Startups are conspicuous by their absence as advertisers in the 2023 edition of ICC Men’s Cricket World Cup which is starting on October 5 as their purse strings have been tightened amid an ongoing funding winter and increased focus on profits.
Only three startups -- PhonePe, Dream11 and LendingKart – feature among 26 brands that have signed up as sponsors for the 2023 edition of the World Cup, according to a list revealed on Wednesday by Disney Star, the official broadcaster of the tournament on TV (Star Sports network) and digital (free streaming on Disney+ Hotstar).
This is a sharp contrast to some of the sponsoring brands in the last World Cup which included Byju’s, Dream11, CarDekho, Google Pay, Amazon Pay, Amazon Echo, Amazon Prime, Policybazaar, Paisabazaar, Pharmeasy, Swiggy, PhonePe, Uber, UberEats, Cars 24, and Netflix.
Legacy firms dominate the full list of 26 sponsors onboarded so far this year. The full list includes PhonePe, Mahindra & Mahindra Ltd, Dream11, Hindustan Unilever, Coca-Cola, Havells, IndusInd Bank, Pernod India, Booking.com, Peter England, Kingfisher Packaged Drinking Water, Mondelez, Emirates, Diageo, Jindal Panther, MRF Tyres, LendingKart, BPCL, Herbalife, Haier Appliances, AMFI, Google Pay, Polycab, Amul, VIDA by Hero Motorcorp and Amazon.
“We are delighted to have these esteemed brands using this opportunity to get maximum impact and drive growth for their brands or businesses. Disney Star is all set to provide an unmatched cricketing extravaganza with its programming and create a viewing experience for audiences across television and digital platforms, promising unforgettable moments for everyone,” said Ajit Varghese, Head of Network - Ad Sales at Disney Star, in a press release.
The tournament is expected to generate Rs 2,000-Rs 2,200 crore in combined ad revenue on TV and digital platforms compared to the Rs 1,350 crore it did four years ago in the 2019 edition, according to a note from brokerage firm Elara Capital.
While legacy firms across the categories of FMCG, automobiles, telecom and mobile advertisers are typically the largest advertisers, the last edition of the World Cup saw digital-first brands making their presence felt for the first time. Since then, they grew into some of the largest advertisers for various cricket and other tournaments, including the marquee property of Indian Premier League.
As a funding winter set in starting last year owing to global recessionary fears, startup funding and valuations plummeted. Subsequently, they have curtailed their ad spends to conserve cash and focus on their bottomline. For instance, edtech firm Byju’s, which was a sponsor for the Indian cricket team jersey, is in the midst of a financial crisis and has reportedly laid off more than 4,000 employees. It is yet to release its much-awaited financial results for 2021-22 and 2022-23 only this October.
India will be hosting the coveted tournament after a gap of 12 years. This is the first time India will be the exclusive host. In 1987, it hosted it with Pakistan, in 1996 with Pakistan and Sri Lanka, and in 2011 along with Sri Lanka and Bangladesh. The 2023 edition kicks off on October 5 with England and New Zealand clashing in Ahmedabad. A total of 10 teams will play 48 matches between October 5 and November 19, 2023, across 10 venues. Ahmedabad will host the opening match and the final.
England, who won the 2019 edition in a dramatic final which ended in a tie with the super over also ending in a tie, are the defending champions.
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