Connected TV emerges IPL's 'impact player' as ad rates go through the roof

Advertisement rates for CTV are up in the range of 10-20 per cent, while the inventory for advertisements on linear television is not full

As brands battle for eyeballs and ad rates go through the roof, the connected television (CTV) segment has emerged as the runaway hit this Indian Premier League (IPL) season.

 

This segment has emerged as a particularly lucrative battleground for brands, with prices skyrocketing by up to 20 per cent and prior to the league starting, spot buys being available at a premium of ₹8.5 lakh for 10 seconds.

 

“There has been a healthy demand for ads in CTV with a 10 to 15 per cent increase in ad rates. However, the ad rates in linear TV could be flat (this IPL season compared to last year),” said a media buying executive.

 

The executive noted that this trend was fuelled by gaming companies, startups and summer category brands, who are choosing to advertise more aggressively.

 

Another source at a media buying agency said that there is an increase of 15 to 20 per cent in ad rates for CTV as the ad inventory in this segment was over-booked.

 

An executive from the industry also said that ad rates for CTV can increase by 10 to 18 per cent for 10 second spots due to the fast filling of the ad inventory. 

 

According to the GroupM’s latest report, a noteworthy development within the IPL was My11Cirlce’s winning bid for ₹125 crore per annum in the competitive fantasy gaming category in 2024.

 

This marked a significant move for the brand, with the five-year deal expected to contribute substantially to its (My11Circle) growth strategy over the coming years, the report said.

 

“Some startups and emerging brands will continue to be present on TV, but the situation is notably different from 4-5 years ago when startups dominated the space,” said Lalatendu Das, chief executive officer, South Asia, Publicis Media on the participation of startup companies for advertisements.

 

“With funding getting more selective, startups have adopted a measured approach, prioritising targeted reach. While large advertisers can justify the premium investment for full-tournament visibility, it is difficult for smaller brands and startups to justify the conversion. Many are prioritising digital platforms, where budgets can be allocated more efficiently by targeting specific markets.”

 

Das said this has intensified the demand for digital inventory, particularly on CTV, driving up CPM (cost per mile) rates. 

 

“Additionally, the flexible packages and competitive rates reportedly offered by the broadcaster, specifically for small and medium brands, have also boosted demand,” Das said.

 

Before the start of the tournament this year, the ad rates for CTV was ₹8.5 lakh per 10 second, while the ad rates for TV SD (standard definition) was ₹15 lakh per 10 seconds, and TV HD (high definition) stood at ₹6 lakh for a 10-second spot.

 

JioHotstar, the official streaming platform for the IPL recorded the highest-ever reach with 1,370 million viewers for the opening weekend of the IPL, which began on March 22.

 

The media giant added that the digital viewership for the first three matches was 40 per cent higher than the last season, driven by a 54 per cent surge in CTV consumption. 

Hitting it out of the park

 

*  Advertisement rates for connected TV have gone up 10 to 20 per cent this IPL

*  Gaming companies, start-ups and summer-category brands are among big advertisers

*  Advertisement rates for linear TV are largely flat compared to last year's IPL

*  Ad inventory for the connected TV segment is over-booked

*  Inventory for linear TV is not full

*  Startups have opted for a targeted reach this IPL, which has intensified demand for digital inventory, driving up cost per mile rates