Why should a brand be considering Sports Sponsorship in India ?
We wrote this piece about 6 months back but its still so apt. POsting it now but please excuse us for a slight dated data points.
— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — -India’s Sports viewers are not just into cricket these days. that As their appetite for other sports grows, the big money advertisers are seeing value in hedging their bets on these fast growing leagues.
Sports sponsorship in India has grown by a staggering 12.3% to Rs.5,185.4 crore in 2015 from Rs.4,616.5 crore in the previous year, according to industry estimates. This accounted for 10.4% of the total Indian ad expenditure in 2015.
Hitesh Gossain, CEO of Onspon.com, India’s biggest online sponsorship market-place commented to the new developments in this space,“There is most certainly an ingrained sense of understanding between the sponsors, sports teams and federations. A symbiotic marketing relationship has emerged within the sporting ecosystem in India.”
“2017 will be great for all those participating in the various events and also for brands and spectators, with a deeper connection with sporting properties,” he added.
On ground sponsorships grew 30% to Rs.1,030.50 crore in 2015 according to industry estimates. Intriguingly, the gap between cricket and non-cricket sports was narrowed down in terms of how much they brought to the table in this segment. Of the total ground sponsorship spend, cricket accounted for 51%, while non-cricket sports accounted for 49% of the overall ground sponsorship pie.
The Indian Premier League (IPL) continued to be the heftiest bull in this segment, despite the controversies surrounding it. The property jumped by 13.9% in 2015 to contribute INR 529.50 crore.
Beyond that, football ground sponsorships grew 91.6% to INR 114 crore in 2015. The Pro Kabaddi League grew fourfold, albeit on a relatively small base, as revenue expanded to INR.48 crore in 2015, despite the absence of a title sponsor.
On-air sponsorships grew 6.8% to Rs.2,690 crore in 2015.
This came after huge mediums, such as IPL, which pulled in approximately Rs.800 crore for broadcaster Sony Pictures Networks India. While the ICC Cricket World Cup fetched Rs.500 crore for broadcaster Star Sports, the Indian Super League got Rs.100 crore for the channel. The Pro Kabaddi League also managed to get Rs.45 crore for Star Sports.
Overall team sponsorships grew 13% to Rs.558.20 crore. This growth was despite 1.9% drop in cricket team sponsorships to Rs.341.20 crore in 2015, owing to fewer matches being played. The 49% rise in non-cricket-team sponsorships, which accounted for Rs.217 crore in 2015, created a wave of hope.
The growth in this segment has come on the back of the Indian Super League as well as Indian companies such as HCL Technologies Ltd and Wipro Ltd investing in European football clubs.
In the sports endorsement deals, the overall pie grew by 27% to Rs.416.40 crore. Of this, cricket accounted for Rs.264.4 crore, while advertisements with international athletes grew to Rs.110 crore. Other sports pulled in Rs.42 crore in endorsements.
The biggest endorsement deal of 2015 was delivered by Tata Motors Ltd, which signed football superstar Lionel Messi as its first brand ambassador at Rs.60 crore per year. 2015 also saw the introduction of cricketer Virat Kohli to the Rs.100 crore endorsement club, alongside Sachin Tendulkar and M.S. Dhoni.
Endorsements in other non-cricket sports grew a spectacular 90% from Rs.22.1 crore in 2014 to Rs.42 crore in 2015, with Saina Nehwal, Sania Mirza and Mary Kom accounting for 40% of the endorsements pulled in.
So it is here to stay ? hell yes !!
— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — Written by : Hitesh Gossain (CEO, Onspon.com)
Onspon.com specializes is creating fantastic opportunities of association for hundreds of brands with millions of events. We believe that its no longer an emotional decision — its backed by data and high quality analytics.