Big ticket event Vs smaller leagues – Experts weigh in on maximising brand strategies

The Board of Control for Cricket in India (BCCI) in its annual report for FY2022-23 has declared earning a surplus of Rs 5,120 crore from the Indian Premier League (IPL) 2023, while its total income stood at Rs 11,769 crore. The surplus saw a jump of 116% from Rs 2,367 crore from IPL 2022.

According to the FIFA website, the sale of rights relating to the FIFA World Cup Qatar 2022 made up the majority of FIFA’s revenues ($6,314 million or 83%) for all categories. This was a record high and the tournament was the most profitable in FIFA’s history. Of this figure, $929 million was generated by FIFA in ticket sales and hospitality rights.

Major sporting events such as the IPL, Olympics, FIFA, have always dominated viewership and revenues. In the first half of 2024, IPL, the Lok Sabha elections and the Paris Olympics were some of the major events that dominated the public’s attention, drawing in massive viewership numbers and capturing a lion’s share of media focus. These events, with their widespread appeal and intense coverage, naturally command significant advertising rupees. For brands, these events offer a rare opportunity to connect with a broad audience, making them a focal point of their marketing strategies.

However, this concentrated attention can create challenges for smaller tournaments and less prominent events, which may struggle to attract the same level of viewer interest and sponsorship monies. The ripple effect of these large-scale events on domestic sports tournaments and smaller international tours can be significant.

As brands allocate a substantial portion of their budgets to these big-ticket spectacles, the funds available for sponsorship of other events may dwindle. This often leads to a sharp decline in viewership and advertising revenue for smaller tournaments, which can struggle to compete with the star power and hype of events like the IPL or the Olympics. The shift in media attention can also result in a saturated market where only the most prominent events capture the audience’s interest, leaving smaller sports and tournaments in the shadows.

Adgully explores the delicate balancing act that advertisers must perform when prioritizing their budgets between these high-profile events and smaller leagues. This article delves into the strategies brands employ to maximize their reach, the challenges faced by domestic tournaments in maintaining visibility, and the broader implications for the sports and entertainment industry as a whole. By examining these dynamics, we gain insights into the competitive nature of the advertising landscape and the impact of major events on the broader ecosystem of sports and media.

Big versus small

When asked how major events like the IPL, Olympics, and General Elections affect viewership numbers and the sponsorship landscape for domestic sports tournaments and smaller international tours, Lloyd Mathias, Angel Investor & Business Strategist, said, “It definitely puts pressure. This year, there have been three events back to back. March and April saw the IPL, and immediately after that came the T20 World Cup, and the Olympics. And in between all this, we had the general elections, which had its own kind of impact. Among the three of them, there has been a lot of viewership excitement. People have been watching the IPL, the World Cup and the Olympics. And now, it does put pressure on media budgets and therefore, a lot of advertisers with, what are they going to spend their money on? Are they going to spend a lot of their money on these big budget events or are they going to kind of keep focusing on the normal general entertainment channels? The pressure will come on a lot of entertainment channels, because sports are being big and news has come big because of the election year.”

Naresh Gupta, Co-Founder, Bang in the Middle, elaborated, “What we watch is a function of how we think of that event. Every time a special event happens, we have to break our routine to follow it. Cricket obviously dominates our mindspace and when it comes to the World Cup we will tweak our lives to watch it. Election results for Lok Sabha this year were watched by a large number as this election was also the most hyped election ever, and maybe the winner was not as clear as the news channels made it out to be. The Olympics has never been a big draw for India, but again, this year thanks to expectations we had a higher than last time interest. The issue with all these special events is this: these events attract viewership from those who otherwise will not watch either TV or OTT, these light viewers give the number boost.”

Jagdeep Kapoor, Founder-Chairman and Managing Director, Samsika Marketing Consultants, pointed out, “There will be small and big events happening all the time. That should not disturb strategy or campaign. A brand’s campaign should follow the brand mantra – ‘Be persistent, be insistent, be consistent’. Like SIPs, irrespective of whether the market is up or down, the SIP should be implemented. Similarly, the Systematic Advertising Plan (SAP) should be implemented. This helps build brands, not short cuts or ad hoc advertising.”

Prioritising budgets

Speaking on how advertisers prioritise their budgets between big-ticket events like the IPL and domestic leagues, Lloyd Mathias said, “It depends on each brand’s objectives. The April-May period is a big business period, whereas the moment you get June-July, which is the monsoons, it’s a little low. It either depends on what time their main business activity happens, or if they have a significant ambassador launch.”

Naresh Gupta, pointed out, “Most advertisers know the big ticket events that are coming up and use the planning stage to allocate budgets. For many brands, planning revolves around cricket, so they know what is coming and what they should plan.”