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New College Football Championship Likely to Command Twice the Title Sponsorship Revenue of BCS Games
CHICAGO, IL, Jan 02, 2013 (MARKETWIRE via COMTEX) --
Sponsors interested in putting their name on the first championship
game of college football's new playoff system should be prepared to
pay the highest rights fee ever for a collegiate sports property.
An in-depth analysis by ImageTrack (www.sponsorship.com/imagetrack)
-- a new service for monitoring sponsorship integration and
advertising recently launched by WPP Group sibling companies IEG
Consulting and Kantar Media -- projects the title sponsorship fee
will be around $35 million.
"That figure is about double what each of the three current title
sponsors and one presenting sponsor of the BCS bowls currently shell
out," said Mark Ording, Vice President, Client Leadership, IEG
Consulting.
The annual fees paid by Discover, Allstate, Tostitos and Vizio for
the Orange, Sugar, Fiesta and Rose bowl games, respectively, are
estimated by IEG to be between $15 million and $20 million. Those
deals include title to the BCS championship once every four years and
ad spots across ESPN's college football broadcasts.
At $35 million a year, the new football championship title sponsor
would spend roughly the same amount as current NCAA Corporate
Champions AT&T and Coca-Cola, currently the highest spenders on
college sports sponsorship. Each of those companies has a year-round
rights package that includes a major media buy during March Madness
broadcasts of the Division 1 men's basketball tournament.
Although not officially announced, it is a foregone conclusion that
ESPN's $5.64-billion, 12-year deal to broadcast the top bowls and the
new semi-finals and championship game beginning at the end of the
2014 season includes the right to sell title sponsorship positions
for all of those games, as the cable network currently does for the
BCS bowls. Thus the $35 million would include a season-long media buy
across the cable network's college football programming.
Crunching the Numbers
To project the potential price tag for the
new championship game, ImageTrack powered by Kantar Media began by
analyzing the media exposure earned by the title sponsors of the 2011
and 2012 BCS championships.
The total advertising equivalent value for Tostitos' title of the
Oregon-Auburn match-up in 2011 was about $83 million. For last
January's Alabama-LSU title game, Allstate earned $104 million in
total exposure, a 26 percent increase from the previous season.
When ImageTrack accounts for the exposure value of sponsor
identification versus a full commercial message conveyed during an ad
spot, the value earned by Allstate was roughly $28 million versus $23
million for Tostitos, a 20 percent increase.
"The 2012 game performed better for the title sponsor despite the
fact that there was less exposure duration and fewer mentions of
Allstate than for Tostitos the previous year," said Richard Brinkman,
Kantar Media's Head of KantarSport. "That is due not just to a rise
in ad rates, but because of the higher audience numbers for the
marquee matchup of two SEC powerhouse teams."
This year's BCS showdown between undefeated Notre Dame -- arguably
the college team with the largest national following -- and Alabama
should deliver sky-high exposure numbers based on the projected
audience, Brinkman added.
Couple those figures with the excitement generated by the new playoff
system and the foundation is set for a significant price hike for the
new standalone championship game, according to IEG Consulting.
"When we incorporate the exposure values into our analysis of actual
sponsorship fees paid for comparable events and include recent trends
in pricing for major sports properties, we conclude that the fair
market value for the 2014 season championship will be substantially
higher than the current BCS sponsor packages," Ording said.
BCS Game Total Visual Verbal Sponsorship Advertising
Exposure Mentions Value Value
2011 Rose Bowl presented
by VIZIO 1:07:39 17 $11,302,413 $41,280,140
------------------------ ------------ ------------ ------------ ------------
2011 Tostitos Fiesta
Bowl 1:26:38 31 $8,462,841 $29,308,029
------------------------ ------------ ------------ ------------ ------------
2011 Allstate Sugar Bowl 1:47:01 58 $13,922,398 $47,702,589
------------------------ ------------ ------------ ------------ ------------
2011 Discover Orange
Bowl 1:28:41 43 $8,287,217 $27,582,920
------------------------ ------------ ------------ ------------ ------------
2011 Tostitos BCS
Championship 1:44:12 35 $23,293,578 $82,841,229
------------------------ ------------ ------------ ------------ ------------
2012 Rose Bowl presented
by VIZIO 1:33:23 20 $17,413,124 $67,709,006
------------------------ ------------ ------------ ------------ ------------
2012 Tostitos Fiesta
Bowl 1:34:59 47 $17,424,000 $57,079,990
------------------------ ------------ ------------ ------------ ------------
2012 Allstate Sugar Bowl 1:46:09 52 $14,461,086 $48,419,160
------------------------ ------------ ------------ ------------ ------------
2012 Discover Orange
Bowl 2:00:00 44 $10,252,286 $37,130,068
------------------------ ------------ ------------ ------------ ------------
2012 Allstate BCS
Championship 1:34:42 28 $27,953,254 $104,050,258
------------------------ ------------ ------------ ------------ ------------
About ImageTrack powered by Kantar Media
This sophisticated online
tool tracks, measures and values broadcast and advertising exposure
received by sponsoring brands.
Although analyzing broadcast exposure is not new, ImageTrack
introduces a number of game-changing elements that take this
component of sponsorship measurement to an entirely new level, making
it much more valuable to sponsors and rightsholders.
ImageTrack's deliverables begin with televised sponsorship exposure
data tracked by Kantar Media's state-of-the-art media measurement
software Sportsi(TM). This allows users to see exactly how much
broadcast exposure they earn and what the specific sources of that
exposure are. In addition to exposure and audience data, ImageTrack
includes two proprietary data sets that no other service can offer.
The first is sponsorship rights fees. Supplied by IEG -- the
industry's most trusted source for sponsorship intelligence and
analysis -- data on each sponsor's fees gives essential context to
media exposure values that are meaningless on their own.
The second is advertising expenditure, compiled by Kantar Media --
the gold standard in ad spending reporting.
The addition of this critical information transforms ImageTrack from
a single-source media monitor into a multi-dimensional service that
accurately documents the value of sponsorship and advertising
exposure.
About IEG Consulting
IEG Consulting leads the way in sponsorship
intelligence. With over 30 years providing insights, evaluation, and
guidance, our teams bring unparalleled perspective and proven
methodology to every challenge.
We partner with top brands and properties to create fresh strategies,
evaluate opportunities and maximize results. Our clients rise above
competitors, meaningfully engage audiences and achieve lasting
impact.
A unit of WPP's GroupM, IEG, LLC is connected to specialty sibling
communications companies in media, digital and activation. GroupM is
the leading global media investment management operation that also
serves as parent company to WPP media agencies including Maxus, MEC,
MediaCom, and Mindshare.
For more information about IEG and the sponsorship industry, please
visit www.sponsorship.com or call 800/834-4850 (outside the U.S. and
Canada, 312/944-1727).
About Kantar Media
Kantar Media provides strategic advice and
competitive intelligence to the world's leading brands, publishers,
agencies and industry bodies, helping them navigate and succeed in a
rapidly evolving media industry. This includes analysis of paid media
opportunities; counsel on brand reputation, corporate management and
consumer engagement through owned media; and, evaluating consumers'
reactions in earned media.
Kantar Media provides clients with a broad range of insights, from
audience research, competitive intelligence, vital consumer behavior
and digital insights, marketing effectiveness and online influence.
Our experts currently work with 22,000 companies tracking 3 million
brands in 50 countries.
www.KantarMedia.com
For More Information Contact:
Will DeGirolamo
DiGennaro Communications
Phone: 646.532.5942
Email: will@digennaro-usa.com
SOURCE: IEG
mailto:will@digennaro-usa.com
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