Startups pass on IPL sponsorship due to a lack of financing. Several new-age companies are still negotiating spot ad deals rather than becoming sponsors.
Numerous consumer internet firms and startups who have been significant marketers and sponsors in previous editions of the Indian Premier League (IPL) are missing this year’s tournament owing to the so-called financing winter and a global reset in the technology industry. The absence of edtech giants Byju’s and Unacademy, online payments business PhonePe, subscription service Amazon Prime, healthcare startup Pristyn Care, rapid commerce provider Zepto, electric vehicle producer Ather Energy, banking Niyo, and music streaming platform Spotify from this year’s IPL is notable. Dream11, Cred, Upstox, and Swiggy Instamart are among the new-age companies that have signed up with the Board of Control for Cricket in India (BCCI) as official partners for the IPL.
Instead of joining up as full-time sponsors, several new-economy corporations are still negotiating spot advertising arrangements with broadcasting and streaming platforms. Disney has recruited eleven sponsors and around 60 spot advertisers, whereas Viacom18 has signed Dream11, Parle Agro, ET Money, TVS, Puma, Mondelez, ITC, PepsiCo, Kamla Pasand, Castrol, and UltraTech Cement as sponsors. Companies must also choose between digital and traditional television advertising.
The Indian Premier League (IPL) has caused startups and unicorns to rationalise their operations and cut back on expenditures, with marketing and staff costs being the go-to solutions for achieving business prudence.
According to media strategists and industry executives interviewed, unique concerns in the digital sector also played a factor in firms’ choice not to advertise with IPL this year. In 2021, crypto exchanges like as CoinDCX, CoinSwitch, and WazirX spent over Rs 40 crore on IPL advertising, but they chose to withdraw last year when the RBI imposed a ban. The BCCI has prohibited cryptocurrency marketers from participating in the women’s IPL in 2023. According to an anonymous senior executive at a media business, cash-rich companies generally utilise the IPL platform to increase exposure of their brand before investing in pricey buildings.
Another top advertising agency executive noted that firms suffer an “over-concentration risk” when they devote a large portion of their marketing spend on a single event. According to Mansi Datta of Wavemaker India, the IPL is the single-largest aggregator of audiences, and no athletic event in India attracts as many people. The newest competition is expected to draw 500 million spectators across digital and broadcast channels.
