Star India guns for a bigger share of the digital pie for IPL 2020

The eagerly awaited Indian Premier League (IPL) 2020, which is just round the corner, has for sure brought in a glimmer of hope for brands and advertisers. The tournament, which is expected to kick off in the UAE on September 19, is now where several brands are pinning their hopes on to revive their businesses. Interestingly, Star India, the official broadcaster of IPL, has hiked ad rates for the tournament on Disney+ Hotstar from 120 CPM for a 10-second spot to now 180-200 CPM. Sources with knowledge of the matter reveal that Star is offering packages ranging from Rs 10 lakh to Rs 5 crore.

Advertisers on the platform will be able to serve targeted ads or opt for pan-India engagement. Going by the advertising options as shared by sources, on offer are packages of 10 lakh, 15 lakh, 20 lakh, 30 lakh, 50 lakh, 75 lakh, 1 crore, 2 crore, 2.5 crore going up to Rs 5 crore. As per the figures, the 10 lakh package at 180 CPM promises pan-India reach, without any targeting, estimated impression and reach of 5.56 million and 1-1.5 million respectively with a recommended presence of two matches. Meanwhile, the 5 crore pan-India reach package (CPM 180) promises over 278 impressions and an estimated reach of 50-55 million with the recommended presence of 60 matches.

Digital domination

Ankur Pujari, Co-Founder and Business Lead, Hyper Connect, remarks that there is opportunity for more inventory to open up on Hotstar, considering that content consumption on the platform would have significantly gone up post lockdown. “The Covid-induced lockdown brought a lull when it comes to advertising for most brands which is not very good in terms of building brand salience and even sales. The IPL, if leveraged well, should get the momentum in the market back. Now with people spending more time on digital, brands should definitely bet on it,” he states.

Moreover, as part of many firsts, the Dream11 IPL 2020 will only be accessible to new and existing subscribers of Disney+ Hotstar VIP and Disney+ Hotstar Premium. According to the recent development, the platform has also innovated to bring home an in-stadia experience that is unparalleled in the world of sports. Fans can join a virtual community that will allow them to enjoy the matches with their friends and fellow cricket lovers real-time, whilst sharing selfies and videos.

A senior media agency head shares that when compared to the last couple of years, Star is offering more options for advertisers this IPL. “While the CPM has gone up by Rs 60, the reach it is offering remains the same. The targeting this time is niche and also it serves geographic targeting for smaller brands, something that brands that don’t have a pan-India presence could opt for. The niche targeting means more matches to deliver and more time to burn the ad inventory,” he shares on condition of anonymity.

To be sure, Star has also extended its pre-match shows from 60 to 90 minutes, allowing brands to buy ad slots for them as live match inventory is finite and more expensive.

B. Krishna Rao, Category Head, Marketing, Parle Products, points out that with a large section of people still working from home, the chance of the viewership rising high both on TV and on Hotstar is good. “I am sure Star India is definitely looking at maximizing its revenues from Hotstar. Digital is on an upswing with 4G and now Covid.
Thus certain brands would be willing to spend trying to encash upon the sporting opportunity,” he opines.

Will it ‘score’?

Most industry watchers opine that even at the hiked rates brands are still likely to bet big on IPL.

Senior media expert Anita Nayyar opines that given the current situation, there has been a shift in adex to digital and hence it is a logical step by Star to bank on Hotstar with IPL. “The nation has been cricket starved, so IPL is expected to be a blockbuster, and clearly it is an opportunity to garner increased revenues. Many brands who have earmarked budgets for the festive season will definitely look at IPL as a compelling proposition to bank on since it is scheduled around the same time. The combination of digital,IPL and festive seems to be a clear winner,” Nayyar observes.

It should be noted that digital advertising rates on platforms like Facebook, YouTube and Instagram have fallen by 20-30% as supply has exceeded demand.
Sahil Shah, EVP - Operations and Media, WATConsult, notes that premium pricing might work for certain brands as he feels that Star is likely to register a big viewership delta this year.

“Ideally, with more supply and relatively less demand in the market, the costs should have been identical to what they were last year to gain more advertisers. With Chinese brands backing out and some specific industries being very cautious on spending money this year; Star has an uphill task of selling inventory at premium pricing. However, the premium pricing might be worth it for certain brands/businesses this year.”

According to several sources from Star, the company is quite upbeat about IPL revenues and expects a “completely sold-out season.”
Sajal Gupta, Vice President, Digital Media Planning, Zenith, feels that although cricket-crazy consumers might prefer watching IPL on the larger screen, sectors like gaming, e-commerce, online education, etc are closely looking at digital and are most likely to bet on it. “A whole new set of advertisers have cropped up when compared to what was being expected in February-March this year. The market dynamics have changed and while there is apprehension in the market, when it comes to capitalising on digital, internet-only brands might take the lead,” he said.

Sources also share that in the previous editions of IPL, a brand had to be a sponsor or buy advertising for the complete season to garner the desired visibility on digital unlike the options provided to advertisers this year.

Shrenik Gandhi, Chief Executive Officer and Co-Founder, White Rivers Media, says that the high-ticket property should be able to score even this time, given the popularity of IPL and the consumer love for cricket. “The sentiment is positive because IPL will mark the return of live sports that had come to a complete halt in the wake of the pandemic. And brands capitalising on IPL after this long advertising hiatus should be able to garner great visibility, flashing in front of the eyes of the whole country,” he remarks.

Meanwhile Vishal Chinchankar, Chief Digital Officer, Madison, notes, “Post the changed market sentiments,if they achieve 50% to 60% of last year’s revenues, they should be happy.”

In 2019, the broadcaster is said to have earned about Rs 2,200 crore in advertising revenue. Furthermore, industry watchers contend that a big brownie point for advertisers will be that Hotstar, over the last few months, has considerably developed its ad platform and introduced features like pre-roll, banner ads and gamification which should help it win advertisers and could get the feel-good advertising days back.