In a strategic move, JioCinema has kept advertising rates nearly static for IPL (Indian Premier League) 2024, creating a favourable situation for both brands and themselves. This smart strategy not only allows brands to maintain a strong IPL presence without substantial budget hikes but also allows growth in new entrants with a lower entry barrier, said experts.
According to sources, the anticipated IPL live stream CPM for JioCinema inventory is around Rs 175, while targeted inventory may range between Rs 225 to Rs 265.
This is undoubtedly a master stroke from a master brand. It is a win-win for both brands and IPL broadcasters. Brands, who used to roll high to maximize their presence during IPL, will now be able to pump in more money with their increased advertising budget. On the other hand, IPL with this low barrier to entry, will also be able to attract some new entrants or low and careful spenders to dive into the ocean of audience associated with this mega event, called IPL,” said Kumar Awanish, chief growth officer, Cheil India
According to Awanish, the success indicators will vary with brands. For some, it might be a staggering reach in a short span of time, in which IPL 2024 is ready to surpass 500 million OTT viewers by tapping into a wider market across geographies. For some, it will be engagement, which IPL 2023 has seen having 50 percent more watch time than 2022 grabbing the higher attention span of users. For some it could be targeting the premium users, which IPL is all set to reach out to 70 million plus users (not households).
JioCinema possesses the digital rights for IPL until 2027. In 2023, the media firm, backed by Reliance Industries, successfully secured these rights in auctions, outbidding Disney Star. Disney Star, which held both TV and digital rights until the previous year, lost the digital rights to Jio Cinema in the process.
Experts also said that Jio’s strategy has also pushed Disney Star out of their comfort zone.
“Both Disney Star and JioCinema are rolling out lucrative packages and innovative ad strategies, with Jio introducing budget-friendly handsets like Jio Bharat and targeting specific cohorts. The competition has led to more flexibility in broadcast feeds, allowing separate purchases for specific markets. Star, for instance, now offers a separate south feed, reflecting a more open approach. Ad rates for HD and SD feeds on Star range from Rs 19 to 21 lakhs/10 sec, with Jio not aiming for a competitive strategy compared to the previous year,” said another media buyer on conditions of anonymity.
In terms of vibes, experts said the sentiment around IPL ad rates is notably positive and optimistic, primarily due to its alignment with the beginning of the financial year and stable government policies leading up to the general election.
“Advertisers are expected to strategically invest for broader regional coverage and better return on investment. The upcoming general election is seen as an opportune time for brands targeting male audiences, as the election coverage attracts a considerable consumer pool,” said another media buyer.