastest hundred and other takeaways

Record viewership

The fact that digital saw highest viewership of 59 million viewers during the finals between Australia-India speaks volume, said Nitin Menon, NV Capital. "Overall too there has been a substantial surge in viewership on the OTT platform and this have translated in substantial higher ad revenues as compared to 2019. Also, as compared to the last World Cup edition which was held in England, this time team India was in the finals and to top it the festive season enhanced  the ad revenues for Disney Star substantially."

India matches garnered 29 million concurrent viewers on an average for 11 matches, which is higher than any other tournament on digital and five times higher versus non-India matches, according to analysis by Elara Capital.

"India matches on Disney+Hotstar were able to attract the highest CPM (cost per mile) ever at Rs 400-450,which is a 20-25 percent higher versus IPL (Indian Premier League) due to CWC 2023 having a larger target audience, India team’s superior performance  and content being offered free on OTT platforms," said Karan Taurani, senior vice-president, Elara Capital.

Also read: India vs Australia final: Disney+ Hotstar sets new global live streaming record during ICC World Cup 2023

He added that non-India matches recorded an average concurrent viewership in the range of 5.5 million viewers for 33 matches, which is significantly lower than India matches.

Ad spends

Ad spend on digital for World Cup 2023 has doubled versus the previous 2019 edition, Taurani said. "Disney+Hotstar (the official streaming partner of the CWC 2023) has been able to generate ad spend of Rs 900-950 crore, helped by India’s superior performance in the tournament. Further, TV ad spend for CWC 2023 has grown by 25 percent higher versus 2019 edition, largely in line with our expectations, as the tournament in total has been able to garner ad spend of Rs 2,200-2,300 crore (TV and digital), slightly ahead of our estimates of Rs 2,000-2,200 crore," he noted.

The sectors that spent the most on advertising were fast-moving consumer goods (FMCG), consumer durables, and e-commerce, said Jain. "The FMCG sector, known for its aggressive advertising during high-viewership events, capitalised on the widespread audience of the CWC. Consumer durable companies also ramped up their advertising spend, taking advantage of the festive season, which typically sees a spike in consumer spending on durable goods. Additionally, e-commerce giants like Amazon significantly increased their advertising budgets," he added.

Also read: ICC World Cup 2023: Burger, not biryani or pizza, was the most ordered item during India-Pakistan match

ICC World Cup 2023 witnessed a growth of 19 percent for first 39 matches in terms of average ad volumes per match compared to ICC World Cup 2019, according to data by TAM Sports, a division of audience measurement analysis firm TAM Media Research.

Count of categories and brands grew by 32 percent and 30 percent respectively in the 2023 edition compared to 2019 CWC during the first 39 matches. Over 50 new categories and more than 195 new brands advertised in 39 matches of ICC World Cup 2023 compared to same number of matches in the previous edition of 2019. Perfumes/deodorant was the leading category followed by Pan Masala and online shopping.

"Strong consumer demand, especially in rural areas, coupled with the event's high visibility, led to increased advertising expenditures across sectors. This upswing in ad spending, driven by the CWC, reflects a broader recovery and consumer engagement trend, underscoring the event's substantial impact on India's advertising landscape. The Cricket World Cup significantly boosted India's ad spending, exceeding yearly expectations," said Jain.

Also read: ICC World Cup 2023: Ad volume up 28% versus 2019 edition with 150 new brands

Taurani noted that India’s ad expenditure will see a positive impact of 2.5 percent in 2023, led by strong spend on the back of CWC 2023.

Advertising expenditure (AdEx) growth in second half of 2023 is estimated at 14 percent versus four percent growth recorded in the first half of the year, driven by the festive season and the cricket World Cup.