How marketing helped build IPL’s economic might

Cricket in India isn't just a sport; it's often described, perhaps hyperbolically, as a religion. But if cricket is the religion, the Indian Premier League (IPL), launched in 2008, arguably turned the temple into a sprawling, glittering marketplace. It wasn't merely the birth of another cricket tournament; it was the detonation of a marketing supernova, a calculated fusion of high-octane sport, Bollywood glamour, and sharp-edged commerce that fundamentally reshaped India's sporting and advertising landscape. From its audacious inception to its current status as a multi-billion-dollar juggernaut, the IPL's journey is as much a story of marketing reinvention and commercial ambition as it is about sixes and wickets. Understanding its economic evolution requires peeling back the layers of hype to see the intricate machinery of marketing working tirelessly beneath the surface.  

A league is born (2008)

The seeds of the IPL were sown in the euphoria following India's unexpected victory in the inaugural T20 World Cup in 2007. The shorter, more explosive format captured the nation's imagination. Lalit Modi, then a BCCI Vice-President, seized the moment, envisioning a franchise-based league modelled partly on global sporting leagues like the NBA and the English Premier League, but tailored for the Indian palate.

fef

The initial marketing masterstroke lay in the very structure: city-based franchises. This wasn't just about geographical representation; it was about manufacturing loyalty and rivalry overnight. Suddenly, Delhi wasn't just the capital; it was the home of the Daredevils (now Capitals). Mumbai wasn't just a metropolis; it was the turf of the Indians. Adding Bollywood megastars like Shah Rukh Khan (Kolkata Knight Riders) and Preity Zinta (Kings XI Punjab, now Punjab Kings) as co-owners wasn't mere window dressing; it was a strategic move to blend cricketing passion with India's other obsession – cinema. This immediately broadened the appeal beyond hardcore cricket fans, pulling in entertainment seekers and creating instant buzz.  

sv

The first franchise auction in January 2008 itself was a statement of intent. Big corporations shelled out significant sums – Mukesh Ambani's Reliance Industries paid $111.9 million for the Mumbai franchise, Vijay Mallya's UB Group acquired Bengaluru for $111.6 million. The total franchise fee collection was around $723 million. This wasn't just investment; it was a high-stakes bet on a concept, fuelled by the promise of tapping into India's burgeoning consumer market. 

Simultaneously, Sony Pictures Network (now Culver Max Entertainment) bagged the initial 10-year broadcast rights for a hefty $1.026 billion. This deal was crucial. Sony didn't just broadcast matches; it marketed the league aggressively, creating slick campaigns, signature tunes, and integrating entertainment elements into the broadcast, setting the template for the "sportainment" package that defines the IPL. The initial tagline, 'Manoranjan ka Baap' (The Father of Entertainment), perfectly encapsulated the marketing pitch – this was more than sport; it was primetime family entertainment.  

Building the brand amidst the buzz (2008-2012)

The early years were about establishing the IPL as a fixture, not a fleeting novelty. Marketing efforts focused on amplifying the city rivalries, building team identities through anthems and merchandise, and leveraging the star power of players and owners. The introduction of cheerleaders, post-match parties, and high-profile opening ceremonies added layers of spectacle, ensuring constant media chatter.  

fevf

Brands quickly recognised the opportunity. DLF, a real estate giant, became the first title sponsor, signing a 5-year deal for ₹200 crore (approx. $40 million at the time). This association immediately lent corporate legitimacy and scale. Other central sponsorships and individual team sponsorships followed, creating a multi-layered revenue model. Advertising rates for 10-second slots during matches, while not astronomical by today's standards, were premium compared to other programming, reflecting the concentrated, high-value eyeballs the IPL delivered.  

vev

However, this period wasn't without its storms. Controversies surrounding Lalit Modi, allegations of financial irregularities, and the spot-fixing scandal in 2013 threatened the league's image. This is where crisis management and sustained marketing efforts became critical. The BCCI (Board of Control for Cricket in India) and broadcasters worked to reinforce messages of integrity and the enduring appeal of the on-field action, navigating the turbulence while trying to protect the lucrative commercial enterprise. Sponsor confidence wavered momentarily but largely held, testament to the sheer audience pull the IPL had already cultivated.

