In the run-up to IPL, there's a conflict brewing between OTT platforms & advertisers
Feb 21, 2025
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Rounak Kumar Gunjan, a reporter for The Ken, delves into the escalating conflict between OTT platforms and advertisers as IPL approaches. He discusses Hindustan Unilever's staggering complaints about ad overexposure, revealing that some consumers saw the same ads up to 150 times in a week. Gunjan explains the challenges in measuring ad effectiveness and the strategic complexities faced by brands during this lucrative sports event. The conversation uncovers the potential pitfalls for OTT platforms if advertisers feel underdelivered in their campaigns.
The transition to OTT platforms for IPL advertising has enabled more targeted campaigns, highlighting the need for precision in viewer engagement.
Recent consumer complaints have revealed significant flaws in ad frequency management on OTT platforms, prompting a push for improved transparency in advertising metrics.
Deep dives
Evolution of IPL Advertising
The landscape of IPL advertising has significantly transformed since the tournament's inception in 2008. Initially characterized by light-hearted television ads like those by Vodafone and Sony Maxx, the focus has shifted to more targeted and viral content, exemplified by recent campaigns from Dream 11 and Cred featuring high-profile figures like Rahul Dravid. As the transition to OTT platforms like Jio Hotstar gained momentum, advertisers began leveraging its capabilities for precision targeting and measurable outcomes, allowing brands to customize their approach based on viewer demographics. This reflects a broader shift in advertising strategy, aiming to maximize the impact during one of India's most-watched sporting events.
Ad Spend Trends and Competition
Top brands are allocating a substantial portion of their annual advertising budgets specifically for the IPL, highlighting its unparalleled reach. For instance, Hindustan Unilever is set to invest around 100 crores for this year's event, while smaller companies like Cred and Swiggy estimate spending between 30 to 40 crores, indicating the stakes involved. The competition is not defined by a limited number of ad slots, but rather by a well-planned strategy where advertisers negotiate rates based on predicted impressions offered by the OTT platform. Ultimately, being featured during IPL can dramatically enhance brand visibility and significantly influence consumer engagement.
Challenges in Digital Ad Measurement
Recent consumer complaints regarding ad frequency have exposed flaws in how OTT platforms manage advertising metrics, particularly the balance between reach and frequency. Advertisers, like Hindustan Unilever, discovered that their ads were overly shown to a limited audience rather than reaching a broader demographic. This issue arose from the OTT platforms prioritizing contact frequency over unique user reach, leading to viewer dissatisfaction and concerns about ad effectiveness. In response, Jio Hotstar has partnered with third-party firms to enhance transparency in ad measurement, aiming to restore advertiser confidence and improve user experience during this high-stakes advertising event.
In November 2024, one of India's biggest FMCG companies, Hindustan Unilever, started getting a barrage of complaints from its consumers, who said they were seeing the same Dove and Surf Excel ads repeatedly on OTT platforms during a single watch session. Some of them were shown the same ads as many as 150 times within a week.
Now, with the IPL around the corner, HUL—which spends nearly Rs 4,000 crore on ads annually—couldn’t afford to ignore these complaints. So what followed was a series of investigations. And what they discovered has opened a real can of worms for not just JioHotstar, the platform that will be streaming the IPL, but OTT platforms in general.
The big issue is a serious mismatch between what was promised and what’s actually being delivered for ad campaigns, according to seven insiders from HUL, Disney, and other industry rivals who spoke to The Ken.
So what happens when a big spender starts feeling like it's not getting what it signed up for during the biggest streaming event of the year? The Ken reporter Rounak Kumar Gunjan speaks to Daybreak hosts Snigdha and Rahel.
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