The “Sporting Nation—Building a Legacy” report emphasized a significant increase in digital advertising revenues, comprising 40% of total ad spending, driven by free access to IPL and ICC Men’s Cricket World Cup matches on OTT platforms.
In 2023, India witnessed a remarkable surge in sports sponsorships, reaching a staggering Rs 15,000 crore, reflecting a notable increase of 10.95% compared to the previous year’s Rs 14,209 crore. This information stems from a report issued by GroupM ESP, the entertainment, esports, and sports division of GroupM India.
The substantial rise in expenditure encompassed various elements such as ground sponsorships, team sponsorships, franchise fees, athlete endorsements, and media spending. Notably, cricket remained the dominant force in this arena, capturing Rs 13,701 crore, which accounted for a significant 87% of the total spending and exhibited a robust 13% year-on-year growth.
The report titled “Sporting Nation—Building a Legacy” highlighted a pivotal shift towards digital advertising revenues, which constituted 40% of the overall ad spending. This surge was largely fuelled by the accessibility of Indian Premier League (IPL) matches and ICC Men’s Cricket World Cup matches on Over-the-Top (OTT) platforms without any paywalls, in contrast to previous seasons.
The decision made by the IPL in April 2023 to bifurcate the rights into digital and TV packages for the 2023-27 cycle, involving media giants Viacom18 and Star Sports, potentially contributed to a stagnant growth amid a slowdown in advertising spending. However, the ICC Men’s World Cup injected a year-end boost to the overall spending.
Despite a transition from TV to digital platforms, the sports ad spending in 2023 remained relatively steady, witnessing less than a 1% growth compared to 2022.
Specifically, in 2023, TV ad spends for IPL experienced a decline of 17%, whereas digital platforms witnessed robust growth of over 25%. Conversely, during the World Cup, both TV and digital advertising surged by over 40% compared to the 2022 ICC Men’s T20 World Cup.
The IPL, recognized as a premier T20 cricket tournament, saw its valuation soar to $10.7 billion, marking a significant 28% increase from 2022, and reflecting a remarkable 433% rise in brand value since its inception in 2008.
Additionally, emerging sports observed a marginal decline of 1% in 2023, collectively accounting for 13% of the total industry expenditure, amounting to Rs 2065 crore or $249 million. Most of the business was dominated by franchise cricket and Team India.
Overall, sports sponsorship in India displayed an impressive growth trajectory in 2023, signifying the increasing influence and significance of the industry. Brands across the nation substantially augmented their investments, fostering valuable consumer connections through partnerships with sporting events, teams, and related properties.
The total sponsorship revenue in 2023 surged to a robust Rs7,345 crore, marking a notable 24% increase from the previous year’s Rs5,907 crore ($748 million). Ground sponsorship emerged as the largest contributor, accounting for 42% of the total spending with Rs 3,117 crore, reflecting a 6% increase from the previous year.
However, significant growth was also evident in team sponsorships (a 22% increase to Rs1,600 crore) and franchise fees (a staggering 60% surge to Rs 2,628 crore), with the latter being the biggest contributor to the absolute increase in sponsorship spending in 2023.