The total advertising revenue in the forthcoming Indian Premier League is estimated at $550 million, with JioCinema grabbing about 60 per cent of that, according to a report by Media Partners Asia, an independent research, advisory and consulting firm.
Viacom18, the Reliance Industries group company that has bagged the digital streaming rights for the matches, will stream it live and free on JioCinema. “Mobile supremacy and a CTV (connected TV) strategy will drive JioCinema to an estimated $330-350 million in ad sales,” the report said. Incumbent Star India’s IPL 2023 ad sales are expected in the range of $200-220 million.
The IPL has been a cultural phenomenon since its inception in 2008. The T20 tournament has become a juggernaut of global cricket, attracting players, coaches, and fans from around the world.
The 16th edition of IPL is being held at a time of global uncertainty, surging interest rates across economies, and an escalating banking crisis in the US and Europe. The tournament’s success will depend on macro factors such as the country’s GDP growth, consumer spending patterns, and inflation rates. If the economy remains stable, it could boost advertising revenues and sponsorships, leading to a successful tournament.
According to Media Partners Asia, IPL 2023 could mark a watershed moment for digital ad spend. With the rise of OTT platforms and the proliferation of smartphones, advertisers are increasingly opting for digital platforms to reach their target audience.
Media Partners said that while advertising budgets are under pressure many are being reallocated for the event. “Demand is broad-based, especially on digital, but pitches and campaigns have been messy and noisy with advertisers often confused about reach and targeting.”
The report observed that FMCG budgets are expected to be largely split between TV and digital though budgets from RIL-owned companies will clearly move towards JioCinema. The streaming platform has promised advertisers that this year’s IPL will have a reach of 400 million and a concurrent user base of 100 million, it said.
Sectors such as auto had moved a large chunk of ad dollars to JioCinema while new-economy categories such as gaming have moved over entire budgets, it said.