JioStar is likely to announce a 15% increase in advertising rates, reflecting its strategy to capitalize on the high demand for ad space during one of the most watched sporting events in India.
This decision comes as JioStar, a merger of Star India and Viacom18, prepares to leverage its extensive portfolio of channels and content, particularly in sports broadcasting.
Overview of the Rate Increase
The new advertising rates will take effect shortly before the IPL season kicks off, which is set to begin on March 14, 2025. For traditional television spots (both SD and HD), the cost for a 10-second ad slot will now be set at approximately ₹18 lakh.
This price adjustment is part of a broader strategy that includes differentiated pricing for digital platforms, with mobile ads priced at ₹340 CPM (cost per mille) and Connected TV ads at ₹650 CPM.
Context and Implications
This increase follows industry trends, as competitors like Sony Pictures Networks India and Zee Entertainment Enterprises have also raised their advertising prices by over 10%.
The rise in ad rates indicates the growing competition among broadcasters to secure lucrative advertising deals, especially with major events like the IPL that attract millions of viewers.
JioStar’s decision underscores its positioning as a premium player in the broadcasting market, especially with its ownership of cricket rights for major events including the IPL and tournaments governed by the International Cricket Council (ICC) and the Board of Control for Cricket in India (BCCI).
These rights allow JioStar to command higher prices due to the immense viewership these events generate.
Strategic Goals
- Maximizing Revenue: By increasing ad rates, JioStar aims to enhance its revenue streams, particularly from advertisers eager to reach large audiences during high-profile events like the IPL.
- Attracting Advertisers: The broadcaster focuses on attracting large brands and small-to-medium enterprises (SMEs) by offering various advertising packages tailored to different budgets. This includes competitive pricing strategies that appeal to a wide range of advertisers.
- Expanding Audience Reach: With plans to broadcast IPL matches across multiple languages, JioStar aims to tap into diverse regional markets, further increasing its viewer base and advertising potential.
The announcement has been met with mixed reactions within the industry. While some view it as a necessary step for broadcasters to maintain profitability in an increasingly competitive landscape, others express concern over how these increases may affect smaller advertisers who rely on affordable ad rates.
