New Delhi: The recent churn and funding pressure at some of the top e-commerce firms in India has knocked the category off the list of top five advertisers at Indian Premier League (IPL), a report by market intelligence firm SilverPush said.
IPL, the 20-over cricketing tournament that runs for about two months each year, is one of the most sought-after advertising platforms in India.
According to SilverPush, e-commerce, from being the fourth most-advertised category in IPL 2016, was replaced by electronics, durables, automobiles, telecom and food and beverages (in this order) in the 2017 season.
The analysis is derived from monitoring television and YouTube ads (during IPL matches) and impressions received on the brands’ social media pages on Facebook, Twitter and Instagram, SilverPush said. It may not essentially represent ad spends by these brands.
According to the analysis, Amazon India featured at the six spot in terms of television presence (ad placement and frequency) during IPL 2017, trailing behind Chinese phone-makers Oppo and Vivo, and telecom networks Reliance Jio and Vodafone (top four in this order).
Amazon’s market share in TV ads, among its peers, increased to 88.7% during IPL 2017 from 40.4% during IPL 2016, while Flipkart’s share tumbled to 6.2% from 18.7% and Snapdeal’s share to 5.1% from 40.9%, the data showed.
On the digital side, Amazon swelled its advertising share to a staggering 99.9% from 37.9% in IPL 2016. “Amazon’s new line of creatives and impending sale season ensured it booked the top spot on YouTube, while Makemytrip’s star studded innovative creatives garnered many views, too." SilverPush report said.
The trend, in many ways, is a manifestation of what is happening on the business side at the e-commerce firms.
Having failed to raise fresh funds, Delhi-based Snapdeal is in the process of getting sold to larger rival Flipkart, while Flipkart, after a number of management changes and seeing its valuation marked down at least five times, recently managed to close a $1.4-billion round from investors.
“E-commerce firms have become more prudent in their spends, especially since now it has become a two-horse race. IPL is one of the most expensive properties and could be hard to justify buying it ROI-wise (return on investment)," said Hitesh Chawla, chief executive officer at SilverPush.
“For newer players like Jio and Oppo, IPL provides a perfect launch pad for quick brand building and mass reach."