IPL 2025: TV+Digital expected to bring in ad revenue uptick

In the high-stakes world that is the Indian Premier League (IPL) advertising, the 2025 season is shaping up to be a proverbial game-changer, with advertisers facing a complex landscape of opportunities and challenges.

The merger of Viacom18 and Star India has birthed JioStar, a media behemoth now wielding both TV and digital rights for IPL 2025. This consolidation promises expanded reach. TV spots (SD + HD) are now commanding floating rates of up to Rs 18 lakh for a 10-second slot, while digital platforms have seen a 10-15% hike. The Connected TV (CTV) segment has emerged as a particularly lucrative battleground, with prices skyrocketing by 30% and spot buys available at a premium of Rs 7.5 lakh per 10 seconds.

Media buying executives project an 15-20% increase in combined ad revenue from TV and digital platforms. Thisgrowth comes even as both legacy and new age advertisers from the likes of paan masala brands to gaming entities like Dream11 are expected to maintain a strong presence in the ad space. According to experts, these broad trends will continue to be the same.

“The expectations from this season of IPL are no different than other seasons. The format is one of the most rewarding ones for advertisers given its reach and impact. The estimated ad revenue will be anywhere between 15-20% higher than other seasons given incremental rates across TV and digital. We are in for a great cricketing season with so much happening in cricket but IPL continues to lead the pack with its short format and interesting combinations across teams. Great entertaining, quick and snackable content. Hence, it is given its due across various cricket formats,” says Anita Nayyar, former COO, Patanjali Ayurved and ex-CEO of Havas.

Lalatendu Das, CEO of Publicis Media South Asia, offers a more nuanced perspective on the pricing strategy. “IPL ad pricing remains negotiable, especially for brands committing to long-term partnerships and high-volume deals,” Das reveals. He suggests that while broadcasters are projecting higher base rates, the reality on the ground is more flexible. “Many discussions indicate that brands securing significant ad volume can even lock in rates comparable to, or better than, last year,” he adds, hinting at a strategy that prioritizes market share over immediate rate hikes.

This approach seems to align with the post-merger industry landscape, which Das believes “favours scale over short-term gains”. For advertisers willing to invest in sustained, high-volume partnerships, this could present a strategic opportunity to secure favorable rates while maximizing reach.

Noting that ad spends in general have been slow so far this year, in part due to economic uncertainties caused by global geopolitics, Prabhvir Sahmey, Senior Director for Ad Sales, Samsung Ads, says, “Everyone is looking forward to the IPL, but general sentiment for cricket hasn’t been that upbeat, as compared to previous years. So while there is a high demand for final matches, most sales are being pushed towards spots.”

Opportunity Cost & Challenges

The fact of the matter is that while there is a certain amount of hesitancy in this edition of India's tentpole entertainment IP, the fact of the matter is IPL 2024 season witnessed approximately 10% growth in reach on the Star Sports Network and over 50% growth in reach on JioCinema compared to 2023, and experts also agree unanimously that the initial rates will likely increase further once the league commences.

According to TAM Sports’ data, an analysis of commercial advertising on TV during IPL 2024 shows a significant increase in ad volume compared to IPL 2023. There was a rise of 40% in the number of advertised categories, 26% in the number of advertisers and 21% in the number of brands.

With a brand valuation of $12 billion, as highlighted by the Duff & Phelps IPL Brand Valuation Report 2024, the league has come to exemplify an ideal marriage between sports and commerce. Meanwhile, the Houlihan Lokey IPL Valuation Study 2024 values the league's business at $16.4 billion, reflecting a 6.5% year-on-year growth, and its brand specifically at $3.4 billion, up 6.3%.

Another reason for any initial (and presumably transient) hesitations might be the cost of advertising, with some newer estimates just for CTV saying prices could go up to Rs 35 lakh for 10 seconds (depending of course on the match, the teams, and the circumstances; with no official rate cards out yet, estimates could well go for a toss).

Rahul Vengalil, co-founder of tgthr, sheds light on the cautious approach many brands are adopting. “A lot of brands are looking at a wait and watch approach,” he notes. Vengalil points to ongoing issues, such as Hindustan Unilever's concerns about ad scheduling authenticity with JioStar, and the transition of IPL to a solely paid model on digital platforms. “These have seeded a question mark for the event,” he explains.

This sentiment is echoed by an anonymous marketer from a leading electronics brand, who offers a more critical perspective on the evolving IPL landscape. “Earlier, IPL used to be a once-in-a-while property, at max once a year, and hence its impact was more valued by viewers and advertisers both,” they reflect.

Sahmey agrees, noting, “IPL is starting right after the ICC Champions Trophy, so there’s an overabundance of cricket already.”

The uncertainty is palpable, with Vengalil revealing that brands he's spoken to are currently leaning towards “heavy spends on Linear TV.” However, he also hints at a potential shift, noting that “after the numbers thrown up on screen on JioStar, there might be a rethink.”

The marketer also highlights the strategic considerations brands must weigh when choosing between digital and TV advertising. “If my brand is more a digital one and my visibility will be more impactful for the audiences of digital, then digital is where I shall invest, like most D2C brands or digital apps,” they explain. “But if I am an established legacy brand and my audience will notice me more if I am on TV, then TV it is.”

Interestingly, the marketer notes that the cost differential between TV and digital has narrowed significantly this year. “Honestly, the costs aren't very different this time around between TV and digital,” they reveal, adding that the teams selling TV and digital are also the same,” another direct result of the same JioStar merger.

As the countdown to IPL 2025 begins, advertisers are navigating a landscape that's as unpredictable as a last-ball finish. The absence of a formal rate card has led to speculation and hesitation among brands, forcing them to justify their ROI in an uncertain economic climate. Yet, the allure of IPL's massive reach continues to draw advertisers, even as they seek more strategic, cost-effective ways to engage with India's cricket-mad audience.

(With inputs from Aditi Gupta, Shantanu David and Chehneet Kaur