India’s World Cup exit not only broke a billion hearts but it also left the official broadcaster Star Sports with a big hole in their pocket. Star is likely to lose Rs10-15 crore in advertising revenue after India’s ouster from the tournament, reports hindustantimes.com.
The overall excitement of the World Cup dipped considerably after Virat Kohli’s men were knocked out of the tournament following their 18-run defeat in the semi-final against New Zealand, which reflected in the television viewership as well as ad revenues.According to media buyers estimates, Star would have charged significant premium selling last-minute ad spots for as high as Rs 25-30 lakh per 10 second if India played the finals, reported Live Mint.
Currently, these spots are expected to be sold for Rs 15-17 lakh. “Although India’s exit is disappointing, but still this has been a bonanza time for brands with more than 100 days of non-stop cricket action divided between the Indian Premier League (IPL) and ICC World Cup,” said Sandeep Goyal, chairman, Mogae Media, a Mumbai-based marketing and communication agency.
Harsha Joshi, an independent media consultant, said that since Star has been selling ads in bundled deals, leaving a small inventory for last minute buys, there may not be significant revenue loss. “But the opportunity of selling a few last-minute spots has been lost because of India’s exit,” she said, adding that even if the broadcaster had sold the inventory at Rs 30 lakh per 10 second, it would have made an additional Rs 8-10 crore.
“Brands do pay the huge premium, often launching new products/services, during a World Cup finale match as it offers tremendous reach,” she said. Mint had reported earlier that the broadcaster is expected to make Rs 1,800 crore in ad revenues from the global cricket extravaganza, which will conclude on 14 July.
A typical World Cup match has about 5,500 seconds of total ad inventory, while during the finale, depending on the demand, Star can load up to 7,000 seconds of inventory, which can further increase its ability to make revenue.
Leveraging the popularity of the ICC Cricket World Cup, a once-in-four-year event, that is being played in England and Wales, Star has signed over 40 top advertisers, including PhonePe, OnePlus, Havells, Amazon, Dream11, MRF Tyres, Coca-Cola, Uber, Mondelez, Oppo, Philips , Ceat Tyres, Swiggy, Airtel, Vodafone, Netflix, Paisabazaar and ICICI Lombard, among others.