| New York, NY, March 10, 2009 - As
sports fans across the country get ready to fill out brackets predicting
the outcome of the NCAA Men’s Division I Basketball Tournament,
advertisers are also eagerly anticipating the 19-day event known simply
as “March Madness.”
“As a sports marketing event, the collegiate
basketball tournament is part of a Final Four alongside the Super
Bowl and the Summer and Winter Olympics,” said Dean DeBiase,
CEO, TNS Media. “The Tournament is a powerful property for
both advertisers and CBS. Its popularity extends to a broad, diverse
cross-section of the population and provides marketers with an important
opportunity to connect with consumers over a three week period via
multiple platforms including TV, online, social media and in-store.
It’s an ideal event for utilizing an integrated media mix
and interest in the tournament this year should be high. Leveraged
correctly, this is a great vehicle for traditional powerhouses and
Cinderella brands alike.”
For many of the companies linking themselves to the tournament,
the focal point will be commercial spots airing during the 65+ hours
of game telecasts on CBS. The financial stakes are certainly high
for the network, which this year is paying the NCAA a base license
fee of approximately $571 million covering exclusive TV, digital,
radio, publishing and merchandising rights for the tournament.
TNS Media Intelligence has once again drawn upon its extensive
database to provide the most current statistics and trends on March
Madness advertising.
1. March Madness: An Advertising Bonanza
Over the past 10 years (1999-2008), advertising during the Tournament
has translated into $4.2 billion of network TV spending from nearly
300 different marketers. In 2008, ad spending reached an all-time
high of $643 million, a 24 percent increase from the prior year.
NCAA Men’s Division I Basketball Tournament
Network TV Advertising*: 1999-2008
|
| Spend ($ million) |
270 |
319 |
318 |
358 |
380 |
451 |
475 |
500 |
520 |
643 |
4,234 |
| # of Advertisers |
83 |
75 |
113 |
125 |
95 |
99 |
92 |
104 |
126 |
102 |
291 |
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2. Outpacing The Competition
The post-season NCAA Tournament brings in more national
TV ad revenue than the post-season playoffs for professional baseball,
professional basketball or college football. Only the National
Football League playoffs, which includes the Super Bowl, is more
lucrative.
2008 Post-Season Sports:
National TV Ad Spend ($ millions)*
|
| Pro Football (Jan-Feb ‘08) |
748 |
| NCAA Men's Basketball (Mar-Apr ’08) |
643 |
| Pro Basketball (Apr-Jun ‘08) |
330 |
| Pro Baseball (Oct ‘08) |
326 |
| College Football Bowls (Dec ’07-Jan ‘08) |
250 |
|
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3. The Price of Advertising
Among the major televised sporting championships, only the
Super Bowl commands a higher advertising unit rate than the NCAA
Men’s Basketball championship game. College hoops
has higher unit ad pricing than the major college football bowl
games; the NBA championship; and the MLB World Series.
In terms of cost-per-thousand viewers, the NCAA Final Four games
are far more expensive than any of the other annual blue-chip sporting
events.
Average Network TV Ad Pricing for Major Sporting Events
|
| Championship Game |
1,241 |
$93 |
| Semi-Final Games |
800 |
$75 |
| Super Bowl |
2,700 |
$55 |
| AFC & NFC Championship Games |
1,080 |
$34 |
| College Football – BCS Championship Game |
900 |
$56 |
| College Football – BCS Bowl Games |
510 |
$55 |
| MLB World Series |
400 |
$42 |
| NBA Championship Series |
341 |
$32 |
|
|
4. Top Spending Advertisers in March Madness
March Madness has a core group of TV sponsors that invest heavily
in the broadcasts year after year. On average, more than 80%
of the tournament’s network TV ad revenue has come from returning
advertisers, an above-average retention rate versus other
top sporting events.
General Motors, AT&T and Coca Cola have consistently
been the leading TV advertisers and in 2008, they spent
a combined $140.6 million and accounted for 22 percent of the total
ad revenue. Although GM bowed out of both the Super Bowl and the
Academy Awards earlier this year, its participation with March Madness
continues.
Top 10 TV Advertisers
NCAA Men’s Division 1 Basketball Tournament: 2008
|
| 1 |
General Motors Corp |
79.7 |
| 2 |
AT&T Inc |
35.1 |
| 3 |
Coca-Cola Co |
25.8 |
| 4 |
Anheuser-Busch InBev |
22 |
| 5 |
Lowes Cos Inc |
21.9 |
| 6 |
Nike Inc |
21.7 |
| 7 |
US Government |
21.2 |
| 8 |
SABMiller Plc |
20.8 |
| 9 |
State Farm Mutual Auto Insurance |
15 |
| 10 |
Daimler Ag |
13.6 |
|
|
General Motors, Coca-Cola; and AT&T pay additional fees into
the NCAA’s “Corporate Champions” program, the
organization’s top sponsorship level. This gives them additional
opportunities to build marketing programs around March Madness and
other NCAA sports.
5. On Demand Video Streaming
In 2009, CBSSports.com will again stream live tournament games over
the Internet, making them available on demand and free of charge
to PC users with a broadband connection. The ad-supported webcasts
offer presenting sponsors another way to get their commercial messages
in front of viewers.
Online viewership is heavily concentrated in the first two rounds
of the tournament when multiple games are taking place simultaneously
and fans are seeking the flexibility to view the action from out-of-home
locations or watch games not being telecast on their local CBS affiliate.
Though growing rapidly from a small base, the digital ad
revenue is still a fraction of that generated by the traditional
TV broadcasts.
NCAA Men’s Division 1 Basketball Tournament:
Offline vs. Online Ad Revenue
|
| 2006 |
$504 |
$500 |
$4 |
| 2007 |
$529 |
$520 |
$9 |
| 2008 |
$666 |
$643 |
$23 |
|
|
About TNS Media
Established in more than 30 countries, TNS Media explores all media
- print, radio, TV, Internet, social media, cinema and outdoor worldwide,
24 hours a day, seven days a week, and offers a full range of insights,
analyses and audience measurement services.
TNS Media combines the deepest expertise in the industry to provide
media and marketing intelligence including advertising expenditure
monitoring, advertising creation monitoring, audience measurement,
market influence analytics, online consumer behavior tracking, news
monitoring, sports sponsorship evaluation and more. The TNS Media
companies track more than 3 million brands and provide vital market
intelligence to 16,000 customers around the world. For further information,
please visit www.tnsmediagroup.com
About Kantar Group and TNS
The Kantar Group is one of the world's largest research, insight
and consultancy networks. By uniting the diverse talents of more
than 20 specialist companies – including the recently-acquired
TNS – the group aims to become the pre-eminent provider of
compelling and actionable insights for the global business community.
Its 26,500 employees work across 80 countries and across the whole
spectrum of research and consultancy disciplines, enabling the group
to offer clients business insights at each and every point of the
consumer cycle. The group’s services are employed by over
half of the Fortune Top 500 companies. For further information,
please visit www.kantargrouptns.com
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