Sports media spending, sponsorships on the ground, and celebrity endorsements pulled in a total income of ₹14,209 crore in the past year, recording a 49% growth over 2021 from roughly ₹9500 crores.
This sports sponsorship experienced the highest rise, climbing to ₹5,907 crores with a gain of 105%, concluded recent research by GroupM.
A little over half the total industry expenditure, or 53%, was expended on advertising on media, stated the 10th edition of the annual study ‘Sporting Nation in the Making’ by GroupM. Curiously, despite a 26% year-on-year gain, the media spend share has fallen by 10 bps from the past year, while sponsorship spending climbed at a far faster rate.
In terms of absolute value, media advertising on sports worked out to a total sum of ₹7,553 crores. Conventional television has the highest share, even if digital media gaining ground.
The survey added that sports personalities became affiliated with more businesses this year and the endorsement value reached ₹749 crores, 20% more compared to 2021. These include Byju’s contract with Argentina and Paris Saint-Germain star player Lionel Messi and Indian track and field athlete Neeraj Chopra’s many brand connections after his Gold medal in the Tokyo Olympics.
Cricket provided 85% of the overall sports sector income, at around ₹12,115 crores. Despite the high base value of cricket, the business claimed the increase it witnessed for the sport was 44% in terms of sponsorship, endorsement, and ad spending.
“We have made a great advance over the previous decade in terms of on-field performance, with some amazing triumphs by our athletes in numerous sports disciplines. Gone are the days when the hockey team stood alone as a beacon of hope at the Olympics, with our contingent taking up 15 medals throughout the previous three editions of the games,” stated Vinit Karnik, Head – Entertainment, Esports & Sports for GroupM South Asia
The survey pointed out that in terms of sponsorship spending, on the ground, team, and franchise sponsorships, cricket accounted for 75% of all sports, while endorsement in the sport accounted for 85%. In terms of media spending by companies, cricket was most pronounced with 94% of all ad costs being tied to cricket-related content across all media vehicles.
Other developing sports like Pro Kabaddi League (PKL) suffered some hitches during the Covid time but have done better in 2021 and 2022. From an overall industry viewpoint, these sports contributed around 15% to the whole sports business. Whilst they contributed a measly 5% total on digital platforms, this was twice at 10%, which provides fewer cost barriers for participation by businesses.
These sports had decreased drastically in the prior two years from the pre-Covid statistics of ₹948 crores, but 2022 saw the rebound with an aggregate income of ₹1,503 crore, which in year-on-year terms stands at an additional value of ₹829 crores.
