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News
 
March 6, 2007
 
TNS Media Intelligence Releases March Madness Advertising Trends Report
New Analysis Highlights the Biggest Spenders, Increasing Ad Rates, and Growing Network TV Revenue
 
New York, NY, March 6, 2007 – Sports fans and advertisers alike are counting down to the start of the NCAA Men’s Basketball Tournament beginning March 13th. March Madness continues to be one of the marquee franchises in televised sports, and TNS Media Intelligence has searched its extensive database once again to serve up the latest figures and trends in March Madness advertising.

According to TNS Media Intelligence, over $2.73 billion has been spent on network TV advertising during the tournament games from 2000-2006. For 2007, ad spending is expected to surpass $500 million in 2007— an all-time high, and a 65 to 70 percent increase in the current decade.

NCAA MEN’S BASKETBALL TOURNAMENT NETWORK TV ADVERTISING REVENUE BY YEAR
GROWTH ESTIMATES

Year Total Ad Spend
($ Millions)
2000 310
2001 310
2002 348
2003 362
2004 436
2005 468
2006 497
Total 2,731
Source: TNS Media Intelligence

In fact, the post-season NCAA Tournament games bring in more television ad revenue than the post-season games in professional football, basketball and baseball.

POST-SEASON TV AD REVENUE: 2006

Sport Total Ad Spend
($ Millions)
NCAA Men’s Basketball 497
Pro Basketball 424
Pro Football
(includes Super Bowl)
423
Pro Baseball 382
Sources: TNS Media Intelligence

“Among the major televised sporting championships, only the Super Bowl commands a higher advertising rate than the NCAA Men’s Basketball championship game,” said Jon Swallen, senior vice president of Research at TNS Media Intelligence. “College hoops has higher ad pricing than the major college football bowl games, the NBA championship, and the MLB World Series.”

AVERAGE NETWORK TV AD RATES FOR MAJOR 2006 SPORTING EVENTS

  Avg. :30 Rate
($000)
NCAA Men’s Basketball Tournament (2006)
     Championship Game $1,118
     Semi-final Games $653
National Football League (2006)
     Super Bowl XL
$2,500
     AFC & NFC Championship Games $900-$956
     Divisional Playoff Games $547-$600
Other Events (2006)
     College Football – BCS Bowl Games $268-$530
     NBA Championship Series $359
     MLB World Series $400
Source: TNS Media Intelligence

WHO ARE THE TOP ADVERTISERS IN THE NCAA MEN’S BASKETBALL TOURNAMENT?

Like other top-tier sporting events, the NCAA Men’s Basketball Tournament has a core group of TV sponsors that invest heavily in the broadcasts year after year. On average, 83 percent of the Tournament’s network TV ad revenue comes from returning advertisers.
Over the past seven years, the top 10 advertisers in the Tournament have spent almost $1.1 billion to promote their brands in the games, accounting for about 40 percent of total network TV ad revenue generated by the event.

2000-2006 TOP 10 ADVERTISERS IN NCAA MEN’S BASKETBALL TOURNAMENT AND NUMBER OF YEARS ADVERTISED
Includes Early Round Games, Semi Final Games, and Championship Game

  Company Total Ad Spend
($ Millions)
# Of Years
1 General Motors $422 7 of 7
2 AT&T Inc $111 7 of 7
3 Anheuser-Busch $96 7 of 7
4 Coca-Cola $88 6 of 7
5 Sabmiller Plc $84 7 of 7
6 Microsoft $76 6 of 7
7 Pepsico $67 7 of 7
8 US Govt $52 7 of 7
9 Daimlerchrysler AG $49 7 of 7
10 Sprint Nextel $48 6 of 7
Subtotal Top 10 $1,093
Source: TNS Media Intelligence

HOW IMPORTANT IS THE NCAA MEN’S BASKETBALL TOURNAMENT IN TERMS OF AD SPEND FOR COLLEGE BASKETBALL?

The NCAA Men’s Basketball Tournament drives total ad revenue for college basketball.

Nearly 75 percent of all measured national TV advertising dollars that are spent in college basketball each year are spent in the Tournament. Regular season games account for the remaining 25 percent - and there are over 300 nationally televised men’s basketball games each season on broadcast and cable networks.

By comparison, college and professional football TV ad revenue is distributed exactly the opposite with 75 to 80 percent coming from the regular season and 20 to 25 percent from the post-season.

NETWORK TV ADVERTISING REVENUE
2005-06 Regular Season vs. Post-Season

  Total Ad Spend
($ Millions)
% Of Total
Men’s College Basketbal $662
100%
     Regular Season $165 25%
     NCAA Tournament $497 75%
College Football $506 100%
     Regular Season $396 78%
     Post-Season Bowl Games $110 22%
Professional Football $2,041 100%
     Regular Season $1,618 79%
     Post-Season Playoffs $260 13%
     Super Bowl XL $163 8%
Source: TNS Media Intelligence

MARCH MADNESS AS AN INTEGRATED MARKETING EVENT

As a marketing platform, the NCAA Men’s Basketball Tournament is more than just TV commercials. It also extends to other platforms.

NCAA MARCH MADNESS ON DEMAND

In 2007, CBS will again offer “NCAA March Madness on Demand.” All games from the first three rounds of the Tournament will be streamed live over the internet, available at no charge to PC users with a broadband connection.

For the 2006 Tournament, CBS signed up 18 advertisers to sponsor these webcasts including Courtyard by Marriott, Dell Computers, Lowe’s, Pontiac, and State Farm Insurance. The aforementioned advertisers also ran spots in the TV broadcasts.

Advertising units on the webcasts include billboard displays around the perimeter of the viewing window and video ads during the periods when the television broadcasts are in commercial break.

EVENT MARKETING

Major TV advertisers in the NCAA Men’s Basketball Tournament leverage their investment through integrated event marketing programs that involve sales promotions, contests, sweepstakes, etc.

The 2006 tournament featured these high-profile efforts:

  • Chevrolet – a sales event tied to the Tournament, with incentive pricing on various car and truck models.
  • Pontiac and Lowe’s – each of these advertisers conducted a sweepstakes with trips to the Final Four weekend as the top prize. TV spots directed viewers to visit their local dealer/retail store to enter the drawing. Lowe’s also cross-promoted its event in Sports Illustrated magazine.
  • Cingular - Cingular ran TV spots promoting a service that enabled customers to interact with the Tournament through their cell phones. In addition, the carrier also ran ads for a sweepstakes drawing to win tickets to the Final Four weekend and a chance to step onto the court and make a basket for $5 million.

About TNS Media Intelligence:
TNS Media Intelligence is the leading provider of strategic advertising intelligence to advertising agencies, advertisers, and media properties. The company's tracking technologies collect advertising expenditure and occurrence data, as well as select creative executions, for more than 2.4 million brands across 20 media. Established in 23 countries with more than 16,000 customers, TNS MI is part of the TNS Group, ranked #2 worldwide in marketing information and the world’s largest custom research company. The U.S. headquarters are in New York City with sales locations in major markets throughout the United States.

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