MxMIndia

Tag: Sportz Power

  • The annual GroupM ESP Properties-SportzPower report forecasts ‘Achche Din’ for the sports sponsorship biz

    Indian sports sponsorship grew 14% in 2017

     

    By A Correspondent

     

    Indian sports sponsorships grew by 14% in 2017 surpassing the USD 1 billion  mark for the first time as per the 2018 report on sports sponsorship released by ESP Properties, the entertainment and sports arm of GroupM and Sportz Power. Media investments contributed to the largest portion of the pie (55% of overall spends), followed by ground sponsorships. Sports advertising rose to Rs. 7,300 crore, a substantial leap from Rs 6,400 crore in the previous year.

     

    The year 2017 was a milestone year in sportssponsorship, asthe US billion-dollar mark was crossed for the first time. As per GroupM’s This Year, Next Year advertising investment forecast, Indian advertising expenditure in 2017 was Rs. 61,263 crore, and this report estimates 12% contribution to the overall adspends are from sports sponsorship alone.

     

    Sponsorship of non-cricketing sports grew in 2017. India’s second biggest sport by participation and attendance, football grew by a considerable 64%. India hosted its first ever FIFA U-17 World Cup that became the most attended in the history of the event. Attendance for this Football World Cup was a record 1,347,133, surpassing China’s 1985 audience of 1,230,976.

     

    Since last year, ISL is a 10-team, 18+ week showcase, up from eight teams and 10 weeks in the last season. ISL sponsorship has grown by 22% from the previous year. The gap between PKL and IPL TV ratings is narrowing – PKL delivered 1.5 TVR with 312 million reach and IPL delivered 2.7 TVR with 411 million. Football has a tremendous reach in West Bengal, the North East, Kerala and Goa, similarly PKL delivers well in Patna, UP, Jaipur and Hyderabad among others. 2017 also saw the birth of five new franchise-based leagues – UTT, SBL, SFL, Cue Slam and P1 Power Boating.

     

    Brands are bullish about investing in emerging sports; 25% increase in franchise fees came from developments in other sports, as Cricket remained unchanged. Thirty-six new franchises were added across all new and existing leagues. While demonetisation and GST hit overall ad expenditure in 2017, the sports sector has been able to ride the storm with a steady and positive trajectory. All major sporting leagues managed to bring on board sponsors at a 100% or more incremental value for the title sponsorship. Specifically, the IPL has emerged as one of the top five most valuable global sports properties in the world.

     

    Vinit Karnik

    Said Vinit Karnik- Business Head, ESP Properties: “2017 was truly the ‘big’ year for the business of sports. With Pro Kabaddi League emerging as the second-most popular league in India after the Indian Premier League, and the India edition of U-17 Football World Cup creating history in terms of audience attendance, has given sports sponsorship enjoyed a bull run. As popularity of sports grows in India, sports stars also expand their brand endorsement portfolios. Virat Kohli led brand endorsements with 19 brands and 150+ crore in value, while PV Sindhu leads the non-cricket endorsement space with 11 brands and 30+ crore in value.”

     

    Thomas Abraham

    Added Thomas Abraham, Co-Founder, Sportz Power: “With the 2017 momentum and the economy also looking up and set to grow at 7.3% in 2018-19, sports is looking at an even bigger year. As the industry anticipates clarity on the structure of Club Football in India, among the new leagues on the horizon, Volleyball seems the most promising. In the media firmament, while new revenue benchmarks are expected from Television, it will be traction in the Digital arena that provides real pointers to where the industry is going over the next few years.” Based onmedia events across various leagues and tournaments, 2018 looks like a good year for cricket and other sports, which will give rise to deeper engagement with brands and sporting fans in India.

    Sporting Nation In The Making – V

  • According GroupM’s ESP Properties-SportzPower report, spendson sports sponsorship accounted for 11.5% of AdEx

    Sports Sponsorship Industry grew 19% in 2016

     

    By A Correspondent

     

    Sports sponsorship spending grew by a little over 19%. Spending via sports sponsorship accounted for 11.5% of the Indian AdEx (AdEx numbers from GroupM This Year, Next Year 2016 report) in the Indian market. While media spends contributed to the largest chunk of the pie, followed by ground sponsorship, the total size of sports advertising rose to INR 6400 crore / $941 million, a big jump up from the INR 5363.3 crore / $825 million garnered in 2015. All this and more is part of ‘Sporting Nation in the Making’, the four fourth edition of the sports sponsorship report compiled by ESP Properties- the sports and entertainment programming specialist arm of GroupM, and leading sports portal SportzPower.

     

    The report delves into the evolution of technology and its effects on the mainstream digital landscape. An important insight of this report, notes a communique, is that both cricket and non-cricket held their own trajectory, and together pushed the industry forward. The year 2016 also seemed like a make-or-break year for some leagues, with some repositioning themselves to garner greater viewership, while others launching with a hungry audience base. Indian Cricket was on a high in 2016, both on the field and off it.

