Sports marketing generated Rs 15,000 cr in 2023: GroupM ESP report

GroupM ESP launched the eleventh version of its annual report on Indian sports activities this week, highlighting the expansion of sports activities within the nation for the 12 months 2023. The report titled, ‘Sporting Nation – Constructing a Legacy,’ concentrates on three features of sports activities, particularly, Sponsorships (inclusive of floor, crew, and franchise charges), Athlete Endorsements, and Media Spends. The report means that the cumulative contribution of those three components delivered a income of over INR 15000cr within the 12 months 2023, establishing a double-digit development over 2022.

After a 12 months of IPL frenzy, with the addition of the novel WPL, cricket in India continues to be a topper in all features. However the report additionally factors out that ‘rising sports activities’ (sports activities apart from cricket) have large potential within the nation. Having stated that, rising sports activities noticed a year-over-year decline of 13 per cent, delivering income of INR 420cr. To this, the report factors to the truth that not like 2022, the 12 months 2023 didn’t have a serious footballing event, and this had a unfavourable impression.

GFX – SPORTS INDUSTRY SPENDS

Sponsorships

Sports activities has established itself as Noah’s Ark which ferries manufacturers safely over troubled waters, establishing routes to construct manufacturers within the product classes within the nation. With important enlargement, commercialization, and acquire in affect, India has change into a serious participant on the worldwide stage. Because the viewing habits of customers change, media conglomerates in India are being built-in throughout TV and Digital providers. On the identical time, sponsorship spends on worldwide cricket fixtures, the IPL, and different sports activities is beginning to have large cultural significance. Sporting occasions are reaching extra folks, and there’s a far higher understanding of sports activities immediately. The report says that this elevated attain is influencing media giants to vie over each other for unique rights. Mega sponsorships and endorsement offers are being made on such sporting levels which might be presenting engaging promoting alternatives for manufacturers.

Highlighting the competitiveness for rights, the report says that Viacom, with their OTT platform Jio Cinema, has made main inroads into the IPL by choosing up digital rights for Indian subcontinent, and extra, for 2023-2027 at a bid worth of INR 23758cr.; the Disney-backed Star Community saved the TV rights for the sub-continent, paying INR 23575cr. for a similar interval. Viacom 18 bagged the media rights for each digital and TV for Indian cricket globally for INR 5963cr. for the interval from 2023 to 2028. These rights prolong to all of the cricketing motion run by the Board of Management for Cricket in India (BCCI), worldwide in addition to home, apart from the IPL. Viacom additional continued to achieve share in cricket by successful the rights for the Ladies’s Premier League (WPL) too – they secured the deal for 2023-2027 with a bid of INR 951cr., which works out to a per match worth of INR 7.09 Cr ($Mn. 0.85).

GFX – SPORTS SPONSORSHIP SPENDS

Bearing this in thoughts, the report presents knowledge for Sponsorship spends, which is inclusive of floor, crew, and franchise charge, endorsements by Indian athletes, and media bills by manufacturers. Collectively, they’ve recorded a complete income of INR 15766cr. in 2023, which is 11 p.c larger than the earlier 12 months’s.

All in all, 2023 noticed a wholesome 24 p.c development in sponsorship spends towards 2022. Franchise charge stood out as the largest contributor after including about INR 100cr to its complete in just one 12 months. One more excellent news from the 12 months 2023, when it comes to sponsorships, is that international properties with good viewership in India, like cricket groups in an ICC occasion, and the celebrated English Premier League (EPL) golf equipment, are attracting sponsorship alternatives from manufacturers within the nation.

2023 was additionally the 12 months of the Ladies Premier League. The 5 franchises that took half within the event, fetched BCCI a complete income of INR 4669cr as franchise charge.

 

OWNER	TEAM NAME	BID (in INR cr.)
Adani Group	Gujarat Titans	1289cr.
Reliance Group	Mumbai Indians	912.99cr.
Diageo	Royal Challengers Bangalore	901cr.
JSW-GMR	Delhi Capitals	810cr.
Capri International	UP Warriorz	757cr.

*So as of bid – descending order

 

Sports activities Media Spends

Media spends for 2023 amounted to INR 7494cr, which, in line with the report, is the largest contribution to sports activities commercialisation in India. On this, the largest contributor to advert spends has been tv, placing up a courageous combat towards the brand new darling of media, the OTT. Nonetheless, TV promoting did drop by a worth of INR 886cr in 2023, bringing the overall advert spends to 62 p.c from the extra beneficiant 73 p.c in 2022.

