The upcoming ODI (One Day International) Men’s Cricket World Cup, scheduled during the festive period, is anticipated to generate over Rs 2,000 crore in advertising revenue. Marketers are projecting a 15 percent increase in ad spending compared to previous years. This tournament, one of the most significant cricket events set during the Dusshera-Diwali period, has attracted substantial interest from advertisers, with expected ad expenditures to be double that of the 2019 World Cup.
Ambika Sharma, Founder and MD of Pulp Strategy, an ad agency, predicts a 10-15 percent increase in ad spend during the festive season in 2023, primarily attributed to the impending cricket World Cup, which is expected to draw a large viewership and consequently, advertisers.
The World Cup is projected to generate ad revenues ranging from Rs 2,000-2,200 crore, encompassing both TV and digital platforms. Digital revenues are anticipated to show significant growth, potentially surpassing the previous edition by at least 70 percent. Karan Taurani, Senior Vice-President at Elara Capital, notes that while digital advertising’s absolute value may not match TV advertising, the growth rate is expected to be higher. Cricket’s popularity on digital platforms, along with more affordable advertising rates, has allowed numerous brands to participate, making the 2023 Cricket World Cup poised for a digital ad spend surge similar to what occurred during the Indian Premier League (IPL) in 2023.
Digital advertising rates for the 2023 Cricket World Cup have increased by over 60 percent, with a range of Rs 230-250 per thousand impressions (CPM), compared to Rs 140-150 per thousand impressions during the 2019 edition. On TV, ad spends are expected to be 20 percent higher this year, with premium matches like India-Pakistan commanding rates of around Rs 30 lakh for a 10-second slot.
The overall growth rate for the advertising industry in 2023 is forecasted to be 8-9 percent, partially driven by the positive impact of the Cricket World Cup. Most of this growth is expected in the second half of the year, with a projected AdEx (Advertising Expenditure) growth of 14 percent in the second half, compared to four percent in the first half. The Cricket World Cup is anticipated to contribute approximately two percent to the overall ad spend growth in 2023.
Disney Star, the official broadcaster and streaming partner of the ICC Men’s World Cup 2023, has already signed up 21 sponsors and over 500 advertisers for the tournament. Sponsors include Mahindra & Mahindra, Hindustan Unilever, MRF Tyres, Dream11, Booking.com, among others.
In the past year, certain consumer tech sectors such as edtech, fintech, foodtech, and e-commerce shifted their focus towards profitability, leading to reduced ad spending. However, the positive impact of the festival season is expected to offset some of this decline, with traditional sectors like FMCG, auto, and telecom contributing to the advertising market’s growth.
