Can IPL brands balance short-term sponsorships with long-term goals?

Imagine a league so young, yet so mighty, it commands bids that rival global sporting juggernauts. The Indian Premier League (IPL), a relative newcomer compared to FIFA, NBA, and Wimbledon, sees brands diving into bidding wars for short-term sponsorships. Take Vivo, for instance. While it clinched FIFA rights for a whopping 77.5 million USD (Rs 646.96 crores) from 2017 to 2022, its hold on the IPL, secured in 2017 for a staggering Rs 2,199 crores in a five-year deal, speaks volumes about the IPL's magnetic appeal. Despite its price tag, the IPL remains a coveted stage, fuelled by India's colossal market, a plethora of advertisers, and cutthroat competition.

The Indian Premier League (IPL) is unquestionably the biggest sports tournament in the country. Each season, as teams prepare to compete on the field, advertisers and broadcasters engage in their own version of the IPL, vying for the most suitable sponsorship at the best price.

However, there seems to be a major difference between the IPL and other big-impact sports properties like the NBA and FIFA, especially when it comes to sponsorships and tie-ups. While IPL sponsorships tend to be very cyclic and short-term in nature, international big-ticket tournaments have had long-term partnerships with brands. For example, Adidas has been FIFA’s official partner for almost five decades. Similarly, Rolex has been partnering with Wimbledon since 1978 and also the four Grand Slams.

With such a competitive landscape and whopping pricing, we explore if it’s possible to truly build affinity with the cricket-viewing audience in such short intervals.

Since its establishment in 2008, the IPL has evolved into more than just a cricketing spectacle. It has become a platform that entices brands seeking to showcase their products and services to millions of viewers globally.

Gunjan Nagpal, VP & head of sales & marketing at Fashion Entrepreneur Fund, asserts that the core appeal of the IPL remains consistent, ensuring sustained viewer interest, engagement, and entertainment, irrespective of the advertisers involved.

He notes that many Indian brands view IPL associations through a transactional lens, prioritising short-term gains over sustained brand-building efforts. In contrast, he highlights how DLF and Dream11 strategically capitalised on the IPL early on, cultivating strong brand affinity alongside reaping significant transactional benefits.

Similarly, Vijay Kumar Mikkilineni, GM, Brand, and Marketing at Centuary Mattress, who is marking the brand’s debut sponsorship for Sunrisers Hyderabad, says, “IPL is of exceptional value for brands that are looking to establish products: for example, Tata EV, and there is an inclination for brands to focus on short-term brand goals rather than establishing long-standing partnerships.”

Siddharth Dabhade, managing director at MiQ, points out that India is an emerging market compared to others. Although the average revenue per user that brands derive from this market is relatively small, Dabhade highlights India's economy as having a larger share of the middle-class population compared to established markets.

"The reason we likely don't witness longer associations is due to the IPL being a relatively recent property, coupled with our status as an emerging market," he explains, suggesting that longer associations may emerge in the next five to ten years.

• The IPL began with 'DLF' as its primary sponsor from 2008 to 2012, with an investment of Rs 40 crore. 

• Pepsi took over from 2013 to 2015, spending Rs 79.2 crore. 

• VIVO sponsored the IPL in two periods, from 2016 to 2017 with Rs 100 crore, and from 2018 to 2019 with Rs 439.8 crore. 

• Dream11 held the sponsorship in 2020, contributing Rs 222 crore. 

• VIVO returned as a sponsor in 2021, with an investment of Rs 440 crore. 

• The TATA Group secured sponsorship from 2022 to 2023 with Rs 670 crore.

• TATA Group continued as a sponsor in 2024 with an investment of Rs 2500 crore.

Over the years, the IPL has grown to be one of the biggest sports tournaments in the world. According to GroupM’s ‘India Sports Sponsorship Report 2024’, the IPL accounts for more than half (over Rs. 3,000 crore) of the sponsorship spending on cricket.

Nevertheless, it stands out as one of the most costly advertising platforms. Nagpal notes that the IPL is often beyond the budget of many brands, particularly those reliant on investor funding for their operations.

“Despite changes in title sponsors and spot advertisers, the core appeal of IPL as a premier cricketing event remains intact, fostering continued viewer interest and is great for customer acquisition. But is the cost of acquisition justified for a long-term association? Remains debatable,” he questions.