India Sports Sponsorship Report 2014
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SportzPower-GroupM ESP India Sports Sponsorship Report 2014 Sporting Nation in the Making Growth & Potential of Sports in India Sporting Nation in the Making Growth & Potential of Sports in India SportzPower-GroupM ESP India Sports Sponsorship Report 2014 ©Sportz Network Private Limited and GroupM Media India Private Limited All rights reserved. Copyright of all material in this research report vests with Sportz Network Private Limited and GroupM Media India Private Limited, and is protected by national and international copyright and trademark laws. The material and contents of this research report are provided on a non-exclusive, non-commercial, and single-user licence. 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Sportz Network Private Limited 301, Kalash, Sundervan Complex, Andheri Link Road, Andheri (W), Mumbai, India – 400 053. www.sportzpower.com GroupM Media India Private Limited 8th Floor, Commerz, International Business Park, Oberoi Garden City, off. Western Express Highway, Goregaon (East), Mumbai, India – 400 063 facebook.com/GroupM.ESP.India twitter.com/GroupMESPIndia Disclaimer: Sportz Network Private Limited and GroupM Media India Private Limited have endeavoured and taken all efforts to provide the most correct and most reliable information and avoid any kind of mistake in this research report. Sportz Network Private Limited and GroupM Media India Private Limited do not hold any responsibility for any error that might inadvertently be present in the book. Sportz Network Private Limited and GroupM Media India Private Limited do not accept any liability whatsoever arising from any form of inference or conclusion from the information provided in this research report, and Sportz Network Private Limited and GroupM Media India Private Limited expressly disclaims any liability for direct, indirect, and special losses like loss of profits or loss of business opportunities or any other kind of losses, and will be free from any liability for damages or losses of any nature arising from or related to the information in this research report. FOREWORD THE TRIGGERS ARE ALL THERE his decade promises to be a To increase its utility to Rights Owners, India is very bright. transformational one for Sports in India. Advertisers and Agencies, we have divided this We gratefully acknowledge the valuable TThe triggers are all there. A hungry report into four segments – On Ground inputs provided by rights owners, agencies and spectator base of over a billion people, a dozen Sponsorship, Team Sponsorship, Athlete industry participants who have graciously offered sports television channels beaming sporting Management and On Air. information and support in preparation of this content round the clock, a rapidly growing list of In recognition of its rising importance as report. keen corporates and brands waiting to invest in potentially the biggest sport in India after Cricket, emerging cricketing and non-cricketing platforms. We hope that you will find this report Football has a dedicated section. With the Under- useful and informative. Any feedback or For brands, sports present a highly 17 FIFA World Cup, and the Reliance-Star-IMG suggestions to enhance future editions of this impactful and passionate platform, to connect and property, the Indian Super League (ISL), in the report are most welcome. engage with trade and consumers. However, there pipeline, we believe that the future of Football in is very little information and data beyond TV viewership ratings for brands to evaluate and leverage the various opportunities available in sports, which will help them develop brand marketing strategies and programs. SportzPower, India's leading provider of sports business news and knowledge, and GroupM ESP, the Sports & Entertainment arm of GroupM Media, have collaborated on an initiative which seeks to capture and present the trends and developments in the Indian Sports Industry from 2008 to 2013. The Report, the first of its kind in India, documents important events during these eventful years, including the emergence of league-format sports in India like the Indian Premier League (IPL), Hockey India League (HIL), and Indian Thomas Abraham Vinit Karnik Badminton League (IBL). Co-Founder, SportzPower Business Head – GroupM ESP [email protected] [email protected] 4696 4109 3924 3753 2442 2139 SPORTS BUSINESS SIZE (in INR crores) 2008 2009 2010 2011 2012 2013 CONTENTS The Big Picture . 06 View From The Ground . 08 ‘Cricket And Football Will Both Co-exist In Our Marketing Calendar’ . 