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2011 March Madness


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2011 March Madness

  1. 1. For interview requests and queries: Bill Daddi Daddi Brand Communications 212-404-6619 917-620-3717 KANTAR MEDIA RELEASES MARCH MADNESS ADVERTISING TRENDS REPORT ELEASES Historical Advertising Data Showcases Biggest Spenders, Ad Revenue and Comparisons Against Other TV Sports FranchisesNew York, NY, March 01, 2011 – When the field for the NCAA Division I Men’s Basketball Championshipis announced on March 13, it will mark the beginning of th three-week event known as “March theMadness”. This year’s tournament will be the biggest ever in several notable ways. The number of teamshas been expanded from 65 to 68, creating three additional games. Under a new 14-year, $10.8 billion year,TV rights agreement that was negotiated last spring, CBS and Turner Broadcasting are partnering toshow every tournament game live and will spread the telecasts across four national TV networks – CBS,TBS, TNT and truTV. As in past years, all of the games will be streamed online, providing advertisers allwith additional opportunities to reach fans and to build integrated, cross platform marketing programs. cross-platformAn analysis of trend data by Kantar Media shows how the tournament has evolved over t past decade theto become one of the largest and most valuable franchises in all of television sports.TV Ad RevenueOver the past ten years (2001-2010), national TV advertising during the men’s tournament has translated 2010),into over $4.8 billion of spending from more than 280 different marketers. Ad revenue in 2010 was $613.8 frommillion, up 4.3 percent from the prior year but still below the all time high achieved in 2008. all-time NCAA Mens Division I Basketball Championship National TV Ad Spending *: 2001-2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total Ad Spend ($ million) 318.2 358.0 379.9 450.6 475.1 500.2 519.6 643.2 588.7 613.8 4,847.4 # of Advtsrs 110 119 90 96 90 102 125 102 81 83 281 * includes Pre-Game, Game & Post-Game Programming GameSource: Kantar Media 1 of 4
  2. 2. Digital Ad Revenue Is GrowingIn 2011, “March Madness On Demand” will again be available as a free online video player that provideslive, on demand streams of all tournament games. The ad-supported webcasts offer presenting sponsorsanother platform for getting their commercial messages in front of viewers.Though growing rapidly from a small base, digital ad revenue is still a fraction of that generated by thetraditional TV broadcasts. NCAA Division I Men’s Basketball Championship: Offline vs. Online Ad Revenue Ad Revenue in Millions (% Share of Total) CBS TV CBS Internet Year Total Broadcasts Video 2006 $504 $500 $4 (0.8%) 2007 $530 $520 $10 (1.9%) 2008 $666 $643 $23 (3.5%) 2009 $621 $589 $32 (5.2%) 2010 $651 $614 $37 (5.7%) Sources: TV revenue estimates from Kantar Media; Internet ad revenue estimates from CBSOnline viewership has traditionally been strong during the early rounds of the tournament, driven by thecombination of at-work viewership, multiple games occurring simultaneously and a regional broadcastingmodel that prevented fans from watching games not being telecast by the local CBS affiliate. For 2011,viewers will not be confronted with the latter predicament because all games will be aired nationwide. Itremains to be seen whether this cuts into online viewing.The #2 Franchise in Post-Season TV SportsThe NCAA men’s basketball tournament has grown into the second most lucrative post-season sportsfranchise as measured by national TV ad revenue. It consistently brings in more money than the post-season playoffs for Major League Baseball, the National Basketball Association or college football. Onlythe National Football League playoffs, which include the Super Bowl, bring in more ad spending. 2010 Post-Season Sports: National TV Ad Spend (millions)* NFL Football (Jan-Feb ‘10) $793.8 NCAA Mens Basketball (Mar-Apr ’10) $613.8 NBA Basketball (Apr-Jun ‘10) $417.7 Major League Baseball (Oct-Nov ‘10) $345.3 College Football Bowls (Dec ’09-Jan ‘10) $318.9 * includes Pre-Game, Game & Post-Game Programming Source: Kantar Media 2 of 4
