The Indian sports industry witnessed a significant growth in 2022, with spends in excess of INR 14,000 crore, according to GroupM ESP’s Sporting Nation Report 2023.
The report, released on Tuesday, highlights a whopping 105% spike in sports sponsorships in India from 2021, with spends on ground, team, and franchise rising by INR 3,021 crore.
The report reveals that cricket continues to dominate the Indian sports landscape, contributing to 85% of the sponsorship expenses, while emerging sports like football, kabaddi and marathon have seen a massive upsurge, contributing to the remaining 15%.
The growth of cricket sponsorship can be attributed to several reasons, including the Indian cricket team playing almost double the number of matches as compared to 2021, the Indian Premier League (IPL) adding two new franchises – Gujarat Titans and Lucknow Super Giants, and a full house of central sponsorship.
The market of sports celebrity endorsement in India saw a 20% increase with the total value now standing at INR 729 crore. Out of the 505 brand endorsement deals, 85% has come from cricketers. The top athletes involved include Virat Kohli, MS Dhoni, Rohit Sharma, Sachin Tendulkar, Neeraj Chopra, and PV Sindhu.
“The Indian sports ecosystem is experiencing a revolutionary transformation, with athletes becoming influential role models for the youth and sports sponsorships gathering immense momentum. In this scenario, brands hold tremendous potential to tap into the passion and loyalty of Indian sports fans,” Prasanth Kumar, CEO - GroupM South Asia, said.
The report additionally highlights key aspects of how brands are expected to approach spending on sporting events differently with the rise of OTT. The sports industry is one of the better-performing sectors in the economy with a 14% CAGR. Two big international racing events, Formula E and Moto GP, are also to be held in India for the first time in 2023.
The report also notes that apart from cricket leagues, the successful hosting of several other tournaments like Indian Super League, Pro Kabaddi, Prime Volleyball League, and Ultimate KhoKho, along with the return of marathons and the Women’s Indian Open Golf tournament also helped in building a diverse sports content portfolio in the country, bringing in more eyeballs and creating multiple opportunities.
“With the rise of new sports and leagues alongside the unparalleled popularity of cricket, brands have unprecedented opportunities to connect with fans through sports,” Vinit Karnik, Head - Sports, Esports and Entertainment, GroupM South Asia, said.
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