The IPL Twenty20 championship has started from March 12 and advertisers are willing to pay more than last year to have a tryst with cricket, the eight franchisees of the Indian Premier League (IPL) are laughing their way to the bank!!! IPL rules giving franchisees more flexibility to advertise their logos, and innovative ways of marketing tools used by franchisees have seen their advertisement revenues rise by up to 50 per cent this year.
Chennai Super Kings has roped in two new sponsors, Orient Fans and UniverCell Telcommunications, bringing the total of their advertisers to 15. It says ad rates have gone up. “Usually, deal sizes range between Rs 1 crore and Rs 15 crore, depending on the capacity at which the brand will be present. But, new sponsors coming on board this year are paying a premium of 30-40 per cent compared to the first IPL, while the existing sponsors are increasing the rates they were paying by around 15 per cent,” says Rakesh Singh, marketing head of Chennai SuperKings. He says the franchisee would be making over 30 per cent more advertising revenue this year compared to last year, when the venue had to be shifted to South Africa because of security concerns here.
Film icon Shah Rukh Khan’s Kolkata Knight Riders (KKR) has bagged at least four new sponsors this year, and is negotiating with another four to five. Last year, it had 11 official sponsors. According to industry sources, KKR brought in Lux Hosiery Industries, which manufactures ‘Lux Cozy’ innerwear, for a staggering Rs 12 crore, through executives won’t divulge the numbers. The deal has since been put on hold due to public sentiment being aroused as a promoter of the company is involved in an abetment-to-suicide case. Joy Bhattacharya, CEO of KKR, says: “Brand sponsorship for us ranges from Rs 2 to Rs 10 crore. We have already got four new sponsors, which include Videocon, and are looking for more.”
It has also tied up with energy drink. The drink was launched recently by Goa Technology and Trade and the logo will be present on the players’ T-shirts. Justifying their decision, a spokesperson for the JMJ Group, the parent company of Goa Technology and Trade, says: “It’s a completely new entrant into the energy drinks market. KKR was the most popular team in both 2008 and 2009 IPL seasons, and hence the association to attract maximum eyeballs.”
Franchisees say what helped is the decision of the IPL administration to permit new opportunities of sponsorship from last year. So, the back of the jersey, the trousers, as well as the space behind the helmet are now open for sponsors.
Also, the catchment area for loyalty of the team has got extended, as matches this year would be held at places other than where the home team is located. For instance, Mumbai Indians would be playing some matches in Nagpur, apart from Mumbai, offering advertisers a larger area of coverage.
Says a senior executive of a leading company in fast-moving consumer goods, which put in money in sponsorships: “The back of the jersey is available at a premium of around Rs 8 crore to Rs 10 crore. The trousers will not get a premium, as they cannot be seen on TV, and are a good way for new companies with limited budgets to get into cricket, as you could get them at Rs 1 crore to Rs 3 crore. There are, of course, many more options to advertise with a team.”
That is what GMR’s Delhi Daredevils is cashing on. Apart from straight sponsorship deals, the company is negotiating for a hospitality partner, as well as a healthcare one, amongst others, and also for merchandising tie-ups. It is also talking to sponsors to create talent clinics from where local players can be chosen to join the team. The franchisees have to pick up at least four local players in their team and talks are on with sponsors to create a long-term talent scout programme. Says Amrit Mathur, COO of Delhi Daredevils: “We are looking deeper to various co-branding opportunities, as well as new innovative ways to get advertisers.”
(Source – Business Standard)