IPL-4: The highest spending brands

The year 2011 is certainly a year of take-off for those involved with cricket. One doesn't get any prize money for guessing. Since the World Cup cricket tournament and now with the current Indian Premier League season on, marketers have been trying to cash in on the year's most celebrated event in a cricket-crazy nation.

According to media reports, the total spends on cricket show a 34 per cent increase as compared to last year.

The joint presenting sponsors Vodafone and Videocon have allocated up to Rs 60 crore (Rs 600 million) each in media spends for 180 seconds of commercials per match.

And a record of 11 associate sponsors have put in Rs 40 crore (Rs 400 million) each for 120 seconds of commercial time, this year.

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With close to 120 brands piggybacking on this annual mixture of Bollywood and Cricket, IPL 4 is definitely going be a massive show.

One can only imagine the money which will be spent in 2011, the biggest year for cricket in more than a decade.

As reported earlier, ESPN-Star Sports claims advertising revenue of Rs 800 crore (Rs 8 billion) from the ICC World Cup 2011 and SET Max claims it will generate advertising revenue to the tune of Rs 950 crore (Rs 9.5 billion) from IPL 2011.

This additional investment is expected to take the overall investment in cricket to Rs 3,200 crore (Rs 32 billion) in 2011.

It's not just ad spends that are soaring, brands are no longer averse to investing more and more as 'sponsors'. After all, it is the biggest event after the ICC World Cup this year.

So, here's a look at the top spenders for IPL 4 (not in any particular order).

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Sony Max is the official media partner and broadcaster for $1.026 billion. The broadcaster announced that it has increased the advertisement rates by 20 per cent this year. According to an industry source, a month back the price for a 10-second slot was Rs 6 lakh (Rs 600,000).

Last year, the broadcaster had started selling its initial inventory to advertisers for Rs 5 lakh (Rs 500,000) for a 10-second spot.

SET Max expects to rake in an impressive Rs 1,000 crore (Rs 10 billion) in ad revenue, up from about Rs 700 crore (Rs 7 billion) it earned last year.

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Consumer electronics brand LG, which is also the global technology partner to ICC World Cup 2011, is expected to spend Rs 100 crore (Rs 1 billion).

Though, this amount was not entirely spent on IPL 4. It is reported that the brand spent close to Rs 70 crore (Rs 700 million) during ICC World Cup, and it will spend the rest during IPL 4.

LG Mobile's new marketing campaign for the World Cup featured cricketer Dinesh Karthik. The company also launched an activation programme called 'LG mobile army', under which it aimed to recruit 2,500 cadets from 38 cities to cheer inside the stadia.

And, Tata Docomo is expected to spend Rs 50 crore (Rs 500 million) for the 360 degree campaign during the IPL season. It has roped in actor Ranbir Kapoor to endorse its new products.

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Reliance Communications is all gearing up its on-air strategy for the World Cup and the IPL. It has earmarked upwards of Rs 50 crore (Rs 500 million) as ad spends during the current cricket season.

Hair and skincare company L'Oreal India has been signed on as the 11th sponsor for the fourth season of the Indian Premier League (IPL).

The company has committed around Rs 45 crore (Rs 450 million) to be the associate sponsor for the series.

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Tata Motors has reportedly allocated Rs 30 crore (Rs 300 million) for the tournament.

This year, the automobile major is going a step further in its association with the IPL by becoming an associate partner for passenger cars with the team, Delhi Daredevils.

This move is explained by the company as an extension to their association with the JiyoDilli Festival.

In the race to win the highest visibility spot, Aircel surely is leading the herd.

It has not only bagged the sponsorship deal for Chennai Super Kings, post the World Cup win, the telecom brand has put in more than Rs 85 crore (Rs 850 million) to renew its sponsorship contract.

The contract is for three years, two officials close to the development confirmed.

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The reason behind every association may be more visibility, but some brands -- like Gulf Oil -- have specific goals.

