Reliance bets on brain-mapping to sell small businesses on IPL ads

Reliance reportedly conducted brain-mapping studies, which showed IPL streaming ads resulted in up to four times greater engagement and memorability compared to rival platforms

After securing an $8.5 billion media merger with Walt Disney, Mukesh Ambani’s Reliance Group is doubling down on monetising the Indian Premier League (IPL) by targetting small businesses and using neuroscience-based brain mapping to make its advertising more effective, Reuters reported on Tuesday.

 

IPL’s costly broadcast rights, which Disney and Reliance jointly acquired for nearly $10 billion, pose a financial challenge, making ad revenues crucial for the merged entity.

 

With Netflix and Amazon competing fiercely in India's $28-billion streaming market, Reliance is launching a nationwide advertising drive to attract small companies, offering entry-level ad packages priced at $17,000 for IPL streaming ads.

 

 

Reliance has claimed that its neuroscience research shows that ads on IPL - considered the world's most valuable cricket league - drive higher engagement compared to platforms like Google’s YouTube and Meta’s Instagram.

 

IPL will no longer be streamed for free on JioHotstar, pushing Reliance to drive paid subscriptions and ad revenues.

 

What do brain-mapping studies say?

According to brain-mapping studies conducted by the company, IPL streaming ads resulted in up to four times greater engagement and memorability compared to rival platforms. This strategy was unveiled in closed-door seminars across seven cities, where media executives and small business owners were invited to explore IPL’s advertising potential, Reuters reported.

 

Reliance's ad monetisation strategy

Reliance's advertising monetisation strategy focuses on attracting small businesses by offering affordable IPL advertising options, positioning them as a cheaper alternative to traditional TV ads.

 

As part of this strategy, Reliance plans to introduce ads on mobile scorecards, creating an additional revenue stream.

 

Furthermore, Reliance is utilising AI-driven ad targeting on digital platforms, allowing for hyper-targeted advertising based on user demographics, location, and income, unlike traditional TV, which has more rigid pricing regulations.

 

Reliance is taking on Google, Meta, Netflix, and Amazon in India’s highly competitive digital advertising market, where YouTube alone commands nearly 500 million users.

 

Potential challenges for Reliance

Despite IPL's unmatched popularity, sustaining ad revenue growth remains a challenge:

1. Ad pricing restrictions: The Competition Commission of India (CCI) has mandated that Reliance and Disney cannot increase IPL ad rates "unreasonably" post-merger.
2. Rising costs: IPL’s hefty broadcasting price tag contributed to Disney India’s estimated $1.42 billion loss last year, underscoring financial risks.
3. Tough competition: YouTube and Instagram offer far cheaper ad rates, with entry-level YouTube ads starting at just Rs 10,000 ($115), which is a fraction of IPL’s $17,000 minimum.

 

While Reliance is raising IPL ad rates by up to 25 per cent this year, its ability to convert engagement metrics into sustainable profits will determine the long-term success of its digital media ambitions.