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MUMBAI | FRIDAY, 5 APRIL 2019 BRAND WORLD 15. <
URVI MALVANIAMumbai, 4 April
E ndorsements and on-ground advertisingand promotions have
been key to sports sponsor-ship ecosystem in 2018, evenas media spending grew at aslower pace in a year that didnot have a major internationalcricket tournament and aslack domestic calendar.According to GroupM ESPProperties’ Sporting Nation inthe Making–VI that wasreleased today, the businessof sports saw a growth of 12per cent in 2018, if the num-bers are adjusted for the IPLfranchise fees. With the IPLcompleting 10 years in 2017,the franchise fee, amountingto approximately ~291 croreceased to be valid in 2018.
The sports industry wasworth ~7,762 crore in 2018 asagainst ~7,300 crore in 2017.Without the adjustment, thegrowth is just six percent butas the report states, a year-on-year comparison would beirrelevant without netting offthe anomaly.
As has been the trend thus
far, cricket bagged the biggestdeals across the sponsorshipplatter—be it in terms ofmedia spending or endorse-ment fees. Stalwarts, ViratKohli and M S Dhoni account-ed for 66 per cent of overallendorsement value. But a trueindicator of the country’sfanatic obsession with cricketis that the player with thethird highest endorsementvalue is someone who retired from the game in 2012: Sachin Tendulkar.Tendulkar’s social mediaequity is at par with that ofKohli and Dhoni, an indica-
tion of his relevance among ademographic that is muchsought after by brands of all shades.
The report said that a sig-nificantly higher number ofbrands opted for star endorse-ments even though the ratioof endorsement value to thenumber of brands being endo -rsed came down versus 2017.
Media spends on sports(advertising on TV, print, anddigital) continued to be a bigchunk of the revenue earnedin sports at ~4,432 crore. While85 per cent of the spending isfor TV, digital grew by 44 per
cent driven by OTT platformswhile print spends halved.
The IPL team sponsorshiptally touched ~300 crore forthe first time in 2018 register-ing growth of 20 per cent. IPLcontinues to be a star on TVeven as digital moves up the ladder.
Vinit Karnik, businesshead, ESP Properties said,“2018 was a spectacular yearfor the business of sports and2019 will be another power-packed year. There will be asignificant rise in sportsleagues and tournamentssince IPL has inspired othersports leagues such as PKL,ISL, and PBL. From the IPL team sponsorship see-ing a growth of 20 per cent orfor the first time ever to kabad-di registering a growth of 31per cent, factors like thesehave given sports sponsorshipa boost. With IPL now and ICCCricket World Cup coming upwe also expect sports celebri-ties to be the talk of the town,monopolising consumerattention and advertisingmoney.”
Media spending grows slower at 9% in 2018 over 15% in2017; endorsements surge 22% vs a 17% drop: GroupM
Sports sponsorship grows12%, cricket gets the most
Source: GroupM ESP Properties’ Sporting Nation in the Making–VI
CRICKET OTHER SPORTS 323 73 2017 (~cr) 2017 (~ cr) 392 89 2018 (~cr) 2018 (~ cr)
2017 (~cr) 2018 (~cr) 396 482
THE ENDORSEMENT TABLE
Kohli valued at ~200 crore tops the charts, with Dhoni at second spot (~100 crore) andTendulkar (five years into his retirement) is third-most valued sportsperson (~40 crore)
Total endorsement
n Of the ~482 crore spentby brands on sportstaracquisitions, 81% was accounted bycricketers alone
n Two cricketers ViratKohli and M S Dhonipulled in 66% of allathlete endorsementmonies last year
n As many as 133 brandssigned with cricketers for2018, this was against afigure of 90 brands in2017. For other sports, 86brands signed up withnon-cricketing stars incomparison with 78 theprevious year
HIGHLIGHTS
> FROM PAGE 1
Jet bidding startstomorrow; banksready Plan B"Lenders are cognizant that the outcomeof the efforts will depend on the interestshown by the parties in stake sale," thestatement added in a sign of things tocome.
