ICC World Cup 2023: Ad revenue soars, digital platforms take the lead

While India's defeat in the 2023 World Cup left hearts shattered, behind the scenes, the tournament orchestrated a revolution in ad revenue.

The ICC Men's Cricket World Cup 2023 has been a massive win for advertising revenues, notably boosted by India's stellar performance. Abhishek Jain from Arihant Capital Markets highlighted that the tournament's success surpassed expectations, with Disney Star seeing a significant increase in ad revenue, hitting around Rs 3,000 crore. The heightened interest, especially in India's matches, played a pivotal role in this surge.

Record-breaking Viewership and Engagement:

India's games drew an average of 29 million concurrent viewers, outperforming any other tournament digitally and exceeding non-India match viewership fivefold, as per Elara Capital's analysis. The Indian team's strong performance contributed to a record-breaking CPM of Rs 400-450 on Disney+Hotstar, surpassing even IPL rates due to a larger audience and free OTT content.

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Digital and TV Ad Spend Soars:

Karan Taurani mentioned that ad spends doubled on digital for the 2023 World Cup compared to 2019, hitting Rs 900-950 crore, while TV ad spends grew by 25 percent to around Rs 2,200-2,300 crore. FMCG, consumer durables, and e-commerce were among the leading sectors investing heavily in advertising during the tournament.

Festive Season Boosts Advertising Impact:

Nitin Menon noted the remarkable viewership during the finals, peaking at 59 million on digital platforms. The overall surge in OTT viewership significantly increased ad revenues compared to the 2019 edition, especially with India making it to the finals during the festive season.

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In terms of ad volumes, TAM Sports reported a 19 percent growth in the first 39 matches of the 2023 World Cup compared to 2019. The count of categories and brands also increased by 32 percent and 30 percent, respectively, with over 50 new categories and 195 new brands advertising during the matches. Perfumes/deodorants, Pan Masala, and online shopping were among the top categories.

Impact on India's Advertising Landscape

This surge in ad spending, fueled by the World Cup, reflects a broader trend of recovery and consumer engagement, significantly impacting India's advertising landscape, as highlighted by Jain. Taurani anticipates a positive 2.5 percent impact on India's ad expenditure in 2023, with a 14 percent estimated growth in the latter half of the year, driven by the festive season and cricket's influence.