Can IPL 2024 surpass past seasons' ad revenue?

Halfway through the 17th season of the Indian Premier League (IPL), discussions are rife within the industry about anticipated revenue figures for this season. Projections for advertising revenues on both TV and digital platforms range around Rs 2,000 crore each, while alternative estimates suggest a collective revenue closer to Rs 1,400 crore for each medium.

According to Karan Taurani, Senior VP at Elara Capital, a growth of 10-12 per cent in digital and 5-7 per cent in TV advertising revenues is expected this IPL season.

"Taurani projects TV revenue to rise from Rs 1,875 crore last year to around Rs 2,000 crore this year, and digital revenue to increase from Rs 1,800 crore to Rs 2,000 crore," he stated.

On the condition of anonymity, another industry expert disclosed that the combined revenue from digital and TV advertising for IPL is anticipated to reach approximately Rs 4,000 crore this season.

However, some analysts caution that this season's advertising revenue might not surpass the figures of 2022, despite being comparable.

"We anticipate ad revenues of around Rs 1,200-1,400 crore for television and Rs 1,400 crore for digital," mentioned a source requesting anonymity.

Industry observers note that while digital platforms attract more advertisers due to lower entry barriers, television commands higher initial costs. Consequently, the overall revenue is expected to balance out.

In 2023, Viacom18 and Disney Star jointly earned over Rs 4,000 crore from streaming and broadcasting rights for IPL. This marked a significant shift from previous years when Disney Star held exclusive rights.

Although industry leaders anticipate a growth in revenue compared to 2023, they predict it might fall short by about 10% compared to the peak figures of 2022.

"The combined ad revenue from TV and digital in 2022 was approximately Rs 4,500 crore. While we expect this season's numbers to surpass 2023 figures, they may lag behind by approximately 10% compared to 2022," Taurani explained.

In June 2022, the Board of Control for Cricket in India (BCCI) auctioned IPL broadcasting rights for a staggering Rs 48,390 crore, ushering in a new era of digital and TV distribution split between Disney Star and Viacom18.