State-owned broadcasters Doordarshan (DD) and All India Radio (AIR) are estimated to have collectively earned about Rs90 crore from advertisements during the cricket World Cup that ends on Saturday.
Television operator DD is expected to earn nearly Rs75 crore and AIR about Rs12 crore by way of advertising, said two officials of Prasar Bharati, which runs the broadcasters. Officials of DD and AIR confirmed the earnings.
The officials did not want to be identified ahead of Prasar Bharati announcing its revenue from the event.
DD will have to give 75% of its revenue from the tournament to ESPN Software Pvt. Ltd, the official broadcaster of the World Cup matches, under a revenue-sharing agreement between them.
AIR paid the International Cricket Council (ICC), the governing body of the game, Rs1 crore to air commentary on 35 of the event’s 49 matches, at $6,250 (Rs2.8 lakh) a match.
In effect, Prasar Bharati will earn an estimated Rs32 crore by the end of the tournament, said the officials mentioned earlier.
Both DD and AIR raised their rates for 10-second spots for the final between India and Sri Lanka on Saturday.
“We have generated a good response to the event and for the final event, 10-second ad rate spots have been pushed up by 20-30%,” said an executive in AIR’s marketing division, which sold spots directly to companies.
For the pre-final matches, it charged Rs7,000-10,000 for a 10-second ad spot.
DD, which has sold about 175 ad spots in total for the World Cup, increased its 10-second ad rate to Rs4 lakh for the final match from Rs1.5-2 lakh earlier.
Media buyers said DD and AIR have sold all their ad spots for the final match in Mumbai and have closed bookings.
Pepsi, Castrol, ITC and Parle were among the brands advertising on DD during the cup.
A spokesperson for ESPN Software declined to share financial details, but said the ad inventories of both DD and ESPN-Star Sports were full for the cricket matches.
ESPN Software had won a bid to market the cricketing event for DD, offering a minimum guarantee of Rs32 crore. This was based on a 75:25 revenue-sharing deal, with ESPN keeping a majority of the earnings.
A.K. Jain, member (finance), Prasar Bharati, alleged in March that DD had accepted a low bid, but it could have generated more revenue if it had marketed the event on its own.
Media buyers say that for brands looking to advertise to a large population, DD and AIR are formidable platforms.
DD and AIR “have a wide reach and for brands wanting to also reach out to non-urban areas, these are great platforms”, said Prashant Kumar, managing partner (central trading group) for GroupM India Pvt. Ltd, the media buying arm of marketing communications group WPP Group Plc.
“For brands looking beyond the metros, both Doordarshan and AIR are a good option,” said Basabdatta Chowdhuri, chief executive of Madison Media, an arm of marketing communications group Madison Communications Pvt. Ltd. “Personally, I feel AIR’s live commentary of the matches is a strong point and the inventory here would be full too.”