Hitting the stratosphere: The money multiplies (mid-2010s onwards)

If the early years laid the foundation, the mid-2010s saw the IPL's economic structure blast off into the stratosphere. Several factors converged: India's booming economy, increased disposable income, the explosion of smartphones and cheaper data, and intensifying competition among broadcasters and brands.

The most dramatic shift came with the media rights. In 2017, Star India (now Disney Star) stunned the market by winning the consolidated global broadcast and digital rights for the 2018-2022 cycle with a jaw-dropping bid of ₹16,347.5 crore (approx. $2.55 billion then). This was nearly a three-fold increase per year over the previous Sony deal.  

From a marketing perspective, this wasn't just about broadcasting matches; it was about owning the biggest media property in India. Star leveraged its extensive network, broadcasting matches in multiple languages across numerous channels and its digital platform, Hotstar. This integrated approach offered advertisers unprecedented reach and targeted opportunities, further justifying escalating ad rates. The IPL became the undisputed king of primetime for two months every year, a must-have platform for any brand seeking mass visibility.  

Title sponsorship values also soared. After DLF, PepsiCo came on board (2013-2015), followed by Chinese smartphone maker Vivo (2016-2017, 2018-2019, 2021). Vivo's initial 5-year deal (starting 2018) was worth a staggering ₹2,199 crore (approx. $440 crore per year), highlighting the immense brand value associated with the league's naming rights. Political tensions led to brief pauses and replacements (Dream11 in 2020, Tata Group in 2022-2023, and now returning for 2024-2028 for ₹2,500 crore or ₹500 crore/year), but the underlying value proposition for sponsors remained robust. Brands across categories – FMCG, auto, e-commerce, fintech, online gaming, durables – lined up, paying premiums for official partnerships, team sponsorships, and on-air advertising slots.  

Franchise valuations, too, began their dizzying ascent. The initial investments looked like bargains. By the late 2010s, estimates placed the brand value of teams like Mumbai Indians and Chennai Super Kings in the hundreds of millions of dollars. The addition of two new franchises in 2021 (for the 2022 season) provided concrete proof: the RPSG Group bought the Lucknow franchise for ₹7,090 crore (approx. $940 million) and CVC Capital acquired the Ahmedabad (Gujarat Titans) franchise for ₹5,625 crore (approx. $750 million). These figures dwarfed the original franchise fees, demonstrating the incredible appreciation driven by the league's overall commercial success, fuelled relentlessly by marketing and media exposure. The franchises themselves became powerful brands, marketed year-round through merchandise, digital engagement, and fan events.  

Digital disruption and the age of fragmentation (2023 - Present)

The next seismic shift occurred with the media rights auction for the 2023-2027 cycle. Recognising the changing media consumption landscape, the BCCI split the TV and digital rights. The results were astounding:  

  • TV Rights (India): Disney Star retained these for ₹23,575 crore.

  • Digital Rights (India): Viacom18 (backed by Reliance) secured these for ₹23,758 crore.

  • Overseas & Non-Exclusive Digital Rights: Added further value, bringing the total media rights haul to a colossal ₹48,390 crore (approx. $6.2 billion).  

This split fundamentally altered the marketing and advertising dynamics. Disney Star focused on leveraging its strong television base, while Viacom18, through its JioCinema platform, adopted an aggressive, disruptive strategy: streaming the IPL for free. This was a massive marketing play aimed at capturing digital viewers, acquiring users for the Jio ecosystem, and challenging the traditional pay-to-watch model.

The implications for advertisers were significant. They now had distinct, massive audiences to target on TV and digital, each with different consumption patterns and measurement metrics. Ad rates continued to climb. Reports suggested 10-second slots on TV hover around ₹15-₹20 lakh, while digital platforms offer more varied (and often sophisticated) advertising solutions, including targeted ads, mid-roll videos, and interactive formats. The aggregate advertising expenditure during the roughly two-month IPL window is estimated to run into thousands of crores annually, making it the single largest event on the Indian advertising calendar. Categories like fantasy gaming, fintech, e-commerce, beverages, and consumer goods dominate ad spends, using the IPL's massive reach to launch products, build brand awareness, and drive sales.  