A senior public sector bank executiveassociated with the Jet Airways rescueplan said lenders were trying to give sup-port but the financial situation was grim."It is already operating with a small fleet.We had prepared an estimate of Rs 1,500crore for interim funding. It was a pre-liminary figure and that keeps increas-
ing. Unless there is a concrete invest-ment proposal, it will be a difficult situ-ation."
Another banker pointed out that notall lenders are willing to release morefunds into the company, not even prior-ity funding. ‘’The resolution planinvolved funding from the original pro-moters, and in the absence of that thereshould be a commitment from a newinvestor for further funds to be released,”said a bank executive.
In an indication that the crisis is get-ting bigger, Jet Airways CEO Vinay Dubeand CFO Amit Agarwal briefed civil avi-ation secretary Pradeep Singh Kharolaon the current state of operations. StateBank of India chairman Rajnish Kumartoo briefed the secretary. “Jet Airways
has assured that its fleet sizewill not go down below 26planes. Safety and conven-ience of passengers will bekept in mind before any deci-sion on Jet Airways is taken,”Kharola said.
Lessors have been ground-ing Jet's fleet over non-pay-ment of dues. Other suppliersand vendors too are steppingup pressure. On Thursday, oilmarketing companies brieflystopped fuel supply to the air-line over non-payment.However, operations resumedsoon after. "Jet Airways con-tinues to operate as per sched-ule," the airline said in a state-ment.
(Additional reporting by Abhijit Lele)
BJP leads others in social mediacampaigningFacebook, which beganreleasing its political adspending data since February21, has recorded cumulativespends of over ~10 croreahead of the elections. As oflast week's data, all of the five
top-spending pages promote the BJP,and these five alone account for over40 per cent of the Facebook politicalad spends.
The next highest spender is NaveenPatnaik, Odisha's Biju Janata Dal chief.The cumulative figure of ~10 crore inpolitical ads on Facebook spent so farshows a 22.9 per cent rise over the pre-vious week. The number of ads is upfrom 41,514 to 51,810.
“Advertising should align with theobjective that each party is looking at.Parties want to get more and more people into the conversion fun-nel. The targeting option is much high-er on Facebook,” said Harjot SinghNarang, president, Dentsu One Pvt.Ltd.
He added that the Congress couldbe waiting to spend heavily when theelections come closer, but if that does-n't happen, regional parties competingwith the BJP for top social media adspend could potentially change thenarrative of the election.
With the role of social media andtechnology giants in influencing elec-tions becoming a talking-point theworld over, Facebook, Google andTwitter have released ad transparency reports for political adsfor India after doing so for the US andthe EU.
The top spends by the BJP seem tohave some impact, at least if one goesby search terms on Facebook. Four ofthe top five most searched terms relateto the ruling party. They include ‘bjp’,‘bharatiya janata party (bjp)’, ‘modi’and ‘narendra modi’. The word ‘con-gress’ does make one appearance, atnumber four.
Facebook had announced new ruleson political and other advertisementsin December 2018. They said suchadvertisements would have dis-claimers. Google and Twitter havelaunched similar disclaimers.
The platforms are also adoptingpolicies that require advertisers run-ning election ads in India to provide apre-certificate issued by the ElectionCommission of India (ECI), or anyoneauthorised by the ECI, for each ad theywish to run.
Meanwhile, Twitter’s AdsTransparency Centre showed sometweets promoted by those involved inthe ruling party, though a consolidatedfigure was not clearly visible.
“As online platforms have differentproducts and display features, infor-mation is showcased differently. Forpolitical campaigning ads, Twitter'sAds Transparency Center (ATC) shows billing information, spend, andimpression data for each Promoted Tweet. Additionally, the ATCshows demographic targeting data by impression, both intended bythe advertiser and actually deliveredby Twitter,” said a spokesperson inresponse to a query by BusinessStandard.
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