What is common between Shah Rukh Khan, Ajay Devgan, Sunil Gavaskar, and Virender Sehwag? While some are team owners or cricket legends, their other connection to the league lies in being brand ambassadors for Pan Masala companies. Pan Masala is one of the top five categories in the ad volumes’ list on IPL(Indian Premier League) this year. The category has also reportedly shelled out a whopping Rs 350 crore for IPL 2024 ad placements.
According to media buying experts, Rs 250 crore out of this ad budget has been spent on television advertising alone.
As per latest numbers released by TAM, Pan Masala brands accounted for 10 percent of total ad volume in the first 39 matches of IPL 2024, played between March 22nd and April 23rd. In fact, it is one of the only two categories common between IPL 2023 and IPL 2024.
Why does IPL work for Pan Masala brands?
Like any other brand, Pan Masala brands also have their eyes on the massive reach of IPL on television and digital.
According to Vaibhav Choudhari, Vice President, West, Carat India, despite the seemingly irrelevant connection, Pan Masala brands see IPL as a strategic investment for reaching their target audience.
“The high cost is justified by the massive reach, particularly among male audiences and in smaller towns where their consumption is higher. By constantly being in viewers’ faces with celebrity endorsements during this near-religious sporting event, they aim to build top of mind brand awareness and capture new customers in a category known for user loyalty (addiction),” he said.
“This strategy mirrors past battles for market share in deodorant, telecom and e-commerce categories where brands fought for top-of-mind space to influence buying decisions,” he added.
Brands in the category also topped the leading advertiser list in terms of ad volume. Vishnu Packaging (Vimal Elaichi Pan Masala) and K P Pan Foods (Kamla Pasand Silver Coated Elaichi) are among the top five advertisers this season. Both brands were top advertisers in last year’s season as well.
“A ‘powered by’ partner in the category ends up spending anywhere between Rs150 crore- Rs 200 crore on IPL while any other advertiser from the same category pays approximately 15 percent less for inventory and ends up spending around Rs100 crore during IPL,” explained a media planner who did not wish to be named.
According to this planner who works closely with brands in the category, these companies spend close to 60 percent of their annual ad budget on IPL.
While Pan Masala brands appear to dominate IPL ad breaks, the planner clarifies that these are actually ‘mouth freshener’ brands.
This tactic is a classic example of surrogate advertising, where companies promoting restricted products like Pan Masala advertise alternative products like mouth fresheners to bypass regulations.
“Pan Masala brands spend heavily on IPL advertising, with estimated spending reaching hundreds of crores. Despite Pan Masala’s ban on advertising due to health concerns, they cleverly advertise under the guise of mouth fresheners or digestives. IPL offers massive viewership, reaching millions across demographics, providing unparalleled visibility. Moreover, it offers a platform for brand association with youth, glamour, and entertainment, transcending the product’s traditional image,” said Yasin Hamidani, director at integrated marketing and branding agency Media Care Brand Solutions.