The highly anticipated Men's Cricket World Cup 2023, which will be hosted by India, is expected to generate significant ad revenues on both TV and digital platforms. The tournament, scheduled to take place from October 5 to November 19, 2023, is projected to generate between Rs 2,000 and Rs 2,200 crore in combined ad revenue, surpassing the Rs 1,350 crore generated in the previous edition in 2019.
Rise in Digital Revenues
According to brokerage firm Elara Capital, digital revenues for the Cricket World Cup 2023 are expected to more than double compared to the 2019 edition. The firm predicts that digital ad revenues will reach Rs 950 crore, a substantial increase from the Rs 450 crore generated in 2019. This surge in digital revenues can be attributed to various factors, including the increasing popularity of online streaming platforms and the availability of the matches for free on the Disney+ Hotstar app.
Disney Star, the holder of ICC TV and digital media rights until 2023, has decided to stream the matches for free on its Disney+ Hotstar app to compete with JioCinema, which offered free streaming of IPL cricket matches in 2023. This move is expected to attract a larger audience and enhance the overall viewership of the tournament, thereby driving higher digital ad revenues.
TV Ad Revenues
While digital revenues are set to soar, TV ad revenues for the Cricket World Cup 2023 are also expected to witness substantial growth. Elara Capital estimates that TV ad revenues will reach Rs 1,150 crore, compared to Rs 900 crore in the previous edition. The favorable timings of the matches, scheduled at 10:30 am or 2 pm IST, are likely to contribute to increased viewership and higher ad revenues on television.
Impact on Advertising Industry
The expected surge in ad revenues for the Cricket World Cup 2023 is a positive development for the advertising industry. The significant increase in digital ad revenues signifies the shifting landscape of advertising, with more brands and advertisers recognizing the potential of digital platforms to reach a wider audience.
This trend aligns with the growing preference for online streaming and the increasing penetration of smartphones and high-speed internet connectivity in India
Exclusive Hosting Rights for India
The 2023 edition of the Cricket World Cup marks a significant milestone for India as it will be the exclusive host for the tournament after a gap of 12 years. In previous editions, India co-hosted the event with Pakistan in 1987, with Pakistan and Sri Lanka in 1996, and with Sri Lanka and Bangladesh in 2011. The exclusive hosting rights provide India with an opportunity to showcase its capabilities as a host nation and reiterate its status as a cricketing powerhouse.
Tournament Format and Schedule
The Cricket World Cup 2023 will feature 10 teams competing in a total of 48 matches across 10 different venues in India. The tournament will commence on October 5, 2023, with the opening match and the final scheduled to take place in Ahmedabad. The matches are spread over a period of six weeks, providing ample opportunities for advertisers to reach a wide audience through various platforms.
Defending Champions and Title Contenders
The defending champions of the Cricket World Cup, England, will be looking to retain their title in the 2023 edition. Their victory in the 2019 edition, which concluded with a thrilling tied final and super over, cemented their status as one of the top cricketing nations. However, they will face stiff competition from other strong teams, including India, Australia, New Zealand, and South Africa, who are all considered strong contenders for the title.
Impact of Favorable Timings
The favorable timings of the matches, especially the day matches scheduled at 10:30 am IST, are expected to have a positive impact on viewership and ad revenues. Karan Taurani, Senior Vice-President at Elara Capital, believes that the favorable timings will encourage viewers to watch the first half of the matches on digital platforms. This presents an opportunity for advertisers to target the digital audience during these time slots and capitalize on the increased engagement.
Growth Potential for Digital Medium
The Cricket World Cup 2023 presents significant growth potential for the digital medium in terms of ad revenues. Elara Capital predicts a Compound Annual Growth Rate (CAGR) of 21% for digital ad revenues compared to 2019 levels. This growth can be attributed to the increasing adoption of smartphones, improved internet infrastructure, and the availability of affordable data plans, allowing a larger section of the population to access digital content.
The upcoming Cricket World Cup 2023 hosted by India is set to generate substantial ad revenues on both TV and digital platforms. The tournament's exclusive hosting rights, favorable match timings, and the availability of matches for free on the Disney+ Hotstar app are expected to drive higher viewership and ad revenues.
The growth in digital ad revenues highlights the changing landscape of advertising, with digital platforms emerging as a preferred medium for brands and advertisers. As the tournament approaches, the cricketing world eagerly awaits this prestigious event that promises to captivate audiences and provide a significant boost to the advertising industry.
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