Can IPL, Champions Trophy & WPL weather the storm of high inflation and low urban demand?

With the Women's Premier League (WPL) from February 14 to March 15, the ICC Champions Trophy from February 19 to March 9, and the IPL from March 21 to May 25, cricket fans will be glued to their screens for the next two months. 

This presents an excellent opportunity for advertisers to reach a large audience. However, with high inflation and slowing growth, brands have had to cut down on their ad spend. Though these tentpole properties have spoilt advertisers for choice, will constrained budgets play spoilsport?

The Economic Survey 2024-25, released on January 31, shows that food inflation, as assessed by the Consumer Food Price Index (CFPI), climbed from 7.5% in FY24 to 8.4% in FY25 (April-December). While India's retail inflation fell to a four-month low of 5.22% in December, down from 5.48% in November, a Reuters poll shows that inflation is unlikely to achieve the central bank's 4% target until the second half of 2026.

Inflation, particularly in commodities such as oil (up 40% since July-August) and wheat flour (up 15%), remains high. Initially, inflation was expected to ease post-Diwali, then by December 2024, but now it’s likely to persist until at least March 2025.

Meanwhile, most FMCG companies reported low-single-digit revenue growth in Q3 FY25, owing to slow urban demand and stubbornly high input prices.

Krishnarao Buddha, a media and marketing expert, notes that in this scenario, many advertisers cut back on spending to protect margins. 

“When inflation drives up costs, companies can only raise prices to a limited extent before it impacts demand. To balance top-line and bottom-line, the first cost to be reduced is often advertising. As a result, WPL and Champions Trophy may see advertisers hesitate to spend,” he says. 

Rajiv Dubey, VP & head of media, Dabur India, agrees that advertisers have less money to spend. “We haven’t decided on advertising with any of these events yet. We’ll make a decision closer to the event, depending on how the ecosystem develops, the pricing, and our available budget. Our decision will depend on various internal and external factors. We can’t commit to anything right now,” he says.

Buddha and Dubey contend that all categories, not just the FMCG category, are under pressure.

“It’s a tough environment for everyone. Advertising cuts have been seen across sectors, and most companies have reported lower budgets in the last quarter.”

Rajiv Dubey, VP & head of media, Dabur India

However, Srinivas Rao, chief investment head at Wavemaker India, believes that while companies may reduce budgets, the endurance of cricket properties—particularly major tournaments—ensures they stay desirable.

“Cricket remains the most popular sport in India and its viewership still is very high as compared to any other property. IPL is one of the most viewed sporting events. While there have been challenges in the past as well when it comes to advertising spends, Cricket has always come out on top,” he says.

However, he believes that less well-known leagues and smaller events may have difficulty securing sponsorship. To maximise their presence, brands would most likely prioritise cost-effectiveness, ROI, and digital integration.

Jigar Rambhia, the head of Fuse India, also confirms that cricket is unaffected. In fact, the sports agency is experiencing a rise in interest from unexpected sources. According to him, brands that have not historically engaged in cricket are now aggressively looking for opportunities across the upcoming properties.

"Cricket’s resilience in India’s sporting landscape is unmatched; it consistently delivers and provides predictable returns.”

Jigar Rambhia, the head of Fuse India

The recent Union Budget 2025 has introduced measures to boost consumption and support MSMEs, which could positively impact brands' decision-making.

“Once the market shows positive signs and growth improves, pressures on input costs and margins will ease. For now, it’s a wait-and-see approach,” says Dubey.

Another aspect is that advertisers frequently pull back around the end of the fiscal year. This has a greater influence on events such as the WPL and the Champions Trophy than on the IPL, which benefits from a better timing window. Market mood is also expected to strengthen starting in April.

Buddha, who has worked with Parle for over two decades, believes that this optimism will lead to more advertiser interest in the IPL. “IPL starts in March, aligning with the new financial year and fresh budgets,” he adds.

The upcoming events will be aired on Star Sports and streamed on Disney+ Hotstar. This includes the WPL, which until last year was broadcast on Sports18 and streamed on JioCinema.

Moreover, unlike last year, when JioCinema streamed the IPL and WPL for free and Disney+ Hotstar streamed important ICC events for free on mobile devices, this year's matches will be available for free only to Jio Mobile and WiFi customers.

JioCinema subscribers will be redirected to Disney+ Hotstar, and subscribers from both platforms will be able to watch the matches. According to sources, this will mean free streaming will be available for 475 million mobile users, 14 million CTV users and 60 million JioCinema and Disney+ Hotstar subscribers.

As advertisers debate on which cricket property to invest on with their limited budgets, a deciding factor is the consistency in ratings. The WPL and IPL have consistent viewing regardless of the teams playing, whereas the Champions Trophy sees ratings fluctuate—only India matches bring large crowds. As a result, the IPL remains the best bet, with two months of consistent brand visibility.

“Despite this, broadcasters charge a premium for the Champions Trophy due to its international status and the high acquisition cost of rights. However, inconsistent ratings mean advertisers don’t always get value for their spend.” 

Krishnarao Buddha, a media and marketing expert

According to Rambhia, brand investment is driven by strategic business goals, with the goal of maximising impact through smart, objective-driven decisions. 

“With matches running from February 14 to May 25, brands that find all these months crucial may choose to advertise across all properties. Otherwise, they prioritise based on what aligns best with their goals,” he adds.

The ad rate is another significant deciding factor for brands. The IPL advertising rates this year are at least 15-20% more than last year. According to Dubey, rates are determined by supply and demand, which means they can fluctuate based on market conditions closer to the event. Many experts believe that the IPL rates will vary dramatically in the following seven weeks.

Speaking on the condition of anonymity, a media expert claims that in recent years, the IPL has become increasingly pricey. She expects rates to drop by at least 20-30%. 

“Brand budgets are typically allocated early, often finalised by Q1. By Q3, most spending is done, leaving little room for adjustments in Q4. Moreover, Q4 is already packed with events like the Delhi elections, Valentine’s Day, Women’s Day, and Holi, making sudden budget reallocations even more difficult,” she adds.

With back-to-back cricket events, is there a concern of a fatigue setting in?

Rao says the biggest indicator of fatigue is the viewership going down, which the viewership trend does not reflect. It has either remained constant or has risen.

“Another big indicator is the amount of social media chatter on the playing teams / matches. At any given point of time when an important series is going on, social media chatter around the same is the highest.” 

Srinivas Rao, chief investment head at Wavemaker India