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IPL: The successful business of cricket
Required run rate
April 30, 2008
Already, IPL has expanded marketing budgets of companies, instead of merely causing a flight of funds. According to estimates, the league has added almost Rs 300 crore (Rs 3 billion) to the total advertising pie.
Before the league kicked off, advertisers and media buying agencies had a tough call to make between STAR Plus' Panchvi Pass hosted by Shah Rukh Khan and IPL. Vodafone chose to go with Sony's offering, while rival Airtel has come on board as the presenting sponsor for the STAR show.
Gopal Vittal, director, marketing & communication, with Bharti, says, "As a brand we look at all available opportunities and IPL is one such opportunity. Every brand has to make choices; no brand can afford to be everywhere. Our association with Panchvi Pass is already giving us substantial salience."
While Sony was scouting for a presenting sponsor willing to pay around Rs 25-30 crore (Rs 250-300 million) and an associate sponsors Rs 18-22 crore (Rs 180-220 million), STAR Plus was hoping to garner Rs 8-10 crore from each. Prior to the ratings, Sony was planning to sell a 10-second spot for Rs 2.5-3 lakh.
However, now with the encouraging ratings, it plans to increase the rates of the last 200 seconds that remain to be sold in every match to Rs 3.5-4 lakh a spot.
This worries media analysts. "The current prices are just about affordable. Advertisers must remember that advertising is cost per contact, not just reach. They must not increase the prices further," warns Blah.
Seconds Madhvani: "It is commercially unviable for smaller advertisers and those targeting women and kids. The channel's stance of not selecting specific matches/days, but limited commercial time across matches makes it viable for large advertisers."
Image: VVS Laxman, captain of Indian Premier League (IPL) Hyderabad 'Deccan Chargers' team | Photograph: Noah Seelam/AFP/Getty Images
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