Indian sports sponsorship crosses Rs 9,500 crores in 2021: GroupM ESP

GroupM’s entertainment, esports and sports division, ESP, has released the ninth edition of the sports sponsorship report for India 2021. 

 

According to the report, the Indian sports industry has crossed 9,500 crores in 2021, showcasing a growth of 62%, as compared to 2020. 

 

The comeback was witnessed for sports sponsorships and media deals. 

 

The sports adex for TV and digital too surpassed the 2019 levels, with 6,018 crores in 2021. This was up from 2020's 3,657 crores and 2019's 5,232 crores.

 

However, TV continued to be the largest medium in 2021, seeing a growth of 59% over 2020, with overall ad spends of 5,051 crores. Digital too, saw its spends touch Rs 965 crores.

 

Cricket retained its position as the most popular sport, accounting for 94% of the total sports adex. 2021 saw the women's and men's T20 World Cup, the IPL, and the World Test Championship final. 

 

The media spends on cricket was at 5,657 crores in 2021, higher than the total ad spends on sport in 2019 which was of Rs 5,232 crores.

 

Sports celebrity endorsement grew by 11% year-on-year in 2021, with a total of 444 brand endorsement deals, 318 of which accounted for cricketers, making them hold 87% of the total brand endorsement value. Endorsements with emerging sports athletes too, increased by 79% in 2021, accounting for 13% of the overall brand endorsement value. From the total of Rs 625 crores worth of endorsement deals secured by athletes in 2021, 541 went to cricketers. The top athletes with sponsorship deals last year were Virat Kohli, MS Dhoni, Rohit Sharma, Neeraj Chopra and PV Sindhu.

 

The report also stated that India’s performance which saw it bag seven medals at the Tokyo Olympics would bring in new opportunities in multi-sport events for 2022. 

 

The study named technology as one of the crucial factors in evolving the way people view sports. Whereas, the household penetration of TV sets in different markets too added to the growth of sports properties.  

 

The transition to the world of live sports broadcast also led to a great demand for OTT platforms for live streaming sporting action.

 

Prasanth Kumar, CEO – GroupM South Asia, said, “2021 was a year of a major comeback for the sports industry. Not only in sports but we saw growth in sponsorships, endorsements, and media expenses in 2021. This year will also be a good re-start point for brands to invest in sports properties since sports will see a rise and will in turn deliver ROI to brands. Apart from this, we even saw esports gaining significant traction and there was a major rise in the number of gamers in the country. Properties like PKL, ISL, etc. are also seeing a major rise in followers which goes to show that India is heavily invested in overall sports from an interest and inquisitiveness standpoint. As for cricket, we are seeing a growing interest by Foreign private equity giants investing in Indian cricket which is proving that Cricket will continue seeing a huge surge in India and with 2021 getting cricket back on track, we are seeing 2022 racing ahead, aiming to cross INR 10,000 Cr mark.”

 

Vinit Karnik, head – sports, entertainment and esports, GroupM South Asia, said, “India as a Sporting Nation has finally arrived, overcoming all barriers brought in by the pandemic. Cricket being the hero of India, contributed 88% of the sports spends. IPL and T20 WC boosted the sports adex growth. We also saw emerging sports contributing 12% to the overall sports spends. The media spends in 2021 were the biggest contributors, who accounted for almost two-thirds of all sports industry spending. While sports celebrity endorsement was on the rise in 2021, Virat Kohli, MS Dhoni, Rohit Sharma, Neeraj Chopra and PV Sindhu are the top athletes in the sports celebrity brand endorsement space. 2022 will be an exciting year with the Asian Games, FIFA World Cup, Premier Badminton League, and many more properties coming up, and the fans are in for a treat. The sports arena is an exciting drive ahead from the fanbase lens and the business lens too and we have a host of opportunities in the Indian sports industry.”