Tuesday, November 10, 2009

SET Max making another pile from IPL ad revenue

SET Max, the official broadcasters of the Indian Premier League (IPL)cricket tournament, has already hit a sixer with the third edition of the twenty20 league. The channel is estimated to rake in over Rs 650 crore, 30 per cent higher than it got in IPL-2.

"We have witnessed substantial growth in revenues. Brands have realised the potential of IPL and have come on board way in advance," confirms Rohit Gupta, President, Multi Screen Media (MSM, the parent company of SET Max).

The channel has signed on two co-presenting sponsors, Vodafone and Videocon, for around Rs 55 crore each, according to sources, while each associate sponsor is shelling out between Rs 35 to 40 crore, depending on the number of secondages bought.

SET Max this time will have 10 associate sponsors, of which eight have been signed up. Pepsi, Samsung, LG and Hyundai [ Imaare among the associate sponsors.

"IPL is certainly hot property for SET Max. The increase in ad rates from Rs 3 lakh in Season One to Rs 4.75 lakh in the upcoming season, for a 10-second slot, is proof enough," says an executive from Madison Media. The 10 sponsors will make up almost 60-70 per cent of the channel's inventory. The remaining commercial time will be reserved for last minute spot buys, for which the channel will again earn premium.

During the inaugural season of IPL, ad spots for the semi-finals and finals were sold at Rs 7-8 lakh each. This increased during IPL-2 to almost Rs 10 lakh for 10 seconds. The third edition will most certainly rake in nearly Rs 12 lakh per 10 seconds, according to media experts.

"IPL, with each season, has become the advertiser's favourite property, so it's not surprising that SET Max is witnessing growth. Currently, there are no great properties for advertisers to invest on. And given that IPL cuts across age demographics and geography, it's a great bet for advertisers.Also, the channel's decision to go non-exclusive with the sponsor category has helped more brands to come on board," believes Nirvik Singh, Chairman & CEO, Grey Group Asia Pacific.

Last year, the channel had decided not to have any category exclusivity, to get more advertisers on board. This meant, for instance, LG and Samsung could both advertise on the same property.

Sports management agency World Sport Group and Multi Screen Media had won the broadcasting rights from 2008 to 2017 for Rs 8,200 crore, in a renegotiated deal.

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