10 Football – A Microcosm Of The Short Non-cricket Tail . 12 ‘A Time Of Unrivalled Opportunity For Indian Sports Federations’ . 14 ‘The Game Changer’ . 15 ‘Football Is Going To Be Big In India’ . 16 Buck Stops At TV . 18 ‘Enabling A Paradigm Shift’ . 22 Team Sponsorship – All About The Boys In Blue . 24 When It Comes To Talent, Money Chasing Dhoni & Co . 26 ‘Other Sports Are Steadily Carving A Niche’ . 28 ‘Shorter And Newer Formats Key Drivers For Growth’ . 30 ‘We Are A National Brand And Address Consumers Across Geographies’ . 31 Digital Media – Score Big With Early Adoption . 32 On The Front Foot . 34 06 THE BIG PICTURE it comes to monies spent on Sport in India, the Ÿ The number 2, 3, 4, 5... Sports; the real reality is that it is MOSTLY about Cricket, but opportunity lies in these under-leveraged and certainly NOT all about the gentleman's game. under-monetized areas which otherwise have a f the India growth story, into a country worth That Cricket in general and within it the Indian sizeable target audience juicy enough for brands to being placed on the world business map, began Premier League in particular, dominates the associate with and influence Iwith liberalization of the economy in 1991, the conversation around Sport in this country is a no- Ÿ Play for Football, Basketball, Distance Running growth of the sports business in this one-sport country is directly linked to the launch of the 3500 successful Indian Premier League in 2008. 3000 3000 Year 2008 and the IPL, despite all its warts, hence gains immense significance for providing the impetus to monetizing cricket, and initiating a 2500 On Ground process which gave hope and a template for other Team 2000 2250 2250 sports. Hence, when India's growth as a sporting 2000 Sponsorship nation in all aspects, especially the money part, is Athlete documented, 2008 will be recorded as the start line 1500 1450 Media Spends from where the country's nascent sports business took off. 1150 1043 1000 It is apt therefore that the inaugural 705 724 756 712 669 721 SportzPower-GroupM ESP India Sports 437 445 456 500 426 420 382 293 Sponsorship Report sets 2008 as the base line of its 254 267 126 analysis that covers a six-year period till 2013. 127 0 In a market that is starved of authenticated and 2008 2009 2010 2011 2012 2013 Source - GroupM ESP reliable data, the insights the study provides serve Figures mentioned are in Crores (1 Crore = 10 million) as an ideal ready reckoner on where the sports brainer. But the point advertisers, marketers, and industry is positioned in India today, as well as a Spends in Indian Sports (2008 – 2013) the news media need to take into consideration is guide that offers pointers to the triggers that are Ÿ Increase in On Ground sports sponsorships in that this dominance is NOT quite as all- shifting the ground in India's slow, stop-start shift to 2010 because of Commonwealth Games in New Delhi encompassing as is being presumed. a multi-sport country. Ÿ Increase in Team Sponsorship in 2011 because of Embedded within this Report is a validation of the addition of 2 new franchises in IPL The Report, which examined advertising Ÿ following posits: Increase in Media Spends in 2011 because of ICC investments in Indian Sport from four angles – On ODI World Cup in India Ground, Team Sponsorship, Athlete Management, Ÿ India is at the cusp of a revolution in the growth Ÿ Increase in Endorsement values in 2013 because and Media – offers a comprehensive overview of of the sports industry. In the next few years the of new cricketers and Olympic performance where the money is flowing in Sport. market is going to grow exponentially, with other Ÿ Decrease in media spends in 2012 due to weak IPL sports complementing the cricket story on Air The key takeaway the Study offers is that when 07 Ÿ Close on their heels are Golf, Motorsports, Games to significantly shift the needle. sport just does not matter that much. Tennis, Hockey, Badminton, Contact Sports But that is not to say that the ground is not But it is also true that between 2008, when IPL It should serve as a wake-up call for all shifting as far as other sports are concerned. In first burst onto India's consciousness and shook stakeholders in the Sports sector that in the six-year 2012, the share of non-cricket On Ground everything up, and 2013, advertising investments in time frame that the Study covers, the highest share sponsorship stood at 34.5%, dipping to 32.8% in Indian Sport – On Ground, Team Sponsorship, of On Ground revenue Cricket has commanded in 2013, ironically a year that saw the launch of two Athlete Management, and Media – rose roughly two- percentage terms was in 2009 – all of 79%.