Three years back, when IPL was born, Mukesh Ambani and Vijay Mallya paid Rs.441 & Rs.440 crore respectively to purchase Mumbai Indians and Bangalore Royal Challenger franchises. Many pundits had then questioned their vision, calling it nothing more than a mirage; they were wrong. IPL turned into a trusted and successful sporting brand, turning profitable during just the second year, for both the BCCI and the franchise owners. And what equity it had built in just the first year. Despite general elections forcing the entire tournament out of the country, brand IPL did not lose its glitter; instead it shone brighter, thanks to some great advertising prior to the third edition. According to market experts, IPL 3 will generate Rs.1000 crore in ad-revenues. Even in terms of viewership, IPL no longer looks a 3 year-old infant. TAM (Television Audience Measurement) reports prove how viewership has increased by 6% this season, as compared to IPL 2, with more than 67 million viewers watching the first three matches of IPL 3 in India alone. The story as far as global audience goes is similar. With IPL matches being broadcasted live on YouTube for the first time, viewers in UK, US and Australia are showing keen interest in IPL. [This online strategy has also created a huge buzz in the country.]
There is a danger however – of ad-rates hitting the ceiling, which would therefore divert advertisers to other formats, as Sam Balsara, CMD of Madison World says, "IPL may turn in to a Golden Goose. Due to overhype, the ad-rates of IPL slot is too much now. This may slowly divert advertisers from IPL to other cricketing events. But at this moment IPL is rocking!" As per a London-based brand valuation consultancy Brand Finance, the value of IPL 3 (at $4.13 billion) is twice that of IPL 2 ($ 2.01 billion). But is this growth a sustainable one? Brand Finance says, it is. Even a pumped up Modi says, “IPL will become the world’s biggest sporting brand!”
Coming back to where we started. Should the very expensive $300+ million purchases of the Pune and Kochi camps be questioned? To answer it in a line, when Mallya and Senior Ambani paid hundreds of crores of rupees for two teams, three years back, they earned many criticisms. Today they are earning riches. Undoubtedly, there will be expenditures for the two new teams, but can you forget the umpteen sponsors who are willing to even plaster the batsmen's helmets with their logos? You have our answer right there. Pune & Kochi, the bidding dates are nearing!
There is a danger however – of ad-rates hitting the ceiling, which would therefore divert advertisers to other formats, as Sam Balsara, CMD of Madison World says, "IPL may turn in to a Golden Goose. Due to overhype, the ad-rates of IPL slot is too much now. This may slowly divert advertisers from IPL to other cricketing events. But at this moment IPL is rocking!" As per a London-based brand valuation consultancy Brand Finance, the value of IPL 3 (at $4.13 billion) is twice that of IPL 2 ($ 2.01 billion). But is this growth a sustainable one? Brand Finance says, it is. Even a pumped up Modi says, “IPL will become the world’s biggest sporting brand!”
Coming back to where we started. Should the very expensive $300+ million purchases of the Pune and Kochi camps be questioned? To answer it in a line, when Mallya and Senior Ambani paid hundreds of crores of rupees for two teams, three years back, they earned many criticisms. Today they are earning riches. Undoubtedly, there will be expenditures for the two new teams, but can you forget the umpteen sponsors who are willing to even plaster the batsmen's helmets with their logos? You have our answer right there. Pune & Kochi, the bidding dates are nearing!
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