Snowball effect in IPL after VIVO pullout from IPL sponsorship
|| Desk Report ||
The withdrawal of VIVO as the title sponsor of Indian Premier League (IPL) 2020 could have a snowball effect as far as the sponsorship and advertising of this season is concerned.
While the mobile-maker pulled out keeping the anti-China sentiments in mind, many other Chinese brands like OPPO, Real Me, Xiaomi, Huawei, Lenovo are reportedly looking to stay away from the T20 league too.
VIVO has a lucrative INR 440-crore per year contract with the BCCI as the title sponsor of the league but the smartphone brand decided to take a sabbatical this year keeping the ‘boycott China’ mood among Indians in mind amid the political tensions between the two countries. While VIVO’s pullout is set to cost BCCI big as getting a new sponsor on a similar deal is considered nearly impossible.
What’s a bigger worry for the BCCI as well as broadcaster Star Sports is that many other Chinese brands who do on-air advertising during the tournament, may look to stay away from the T20 league this time around due to the anti-China mood of people.
“The sentiment against Chinese brands is very strong currently. We are advising our clients to stay away from any big-ticket advertising. Be it IPL 2020 or any other big television property, it is unlikely Chinese brands will advertise in these circumstances”, a big advertising agency involved in the media buying for the Chinese handphone client told Inside Sport.
VIVO and OPPO both advertise on Star Sports extensively. As per Inside Sport, they spent about of INR 240 crore cumulatively on advertisements during IPL 2019. This year, however, they could remain away from the tournament entirely.
“Handset category is one of the biggest advertising categories on IPL over the years. It will be tough for the broadcaster to replace them. But the good part is some more categories have opened up for them. Edtech companies this time are expected to be big advertising categories along with the Consumer Durables as the IPL this year coincides with Diwali”, asserted Ashish Chadha, CEO of leading Sports Marketing Company Sporty Solutionz.
“Because the economy is down, a lot of advertising will go away. For many companies such as durables, festivities suit more than April-May. They are the biggest hope for IPL this year,’’ said another media agency.
PayTM, Swiggy, Zomato, Dream11 also have Chinese links and the current situation could make them rethink their strategy as far as advertising is concerned. After generating revenue of INR 2100 crore last year, Star India is reportedly expecting the figures to come between INR 1500 crore and 1700 crore this time.
The BCCI is currently in the hunt for new sponsors. The coming week or so will give a clearer picture as to where the sponsorship situation stands for IPL 13.
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