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Tag: Vineet Karnik

  • Cricket claimed 87 per cent share of sports sponsorship in 2020: GroupM

    Cricket claimed 87 per cent share of sports sponsorship in 2020: GroupM

    Mumbai: With the Indian Premier League (IPL) leading the charge, cricket contributed Rs 5,133 crores ($694 million) to the total sports sponsorship in India in 2020, which works out to a mammoth share of 87 per cent, according to GroupM ESP Sporting Nation Report 2021 released on Monday.

    Other sports cumulatively contributed Rs 761 crores ($ 103 million), which roughly accounts for 13 per cent of the total share. The report pegged the size of the Indian sports industry in 2020 at Rs 5,894 Crores, which includes sponsorship spends, celebrity endorsement and media spends on sports properties.

    Media spends on sports

    The biggest share is occupied by media, where advertisement spends on TV, digital and print media contributed to Rs 3,657 crores, which accounts for 62 per cent of the total spends. Sponsorship spends included on-ground sponsorships, team sponsorships, and franchise fee grabbed up 28 per cent of the industry pie, which translates to Rs 1,673 Crores.

    An interesting shift that gained momentum in 2020 was athlete endorsements which grew five per cent over 2019, against the run of play in a year ravaged by the pandemic. Out of the total 377 endorsement deals that happened in 2020, as many as 275 involved cricket players.

    The year 2020 also saw female athletes pulling in brands. “The continued success of these stars is proof of the fact that our champions are loved, and we are proud of them. As the sporting nations wait eagerly in anticipation, the stocks are highly in favour of endorsements from our athletes,” the report stated.

    Group M South Asia CEO Prasanth Kumar said, “Even without any activities, our sports heroes stayed close to us during the pandemic by actively engaging with their followers on social media. The spontaneity of this online content flow demonstrates the power of sports in our country. Speedy responses and improvisations are on the go where the situation demanded. Among the many things the Covid2019 situation taught us, marketers were the need to be adaptable as the tide turns fast around us.”

    The boom in e-sports in 2020

    The lockdown had also catalysed the growth in certain sectors. The absence of live sports along with a sub-optimal supply of fresh OTT content led to the shift towards gaming. The month of April 2020 saw an 11 per cent increase in users per week along with a significant jump in average time spent per gamer. This led to a sudden boom in e-sports in 2020, with communities getting built and multiplayer activities gaining ground. Over the last three years, there has been a doubling in the gamer base as well as viewership numbers in the time, the report stated.

    Sports: A success story in 2020

    Despite the Covid2019 threat and multiple risks, the 13th edition of the IPL got underway in UAE in September 2020. The success of the IPL was a great demonstration of the qualities of brinkmanship and improvisation and was able to lift the spirits of the nation battered by the pandemic, highlighted the report.

    In November 2020, the Indian Super League (ISL) kicked off in three venues in Goa with strict protocols and adherence to bio-bubble considerations. This was the first major sports event to be held in India after the pandemic and according to the report, it gave ample demonstration of the country’s ability to pull off an event of this magnitude under such circumstances.

    GroupM South Asia head – sports Vinit Karnik said it was commendable how the sporting ecosystem reacted to the crisis in 2020 and returned sooner than expected.

    “Many sports properties were either canceled or postponed and even sponsorship and media spends were impacted. Even in the face of an adverse context, the stakeholders came together to provide the spark the industry needed. The IPL and ISL are an exemplary demonstration of India’s preparedness to host major sporting events under such taxing circumstances,” he added.

    Karnik went on to say he was hopeful of an increase in demand for subscription viewing in live sports in 2021, with many sporting events lined up in the next few months. “2020 looks like that proverbial backward step we take before a giant leap, like the one we are expected to take in 2021, as part of the making of the sporting nation,” he concluded.

  • Why IPL2020 makes sense for marketers and brands

    Why IPL2020 makes sense for marketers and brands

    MUMBAI: The countdown to the 2020 season of India’s biggest sports extravaganza – the Indian Premier League (IPL) – has begun. Come 19 September, more than a billion eyes will be riveted on their TV screens as the first ball of the first match between Mumbai Indians and Chennai Super Kings is bowled at 7.30 pm.  It does not get better than this for IPL fans, for whom it will be a revisit of the 2019 finals when the Mumbai lads beat the southern team by a whisker of a run, in a heart-stopping duel.

    The 2020 league, which is one of the most premium in the world, is coming at a time when brands sorely need to get back into the consumer’s mindset. Most marketing mavens believe there has been an erosion in brand love among consumers.  Thanks to the disruption in supply chains, consumers have hitherto been okay with buying products rather than their favourite brands. The percentage of shoppers buying online has leapfrogged, footfalls in brick and mortar stores have dived. The humungous response to the Flipkart and Amazon sales in the past two weeks shows customers want to spend and that demand is there.

    Observers believe that big brands which have refrained or cut back their communication with consumers need to get back with their mesmerising and engaging TV and digital commercials so that the consumer connect gets forged once again.

    “Even as the cases are going up, consumer confidence is slowly but surely coming back,” says Group M head of entertainment and sport Vineet Karnik.

