The Indian sports industry witnessed a significant growth curve in 2022, with spends crossing over Rs 14,000 crore, GroupM ESP stated in the Sporting Nation Report 2023 on sports sponsorship in India.
The report highlights the growth of sports sponsorship in India, with spends on-ground, teams and franchise rising by Rs 3021 crore, a 105 percent growth from 2021, making the total sponsorship spends Rs 5907 crore.
The overall increase in spends was due to the rise in the number of IPL matches, addition of two new IPL teams, ICC T20 World Cup, Asia Cup, FIFA World Cup, and the return of several emerging sports events and tournaments.
Moreover, Indian women athletes and women cricketers saw a phenomenal rise, with the Indian women's cricketers making a name for themselves on the international stage. The report also highlights key aspects of how brands are expected to approach spending on sporting events differently with the rise of OTT, and the sports industry is one of the better-performing sectors in the economy.
Two big international racing events, Formula E & Moto GP, are to be held in India for the first time in 2023. Overall, the rise of Indian cricket, the performance of Indian athletes and the number of emerging sports leagues have all contributed to India becoming a sporting nation in the last 10 years.
The report reveals cricket continues to dominate the Indian sports sponsorship landscape, contributing to 85 percent of the sponsorship spends, while emerging sports like football, kabaddi and marathon have seen a massive upsurge in the sponsorship spends, contributing to the remaining 15 percent.
The growth of cricket sponsorship can be attributed to several reasons, including the Indian cricket team playing almost the double number of matches, as compared to 2021.
“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," said Prasanth Kumar, chief of GroupM South Asia.
"Despite facing unprecedented pandemic challenges, the exceptional performance of the sports industry in 2022 reflects its resilience and unwavering commitment. As we move forward, technology will play an increasingly pivotal role in content management and fan engagement, while opening new and exciting opportunities in sports. Live sports will continue to be highly coveted as monetizable properties, making it a promising sector for investment."
Commenting on the report's findings, Vinit Karnik, head of sports at Esports and Entertainment, GroupM South Asia, said, "With the rise of new sports and leagues alongside the unparalleled popularity of cricket, brands have unprecedented opportunities to connect with fans through sports. The report also highlights the burgeoning trend of sports celebrity endorsement, with cricketing stars blazing the trail. Brands can leverage these insights to tap into the power of sports sponsorship and accomplish their marketing goals with unmatched effectiveness."
According to the Sporting Nation Report, the sports celebrity endorsement market in India has seen significant growth, with a 20 percent increase with total value of Rs 729 crore. Out of the 505 brand endorsement deals, 85 percent of the total brand endorsement value has come from cricketers.
The top athletes in sports celebrity brand endorsement include Virat Kohli, MS Dhoni, Rohit Sharma, Sachin Tendulkar, Neeraj Chopra, and PV Sindhu. Cricketers' endorsement has grown by 18 percent with Virat Kohli, MS Dhoni, and Rohit Sharma endorsing over 30 brands each, and adding new brands in 2022.
Neeraj Chopra and PV Sindhu continue to be leading the non-cricketing athletes leading the endorsement deals.
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