Saturday, July 13, 2024

Sports ad spend crosses ₹14k cr in 2022

New Delhi: The Indian sports industry has registered a massive jump in 2022 with media advertisement spending , on-the-ground and team sponsorships, and celebrity endorsements breaching the 14,000 crore mark for the first time, signalling a massive post-covid recovery.

According to the 10th edition of an annual report ‘Sporting Nation in the Making’ by , GroupM, the sports industry’s total expenditure was up 49% to 14,209 crore last year, from 9,500 crore in 2021. Out of this, spending on sponsorships for on-ground, team and franchises, more than doubled to 5,907 crore, increasing its share in the overall pie by 12 basis points to 42%, from the earlier 30%, GroupM said in the report.

The rise in spending was primarily on the back of the increase in the number of Indian Premier League (IPL) matches following the addition of two new franchises, the ICC T20 World Cup, Asia Cup, the FIFA World Cup, and the return of emerging sporting tournaments like Pro Kabaddi League, marquee marathons, Maharashtra Open, and Commonwealth Games 2022.

A little over 50% of the over all industry spending, or 53%, was on media advertisements. Interestingly, despite 26% rise from a year earlier, the share of media advertising shrunk by 10 basis points over 2021, with sponsorship spending growing at a much faster clip.

In terms of absolute value, media advertising on sports stood at 7,553 crore, with traditional television ads having the biggest share, though digital media gained considerable ground during the year.

“Over these 10 years, the industry has delivered a compound annual growth rate of 14%, with the 2022 scoreboard reading 14,209 crore. Cricket played with positive intent and accounted for a major share of the value, but emerging sports had a great year from a growth perspective, with many events making their return after the covid-induced hiatus,” Vinit Karnik, head, entertainment, e-sports and sports, GroupM South Asia, said.

The industry can reach 20,000 crore in 2-3 years, if the momentum continues, he added.

The 2023 cricket World Cup in India scheduled during the festive season, two big international racing events, Formula E and Moto GP, the renewal of IPL sponsorships after the 2023 season, and the title and central sponsorships for the BCCI Home Series and team India sponsorship, besides the BCCI Home Series Media Rights auction, could be the key drivers for the Indian sports industry.

Sports celebrities also got associated with more brands with the endorsement value at 749 crore, up 20% from 2021. This included Byju’s deal with Argentina and Paris Saint-Germain star footballer Lionel Messi and Indian track and field athlete Neeraj Chopra’s brand associations following his extraordinary performance at the Tokyo Olympics to win the gold medal.

“We have made significant headway over the past decade in terms of on-field performance, with some sensational victories by our athletes in different sports disciplines. Gone are the days when the hockey team stood alone as a beacon of hope at the Olympics, with our contingent picking up 15 medals in the last three editions of the games,” he added.

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