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Cricket to earn Rs 18 bn TV ad revenue in 2011

MUMBAI: Cricket is expected to earn an advertising revenue of Rs 18 billion from its television telecast this year, up from Rs 15 billion in 2010, as it showcases the World Cup and the Indian Premier League (IPL) in back-to-back events.


“Our estimate is that this year cricket will earn Rs 17-18 billion. The World Cup and IPL will each get around Rs 6-7 billion,” says Lodestar Universal CEO Shashi Sinha.


The World Cup will be bigger for ESPN than it was for Sony in 2007. “Cricket is pre-sold. 80 per cent of the inventory has been pre sold for this World Cup which is what also happened in 2007. It is the client and agency’s gamble on the property when it is pre-sold. There is an 80 -100 per cent increase in rates compared to what was paid in 2007,” Sinha says. 
 
Digging into the game are a lot more advertisers, offering the telecast rights owner a wider plate to bargain from.
 
“In 2007, there were three telecom companies. Today there are 15. There were five auto companies then. Today there are many more. The reach has also gone up. There are at least 60 per cent more TV homes today compared to 2007. I expect ESPN Star Sports to make at least double of what Sony managed to earn in 2007,” says Sinha.


For Sinha, comparing the World Cup to the IPL is not a sane thing to do. “They are different properties and they do not happen simultaneously. If extra money is coming into cricket advertising, then why are they competing? The decision to advertise or not depends on the audience being targeted and the requirement. Both properties have relative strengths,” says Sinha.
 
News channels also stand to gain from the World Cup but this will be small compared to the larger scheme of things. “News channels will make around 10 per cent of what the live World Cup broadcaster earns. It is a complementary activity for some clients. Others take it as it is less expensive,” explains Sinha.

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