Despite India failing to make it to the finals, Star India is expected to touch its targeted earnings of around Rs 1,800 crore in advertising revenue from the ICC World Cup broadcast on television and Hotstar. This is because 85-90% of the ad slots are booked before the start of the sporting event, analysts said.
For a high stakes event like the World Cup, a broadcaster hardly leaves anything to chance. Therefore, it sets aside only around 10-15% of the total ad inventory for eleventh hour buys.
Sandeep Goyal, chairman at Mogae Media, said a 10 second ad slot for the final match is costing advertisers around Rs 18-19 lakh. Had India played in the finals, this would have gone up to about Rs 24 lakh-25 lakh per 10-second ad slot. Also, the ad inventory which is usually pegged at about 5,000 seconds for a match of 50 overs, would have gone up to about 7,000 seconds on the event of India playing in the finals.
An incremental rate difference of 6 lakh and an incremental difference of 2,000 seconds of ad inventory would have made a difference of only about Rs 12 crore.
Hence, the notional loss by India not playing the finals is about Rs 12-15 crore, Goyal said. Therefore, India not reaching the finals does not make much of a difference. "Had India been knocked out in the preliminary stages, then Star India would have taken a hit of about Rs 50-60 crore," Goyal added.
Star India did not respond to FE's queries.
Of the Rs 1,800 crore, about Rs 1,600 crore is expected to come from broadcast while Star India's digital platform, Hotstar, is estimated to garner about Rs 200 crore in ad revenues, analysts said.
Star India's ad revenues during the 2015 cricket world cup stood at an estimated Rs 700-1,000 crore.
Over 40 advertisers including Britannia, Coca-Cola, MRF Tyres, Bira 91, GoDaddy, Swiggy, Dream11, PhonePe and Havells have used the cricket World Cup platform this year.
Adding glitz to the sporting event, Star India had lined up an array of shows for the tournament.
While the show 'Fab 15' had been dedicated to players in the Indian squad, 'Follow the Blues' tracked all the light and serious moments from India’s tour to England and Wales. Star Sports also had women fronting the English coverage of the tournament. OTT platform Hotstar shattered records by hitting an unprecedented daily active user number of 100 million during the India versus Pakistan match on June 16, making it the highest-ever single-day reach for the platform.