Gulf Oil, a Hinduja Group company, has inked a deal with Chennai Super Kings to strengthen its presence in the southern Indian market.

The company is already one of the sponsors for Kings XI of Punjab. Gulf Oil is expected to invest around $2 million annually on sponsorship and brand promotion activities surrounding it.

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This season, while some spend brands are spending enormous amounts to retain their association with the teams, some brands have changed their loyalties.

Coca Cola is one of the major sponsors of IPL 4. It is sponsoring five of the ten IPL teams.

In the past, Coca Cola was associated with Delhi Daredevils and Kolkata Knight Riders. This year it will sponsor Mumbai Indians, Deccan Chargers and Kings XI Punjab.

According to industry sources, the company will spend about Rs 50 crore (Rs 500 million) during the tournament to promote its brands across media platforms.

Company sources also revealed that cola major Pepsi too has increased its marketing spend by about 20-25 per cent compared to last year and about 25 per cent of the total spends would be made during the tournament.

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Hero Honda has planned its move very carefully. After ending its three-year long association with Delhi Daredevils, it has now associated itself with Mumbai Indians as lead sponsor.

The three-year association is reportedly in the region of Rs 65-70 crore (Rs 650-700 million).

It is also the official partner for IPL, for which it has spent close to $22.5 million.

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After ending its two-year-long association with Rajasthan Royals, Ultratech Cement has signed on as the main team sponsor of Deccan Chargers.

The company will replace Idea Cellular as the Deccan Chargers' front-of-shirt sponsor.

However, the company has been tight-lipped about the deal. Some media reports and industry sources claim that deal is worth close to $3 million.

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If there are companies who are switching loyalties, there are some new brands who have joined the IPL bandwagon this year.

Godrej, for instance, has announced a nationwide mass multi- category loyalty programme: the Godrej Power Play. It is probably the largest exercise from the group so far, since it started its brand re-building three years ago.

The group will launch new products in the appliances and hair colour categories during IPL-4.

Godrej Power Play will allow consumers to participate in the IPL by creating their own cricket teams, exchanging players and winning prizes during the tournament.

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Even camera-maker Nikon is associating itself with IPL for the first time. The company is expected to have allocated Rs 120 crore (Rs 1.20 billion) on its overall marketing activities this year.

The category of brands trying to grab their share of the pie is quite diverse. So, after FMCG and camera-makers, we have the country's largest car-maker Maruti Suzuki India.

Maruti, which has traditionally stayed away from IPL, has decided to spend money this time on the T20 tournament, after India's success at the ICC World Cup.

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It is not just the big corporates with deep pockets that are loosening their purse strings. Even companies like Paragon Footwear and water heaters and voltage stabilisers maker V-Guard are getting ready to splurge on advertisements to grab eyeballs during the IPL telecast.

For instance, Paragon is increasing its marketing spends by 40 per cent this year compared to last year on account of plans to advertise during the IPL.

Cricket-based mobile game company PlayUp, which had launched three SMS-based quizzes for the ICC Cricket World Cup, is launching a new product for the IPL and will invest close to Rs 5-7 crore (Rs 50-70 million) on marketing during the IPL matches.

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There are also some usual suspects who have pumped up their spending but are not ready to reveal the exact figures.

Reebok, for instance, is spending around 80 per cent of its entire advertising and marketing budget on the cricket season.

Linc Pen, which is looking at further strengthening its association with IPL, will sponsor three teams.

This season, it would continue as a partner of both Rajasthan Royals and Kolkata Knight Riders. Additionally, it will also be the principal sponsor for the Deccan Chargers.

Others on the list are :

ITC group of hotels is the official supplier for an undisclosed amount.

Citibank is the official banking partner for an undisclosed amount.

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Other big names associated with IPL this year are:

DLF, of course, is the title sponsor for $50 million.

PepsiCo is the official pouring partner for $12.5 million.

Vodafone is the official telecom partner for $25 million.

Kingfisher is the official airline sponsor and umpire sponsor for $25 million.