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It's
that time of year. When sports lovers of the non-cricketing
variety (an extreme minority in a country that seems
to swear by only one sport) have something to cheer
about. The Indian cricket team is on a welcome break.
Viewers too, one dare say, more so since the Boys
in Blue have been been getting more brickbats than
bouquets in the recent past.
Even
as ESPN Star Sports focusses its attention on the
F1 season and rival Ten Sports gets set to telecast
the tennis world's first Grand Slam of the year, the
French Open, it is as good time as any to pose the
question --- is there REALLY life after cricket?
Well,
with Narain Kartikeyan and Sania Mirza entering the
arena, interest in F1 and tennis is rising. Also,
if the BCCI does finally launch its own channel then
that will give private players pause for thought.
Getting
in the view of the people who decide where and how
the advertising rupee will be channelised in regards
to television sports properties, Indiantelevision.com
tapped the media planning community to get a grasp
on the current scenario and what the future offered.
Read on...
MARKET
SIZE : First off, when one talks sport it needs
noting that it is unique as opposed to other genres
in that the revenue earned can go up drastically in
one year due to a major event (like the cricket World
Cup). The size of the sports genre in terms of ad
revenues currently stands at Rs 5 billion. This represents
about seven per cent of the total TV ad pie. Out of
this, cricket takes away a whopping 85 per cent.
Of
this, 70-80 per cent goes to India cricket. So even
a big non-India series like The Ashes, while being
bigger than the likes of tennis or Formula I, has
relatively limited appeal compared with anything involving
the Indian team (even when they've been doing as poorly
as they have these past months).
The
following data with Indiantelevision.com gives an
idea of just how important India cricket is and why
ESPN Star Sports (ESS) fought so desperately
last year for the rights. It is estimated that ESS
made Rs 1,100 million in 2004 when they had the Asia
Cup. This year in the absence of serious India cricket
its ad revenue is expected to drop by 20 per cent.
While it is doing initiatives to build up other properties
like football which will be discussed later on, this
will not fully cushion the impact.
As
things stand, ESS will showcase India going to Zimbabwe
in October 2005 and Bangladesh in October 2006. Both
are relatively smaller properties. It is only next
year that things will pick up with the Fifa World
Cup and India's tour of South Africa in December 2006.
Ten
Sports made Rs 1,200 million in 2004. This could
grow by 15-20 per cent in 2006. Next year Ten will
showcase India visiting Pakistan and the West indies.
For 2005 Ten is expected to more or less maintain
its ad revenue for 2004 thanks in part to the India-Sri
Lanka-West Indies triangular in August. Negotiations
for this series are currently taking place.
Sony
has the Champions Trophy next year and the World
Cup in 2007. Planners note that the revenue cricket
will get will depend on the extent to which ad rates
are jacked up compared to the last time around. That
is because the number of spots sold during the telecast
is limited. For the Champions Trophy, since it is
in India next year, the rates could go up by over
25 per cent. Cricket's revenue growth rate could touch
30 per cent in 2006.
As Taj Television India MD Sharmista Rijhwani says,
"Cricket is a religion in this country, and live
cricket involving India always brings in the most
viewers and as such will continue to remain the key
revenue driver for any sports channel. This is not
just due to the mass appeal of the game but also due
to the demigod status of the cricket stars.
"Likewise,
any cricket-based programme like highlights, repeats
of memorable games, preview/reviews, continues to
have an unmatched grip on sports viewers. Our line-up
over the next two years includes four India cricket
series."

Planners
hope that team India will regain form |
Interestingly
Starcom's Manish Porwal opines that the triangular
in Sri Lanka in August will not blow the roof off
the ceiling like the Pakistan tour. The big question
though is who gets the rights when Sri Lanka come
calling later this year. This includes a triangular
at home against West Indies and Sri Lanka. England
comes down next year. Should the BCCI, learning from
past mistakes, launch its own channel then the cricket
ad pie will get splintered further.
