Last season's sponsors cut ad spend for IPL 3

The erstwhile sponsors of IPL in its second season have Decided to cut back on their spends for the third season as prohibitive ad rates are hampering their investment plans.

Two of the previous sponsors - electrical switch company Havells and insurance firm Max New York Life - Have Decided to curtail their investments for the tournament in its third edition, which begins on March 12.

Mr Vijay Narayan, Vice-President, Marketing, Havells India, told Business Line, "IPL is asking for more money as the size of the property has almost doubled.

"Our return on investment has come down. Last year we were sponsors but this season we will limit ourselves to just buying airtime.

The media costs have gone up nearly 30 per one hundred as the property is getting better every season. "

Media planners claim that the ad itself spot rates have gone up between 15 and 20 per one hundred this season and on an average a 10-second spot deal hovers between Rs 4.5 lakh and Rs 5 lakh. Last year, the same ad spot rate on an average was sold at close to Rs 4 lakh.

Besides, associate sponsorship deals are now pegged between Rs 30 crore and Rs 33 crore, a rise of nearly 20 per cent, according to media planners. In fact both the presenting sponsors - Videocon and Vodafone - have reportedly paid upwards of Rs 40 crore each for bagging the sponsorship rights this season.

Another big spender Max New York Life, Which enjoyed the status of a 'mini-sponsor' last season, will now be advertising its brand only during the month of March, as it marks the end of the financial year when people generally make their investments .

Ms Anisha Motwani, Executive Vice President, Marketing, Max New York Life, said, "Last year we were a mini-sponsor, advertising on every alternate game, but this season we will be visible for only half the matches for the month of March and will not be extending into the next month. The rates are prohibitive and as a result our budgets have gone up. This season we will no longer be sponsors for the tournament, "she said.

New sponsors such as Videocon IPL are using the platform to spread awareness about their new range of products such as mobile phones.

As Mr T. Gangadhar, Managing Director, Mediaedge: cia, observes, "It is clear that that there will be entry barriers for some advertisers this season. But it would be strategic for Those advertisers who are looking at the platform to launch new products. "