Sports Marketing Soared To Rs 15,000 Cr In 2023: GroupM ESP Report

GroupM ESP, the entertainment, esports and sports division of GroupM India has released the 11th edition of the Sporting Nation Report titled ‘Sporting Nation - Building a Legacy’, offering an in-depth analysis of the sports sponsorship landscape in India.

This year, the report's title has shifted to "Sporting Nation Building a Legacy" from "Sporting Nation in the Making" to reflect the elevated status we now have as a sporting nation. The Indian sports industry, soared from INR 2400 crores in 2008 to over INR 15,000 crores in 16 years, asserting its prominence nationally and globally.

The report recounts the Indian sports industry's remarkable sixteen-year-long journey. From the 2008 IPL's spark to its current INR 15,000 crore powerhouse status, the report highlights not just expansion and commercialisation, but also the industry's growing influence on the global stage. While cricket remains a dominant force, emerging sports are gaining traction – both in terms of sponsorship reaching INR 1528 crore (21 per cen of the total) and performance with victories in Thomas Cup, 100+ medals at Asian Games and so on. This positive trend paints a vibrant picture of a multi-sporting future for India, ready to inspire and leave a lasting legacy.

Prasanth Kumar, CEO, GroupM – South Asia says, "Predominantly propelled by cricket and bolstered by emerging sports alongside the rise of OTT platforms, we've observed a transformative shift in the consumption and celebration of sports in our country. With a packed calendar of both local and international events, another year unfolds, offering ample opportunities to leverage technological advancements. As marketers, we have to seize this chance once more to champion inclusivity, innovation, and the enduring spirit of sport in our country.”

Commenting on the launch, Vinit Karnik, head – sports, e-sports and entertainment adds, "In the dynamic landscape of sports commercialisation, the synergy between ground, team, and franchise fees, athlete endorsements, and media spends by brands has propelled revenue figures to soar past, marking a significant double-digit growth. This report not only delves into the commercial intricacies but also offers insights into the driving forces and impediments to growth, leveraging digital data and emerging trends to maximise value for all stakeholders."

Key highlights from the report:

1. 2023 further accelerated the growth curve of the sports industry: The sports industry in India witnessed a remarkable surge in 2023, recording a total revenue of INR 15,766 crores (approx. $1.9 billion USD), marking an 11 per cent incremental value over the previous year.

1. In 2023, 87 per cent of the sports industry spending came from cricket, amounting to INR 13,701 cr for the year. This marks a 13 per cent growth from 2022 figures, reaching new milestones.
2. Sponsorship spending experienced a notable 24 per cent growth compared to 2022, primarily fueled by a significant increase in franchise fees, contributing nearly INR 1,000 cr within a year. This growth underscores the robustness of India's franchising ecosystem, exemplified by events like the IPL, WPL and so on.
3. Combining cricket and emerging sports, sports celebrities earned INR 927 cr (equivalent to $112 Mn) in 2023. This nearing of the INR 1000 cr milestone reflects the substantial influence our stars hold over the collective consciousness of India.

2. Emergence of OTT platforms: Over-the-top (OTT) platforms played a pivotal role in transforming the sports consumption landscape in India, with significant growth observed in digital spending for events like the IPL and ICC Cricket World Cup.

3. Rise of participative sports: Participative sports have gained prominence, transcending traditional boundaries and fostering community engagement. From golf and cricket to marathon running, these sports have become integral to India's vibrant sports culture, with an organised market exceeding INR 1000 crores.

4. Women in sports: The report continues to celebrate the success of Indian women athletes and cricketers, highlighting their growth and achievements on the global stage. Platforms like the Women’s Premier League have provided avenues for women cricketers to showcase their talents, paving the way for greater inclusivity and recognition.

5. Future outlook: Looking ahead, the report anticipates the Paris Olympic Games in 2024 to be a significant event for Indian athletes, while also forecasting advancements in technology-driven training programs and the integration of Artificial Intelligence (AI) to enhance athlete performance and fan engagement.