  3. 3. The Price of AdvertisingThe price of a TV spot rises during the tournament and peaks with the championship game. The averagecost any individual advertiser pays is strongly affected by how deep into the Tournament their packageextends and the mix of less expensive air time in opening rounds versus pricier spots in later rounds.In 2010, the average cost of a :30 unit in the championship game was a bit more than $1.2 million. Pricinghas held steady around this mark from 2007 – 2010. Average :30 Unit Price NCAA Men’s Division I Basketball Championship Game (in thousands) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 $673 $738 $827 $907 $1,030 $1,118 $1,256 $1,242 $1,195 $1,222 Source: Kantar MediaTo put this pricing in context, it is comparable to the AFC/NFC pro football championships and the BCScollege football championship. It exceeds the NBA championship series and the MLB World Series. Average Network TV Ad Pricing For Major Sporting Events: 2010 Avg :30 Rate (in thousands) NCAA Division I Men’s Basketball Championship Game $1,222 National Football League Super Bowl $2,974 AFC & NFC Championship Games $1,247 Other Events College Football BCS Championship Game $1,140 College Football BCS Bowls (Fiesta; Orange; Rose; Sugar) $669 MLB All-Star Game $575 MLB World Series $440 NBA Championship Series $402 Source: Kantar MediaLeading AdvertisersIn a typical year, 80 to 100 different marketers purchase TV ad time during the tournament. However, asmall number of advertisers enjoy dominant positions and the top ten spenders consistently account forover 40 percent of the money. Many of the companies in this upper tier have corporate sponsorship dealswith the NCAA which give them additional opportunities to build marketing programs around the men’sbasketball tournament and other NCAA sports. 3 of 4
  4. 4. In 2010, the top ten advertisers spent a total of $249.8 million to pitch their messages at viewers. 2010 NCAA Division I Men’s Basketball Championship: Top 10 Advertisers Ad Spend* NCAA Rank Advertiser (millions) Sponsor 1 General Motors Corp $47.2 2 AT&T Inc $35.0 Yes 3 Coca-Cola Co $25.3 Yes 4 Capital One Financial $24.2 Yes 5 Hewlett-Packard Co $21.8 6 Lowes Cos. Inc $21.1 Yes 7 Southwest Airlines $20.7 Yes 8 Anheuser-Busch InBev $19.6 9 SABmiller PLC $18.1 10 State Farm Mutual Auto Ins $16.7 Total Top 10 $249.7 *Figures reflect national TV only and include all pre-game, game and post-game programming Source: Kantar MediaTop Ad CategoriesThe leading ad categories in the tournament are a reflection of the Top Advertisers list, since many ofthose elite companies have sponsorship deals that limit access by their main rivals. The top fivecategories in 2010 invested $351.3 million and accounted for more than 57 percent of the total TV adrevenue. 2010 NCAA Division I Men’s Basketball Championship: Leading Ad Categories Ad Spend* % Of Total Rank Category (millions) Spend Leading Advertisers 1 Automotive $105.8 17.2% GM; Mercedes; Infiniti Buffalo Wild Wings; 2 Restaurants $70.9 11.6% Applebees; McDonalds 3 Beverages $61.9 10.1% Budweiser; Miller; Coke 4 Financial Services $61.0 9.9% Capital One; E-Trade 5 Telecom $51.9 8.5% AT&T; DirecTV Total Top 5 $351.5 57.3% *Figures reflect national TV only and include all pre-game, game and post-game programming Source: Kantar Media About Kantar Media Established in more than 50 countries, Kantar Media helps clients master the world’s multimedia momentum through analysis of print, radio, TV, internet, cinema, mobile, social media, and outdoor worldwide. Kantar Media offers a full range of media insights and audience measurement services through its global business sectors – Intelligence, Audiences, TGI and Custom. Kantar Media companies also include Compete, Cymfony and SRDS. Drawing upon the deepest expertise in the industry, Kantar Media tracks more than 3 million brands and delivers insight to more than 22,000 customers worldwide. 4 of 4