RCB in IPL finals causes IPL advertising rates to rise by up to 10%

RCB's entry into the IPL final fuels up to 10% rise in ad rates, with Kohli's popularity drawing brands across TV and OTT amid earlier muted season demand

The advertising rates for the finals of the Indian Premier League (IPL) have surged by up to 10 per cent compared to last year. This growth rate in ad prices is in line with last year’s IPL finals. 

 

Advertisers and media buyers say that this rise in ad rates for the final match remains steady due to Royal Challengers Bengaluru (RCB) reaching the finals. It garners eyeballs as Virat Kohli is part of the team and has his own fan following. 

 

Overall, there are six matches in the IPL that are considered prime ad slots for advertisers, including the first two and last four.

 

According to a media buying executive, the rise in ad rates is similar to last year’s season. 

 

The ad rates had increased by about 10 per cent for the last four IPL matches last year.

 

Another media buying executive said that the ad rates have seen a minor increase compared to the last season. But he did not specify the extent of the rise in ad rates.  

 

The asking rate for linear TV is ₹18 lakh per 10-second spot and for the digital medium (OTT), it is ₹350 cost per mile (CPM), said Vivek Menon, managing partner, NV Capital, a media and entertainment fund.

 

In comparison, at the start of the tournament, the ad spot per 10-second for linear TV standard definition (SD) was ₹15 lakh, while for high definition (HD) it was ₹6 lakh. 

 

“For the qualifiers and the final, there could be a minor increase which could be in the range of 10-15 per cent. They (the rise in ad rates) are almost on similar lines. Though raids on advertising agencies could be a minor irritant, the ad rates have been in sync compared to last year with a minor increase,” Menon added.

 

The media buying executives quoted above added that the usual legacy brands in the fast moving consumer goods (FMCG), automobile, technology and gaming sectors will continue to be a major contributor in terms of advertising demand for the finals.

 

Menon further said that direct to consumer (D2C), new age brands and gaming will still be major contributors during the final match.

 

“Since many startups have raised substantial capital and IPL is one of the most sought out properties for reach, many of these new age companies would like to promote their brands on IPL,” he said.

 

According to Ankur Bhasin, secretary, Media and Entertainment Association of India, the overall ad demand for the 18th season of IPL was “lacklustre” due to the subdued environment in the advertising industry.

 

He added that the advertising demand was about 20-25 per cent lower compared to the last season.

 

However, this has changed in the final match, led by a rise in viewer interest with RCB entering the finals. 

 

Earlier, several media buying executives had told Business Standard that the Connected TV segment had seen a 10-20 per cent increase in ad rates while for linear TV, they remained flat.

 

Game on  

For TV, ad rate is ₹18 lakh per 10-second; for digital it is ₹350 cost per mile 

Overall ad demand for this season was down 20 to 25 per cent due to subdued environment  

RCB’s entry into the finals has boosted viewership for the final match 

Brands from FMCG, automobile, technology, gaming, and D2C are expected to contribute majorly to the finals in terms of ad demand