The ODI (one day international) Men's Cricket World Cup this year is estimated to bring over Rs 2,000 crore in advertising revenue as marketers expect a 15 percent increase in ad spends during the festive period.
One of the biggest cricket tournament scheduled during the Dusshera-Diwali period has piqued advertiser interest with ad spends expected to be twice of what was spent during 2019 World Cup.
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"I estimate that ad spend in the festive period will increase by at least 10-15 percent in 2023, compared to 2022 and one of the reasons for that is the upcoming cricket World Cup that will attract a lot of viewership and naturally advertising," said Ambika Sharma, Founder and MD, Pulp Strategy, ad agency.
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Around 40-45 percent of the total ad spends annually take place in the festive period.
The World Cup is likely to generate Rs 2,000-2,200 crore in ad revenue on TV and digital platforms combined. Digital revenues for the World Cup 2023 may be significantly higher this year and grow at least 70 percent more than the previous edition. The 2019 cricket World Cup's digital advertising-led revenue ranged within Rs 400-Rs 500 crore," said Karan Taurani, senior vice-president at Elara Capital.
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He added that while the absolute value of digital advertising may not be as high as TV advertising, the growth rate is expected to be higher. "Cricket has gained popularity on digital platforms, and lower advertising prices on digital channels have allowed many brands to participate. Cricket World Cup 2023 may see a similar growth in digital ad spends as it during the Indian Premier League (IPL) in 2023."
Ad rate on digital for the 2023 Cricket World is in the range of Rs 230-250 per thousand impressions or cost per mille (CPM), up over 60 percent as compared to Rs 140-150 per thousand impressions during the 2019 edition.
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Ad spends on TV is estimated to be 20 percent higher this year for the World Cup. Rates for 10 second sot for premium matches like the India-Pakistan is around Rs 30 lakh.
The overall growth rate for the advertising industry in 2023 is expected to be 8-9 percent including positive impact of the World Cup, said Taurani. Majority of the growth is estimated to come in the second half of this year. 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. And the cricket World Cup is likely to boost 2023 ad spend growth by about two percent.
Also read: Cricket World Cup to drive festive advertising, spends to grow 15%
Disney Star, the official broadcaster as well streaming partner of the ICC Men’s World Cup 2023 starting from October 5 has signed up 21 sponsors and more than 500 advertisers for the tournament so far. Some of the sponsors for the tournament include Mahindra & Mahindra, Hindustan Unilever, MRF Tyres, Dream11, Booking.com, among others.
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In the past year, many consumer tech companies including edtech, fintech, foodtech and e-commerce have shifted focus to profitability due to which these firms have curtailed ad spends. This has hurt the advertising market in terms of ad spend growth on TV and digital. "These verticals have not yet made a come-back in terms of larger ad budgets, and the market is depending on larger, traditional verticals such as FMCG, auto and telecom. But the positive impact from the festival season may largely offset this hit," Taurani added.
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