Middle East conflict may put Rs 200–250 crore of IPL ad spends at risk

Over the past few years, several Middle Eastern brands have ramped up their presence in the Indian Premier League (IPL). From real estate developers and retail companies to airlines, tourism boards, oil majors and logistics firms, many have turned to the tournament because of its massive reach and impact.

However, the ongoing Middle East conflict has cast a shadow over these advertising plans. The crisis has put much of the Gulf region on high alert, triggered by US-Israel strikes on Iran and intensified by Iran’s retaliation.

Airspace in several countries, including the UAE, Qatar, and Kuwait, has been temporarily shut down, while drone and missile exchanges have raised security concerns even in cities often considered safe, such as Dubai and Abu Dhabi.

With the IPL set to begin on March 26, some brands are holding back from committing to advertising for now.

According to industry estimates, the ongoing crisis could wipe out between Rs 200 crore and Rs 250 crore in ad spend linked to Middle Eastern advertisers. As per industry projections, IPL 2026 is set to bring in advertising revenues of roughly Rs 4,900 crore.

An industry expert, speaking on the condition of anonymity, said these brands may stay away from advertising during at least the first half of the tournament and return once the situation in their home markets stabilises.

“It is a temporary impact. The broadcaster may face some losses in the initial days. However, the IPL is a massive opportunity, and these brands will not stay away for long,” the expert said.

Advertising veteran Ramesh Narayan believes the conflict could cast a short-term shadow on sponsorships from the region.

“The Middle East war scenario will no doubt spread a long shadow over several fields, including the IPL. One could hardly expect Aramco to be spending when one of the refineries is burning. Similarly, Saudi Tourism, Qatar Airways and Etihad could be excused in the short term,” he said.

However, Narayan added that the long-term outlook remains positive given India’s market potential.

“At the end of the day, the vibrant Indian market is an opportunity that any Gulf marketer will overlook at his peril. So there may be short-term pain, but the long-term prospects for India remain strong.”

Last year, several Middle Eastern brands were visible on IPL broadcasts. UAE-based Danube Properties and Lattafa Perfumes advertised on JioStar’s cricket coverage. Danube Properties came onboard as a “Co-Powered By” sponsor on Star Sports, while Lattafa Perfumes became the first international retail brand to advertise on JioStar’s IPL broadcasts.

Airlines, such as Emirates, Etihad Airways, Turkish Airlines, and Qatar Airways, have also partnered with various IPL teams over the years. Meanwhile, the Saudi Tourism Authority became an official IPL partner of the Board of Control for Cricket in India (BCCI) in 2023. Saudi Aramco, the world’s largest oil company, joined in 2022 as the sponsor of the tournament’s Orange Cap and Purple Cap titles.

With matches delivering high-impact reach and frequency over a two-month window, the IPL has become a commercial magnet for global advertisers.

However, not everyone believes the conflict will significantly dent advertising activity. Dr Sandeep Goyal, managing director of Rediffusion Group, said some brands may continue advertising precisely to signal stability.

“In the past, brands were often advised to stop advertising during a crisis. Today, communication is sometimes necessary to reassure audiences that business continues as usual,” he said.

“Life in Dubai, for instance, remains largely unaffected. So I don’t expect a major impact on IPL advertising. There is still time before the tournament begins, and the situation could normalise by then,” Goyal added.

Ashish Bhasin, founder of The Bhasin Consulting Group and former CEO of Asia Pacific at Dentsu, echoed a similar sentiment, noting that the IPL’s reach across the South Asian diaspora makes it difficult for brands to stay away for long.

“I don’t think there will be any significant impact in that sense. Hopefully, the situation will not last very long, and things will return to normal soon. More importantly, cricket has a universal appeal not just among Indians but across the entire South Asian diaspora,” he said.

“So even if one brand pulls out, it is quite likely that another brand will step in. The bigger concern would be if the war continues for a prolonged period, because advertising in India is very sentiment-driven.”

Other sectors could partially fill the potential gap for JioStar, the broadcast rights holder. Categories, such as artificial intelligence companies, beverages, paints, and consumer brands, are expected to absorb some of the inventory left vacant by Middle Eastern advertisers.

According to the industry expert, at least half of the affected ad inventory could be taken up by other categories.

Bhasin added that domestic sectors such as automobiles could also step in if inventory opens up.

“The auto sector, for instance, is doing extremely well this year, and I expect it to be a big contributor to advertising growth. Even if one or two brands step back, some Indian advertisers could easily fill that gap,” he said.

We reached out to JioStar for comment on the potential impact of the conflict on IPL advertising, but the broadcaster was unavailable for comment.

Short-term uncertainty may affect the broadcaster, but it is unlikely to affect team-level sponsorships. The Chennai Super Kings, for example, are sponsored by Etihad Airways. These partnerships are expected to continue, as team jerseys, advertising creatives and promotional materials have already been finalised.

“These are long-term partnerships. Irrespective of the geopolitical situation, they will go ahead with them,” the expert added.