Cricket
is attracting a broader ad base: The perception
of how cricket can be used is changing. As Lodestar
Media's Nandini Dias says, "Normally cricket
was seen as a male bastion. So we would consider it
for Ceat, Castrol, financial brands, Birla White Cement
etc. Over the last 2-3 years we also consider it for
brands which are family oriented like Nerolac."
Porwal says, "One of the things that is helping
cricket get ad revenue is the fact that benchmarks
are available. There are data points. Viewership can
be predicted better today for a day night India Sri
Lanka encounter as it has happened before in the past.
"This
has reduced the unpredictability factor. The fact
that more cricket is happening on weekends is also
getting more people to tune in. So the advertiser
can better measure his reach. Also the proportion
of day-night games to all day games is going up. Naturally
the former get more ratings."
EFFECT OF CRICKET ON OTHER SPORTS PROPERTIES MINIMAL:
What effect does a major cricket property have on
revenues of other sports? The general consensus is
is that cricket does not affect the revenue that other
properties earn. In fact cricket impacts mainline
channels like Star Plus and SET.
Planners
point out that earlier you had male oriented brands
moving off Star and Sony and moving onto cricket.
These days cricket also attracts clients like Fair
And Lovely which speak to both men and women. Therefore
when cricket is on the likes of Star and Sony come
out with special deals to keep clients on board who
might migrate to cricket.
In addition one cricket property could also compete
with another. This especially holds true for next
year. However Relay Worldwide GM Chetan Madaya feels
that by and large the revenue that cricket will get
will depend on the state of the economy. "If
the economy is buoyant then there will be advertisers
willing to put money on a tournament regardless of
how many tournaments have gone before.
"If
Company A advertises for India-Pakistan in January
2006 and not for India-South Africa which takes place
in December 2006 there will nonetheless be other clients
who will step in to take Company A's place."
He also feels that clients, whether it is Coke or
Samsung in India, need to take a long term (5-8 year)
view of cricket and other sports. Brands according
to him need to decide on whether sport should be an
integral part of their long term strategy. Right
now sport is seen as an opportunistic move.
Cricket
can be compared to the most popular programmes on
Star Plus. In addition it also gives clients visibility
in the South. Hence if immediate impact is needed
then cricket can be used as an alternate to Star Plus.
In this manner its importance has grown.
Planners
spoken to point out that brand budgets remain constant.
The media planner is faced with making a choice between
the best channel mix. The usual learning is that most
of these channels are very interchangeable. So the
more cost effective channel usually benefits.
CHALLENGE
IN MILKING CRICKET: What effect is the India cricket
rights mess having on the media buying process? Group
M's Manas Misra says that with the enormous uncertainty
prevailing, selling cricket has been turned into an
unorganised process. "This is not good for the
game. It has reached a situation where people are
waiting to see who get the rights. Deals are being
done at the last minute. For the recently-concluded
India Pakistan series, DD came in very late in the
picture. Deals had to be negotiated at short notice.
This affects the flexibility that DD has manouevre."
Having
said that, it is a fact that DD in particular offers
a cost effective buy. Planners opine that DD Sports
holds the edge here over private channels. Interestingly
Prasar Bharati CEO KS Sarma claims that DD garnered
Rs 1.8 billion in gross revenues from the recently
concluded India-Pakistan series. The talk in the industry
though is at a much more modest Rs 1.35 billion but
even going by Sarma's numbers one could argue that
represents a wasted opportunity when you consider
that expected figures were in the range of Rs 2.25
to 2.4 billion if it had been on a private channel.
And considering that DD got in both a terrestrial
and C&S audience it should have been even higher.
Unsurprisingly,
planners aver that DD did not undersell the property
at all. Porwal argues that there is a price elasticity
that exists within cricket. "DD does rational
pricing and I think that they got it correct."
Porwal,
meanwhile, points to one danger for cricket in the
future. Costs could outweigh the benefits for a client
getting onto cricket. Another problem he sees is that
there is too much clutter happening. "There
are too many innovations like 50:50, super fours,
play of the day that happen during pre and post shows.
