India's sports industry surpasses telecom, digital sports ad surges 63%: Report
Digital-first approaches now dominate sports advertising, as brands prioritize OTT platforms over linear broadcasting, as per a Deloitte-Google report.
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Worth an estimated USD 52 billion, India’s sports industry is now larger than other more established sectors, such as telecom. This growth debunks the perception that sports is a small, peripheral industry. Rather, it is a fast-growing, notable and sizable market that stands to become a significant contributor to the Indian economy in the medium term, as per a Deloitte-Google report - Think Sports: Unlocking India's $130B Sports Potential.
At a projected CAGR of 14%, growth of the sports sector is likely to outpace more established sectors, like automotive and tourism.
The sports market started to pick up about 15 years ago with the Indian Premier League’s (IPL) ascent to mainstream popularity, but its long-term outlook is highly promising. While the sector is still in its infancy when compared to the US and UK, opportunities abound across subsectors.
The government has actively been uplifting India’s sports ecosystem. In 2024, the Ministry of Youth Affairs and Sports (MYAS) saw its biggest-ever budget allocation, further boosting programs like Khelo India and Target Olympic Podium Scheme (TOPS).
The Indian sports market is estimated to grow at a CAGR of 14% from now until 20304, and is starting to play an important role in the global sports market.
Currently, sports in India contributes about 1% of the national economy– on par with most major sporting nations. Immense headroom for growth, together with new policies and infrastructure measures, will further boost its contribution and transform India into a global sports powerhouse, the report highlighted.
Growth and Advertising: Broadcasting and Promotions
Market Size and Growth: The broadcasting and promotions segment in India's sports industry is projected to grow at an 11% CAGR, reaching $6.7 billion by 2030. Digital sports advertising has surged by 63% over the last two years, highlighting a shift toward online platforms.
In contrast, traditional TV sports advertising experienced a 10% decline during the same period.
Digital Engagement and Consumption: 90% of Indian sports fans engage with sports digitally, making it the dominant medium for fan interaction. Cricket-related videos garnered 50 billion views on YouTube in a single year, showcasing the sport's unparalleled digital appeal.
OTT platforms like JioCinema and Disney+ Hotstar now rival traditional TV, with subscription models becoming a significant revenue driver. Sponsorship and Brand Promotions:
Sponsorship values in Indian sports have grown at three times the pace of global deals, with franchise fees seeing a 60% rise in 2023. Personalized ad campaigns, such as Mondelez's AI-driven cricket ads, delivered 92,000 creative variations, achieving a 2x increase in ad recall and 3x favorability lift. Swiggy's IPL campaign boosted active user engagement by 59%, demonstrating the effectiveness of pairing promotions with live sports events.
Localization and Regional Strategies: Regional language content is growing rapidly, with 77% of sports fans preferring commentary and content in their native language. Localized advertising strategies are vital for tapping into rural and semi-urban markets, which form a significant portion of the audience base.
Shift to Digital Media Rights: The IPL 2022 media rights deal saw digital rights valuation matching that of TV rights, a first in Indian sports broadcasting history. Digital-first approaches now dominate sports advertising, as brands prioritize OTT platforms over linear broadcasting.
