Disrupted Ads: The Fate of Sponsorships When a Cricket Match Ends Prematurely

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Disrupted Ads: The Fate of Sponsorships When a Cricket Match Ends Prematurely

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The Impact of Shortened Cricket Matches on Advertisements

Shortened cricket matches, which have become increasingly common, raise questions about the fate of spot advertisements. What happens to ads placed by brands and advertisers during important matches when unforeseen events lead to match cancellations or early finishes?

Industry experts shed light on the matter, explaining that when a match is disrupted or shortened due to unpredictable circumstances, advertisers typically receive a different slot for their ads during another match or show. While this may affect the value of campaigns for brands, most contracts include provisions for compensation, mitigating the financial impact on advertisers.

The Unpredictable Nature of Cricket

Ashish Shah, Founder & CEO of Vertoz, points out that such situations are often unpredictable and may result in a loss of value for brands rather than an immediate financial loss. Advertisers usually allocate a specific budget for their campaigns, and disruptions beyond their control can impact a campaign’s effectiveness. The budget allocated for advertising is typically pre-planned and may not be shifted elsewhere.

The Concept of ‘Make Goods’

Mitesh Kothari, Co-founder and Chief Creative Officer at White Rivers Media, explains the concept of ‘make goods’ in advertising. When a game is disrupted by rain or other factors, planned spot advertisements are typically rescheduled. Advertisers have contracts with broadcasters outlining compensation in case of disruptions. This compensation, often referred to as ‘make goods’ or MGs, allows advertisers to reach the same number of viewers. Additionally, advertisers use alternative marketing channels like social media and digital advertising to maintain their campaign’s visibility.

Sayak Mukherjee, Founder/Director at Brandwizz Communications, believes that scheduled spot ads are affected during unforeseen circumstances. Broadcasters fill gaps with alternative content to keep the audience engaged. Most advertising contracts account for such disruptions, offering additional airtime or later broadcasts to compensate for the loss of immediate visibility.

Brands Could Get Their Money Back

Karan Taurani of Elara Capital notes that advertisements are structured on a slot basis. In cases where a match is not played or is interrupted, the advertiser does not lose money, but the broadcaster’s overall ad revenue takes a hit. Brands may receive their money back or have their ads placed in other shows or matches.

Contingency Plans by Advertisers and Broadcasters

Taurani suggests that agencies often have contingency plans in place, and advertisers may pay lesser amounts for more slots to mitigate financial losses. Contingency plans for disruptions during major sports events like the World Cup may be limited, as the real-time and unpredictable nature of live sports makes it challenging to develop detailed contingency plans.

According to Mukherjee, brands and agencies typically plan extensively for major events like the World Cup, with backup alternative content ready to be played during long delays. Brands also negotiate for additional airtime during significant disruptions, ensuring there is no direct impact on the brand’s association across multiple channels during the entire campaign duration.

Reference:

https://www.exchange4media.com/icc-world-cup-news/ad-interrupted-what-happens-to-spot-ads-when-a-cricket-match-ends-too-soon-130461.html

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