With the mega bid from Star India for IPL, ad rates to go up exponentially

Star India grabbed the worldwide broadcast rights for BCCI’s cash rich Indian Premier League with a whopping amount of Rs. 16,347.5 crores for 5 seasons (2018-2022) on Monday. The broadcast giants are looking to monetize the amount by exponentially increasing the ad rates by 200-300%.

It was recently announced that Star India are looking to expand their reach by making Hotstar Internationally available. An app analytics firm named App Annie Inc. confirmed that Hotstar is rated at the numero uno position on the basis of monthly consumption and active users for the past 12 months in India. With the app going global, it would potentially lucrative property for the company,

“Big congratulations to Star India for the win. The bid for IPL has probably changed the equation for not only cricket and sports but for all media. The table will move up and it is expected that the rates for the ad slots will also go up dramatically,” claimed the CEO of Lodestar UM India, Nandini Dias.

“As per rough calculations, the ad rates are expected to go up to Rs 15-17 lakh per slot on television and Rs 2.5/impression on digital. This will be around 200% jump of rates on television and 300% jump of rates on digital,” added Dias according to Ad Age.

IPL matches worth 1.5 cr every over?

That's approximately Rs 75 Cr/day or Rs 25 Cr/hour or Rs 1.5 Cr after every over of #IPLgame. Beyond my scope of comprehension! @cvlsrinivas https://t.co/OKgGhOW0Gy

— S K Swamy (@skswamy) September 4, 2017

“This could mean that the ad rates might shoot up to 2x or even more, which many advertisers may not be willing to pay. While the properties such as 4s or 6s, sponsorships will continue to attract advertisers, the increase in rates for individual spot buys might affect the media plans for many advertisers,” further augmented the Business Head, ESP Properties, Vinit Karnik,

“It is good that the rights are consolidated with one broadcaster, which makes it better for agencies as they will have to deal with one broadcaster instead of two or three players for the same property. There will be more bundled deals including television and digital offering more room for innovation such as in-stadia branding, extra innings branding and other areas,” concluded Karnik