Sports ad spend to cross ₹14,000 crore in 2022

According to the 10th edition of GroupM’s annual report ‘Sporting Nation in the Making’, the total expenditure of the sports industry had increased by 49%. 14,209 crore from last year 9,500 crores in 2021. Of this, on-ground, sponsorship spending for teams and franchisees more than doubled. 5,907 crore, GroupM said in the report, increasing its share in the overall pie by 12 basis points to 42% from 30% earlier.

The increase in spending was mainly behind the increase in the number of Indian Premier League (IPL) matches, following the introduction of two new franchises, ICC T20 World Cup, Asia Cup, FIFA World Cup, and the return of emerging players. Sports tournaments like Pro Kabaddi League, Marquee Marathon, Maharashtra Open and Commonwealth Games 2022.

A little over 50%, or 53%, of the entire industry spending was on media ads. Interestingly, the share of media advertising is slated to decline by 10 basis points in 2021, despite a 26% increase from a year ago, with sponsorship spending growing much faster.

In terms of absolute value, media advertising on the game stood out. 7,553 crore, with traditional television advertisements accounting for the largest share, though digital media gained considerable ground during the year.

“In these 10 years, the industry has delivered a compound annual growth rate of 14% with 2022 scoreboard reading 14,209 crores. Cricket played with positive intent and accounted for a bulk of the value, but emerging sports had a great year from a growth perspective, with several events making their return after a Covid-induced hiatus,” Vineet Karnik, Head , entertainment, e-sports and games, GroupM South Asia, said.

industry can reach 20,000 crore in 2-3 years, if the momentum continues, he said.

The 2023 Cricket World Cup in India is scheduled during the festive season, two major international racing events, Formula E and Moto GP, renewal of the IPL sponsorship after the 2023 season, and the title and central sponsorship for the BCCI Home Series and Team India sponsorship, BCCI Apart from the home series media rights auction, there could be major drivers for the Indian sports industry.

Sports celebrities also associated with more brands with endorsement value 749 crore, up 20% from 2021. This includes Byju’s deal with the brand associations of Argentine and Paris Saint-Germain star footballer Lionel Messi and Indian track and field athlete Neeraj Chopra, following their exceptional performances to win gold at the Tokyo Olympics.

“With some sensational victories by our athletes across various sports disciplines, we have made significant progress in the last decade in terms of on-field performance. Gone are the days when the hockey team used to stand alone as a beacon of hope in the Olympics when our contingent won 15 medals in the last three editions of the Games.”