     

    Said Vinit Karnik- Business Head, ESP Properties: “The report insights are the key to devising more refined viewer engagement. Gone are the days of male dominance in sports viewership. The year’s biggest chunk of spectators came from women and kids. This is ground-breaking data for brands to take that much desired leap of faith and traverse new grounds. Cricket continues to be the poster child for sponsorships, and non-cricket sports still have a fair leap to make to match revenue. However it is interesting to focus on the mushrooming of a very defined health and fitness consciousness within the country. Young digital India is breaking barriers and creating new records especially when it comes to live feeds. Their smartphones are their all access pass to the “insider world” of sports, sportsmen and their strengths and weaknesses. Sports start-ups are trending and the success achieved by league-based events across multiple sports indicates a strong potential to consume sports other than cricket.”

     

    Added Thomas Abraham, Co-Founder, Sportz Power and continues: “Demonetisation disruptions aside, 2016 was a great year for the industry and this year will be even more so. Team sponsorships may have experienced certain upheavals and newer leagues will change the sporting diaspora even more so this year. However, what remains to be seen is franchise sustenance, endorsement rates and the manner in which technology and data influence these numbers. We expect 2017 to only get bigger, not just on the back of growth from the leagues that are now up and running, but also from new kids on the block that are debuting in the year – Table Tennis being a notable one.”

     

    Sporting Nation in The Making – IV

  • One-tenth of Indian AdEx was spent on sports in 2015 says ESP Properties-SportzPower report on sports sponsorship

    Sports sponsorship grows 12.3%

     

    Sports sponsorship grew by 12.3% in 2015 to Rs 51,854 million in India. This number is 10.4% of the total Indian AdEx in 2015 as reported by GroupM’s ‘This Year, Next Year’ report.  This was revealed in a report sponsorship in the country presented by ESP Properties, the Entertainment and Sports arm of GroupM and leading sports news portal Sportz Power.

     

    Into its third edition now, the report on the Indian sports sponsorship market discusses the success of non-cricket leagues, fan engagement and how brands can maximise value from association from sports.

     

    Emphasising how sports can be harnessed as a successful communication medium by brands, Vinit Karnik- Business Head, ESP Properties said: “There is definitely a cultivated sense of understanding between corporate sponsors, sports teams and federations. A symbiotic marketing relationship has emerged within the sporting ecosystem in India. 2015 saw Sports accounting for 10.4% of the total media spend, which is a 12.3% increase from the previous calendar year. 2016 will be fantastic for not only players and federations, but also for brands and spectators, with a deeper engagement with sporting properties.”

     

    “Sports other than cricket have successfully established themselves in terms of revenue and fandom within the Indian sporting firmament,” added Thomas Abraham, Co-Founder, SportzPower. He added, “Sports like Kabaddi and Football have massively increased sponsorship revenues in 2015 and we saw return editions of sports like Tennis and Hockey as well. The successful launch of the Pro Wrestling League bodes well for 2016, which will see the advent of more franchise based leagues. We expect 2016 to be a good year for Cricket as well as Other Sports, generating ad spends and clocking in corporate investments at an exponential pace.”

     

    2016 is a big year for the sporting community, including emerging talent, federations, broadcasters and fans, adds the report. As the Indian market opens up to new sporting leagues and new forms of exhibition, there is great interest in sports such as Football, Tennis, and Running, to name a few. Brands that have made investments in sporting events early on are seeing greater returns on their investment over the last two years. With the advent of non-cricketing sports taking a share of the sponsorship pie, emerging talent is exposed to international players, better coaching techniques and greater interesting in their chosen game. With this kind of exposure, the next three to five years will also see heightened attention from broadcasters, as they look at newer platforms to increase advertising engagement, the report adds.

     

    Executive Summary of ESP Properties-SportzPower Report 2016

    Key Observations

    > Sports Sponsorship in India increased by 12.3% in 2015, compared to the previous year. This accounted for 10.4% of the total Indian AdEx

     

    > While cricket took a majority share of the sponsorship pie, non-cricketing sports were the growth driver in 2015

     

    > Pro Kabaddi League’s resounding success paved the way for it being slotted as a biannual event from 2016 onwards

     

    > Change in the landscape of Indian sports with the successful launch of the Pro Wrestling League. Pro Kabaddi League and the Indian Soccer League have successfully deepened their respective engagements with fans

     

    > The build-up to the FIFA Under-17 World Cup in India will provide encouragement to emerging talent and investment in the sport locally, with world class infrastructure and facilities being provided in six cities

     

    > International Premier Tennis League and The Champions Tennis League delivered second editions

     

    > Hockey India League announced three new franchises to kick-start its third edition of which Ranchi Rays and Dabangg Mumbai continue to be a part of the six team league in 2016

     

    On Ground

    > On ground sponsorship for cricket in a year when IPL was the only big bang cricketing event grew a path-breaking 30% from Rs. 7,948 Mn. to Rs. 10,305 Mn.

