IPL 2024 Looms: Duel Between TV and Digital Advertising

With the onset of the Indian Premier League (IPL) 2024 just two days away, the perennial debate between TV and Digital advertising has resurfaced, dominating discussions on the ideal marketing strategy for the tournament.

The digital advertising landscape in India underwent a significant transformation in 2023, propelled by the free streaming of the IPL, which attracted major brands and substantial investments. Combined ad revenues from digital and television during the previous season of the cricket extravaganza reportedly surpassed Rs 4,000 crore.

As the IPL embarks on its second year of free digital streaming, speculation abounds regarding the supremacy of digital over television or a potential neck-and-neck race. Industry pundits opine that while digital advertising, with its lower entry barriers, may entice a greater number of brands, television remains the preferred choice for its superior recall value.

According to Vanita Keswani, CEO of Madison Media Sigma, a fierce competition between digital and television is anticipated, with both mediums presenting unique advantages and challenges tailored to diverse target demographics. She emphasizes that the outcome will hinge on the strategic decisions of brands and their respective sectors' engagement with the IPL.

Despite television's broader reach, data indicates a 50% decline in ad revenues from IPL broadcasts in 2023 compared to the previous season, despite a significant increase in viewership. Market observers attribute this downturn to prevailing market conditions, impacting both digital and TV ad revenues post-tournament.

While some experts advocate for digital's ascendancy, citing its rapid growth and expanding audience through Connected TV, others contend that television's cost-effectiveness makes it a favorable option for advertisers, particularly mass-market or traditional brands.

Karan Taurani, Senior VP at Elara Capital, underscores the potential for television to rebound this year, projecting a modest 8-10% growth in ad revenues, compared to digital's anticipated 10-15% growth. He attributes last year's digital dominance to its free-of-cost offering, which may tip the scales in favor of television this season.

The IPL broadcasting rights, sold by the BCCI in June 2022 for a staggering Rs 48,390 crore, were divided into digital and TV packages for the four-year cycle. Disney Star secured the TV rights for Rs 23,575 crore, while Reliance-backed Viacom18 acquired digital rights for Rs 23,758 crore.

With the convergence of digital and television advertising strategies shaping the IPL landscape, the forthcoming season promises to be a compelling spectacle for both viewers and advertisers alike.