    As time goes by, consumers will increasingly go out, spend and the economy will surely follow, or that is the corollary.

    “Marketers believe the IPL is a good opportunity to give a boost to that consumer sentiment even further,” says IPG Media Brands CEO Shashi Sinha

    Sinha had been quoted sometime back in an interview that the IPL is a tentpole property, the biggest in India. “Television is anyway fragmented. The highest ratings come on IPL in India. IPL is the only platform which allows you that single window to reach masses, audiences. Our brands have consistently used it for some time now,” he had said.

    What will make cricket an even bigger audience builder this year is the fact that viewers have not got to watch Rohit Sharma, MS Dhoni and Virat Kohli play for a large part of 2020. Clearly, the desire for sports has been bottled up and is expected to explode into a frenzy of viewing between September and November. Fans are raring to go and have been tweeting, posting their joy, annoyance and opinions on every social media and blogging platform. 

    All thanks to being locked down courtesy the virus, India and Indians have been consuming more content – video, audio, games and what have you – in heavy doses and binges. Data shows that TV consumption is up over 15 per cent (source: BARC) as compared to pre-Covid2019 times, and it is unlikely to slow down, and in fact will sharply accelerate northwards.

    The BCCI has also rejigged the match timings, which should augur well for TV viewers and advertisers. Instead of 2019’s 4 pm and 8 pm starts, the matches in the UAE will now commence at 3.30 pm and 7.30 pm IST respectively. The 3.30 slot will end up extending into early prime, while the 7.30 pm match will end during peak primetime when audiences will also be at their peak. 

    The biggest USP of the IPL, a media observer points out, is that it provides for a very good advertising environment with less clutter. Ad breaks average 50 seconds, means that four to five TV commercials can be played out.  The free commercial time per hour during the IPL is also limited at 800 seconds per hour, as compared to other genres where it crosses 920 seconds and some time goes up to as high as 1,120 seconds. All this works well for brands as the OTS on commercial and engagement goes up.

    Sinha is as optimistic – if not more – today with IPL’s prospects than he was three months ago. “I genuinely believe the IPL will do very well with viewers,” he said. “Some of our smaller brands are also asking us to put their spends behind it. The advertisers will definitely give it a good shot at giving a good push to their businesses.”

    Shall we say amen to that?

  • ICC World Cup: Star likely to hike ad rates by 15-20% in knockout stage

    ICC World Cup: Star likely to hike ad rates by 15-20% in knockout stage

    MUMBAI: As the ICC Cricket World Cup moves into the knockout stage, interest levels in the tourney, which is being played Down Under, are rising. And cashing in on this opportunity, Star Sports is looking at escalating its ad rates to rake in more moolah.   

     

    Sources in media planning and buying fraternity told Indiantelevision.com that the broadcaster was looking at a hike of at least seven – ten per cent in the ad rates for the knockout stages. Star, however, is claiming a hike of 15 to 20 per cent compared to the rate of the league stages.

     

    A source in Star Sports further revealed, “From the semi final stages, we will have a number of fresh sponsors and advertisers coming in as numerous deals at the earlier stages were signed only till the quarter final stage. Interest of the matches will decide the ad rates and if India qualifies for the semi finals, the rates will certainly see a substantial hike.”

     

    Speaking on the commercial growth of the tournament so far, Helios Media managing director Divya Radhakrishnan says, “India has played well so far and will face Bangladesh in the Quarters, which adds the possibilities of a semi-final berth and hence the demand of the tournament is way higher when compared to the league stages. The advertisers, who gambled to participate in the early stages, got the best price because now the ad rate is sky high.”

     

    GroupM national director entertainment, sports & live events Vineet Karnik asserts, “India’s performance in the triangular series Down Under was below par, which resulted in a slow beginning to the World Cup in terms of advertiser participation. However, as India started playing well, the tournament gained momentum. Now in the knockout stages, the demand is high and naturally Star will increase the ad rate substantially.”

     

    As the ICC World Cup entered the business end of the tournament, 14 teams tried with only eight succeeding to reach the knockout stages. Despite having a below par start, Pakistan securing a berth in the quarters, was a key highlight in the tourney. Lower run rate led to Ireland’s disqualification in the knockout stage as it tied with West Indies, which also managed six points from the league stages. However, the eyebrow raiser of the tournament was Bangladesh, who stunned England to book a berth in the quarters.

     

    Earlier today (18 March), South Africa stormed through to the semis after brutally thrashing Sri Lanka by nine wickets. Bangladesh will play India tomorrow (19 March), who is undisputed so far in the tourney and has decimated each and every batting attack. If India wins the quarter final match, it will face the winner of the Australia vs Pakistan match. This in turn can lead to a probable Indo-Pak bout. India Vs Pakistan match is always an intense battle on and off the field. 

     

    While the two teams sweat out to win the match, advertisers exert themselves to create an exquisite presentation in order to grab more eyeballs. Alongside, Star India will prepare its business strategy to generate as much revenue as possible. The ad rates will see a substantial hike and last moment contributors will definitely need to have deep pockets indeed.