Live Issue... IPL viewing decline throws ad sales strategy into doubt

The Indian Premier League's(IPL)decision to move its lucrative Twenty20 cricket tournament to South Africa from India amid security concerns has hurt viewership, with ratings down 16 per cent on the opening day compared to its inaugural season last year.

 According to Audience Measurement and Analytics (aMap), TV ratings for the first two matches were 3.6 per cent and 3.8 per cent, respectively, compared to 4.3 per cent for the opening match of last season. More people watched the opening matches (seven million versus 5.6 million last year), but for far less time (32 minutes versus 50 minutes). The figures so far are not surprising to industry observers, who cite the change in venue, inclement weather, lower quality of matches and the country’s election as key factors.

“The first IPL saw many firsts, including big corporate names, movie celebrities and megabucks being associated with the sport. This, and the media, created much needed hype and excitement around the event,” says Mahesh Ranka, GM at Relay Worldwide.

“Since the IPL moved, the local buzz is missing,” adds Suvrangsu Mukherjee, MD for the Indian subcontinent at Total Sports and Entertainment. “This season’s IPL is witnessing a lot more off-field negative publicity than last year - players being sent back, the top teams of last year struggling and washed out matches.”

Any fall in popularity raises huge questions about the broadcast strategy surrounding the IPL in India. Mukherjee adds that a 30 per cent share of the ad inventory, which the tournament’s broadcaster Multi Screen Media was planning to sell at a premium, is now facing stiff resistance from advertisers and media buyers given the drop in viewership. Ranka believes advertisers are being asked to pay double the spot rates following last season’s success.

“Previously, there were so many ads that they over-ran into matches and affected the start or breaks between matches,” says one sports marketer. “There was clutter for fans and advertisers so both sides were upset. This year, there is less inventory from the broadcaster and advertisers are paying more to show TV spots during the broadcast of matches.”

Things, however, are likely to improve, according to Danny Townsend, president, EMEA and South Asia, at Repucom International, who believes the tournament’s downward figures will not continue for the rest of the season and the slide in ratings can be reversed. However, he notes that activation by sponsors is key for the IPL to win back viewers in India. Some brands, especially in the telco sector (one of the biggest-spending categories around the IPL), have already switched strategies by offering trips to South Africa within their promotions.

“In the first year, people saw a lot of activity on ground. People going to see the teams practise, as well as ticket availability and pricing, created its own little excitement value,” says Ranka. “Building interactivity with the viewers again - through contest participation, smart and quick marketing initiatives, is now needed.”

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