Digital ad spends on IPL expected to double this year: Kumar Awanish of Cheil India

The digital advertising landscape in the country is evolving and Indian Premier League (IPL) has a big role to play in it. In a chat with Storyboard18, Kumar Awanish, chief growth officer at Cheil India, talks about the growth in AdEx, the impact of connected TV on viewership, the exponential growth in reach and accessibility, and the changing dynamics of audience targeting. Excerpts

How does the digital AdEx look this season?

The digital ad spends on IPL this year is expected to be twice that of last year, indicating its significance. Television ad spend last year ranged between Rs 3,200 crore and Rs 3,500 crore but this year it has decreased to under Rs 2,000 crore, highlighting the shift towards digital platforms. In the sports genre, IPL alone contributes about 70-75 percent of digital ad spending. As for sectors that are aggressively spending on IPL on digital, there are many. For example, there is the gaming sector which has experienced a boom post-pandemic and is presently cashing in on IPL’s digital reach. Free streaming has also been attracting a lot of new brands to invest in IPL. It has played a crucial role in expanding the audience base and attracting diverse advertisers. These in fact are the key reasons behind the 2X growth in digital ad expenditure.

Are advertisers seeing a good return on investment from their digital ad campaigns during the IPL?

In terms of ROI, brand awareness, recall and reach are crucial factors to consider. It is important to understand that from a reach perspective, there are two different categories. One is the overall event reach, and within this, there is also connected TV that has taken a big leap. Connected TV (CTV) has witnessed significant growth. The visibility across ad touchpoints is commendable, and stakeholders, including advertisers and agencies, are satisfied with the impact and return on investment. Overall, it's a positive outcome for all involved.

What about wastage? Do you see that coming down this IPL?

There is definitely less wastage. Different targeting options have provided advertisers with new opportunities. Regional targeting allows advertisers with limited geographic reach to engage specific audiences in their preferred language. Connected TV and other digital platforms enable precise targeting, minimising ad spillage. Unlike traditional media, digital impressions are generated when the user is online, resulting in sharper targeting. Mobile consumption primarily involves adults, reducing ad spend wastage compared to television, where a significant portion of the audience falls within the age group of 2 to 14. This has led to minimised ad spend wastage.

Has the move towards free streaming of the IPL benefitted both advertisers and viewers?

This year, JioCinema has projected an impressive reach of 500 million, surpassing last year's 150 million by more than 3X. With approximately 750-800 million smartphone users in the country, the free streaming of cricket matches has become widely accessible. Viewers can now enjoy entertainment on the go without any cost, carrying their favourite matches in their pockets and choosing their preferred screen size. The language barrier has also been addressed, with Jio introducing regional language options. This breakthrough has created a new segment for advertisers to target consumers based on their language preferences, resulting in stronger brand connections. Advertisers now have greater control over their budget allocation and match selection, allowing them to strategise and achieve their desired outcomes. This combination of benefits provides an excellent opportunity for advertisers to reach a massive audience while offering viewers a delightful and personalised entertainment experience.

What are your views on the effectiveness of connected TV advertising during the IPL? Do you believe that linear TV will remain as relevant in the coming years as it has been in the past for IPL viewership?

If connected TV gains traction, it has the potential to be a great medium for advertisers. The main challenge lies in effectively gauging and measuring its impact. However, with the increasing availability of smart TVs from various consumer electronics manufacturers, connecting mobile devices to televisions has become effortless. This allows viewers to seamlessly switch between watching on their devices and on the television screen at their convenience. The flexibility to watch on their own terms without any forced payment or time constraints is a significant advantage. Connected TV is rapidly growing in urban India and is expected to extend to rural areas soon as smart TVs become more prevalent. While urban audiences have already shifted to subscription-based OTT platforms, the combination of connected TV, free streaming, and cricket's religious following is likely to have a significant impact on traditional television viewership.

Finally, where do you personally prefer to watch the IPL, on linear TV or through digital streaming platforms?

When it comes to my personal preference I gravitate towards the platform that offers convenience and a unique experience. I enjoy the freedom of streaming on a platform that allows me to seamlessly switch between devices. With connected TV, I can watch matches on my television while having the flexibility to use my phone for other tasks. This multi-tasking capability enhances my overall viewing experience, making connected TV my preferred way of watching.