As the Indian Premier League (IPL) gets bigger in scale and viewership, marketing partnerships with the tournament are fetching greater visibility and returns for brands across the world.
On Sunday, Qatar Airways became the main principal partner of Royal Challengers Bangalore (RCB), the Diageo-owned Bengaluru franchise of IPL, replacing Muthoot Fincorp which sponsored RCB for three years. The deal is estimated to be worth ₹75 crore for three years, which is said to be the second-largest deal in the history of IPL sponsorships. Qatar Airways also recently signed actor Deepika Padukone as its brand ambassador.
Qatar Airways is the state-owned airline of Qatar, one of the smallest countries in Middle East Asia with an estimated population of less than 30 lakh. It reported a record net profit of USD 1.54 billion during FY22 with an overall revenue increase of USD 14.4 billion, up 78 per cent compared to last year.
Interestingly, in February only, the Saudi Tourism Authority (STA) replaced Unacademy as an official partner of the BCCI for IPL. The sponsorship is estimated at Rs 60 crore per season.
STA was the second institution from Saudi Arabia to be associated with India's most sought-after property. Saudi Aramco, the world's largest oil company and B2B player, came aboard in 2022 by sponsoring IPL's Orange Cap and Purple Cap titles. This sponsorship is also estimated at Rs 60 crore per season.
Cricket is the world’s second most popular sport after soccer, with an estimated 2.5bn fans globally. IPL alone amasses more than 500 million viewers in the season, according to BARC data. Hence, it has been attracting a large number of international brands, who wish to tap the world’s second largest consumer market in a flat six weeks through the high decibel tournament. Moreover, the Middle East, which was never a hotbed of cricket, is emerging as a cricket-loving region, thanks to a range of reasons such as huge numbers of Indian expats in gulf countries and IPL shifting to UAE during the pandemic, says experts.
Sam Balsara, Founder, Chairman and Managing Director of Madison World, says, “India is the one bright spot in a dull gloomy world. So everybody wants to pitch their tent in India and those who already have want a bigger tent.”
Llyod Mathias, angel investor and brand strategist, echoes the sentiments, “Saudi Tourism and Qatar Airways seek to woo Indian tourists and Indian expats across gulf countries through their most popular game, at a time when the Indian economy continues to grow amidst a global slowdown.”
Why B2B brand Aramco?
While the association of Qatar Airways and STA with IPL is understandable, people wonder what a B2B brand like Aramco is doing at IPL.
Dr Sandeep Goyal, MD of Rediffusion Group, explains, “Building up recognition and recall in the world’s most populous nation, with the youngest consumer base is a necessity for all global brands today. It doesn’t matter therefore that you are B2B or B2C. Every brand has multiple dimensions: financial brand, employer brand, ESG brand - hence visibility in India helps.”
Experts also point out that Aramco is looking to expand its footprint in India. Earlier, it sought to have a deal with Reliance Industries but that did not go through. It also seeks to establish a refinery project in Ratnagiri (Maharashtra) which is delayed due to protests by locals and legal hurdles in acquisition of land.
In the long term, the company might be looking at B2C business as well by setting up petrol pumps, Mathias speculates.
The company website highlights its vision, “India has tremendous potential in terms of start-ups, technologies and investment opportunities in oil and gas, and Aramco India’s Business Origination is keen to partner with and deepen the already existing ties between Saudi Aramco and its Indian customers.”
Advertising veteran Ramesh Narayan opines, “Saudi Aramco is flush with funds and its major shareholder is the Saudi government. Saudi Arabia is now actively positioning itself as a friendly tourist destination and is taking steps to overcome its erstwhile orthodox religious image. Their pavilion at the Dubai Expo last year was a sign of things to come.”
“In such a scenario, sports is a wonderful avenue to gain a positive image. Of course they need to tread cautiously judging from the sharp reaction Shell got, after its sponsorship of British Cycling. People called it an outrageous attempt at green washing,” Narayan pointed out.
Narayan further noted that Qatar airways and RCB association seems more logical. “The air traffic emanating out of India is massive. The IPL has a huge following in the Middle East. Also Indians have discovered the joys of travel. And with Qatar a short jump across the Arabian Sea, they would have realized they have lost precious time and dollars to neighbouring Dubai in terms of tourism. I see more investment from the Middle East countries in India.”
Qatar Airways is clear about its strategy. Group’s Chief Executive, Akbar Al Baker, said, “Cricket is a global game with a world-wide audience and is a powerful means of uniting people of different backgrounds.”
Alhasan Aldabbagh, APAC President at Saudi Tourism Authority, too sees IPL as a great property to expand their reach among aspirational India. “India represents immense potential as it is expected to be Saudi’s largest tourism source market by 2030,” he had said in February.
Interestingly, UAE has recently launched its own six-team franchise-style league. Five of the six franchises are Indian- owned. We could see many more brand partnerships between gulf countries and India.