In the world of sports, few events can match the excitement and fervor generated by the Cricket World Cup (CWC). As India gears up to host the tournament after 12 long years, there's more at stake than just cricketing glory. A recent report by Elara Capital sheds light on the massive ad revenue expected to be generated on TV and digital platforms during the CWC 2023, along with its ripple effects on consumer behavior and various industries.
Massive Ad Revenue Predicted
According to the Elara report, the CWC 2023 is poised to be a financial bonanza for advertisers, with an estimated Rs 20-22 billion in ad revenue anticipated from TV and digital platforms combined. What's noteworthy is the expected surge in digital revenues, thanks to favorable timings and accessibility. With matches starting at 10:30 AM IST and 2:00 PM IST, cricket enthusiasts are more likely to tune in, even during working hours. Moreover, Disney+ Hotstar's decision to offer free access to all mobile users will further boost digital viewership.
Consumer Discretionary: Winners All Around
The impact of the CWC isn't limited to cricket alone. It's set to create ripples in the consumer discretionary sector as well. Online food ordering platforms like Zomato and Swiggy are expected to witness a surge in orders. In the past, JUBI, in particular, experienced a significant boost in Same Store Sales Growth (SSSG) during the CWC. This time, it's not just about pizzas but also burgers, fried chicken, and biryani, all riding on the wave of increased online aggregator penetration.
Cheers to the Alcobev Industry
The alcoholic beverage industry is also gearing up for a toast during the CWC. Beer volumes, which have a significant on-premise share, are expected to see strong growth, with brands like Corona, Heineken, Bira, and Budweiser likely to benefit. Additionally, scotch whiskey and upper prestige spirits are poised for volume growth due to higher on-premise consumption during the tournament.
TV Advertising Realignment
While the CWC promises financial gains for many, it may bring challenges for non-cricket related TV advertising. Companies in sectors like edtech, fintech, foodtech, and e-commerce have been cautious about ad spends, focusing on profitability. As a result, traditional sectors like FMCG, Auto, and Telecom might bear the brunt of diverted ad budgets. However, the festive season's positive impact is expected to offset some of these challenges.
The Adex Advantage
In the advertising landscape, the CWC 2023 is set to shine. TV advertising is predicted to yield at least 20% more adex compared to 2019, maintaining pricing levels. On the digital front, adex may skyrocket, growing at least 70% more than in previous editions. The combination of favorable timings, free access, and the growth of digital advertising will contribute to this digital adex surge.
Cricket's Digital Rise
Cricket's growing popularity on digital platforms is undeniable. While digital advertising may not reach the same absolute value as TV advertising, its growth rate is expected to outpace its traditional counterpart. The lower cost of advertising on digital channels has attracted numerous brands, making it a significant player in the advertising game.
A Boost in Consumption
History has shown that the CWC has a direct impact on consumer behavior. Sales and volume growth, especially in the Food & Beverages and Alcobev sectors, have outperformed annual averages during the CWC quarter. This trend is expected to continue in 2023, with consumers indulging in food deliveries, beer, and spirits during the tournament.
In conclusion, the Cricket World Cup 2023 is not just about the cricketing spectacle; it's a major player in the advertising industry and a catalyst for changes in consumer preferences. With massive ad revenues, a surge in digital advertising, and increased consumption across various sectors, this cricketing extravaganza is poised to make its mark on India's economic landscape. So, gear up for an exciting match on and off the field during the CWC 2023!
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