Friday, September 6, 2013

"NBA Teams to Sell New Ad Space on Courts and Backboards"


From Ad Age

Review by Brad Burgess in SRM 435 (section 1)

The NBA has allowed all 30 teams for the 2013-2014 season to have new areas on the court for sponsorships. These areas include ad space on the apron of the court right in front of the benches and on top of the backboard. Ads are not however allowed anywhere inbounds on the court. The apron ads will be highly visible throughout the game and even though the backboard ads are not as visible they still will appear a few times throughout the game.

These ads are only allowed during pre-season and regular season games that are broadcasted locally. All games broadcasted nationally on ESPN or TNT the ads will have to be removed. This also applies to the playoffs. No ads will be allowed to be shown during playoff games. This ad campaign is a one year trial period. After this upcoming season the NBA will reassess the campaign and discuss what the future parameters will be.

Looking ahead to other future goals for ad sales the NBA has discussed the selling of ad space on NBA jerseys. This is a concept that is currently used in the WNBA and used by other teams worldwide. To many around the world it is normal to have ads on jerseys but to the US it is an uncommon concept. This could lead to millions of dollars in ad revenue. The ad logos have been discussed as being small patches on the top corners of the jerseys in order to keep the jerseys classic, clean, and not plastered with ads.

Analysis:

Ad sales is one of the most lucrative aspects of sports marketing, promotions, and of course sales. Professional teams make millions if not billions of dollars on their advertisements sales each year. Teams and sports are going above and beyond to find the best possible ways to get more ad space into a game, practice, or in the eyes of media and fans. As ad space gets exhausted new creative ways are being born to place ads. In this articles case placing and ad on the top of the backboard sounds foolish at first. However, there will be a handful of times when the overhead cameras on the basket are shown on TV and when that happens someone’s name will be popping up. If someone wants to buy ad space on the top of a backboard for a few minutes of camera time every game then why not. Seeing the opportunity for more money as a team or business is always smart. There are arguments that ad space will consume the game, but the game isn’t changing, the players are still playing the same way. The only time I personally think that ad space/time effects the game is when there are media/commercial time outs. That disrupts the game but ads on the floor should not affect the flow or play of a game. Lastly I think that as a country we are weary of ad sales on jerseys because it takes away from the pride of the team. It may clutter a jersey that to some is a work of art. However, in most countries the entire jersey is sold to a company for ad space. It is the norm to not see a team logo as the biggest logo on the jersey. I think that once as a country we get use to the idea of ads on jerseys it will become second nature to us. I look at it this way, there are millions of shirts given out as free giveaways with tons of ads on them. People still wear those because it’s normal. I think that one day ads on jerseys will be a normal thing too.

This article is relevant to this course because it is showing the importance and need for all three of our core topics marketing, promotions, and sales. It is talking about new ways to market your team and to promote your sponsors. All of it includes the sales of ad space, jerseys, and anything pertaining to sponsorship sales. Most of the money that floats around in sports besides paying the players comes from the sponsorships and ads that are linked to the game. That being physical signage or commercials run during the game. Ads in so many cases are what sports have become.


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Review by Ryan Hourigan in SRM 435 (section 1)


With advertisers still waiting for the NBA to approve the space of ads on jerseys, advertisers will begin to have the opportunity to use ad space on the courtside aprons in front of the player’s benches as well as the top of the backboard. Starting in he 2013-2014 season all 30 teams will be allowed to sell the two new spots inside their arenas. The new aspect of the courtside apron will change from the teams website or twitter handle to the advertisers company name, giving the advertiser an extremely visible location to the local audience. Chris Granger, exec VP-team marketing & business operations at the NBA, declined to tell how much each NBA club would make in ad revenue. These new advertising methods have a catch; it is a one-year trial run that will only show these removable ads during locally televised games, not for nationally televised TNT or ESPN games. The NBA also is exploring the idea of placing advertisements on jerseys like professional soccer teams in Europe and Asia as well as the WNBA. 

The execution of this ad space was well thought out by the NBA in allowing teams to monetize these spaces. The courtside apron has a distinguishable position for many camera angles and will allow the advertiser to have its brand seen numerous times throughout the duration of the game. The previous hash tags and websites clearly did well in a marketing aspect or else the NBA would not have pursued the thought of monetizing these locations. The location of the advertisements on top of the backboard will only have an impact when that camera angle is utilized, mainly after a big dunk. The only downside I see in this deal with advertisers and the 30 NBA teams is that these removable ads will only be shown during locally televised games on local networks and not during the biggest and most watched games on national television. I believe in time this will change after the teams and advertisers get more accustomed to the change. While the NBA is contemplating adding advertisements to jerseys in the future, I believe that is a mistake. Although the teams will make money off of this ad space, I think it takes away the aesthetics of a classic NBA jersey and turns it into a walking billboard.
This new way of advertising is relevant to this class because it is a brand new attempt at monetizing space on the basketball court as well as potentially using ad space on jerseys. New marketing schemes are vital to the success of a team in hopes of bringing in more revenue as well as product awareness for the advertiser. It is also relevant because it is using the basic concepts of marketing by putting the name of an advertiser in a high-profile space and will now have brand recognition with a team.

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