By way of promoting bills, Digital platforms grew by 40 p.c over the earlier 12 months with INR 2870cr in complete spends in 2023. To place it in perspective, the report says that in a single single 12 months, Digital advert spends grew by INR 825cr. OTT has lots to do with Digital media’s rising reputation, and the report mentions that the medium gives a sure comfort that’s not potential in a conventional TV setup. The report additional predicts that customers will overcome any inertia in direction of the acceptance of recent tech with time, additional bolstering Digital’s standing.  Furthermore, Tv-based viewing of OTT, as per the report, can also be enabling collective viewing in households immediately.

GFX – SPORTS MEDIA SPENDS

2023 didn’t have the FIFA World Cup, but it surely did have one thing even higher – the ODI Cricket World Cup throughout the festive months of October and November. This meant that manufacturers ought to have gone all out on promoting, and that’s what occurred, however at the price of non-cricketing sports activities. In keeping with the report, important advert budgets have been diverted from non-cricketing sports activities, leisure programmes, and different such genres in direction of cricket. This additional explains the degrowth of non-cricketing sports activities.

The report envisages 2024 to be an action-packed 12 months with the T20 World Cup, the Olympics, and different sporting competitions lined up all year long.

 

Athlete Endorsements

As customers, immediately we’re used to seeing athletes on our screens and billboards endorsing merchandise. In 2023, Athlete endorsements noticed an uptick, with cricketers’ revenue from manufacturers capturing up by 27 p.c over 2022. Cricket stood tall right here as effectively, as 87 p.c share of all athlete endorsements got here by cricket-related offers. Sports activities celebrities (cricket and rising sports activities mixed) fetched an quantity of INR 927cr. in 2023. The report highlights {that a} complete of 536 model endorsement offers involving sports activities celebrities have been reported final 12 months, and practically 380 of them have been linked to cricket gamers. Cricketing superstars equivalent to Virat Kohli, MS Dhoni, and Rohit Sharma because the main sportspersons to have bagged profitable contracts. Aside from them, Neeraj Chopra, PV Sindhu, amongst others are inspiring athletes to outperform in worldwide sporting competitions.

GFX – SPORTS CELEBRITY ENDORSEMENT SPENDS

Kholi, Dhoni, and Sharma collectively signed as much as endorse over 30 manufacturers final 12 months, which gave rise to their respective endorsement values. The report names the subsequent era of stars Shubhman Gill, Hardik Pandya, Jasprit Bumrah and KL Rahul among the many cricketers who had main positive aspects in 2023 – when it comes to the variety of manufacturers endorsed in addition to income. Indian cricket at all times had a robust pipeline of rising stars, and 2023 noticed Neeraj Chopra had an incredible 12 months in 2023 along with his well-known victory on the World Athletics Championships held in Budapest, along with his wins at a number of prestigious competitions. At present, he has 16 manufacturers in his portfolio as he continues his successful journeys world wide. Ladies’s cricket has been on the rise. Among the many feminine cricketers, the very best earners have been Harmanpreet Kaur, Smriti Mandhana, and Jemimah Rodrigues.

Then again, rising sports activities endorsements recorded a complete of INR 117cr. in 2023, with a 13 p.c contribution to the overall income. A 7 p.c annual development was recorded, which is considerably decrease than what cricket boasts.

GFX – TEN YEARS OF SPORTING NATION

 

VINIT KARNIK INTERVIEW

‘There’s a deliberate effort to assemble a legacy’

Vinit Karnik, Head – Sports activities, Esports and Leisure GroupM South Asia speaks to IMPACT in regards to the significance of the findings of the most recent report, Sporting Nation – Constructing a Legacy, the contribution of the WPL to the overall income, and extra.

The report this 12 months is titled, ‘Sporting Nation – Constructing a Legacy,’ versus final 12 months’s ‘Sporting Nation within the Making’. Has India begun to ‘construct a legacy’ in sports activities? Is that this purely based mostly on Cricket’s resounding success?

GroupM ESP’s India Sports activities Sponsorship Report’s title shifted to ‘Sporting Nation – Constructing a Legacy from ‘Sporting Nation within the Making’, to mirror the elevated standing India now has as a sporting nation. The Indian sports activities business has seen a hovering development from INR 2400cr. in 2008 to over INR 15000cr. in 16 years with a powerful CAGR of 13.3%. It is likely one of the fastest-growing industries in India.

 

This development underscores the numerous enlargement, commercialization, and affect that the Indian sports activities business has achieved through the years, establishing itself as a serious participant on the nationwide and worldwide stage.

India has efficiently hosted International Sports activities occasions Formulation 1 (2011, 2012 & 2013), two ODI Cricket World Cups (2011 & 2023), one T20 Cricket World Cup in 2016, U17 FIFA World Cup in 2017, and final 12 months’s Moto GP Bharat.