     

    > Despite the bad publicity and the shadow of the Supreme Court looming over the BCCI, IPL viewership and engagement was unaffected. The property grew by a solid 13.9% in 2015, to Rs. 5295 Mn

     

    > Key brands that drove the cricketing upswing were Paytm, CEAT Tyres and MRF Tyres with a combined inflow of around Rs. 1,078 Mn. per year, increases the cricket spends by 14%

     

    > Football clocked in a whopping 91.6% growth in ground sponsorships from Rs. 595 Mn. in 2014 to Rs. 1140 Mn. in 2015

     

    > Hero Moto Corp for ISL at Rs. 180 Mn. as the title sponsor is the behemoth among the 17 (up from 10 in 2014) sponsors who collectively contributed Rs. 1000 Mn. + as sponsorship amounts

     

    > A 32% rise in sponsorships at Rs. 470 Mn. was seen by Tennis in 2015. While Champions Tennis League added brands like Kotak Mahindra Bank, Gatorade and Grey Goose, title sponsor for IPTL – Coca Cola – renewed its sponsorship while also becoming a 10% stakeholder

     

    > A massive 300% rise YOY, PKL revenue soared to Rs. 480 Mn. in 2015, that too without a title sponsor

     

    > With Distance Running at 53.5% YOY revenue increase, PWL and HIL also drove On Ground Sponsorship from Other Sports to close at a healthy Rs. 2230 Mn. for 2015

     

    Team Sponsorship & Franchise Fees

    > Cricket Team Sponsorship saw a marginal 1.9% drop from Rs. 3,478 Mn. in 2014 to Rs. 3,412 Mn. in 2015. Drop has come on the back of less number of matches Indian team played

     

    > 2015 also saw an increase of 48.8% in Non Cricket Sports, driving the market (despite the drop in Cricket) up by 13% to Rs. 2,170 Mn

     

    > Football by itself registered a 67% increase YOY, to close at Rs. 603 mn

     

    > PKL was the principal driver of increased Team Sponsorships in Other Sports, which saw an overall 38% upside from Rs. 855 Mn. In 2014 to Rs. 1,180 Mn. In 2015

     

    > Closing at Rs. 240 Mn, PWL made up for its chaotic, unorganised debut by claiming hearts and fans

     

    Endorsements

    > The biggest endorsement deal of 2015 was delivered by Tata Motors, which signed its first brand ambassador in global football superstar Lionel Messi onto a two-year deal at Rs. 600 Mn per year

     

    > If the triumvirate of M S Dhoni, Sachin Tendulkar and Virat Kohli remain perched atop the Indian endorsement pyramid, among female sporting stars, Saina Nehwal, Sania Mirza and MC Mary Kom continue to be the Big Three in 2015 as well

     

    > Virat Kohli stepped into the elite Rs. 1,000 Mn. endorsement club that Tendulkar and Dhoni already belong to.

     

    > Endorsements from other sports rose a spectacular 90% from Rs. 221 Mn to Rs. 420 Mn in 2015, with Saina Nehwal, Sania Mirza and Mary Kom accounting for 40% of the endorsements pulled in by Non Cricket Sports

     

    On Air

    > Despite the challenges of time zone differences, the ICC World Cup managed to garner Rs. 5000 Mn in ad revenues in 2015.

     

    > On Air Sponsorship increased by 6.8% YOY from Rs. 25,180 Mn. in 2014 to Rs. 26,900 Mn.

     

    > Longer live content duration with league sports. Wider reach, consistent performance metrics of non-cricket sports help in garnering future spends

     

    Mobile & Social Media

    > 70% fans bring their mobile devices to share in stadia experiences

     

    > 46% mobile internet users search for sporting events and news

     

    > In IPL, CSK could not generate much online conversation despite a strong fan base, while in social media top three drivers are KKR, RCB and MI.

     

    > With six digit Facebook bases, ISL teams are more talked about than the league itself, thus highlighting a clear divergence between team buzz v/s league buzz

     

    > Likewise, PKL teams also cumulatively generate 500 times more buzz than the parent league

     

    > IPTL, HIL and PWL need to focus on building more traction on their social media assets to be able to up their social and search numbers

     

    > Sachin Ramesh Tendulkar still rules the social media with fans on Twitter and Facebook surpassing any other sports player numbers

     

    Year 2016

     

    > Sports teams and federations have developed a better understanding of marketing themselves and are in an evolving state of sync with corporate sponsors to ensure a symbiotic commercial relationship

     

    > Sports needs a mobile amplification – the ways and means to harness mobile as a direct communication medium with the sports fan demographic are limitless, progressive and extremely penetrative

     

    > IPL templated leagues for sports such as Table Tennis, Cue Sports and Volleyball are readying for their respective coming out parades