The business side of the upcoming NCAA basketball tournament
Michigan
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in Sports Talk
Advertisers are so crazy over March Madness that they'll funnel a
record $545 million into the coffers of CBS Sports for its coverage of
the NCAA men's-basketball tournament this month.
That's the projection of TNS Media Intelligence, the
advertising-research firm, which says CBS will pocket a healthy 5%
increase in ad sales from last year's total of $519.6-million.
These numbers go far to justify the staggering $6.2 billion in license
fees that CBS forked over to the NCAA six years ago, locking up the
tournament for a 12-year exclusive contract that runs through the
2013-14 season. That breaks out to an average annual fee of $565
million.
In TNS's analysis, the NCAA tournament brings in more ad dollars than
post-season playoffs in any other sport except for the National
Football League. Similarly, only the Super Bowl, which averaged upward
of $2.7 million for a 30-second spot on Feb. 3, is more expensive to
advertisers than the NCAA men-basketball championship game, whose
spots are projected at close to $1.5 million apiece.
The most aggressive advertiser, by far, in March Madness is General
Motors, which has shelled out an average of $70 million a year for the
past five years, about 15% of the total ad spending on the games.
Coca-Cola is a distant second to GM, spending an average of $22
million a year, according to TNS, with the top five rounded out by
AT&T ($20.7 million), Anheuser-Busch ($15.8 million) and Miller Lite
($13.8 million).
The men's-basketball final is coming off a buoyant 2007. The ratings
for the U. of Florida's victory over Ohio State shot up by 8% compared
to the 2006 game (Florida's triumph over UCLA). And a whopping 37%
more men 18 to 34 watched the 2007 contest.
CBS will also continue to make the telecasts available live on
CBSSports.com, integrating the advertising spots into streaming video
of the games.
record $545 million into the coffers of CBS Sports for its coverage of
the NCAA men's-basketball tournament this month.
That's the projection of TNS Media Intelligence, the
advertising-research firm, which says CBS will pocket a healthy 5%
increase in ad sales from last year's total of $519.6-million.
These numbers go far to justify the staggering $6.2 billion in license
fees that CBS forked over to the NCAA six years ago, locking up the
tournament for a 12-year exclusive contract that runs through the
2013-14 season. That breaks out to an average annual fee of $565
million.
In TNS's analysis, the NCAA tournament brings in more ad dollars than
post-season playoffs in any other sport except for the National
Football League. Similarly, only the Super Bowl, which averaged upward
of $2.7 million for a 30-second spot on Feb. 3, is more expensive to
advertisers than the NCAA men-basketball championship game, whose
spots are projected at close to $1.5 million apiece.
The most aggressive advertiser, by far, in March Madness is General
Motors, which has shelled out an average of $70 million a year for the
past five years, about 15% of the total ad spending on the games.
Coca-Cola is a distant second to GM, spending an average of $22
million a year, according to TNS, with the top five rounded out by
AT&T ($20.7 million), Anheuser-Busch ($15.8 million) and Miller Lite
($13.8 million).
The men's-basketball final is coming off a buoyant 2007. The ratings
for the U. of Florida's victory over Ohio State shot up by 8% compared
to the 2006 game (Florida's triumph over UCLA). And a whopping 37%
more men 18 to 34 watched the 2007 contest.
CBS will also continue to make the telecasts available live on
CBSSports.com, integrating the advertising spots into streaming video
of the games.
0
Comments
<< <i>recession? >>
Exactly !!! These companies have tremendous capital to keep the economy clicking on all cylinders.
<< <i>recession? >>
The $6.2 billion was negotiated years ago in much better economic times. The current amount of ad spending is not surprising since
they still have to attract customers in bad economic times, the main thing is the event itself attracts a large audience and
advertisers want to reach as many people as they can with what they are spending.