BLOG | by Joseph Eapen

Even with higher price tags, IPL sponsorship still looks like good value

With the VIVO IPL now well underway, we thought it was time to start looking at its performance for sponsors.

We find that one the first measurements partners look for is the amount of screen time a deal gets them. This metric is the first step on a journey to persuading consumers to buy the brand’s goods or services – without visibility a sponsorship is rarely going to be successful.

It’s also a metric that relatively easy to compare with, say, buying advertising time of an equivalent value.

Let’s take a quick look at some of the data we’ve collected around the tournament based on what we’ve seen so far.

As you can see from the chart above, title sponsors VIVO can expect their logo to be on screen for more than 200 hours during the tournament. Even allowing for the 500% increase in sponsor fees (VIVO paid Rs 2199 crore/ $316m over five years), this looks like good value for the title sponsor.

By our calculations, the sponsorship will achieve an advertising value equivalent of $875m, providing VIVO with a minimum return of more than 13 times its investment.

The story is similar for both central and team sponsors too. Central sponsors can expect an AVE Of $100m over the season, while team sponsors are looking at a not insignificant $17m thanks to their deals.

So although it’s early days for the tournament, it’s a promising start for IPL’s sponsors. We’ll continue to assess this data as the competition goes on.

BLOG | by Joseph Eapen

JOSEPH EAPEN
Senior Vice President, India

Joseph has 20 years’ experience in marketing research and media measurement.  He joined SMG Insight from Repucom where he was SVP South Asia. Prior to that, he was at Media Research Users Council (MRUC), an industry body in India, where he was CEO and responsible for the Indian Readership Survey 2010 (the largest readership study in the world). He was previously the CEO of aMap, the second largest overnight TV ratings company in the world.

E joseph.eapen@smg-insight.com

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