 

There’s a robust and secure franchise-led leagues ecosystem. India has seen an increase in varied rising sports activities leagues, diversifying past conventional cricket. Leagues like Professional Kabaddi (PKL) and Indian Tremendous League (ISL) have gained adequate reputation. Different Leagues like Final Desk Tennis (UTT), Final Kho Kho (UKK), Prime Volleyball League (PVL) & Premier Handball League (PHL) haven’t solely offered a platform for athletes however have additionally contributed to the expansion and recognition of their respective sports activities in India. Participative sports activities have gained prominence, transcended conventional boundaries, and fostered group engagement. From golf and cricket to marathons, these sports activities have change into integral to India’s vibrant sports activities tradition, with an organized market exceeding INR 1000cr.

 

Indian athletes gained the highest-ever tally of seven medals in Tokyo in 2021 and 100+ medals within the Asian Video games, 2023. India’s sturdy curiosity in bidding for the internet hosting rights for the 2036 Summer season Olympics, and The All-India Soccer Federation (AIFF) is mulling a plan to host a number of matches of the 2034 FIFA World Cup.

There’s a deliberate effort to assemble a legacy, doubtlessly by notable achievements, cultural affect, and developmental initiatives within the realm of sports activities. This intentional strategy signifies a dedication to not solely improve the business’s financial worth but in addition to contribute considerably to the broader societal and cultural material by its affect on sports activities improvement and engagement.

 

Q2. How a lot of an impression did WPL have on the overall income of Indian sports activities in 2023? That are the opposite sports activities, other than IPL, which have contributed to the overall income, within the pecking order?

WPL franchises have been bought at a document sum of INR 4669.99 Crores for 5 groups, which is 2.5x of the IPL Franchise charge in 2008. The best bid got here from Adani Group, an quantity of INR 1289 Cr for Ahmedabad, adopted by Reliance’s Mumbai Indians who secured the rights at an quantity of INR 912.99 Cr.

 

Viacom secured the media rights for the Ladies’s Premier League (WPL) for 2023-2027 with a bid of INR 951 Crores, which works out to a per-match worth of INR 7.09 Cr. The Tata Group gained the Title Sponsorship rights for the occasion for 5 years. The opposite sponsors who contributed to the spectacular debut season included Dream 11, Amul and CEAT. With all of the 5 WPL groups promoting out their sponsorship inventories, it was fairly a satisfying 12 months for the competitors.  

 

Q3. 2023’s sponsorship income noticed an uptick with general income of INR 7345cr, which was 24 p.c larger than the earlier 12 months’s. When you needed to decide the highest three components for this, what would they be? 

Cricket performed a pivotal position in driving sponsorship development, contributing to 79% with a development of 32%.

A key enabler for this was the beneficial schedule of our males’s cricket crew – they’d performed 64 worldwide matches throughout assessments, ODIs and T20Is in a busy 12 months. This included the ODI World Cup that we hosted, the Asia Cup which noticed us lifting the trophy, and the ICC World Check Championships finals.

IPL 2023 contributed upwards of INR 3000cr. in 2023 to sponsorship spends (together with central, crew and franchise), with the 2 new outfits Gujarat Titans (GT) and Lucknow Tremendous Giants (LSG) enjoying their half in scaling up the competitors to the present ten-team format with an elevated variety of league video games. The introduction of the Ladies’s Premier League (WPL) in 2023 introduced in extra income in all three parts of Floor Sponsorship, Staff Sponsorship and Franchise Charge

The full sponsorship spends in non-cricketing sports activities amounted to INR 1528 Cr, which accounts for 21% of the overall worth. Following are some development drivers in 2023:

• 2023 was the 12 months of the Asian Video games that was held in Hangzhou, China. Because the video games have been held efficiently, enjoying their roles to perfection, have been the Indian Olympic Affiliation (IOA) sponsors

 

• The inclination amongst Indian companies to hunt worth in collaborations with international groups may be seen in soccer too. The funding made by Apollo Tyres with Manchester United, a crew with immense reputation in our nation, and the deal between Tata Gluco Plus and the Argentine Soccer Affiliation, each function illustrative examples on this regard.

 

 

• Professional Kabaddi (PKL), Indian Tremendous League (ISL), Final Desk Tennis (UTT), Prime Volleyball League (PVL) and Final Kho Kho (UKK), a franchise-based competitors, held efficiently in 2023

 

• Marathons have been displaying an uptrend in recent times with the tradition of operating, gaining many miles

 

 

• One other sport that picked momentum after the Covid-related handicaps was Golf

 

• 2023 was an incredible 12 months for motorsports within the nation, because the Moto GP Bharat was held efficiently for the primary time. Formulation E additionally marked its debut

 

 

 

 

 

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