In 2008, a 10-second television spot cost approximately ₹2.5 lakh (around $3,400). Now in 2025, that same slot commands upwards of ₹18 lakh (approximately $24,500), reflecting the league's soaring viewership and the premium placed on its advertising real estate. ​

The advent of digital platforms has further reshaped the advertising landscape. Connected TV (CTV) ad rates have surged by approximately 30% year-on-year, highlighting the growing value of premium digital audiences. Mobile OTT ads offer cost efficiencies, with cost-per-thousand impressions (CPM) around ₹340, compared to CTV's ₹650, prompting brands to strategically allocate budgets across TV, CTV, and mobile to optimise reach. ​

Brands have embraced the IPL's vast platform with gusto, deploying hefty advertising budgets to capture the attention of millions. Dream11's investment of ₹1,730 crore (approximately $235 million) in ad placements yielded a 37.7% recall rate, illustrating the potential returns on such investments. Conversely, brands like Vimal and Parle, despite spending over ₹3,000 crore (approximately $408 million) each, struggled to surpass a 4% recall rate, underscoring that in the IPL's advertising arena, strategic placement often trumps sheer expenditure. ​

Beyond traditional advertising, the marketing ecosystem around the IPL has become increasingly complex. Influencer marketing, leveraging player popularity on social media, content marketing by franchises and sponsors, and extensive social media campaigns all contribute to keeping the IPL buzz alive, extending its reach far beyond the live broadcast.  

The economic engine

The IPL's economic model rests on several key pillars, all amplified by marketing:

  1. Media Rights: Unquestionably the largest contributor, accounting for the lion's share of central revenue, which is then distributed among the BCCI and the franchises. The astronomical figures reflect the intense competition among broadcasters and the massive audience the IPL guarantees.

  2. Central Sponsorships: Title sponsor, official partners, umpire sponsors, strategic timeout sponsors – these generate significant income for the central pool. Brands pay for the prestige and nationwide visibility associated with the league itself.  

  3. Team Sponsorships: Franchises generate their own revenue through jersey sponsorships (front, back, shoulders), official partnerships, and local alliances. The value varies depending on the team's brand equity and fan base.  

  4. Gate Receipts (Ticket Sales): While significant in absolute terms, this forms a relatively smaller percentage of the overall revenue compared to media rights and sponsorships. However, packed stadiums are crucial for the 'atmosphere' marketed on broadcasts.

  5. Merchandising: Sales of team jerseys, caps, and other merchandise contribute to both franchise revenues and brand building.  

  6. Franchise Fees: The initial fees paid by owners, plus the substantial amounts paid by new teams, contribute significantly to the BCCI's coffers. The soaring valuation of franchises also represents immense, albeit largely unrealised, wealth for the owners.  

Marketing: The lubricant in the machine

It's impossible to overstate marketing's role in this economic success story. Marketing didn't just sell tickets or ad slots; it built the entire edifice.

  • Creating the spectacle: From the initial concept blending cricket and entertainment to the annual high-decibel campaigns, marketing crafts the narrative and sustains the hype.  

  • Building brand value: Consistent marketing has elevated the IPL and its franchises into valuable brands, justifying high sponsorship fees and media rights values.

  • Driving viewership: Sophisticated campaigns across multiple platforms ensure audiences tune in, whether on TV or digital, delivering the eyeballs advertisers pay for.  

  • Expanding the audience: Marketing efforts have deliberately targeted demographics beyond traditional cricket fans, including women and families, broadening the consumer base.

  • Monetising engagement: Digital marketing, fantasy leagues, and social media integration create continuous engagement points that can be monetized directly or indirectly.  

  • Image management: During crises, strategic communication and marketing work to protect the league's commercial viability.

From a bold idea in 2008 to a global sporting property valued reportedly north of $10 billion, the IPL's economic evolution has been extraordinary. It stands as a powerful case study in how sport, when expertly packaged, marketed, and commercialised, can become a colossal business enterprise. The league transformed how cricket is consumed in India, irrevocably altered the sports broadcasting landscape, and became the single most important platform for advertisers seeking mass reach.  

The symbiotic relationship between the IPL's on-field action and the sophisticated off-field marketing and commercial machinery is undeniable. While the sixes and wickets provide the core product, it's the relentless marketing engine – crafting narratives, building hype, engaging audiences, and delivering value to sponsors and broadcasters – that fuels its staggering economic growth. 

News