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March Madness By the Numbers…. $7.5 billion Kantar Media estimates that the men’s basketball tournament has generated $7.5 billion of national TV ad expenditures.

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Presentation on theme: "March Madness By the Numbers…. $7.5 billion Kantar Media estimates that the men’s basketball tournament has generated $7.5 billion of national TV ad expenditures."— Presentation transcript:

1 March Madness By the Numbers…

2 $7.5 billion Kantar Media estimates that the men’s basketball tournament has generated $7.5 billion of national TV ad expenditures from 279 different marketers during the past decade (2005-2014)

3 $1.13 million Also according to Kantar Media estimates, ad spending for the 2014 NCAA Men’s Basketball Tournament was $1.13 billion, a 1.5% increase from the previous year

4 $1.23 million The only sport that saw more TV ad spending than last year’s “March Madness” event? The NFL football season with $1.23 million in ad sales…

5 $1.5 million The average price of a 30 second commercial during the 2014 championship game was nearly $1.5 million, representing a 5 percent increase over the 2013 championship game and nearly triple the ad rate for games during the 2014 NBA Finals

6 Which consumer category spends to most to reach tourney viewers? The auto industry accounted for over 19% of overall 19% advertising expenditures during the 2014 tournament w/ General Motors leading the way…

7 The tournament typically features ads from 85-90 different companies. A small proportion hold dominant positions and each year the top ten consistently account for more than 1/3 of total spending. In 2014, the top 10 advertisers spent a whopping $418.6 million. 10

8 95% 95% of all available advertising inventory (both television broadcast and digital platforms) has been sold, generating billions in revenue for CBS, TNT, TBS and truTV

9 $10.8 billion In 2011, the NCAA inked a 14-year, $10.8 billion TV deal with CBS and Turner Sports (home to TNT, TBS and truTV)

10 $989 million Last week, USA Today reported that the NCAA generated revenues of nearly $1 billion in 2014 with $908.6 million in expenses, creating a $80.5 million surplus for the year. The surplus is the NCAA's greatest in at least 10 years and $20 million more than its surplus in 2013.

11 90% According to the NCAA website, 90% of its revenue comes from television and marketing rights fees while the majority of the remaining 10% comes from championship ticket sales. The NCAA also reports that more than 90% of that revenue goes straight back to student-athletes in some form -- whether as scholarships, catastrophic injury insurance, emergency travel expenses, etc.

12 The NCAA has 17 primary sponsors that, in addition to spending money on advertising, have stadium signage opportunities that add to their overall on-screen exposure (not to mention the visibility the brand receives in the venue during the games). The most common are digital signage around the court visible to the TV audience, on-screen graphics and branded sets for studio programming. In 2014 these branded placements yielded a total of $112.8 million in sponsorship media value (an estimate calculated by Kantar Media, which takes into account the duration, source and prominence of a sponsor’s on-screen exposure and compares it to the impact of an equivalent TV commercial message). Capital One had the largest SMV ($29.0 million) followed by AT&T ($23.0 million). Each received more than seven cumulative hours of on screen sponsorship exposure, as compared to about 1.5 hours and 2.7 hours, respectively, of regular paid commercial time. 17

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14 Sponsorship Media Value (millions) On-Screen Duration (minutes) TV Advertising Time (minutes) Capital One$29 million465 minutes91 minutes AT&T$23 million428 minutes163 minutes Buick$8.2 million166 minutes120 minutes Coca-Cola$7.4 million132 minutes69 minutes Enterprise$6.1 million109 minutes39 minutes Source: Kantar media

15 $ million? Previous Final Fours have generated tens of millions of dollars in economic impact for host cities; New Orleans reported $135 million in economic impact in 2012, Atlanta reported $70 million in 2013 and North Texas projected $276 million in 2014. What will it do for the Indianapolis economy in 2015?

16 In 2014, more than 175,000 people attended Final Four Weekend sponsored events, according to the NCAA (which includes many additional sponsored events outside of the games like the Capital One Final Four Fan Fest. NOTE: To change images on this slide, select a picture and delete it. Then click the Insert Picture icon in the placeholder to insert your own image. 175,000

17 While nothing will likely rival the chaos of the Super Bowl’s media day, nearly 2,000 members of the media were credentialed for the 2014 NCAA Men’s Final Four in Dallas. NOTE: To change images on this slide, select a picture and delete it. Then click the Insert Picture icon in the placeholder to insert your own image. 1,892

18 70 million 40 million Americans will fill out more than 70 million brackets and wager approximately $9 billion on the NCAA tournament, according to research released this week

19 92 quintillion The chances of filling out a perfect bracket in picking the winners of the tournament are 1 in 92 quintillion. In other words, it is nearly impossible. However, if you do correctly pick every game, it is likely that some company will give you a lot of cash. That publicity stunt has been in play for about three years now, although nobody has announced that promotion yet!

20 An estimated 60 million employees could cost employers roughly $1.9 billion in lost productivity this year with time spent filling out brackets and watching games, according to outplacement firm Challenger, Gray & Christmas. NOTE: To change images on this slide, select a picture and delete it. Then click the Insert Picture icon in the placeholder to insert your own image. $2 billion

21 Does sponsorship work? Buffalo Wild Wings’ stock price, one of the NCAA’s marketing partners, has outpaced the Standard & Poor’s 500 Index by an average of 5.8% each March in the past 10 years. NOTE: To change images on this slide, select a picture and delete it. Then click the Insert Picture icon in the placeholder to insert your own image. 5.8%

22 Why does the stock perform so well in March? Well, its partnership with the NCAA and corresponding marketing campaigns certainly help. Last year, Buffalo Wild Wings sold 94 million chicken wings during March Madness. NOTE: To change images on this slide, select a picture and delete it. Then click the Insert Picture icon in the placeholder to insert your own image. 94 million

23 People eat more than chicken wings during March Madness. Pizza is always a big seller as well. In 2013, Domino's sold more than 1.7 million pizzas during the NCAA Men's Final Four weekend alone! NOTE: To change images on this slide, select a picture and delete it. Then click the Insert Picture icon in the placeholder to insert your own image. 1.7 million

24 Questions for Class Discussion

25 1)How do you think March Madness contributes to a drop in worker productivity in the American workplace? 2)Do you agree with the possibility of the tournament costing employers billions? Why or why not? 3)What is social media? 4)Why do you think tracking the number of consumers who follow the tournament via some form of social media is important to the NCAA? To a broadcast company like CBS or Turner Sports? What about for advertisers/marketing professionals?

26 5)What are broadcast rights? Why do you think CBS and Turner invested so much in the rights to the NCAA Tournament? 6)Why do you think the gaining the rights to stream games online was important to the tournament’s broadcast partners? 7)What is economic impact? Why is it an important concept when it relates to mega events like the Super Bowl, Olympic Games and NCAA Tournament? 8)How does participating in the tournament help smaller schools from a marketing perspective?


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