The more innovations there are the less unique each
one becomes." SET India executive VP sales and
revenue management Rohit Gupta, however, states that
with sponsored innovations the viewership of the pre
and post show on Max's Extraaa Innings have
gone up four to five times."
Mindshare's
Laxmi Narsimhan points to the fact that there are
lots of properties next year will give buyers the
chance to negotiate better.
THE
VIEWER'S FICKLE TASTES: Perhaps a more serious
danger that planners have noted is of viewer fatigue.
If India do badly then viewers will switch off. In
fact right now the interest in cricket has gone down.
On
a more positive note while cricket is expensive planners
concede that it is the only national medium in the
country. Even Bollywood cannot be considered national.
Therefore even if a client decides to spend money
on something else instead of cricket he/she has to
remember that it cannot deliver the reach of cricket.
OTHER
SPORTS FIGHT OVER A PIFFLY Rs 750 MILLION: Other
sports, meanwhile, fight over a relatively meager
Rs 750 million pie. When asked in terms of ROI how
Ten Sports and ESPN Star Sports stacked up, planners
maintain that the only real valuable property is cricket.
As regards the rest, there are only marginal differences
separating the rival broadcasters.
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ESS'
interactivity around EPL has seen it grow in
value for advertisers
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When
asked whether the share of other sports would grow
this year Dias says, "We may not see a huge growth
this year but in the next three there should be dramatic
differences. India has been a single sport nation
for years now with two sports channels who had a tie-up.
Since last year the number of sports channels have
increased. Only one of the five channels (including
Zee Sports) can get a cricket series."
The
challenge therefore will be for the other channels
to promote another sport. Already there is innovation
like PHL for hockey and the upcoming Futsal initiative
for football. If the grassroots strategy is planned
carefully then in another 2-3 years audiences will
have developed liking and interest in each of these
sports. That will result in ad revenue flowing in
other sports planners opine.

Planners
are bullish on Kartikeyan giving more visibility
for F1 sponsors |
It
is estimated that the non cricket ad pie will grow
at around 20 per cent a year. According to Misra,
growing sports at the grassroots level is crucial.
"If the channels do not do that then the viewership
base for football, hockey will not expand." When
asked whether they would be putting in more money
on F1 and tennis in anticipation of viewership growth
as a result of Sania Mirza and Narain Kartikeyan,
planners said that they are at this point of time
considering it.
Porwal
states that there is no hard and fast rule as to who
gets how much here. It depends on the property coming
up. For instance next year's soccer World Cup will
take out a chunk for football. In fact football could
take out 30 per cent of the revenue for other sports
next year. EPL and Uefa Champions league are also
of value here. A large part of this can be attributed
to the interactive initiatives that ESS has done like
Goals where Nokia was involved.
The
tennis Grand Slams also have potential for growth
in ad revenue along WWE on Ten Sports. That is because
WWE gives advertisers an alternate platform to market
to kids.
A
localised initiative like PHL will boost hockey's
revenue. As far as channel based localisation was
concerned planners feel enthused over the fact that
ESS is conducting initiatives like the recently concluded
Harsha Ki Khoj. The main issue for them is
how ESS uses the winner Narsimhan as well as the other
local interactive activities in the pipeline not just
for ESS but for the other players.
In
this regard Rizhwani points out that interactivity
is high on the agenda of Ten Sports in the coming
months. "The overwhelming success of the monthly
WWE contests where viewers can participate in an sms
contest and get a chance to travel to watch live,
one of the WWE pay per view specials has encouraged
us to launch a few more in the coming months. The
first of these is Janta Ki Awaz - an interactive
weekly sms poll which invites viewers to respond to
a relevant question on a current sports topic.
"The
response to the first six polls has been overwhelming
both in terms of quality and the number of responses
received. During the coming months, viewers and planners
can expect to see many more of the same during live
action telecasts on the channel."
All
About Passion: Porwal states that apart from cricket
all other sports will remain passion associations.
"Clients will invest in them because they are
able to reach a niche segment that is a die hard fan
and not due to the ratings. This particularly applies
to soccer."

Sania
Mirza could attract women orienteed advertisers
to tennis |
Mirza's
presence could well attract advertisers that target
women towards the sport of tennis. Planners have noted
that what could help tennis' cause is the fact that
there are virtually no young women icons in the country.
Suddenly a starved industry has found an achiever
who is not in the 'beauty business'. The worry for
planners however is the fact that with all the hype
being created Mirza could lose focus on the key priority-
winning matches. This in turn could result in viewers
turning off the sport to some extent.
The
potential within soccer: Planners are reasonably
optimistic about soccer which has been growing in
popularity over the last 2-3 World Cups. Obviously
in terms of ratings there is no comparison to cricket.
However as an alternate sport it has gained popularity
consistently.
Porwal
is particularly keyed up about next years soccer World
Cup. "People feel the need to belong to the global
community. That is why they will tune in large numbers
for the World Cup. Hence ESS will be able to cash
in a big way here. However a tournament like Euro
will only cater to a niche base. Advertisers looking
to make a dent in three centres - Goa, West Bengal
and Kerala will use it. That is because nationwide
people are not naturally inclined towards the sport.
At the same time soccer could be used by some corporates
as a strategic intent. An example of this is Mahindra.
The company has a team Mahindra United which is doing
extremely well. "
Going beyond the 30 second spot: Planners spoken
to state that they have started exploiting sports
the way it is done abroad. This is happening with
brand endorsements, product placements, associations
with properties, talent hunts, equipment branding,
backing of clubs and teams. Needless to say 99 per
cent of all this activity revolves around cricket.
But with younger newer icons like Karthikeyan, Mirza
sports branding and broadcasting may see better days.
Misra
points out to innovations like Third Umpire, scrollers
happening. Also the use of billboards is slowly becoming
an alternative to on air advertising. "Clients
are getting smart. They feel that if the camera pans
a billboard a few times in the day then people will
automatically see it."
According to Rizhwani the focus of Ten Sports has
always been on providing wholesome, innovative sports
content in its purest form. While the channel has
consciously stayed away from forcing so-called advertising
innovations during live telecasts that could take
away from enjoying the purity of the game she states
that Ten Sports does go the extra mile by creating
interesting innovations and vignettes to find ways
to partner its advertisers in taking their brand message
to the viewers. "This philosophy has been well
appreciated by our advertising partners and viewers
alike."
ESS MD RC Venkateish says, "We do not look at
ourselves as simply selling spots. We are a marketing
solutions provider. A great example of this is what
we did for the 2003 India Australia series and the
2004 Asia Cup. We have a dedicated team referred to
as the 'Innovations', which provides customised solutions
based on the communication requirement of a client.
"To
give you an example for the India Australia series
we came out with the Push Clean Facts initiative for
which we teamed up with Gillette Vector. The visual
had interesting facts about cricketers coming out
from the Gillette razor. In fact Gillette had come
to us with is idea. For the Asia Cup BSNL came on
board for the Action Replay initiative."
Max
too has been taking interactivity to the next level.
That helps advertisers get further integrated into
cricket. For instance for the Holland Cup and Champions
Trophy last year it had 'Voice of India' has been
developed. This will basically be a poll which will
be aired on the channel and will seek people's opinion
regarding various situations in the match. Viewers
could vote by SMSing their reply to 2525.
Planners
also feel that by and large broadcasters are doing
fine in the presentation of sports. When asked whether
sports broadcasting could be improved further in ways
that would benefit the broadcasters and advertisers
Dias says, "In India sports is not taught at
the grass root levels. In school there is so much
concentration on academics that sports is seen as
a waste of time. So the change has to happen first
in the way sports is perceived and not necessarily
in the presentation of the sports."
Conclusion:
Cricket will continue to be all-important in a media
planners mix notwithstanding fears of viewer fatigue.
However with more channels coming up it is imperative
for the channels to look at ways in which the other
properties can be monetised. Therefore localisation
is the key.
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