Analysis by Jacob Nicely in SRM 435 (section 2)
When you think of the most watched sporting events you may think of the Super Bowl, the World Series, the BCS national championship game, but what you may not realize is that the Men’s NCAA basketball tournament is right behind the BCS national championship game and a few NFL games. When March rolls around, people everywhere fill out their brackets and tune in to stay up to date with how their favorite teams are doing and to keep track of their bracket. In all of this the unthinkable always happens, a cinderella team out of nowhere beats a heavily favored team and makes a run in the tournament highlighting what we all know and love about “March Madness.” Everyday people watch these games from their television, their laptops and tablets, and their phones to try and keep track of their teams, their bracket, or just the overall madness of the tournament. As a result of the madness, more and more people are tuning in to the tournament creating a revenue machine that is raking in over a billion dollars every year.
In 2010, CBS and Turner inked a 14-year deal worth $11 million for the broadcasting rights to the Men’s NCAA tournament. In the regular season, it is extremely rare for a Men’s NCAA Basketball game to reach over 2 million viewers but during the tournament that number skyrockets to an average of 10.7 million viewers a game during the 2013 tournament. Only the Super Bowl, BCS national championship game, and a few NFL games drew in a larger audience than the men’s national championship game with 23.4 million viewers with fans taking in over 1.4 million hours of live streaming during the tournament. To achieve this goal, the two broadcasting companies have devised a scheduling plan that staggers game times and spreads them across 4 channels so that there are more games on television and so that as one game ends another game begins. This is something that marketers can only dream of.
In combination with the television format, there have been numerous mobile applications developed so that fans can live stream the games, get live scores, and keep up with their brackets. With numerous platforms to follow the tournament, it creates more and more places for companies to advertise and spend their money. This has led to companies spending a mind-boggling $1.15 billion on advertisements during the 2013 NCAA tournament and a number that is expected to increase for this year’s tournament. Along with advertising, the NCAA does a phenomenal job segmenting the rounds into their own separate sporting events that everyone can identify with such as the “Sweet 16”, the “Elite Eight”, and the “Final Four.” This creates many options for merchandising and licensing of apparel that many fans buy into every year creating another revenue stream for the NCAA and the schools involved.
All of these numbers are great and show how the NCAA and the broadcasting companies are creating a juggernaut of a sporting event but how do they get people to tune into games that may not normally watch? Well brackets are the answer. Every year fans can go online to various sites and fill out a bracket, where they can predict who will win what game. This creates not only a way to get more fans interested in more games they can watch, but also creates more platforms for advertisers to spend money. With the first-round games which are commonly referred to as “play-in games” reaching all-time high tv ratings, the tournament is only gaining interest year after year.
Turner-Sports and CBS, in combination with the NCAA, have created a fantastic formula from a marketing standpoint. Their TV scheduling and staggering of games encourages fans to watch more than one game, tune into games they may not normally watch, and have more coverage of games causing more people to cut on the television and watch the tournament. In combination with TV broadcasting, the live streaming and mobile applications allow people who normally could not tune in, the ability to watch the games from anywhere, even in school and at work when they are not supposed to. With all of these options to take in the games, the broadcasting companies and the NCAA have allowed themselves to offer diversification of advertising to companies. Now they can reach more target markets, more often, and in locations they normally would not be able to reach them at which is very important because consumers are more likely to buy a product when it is advertised to them when they are in the mindset. Just to give an example, an office supply company can now advertise on live streaming websites and mobile applications because people can tune into to watch the games from their work as opposed to television, which people who are at work cannot normally watch the day games. Also, with more channels and more games it allows for companies to advertise on specific channels to specific demographics based on locations of the teams which they would not have been able to do if only two games were being shown at a time instead of four.
All in all, this time of year can get everyone excited whether you will be rooting for the underdog, cheering on your favorite team, following your bracket closely, or just tuning in to see some great basketball games. The Men’s NCAA basketball tournament will only continue to rise in popularity thus showing that it will only rise in ad revenue as a result. As technology advances, broadcasting companies and the NCAA are keeping up and finding more and more ways to reach viewers every year. This is great news for companies who are looking to market their products and services because they can reach more demographics and specific target markets than they have in the past. From a marketing standpoint, they have created a phenomenal plan to get companies to spend their money as well as keeping up with current trends to keep the companies happy with their investments. As times change and technology develops, we can only sit back and see what the future tournaments will bring.
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Analysis by Ben Eidle in SRM 435 (section 2)
Our article has to deal with CBS and Turner’s television package for the NCAA men’s basketball tournament. Last year was a big year for the tournament because it hit a nineteen year high for ratings. Last year’s championship game only trailed some NFL games and the BCS national championship game in viewers as well. When speaking about ratings in college basketball they jump a significant amount during the offseason. This has caught CBS-Turner’s attention and they walked away with a fourteen year television deal that runs through 2024. The tournament has been praised for the way they are showing their games as well. They have the times staggered so that you are able to watch the maximum amounts of basketball games and they are spread across four channels which makes it easy to flip back and forth between. Another thing that has brought in more viewers is the expansion of applications for mobile devices. People are now able to interact and watch in many more ways compared to being stuck to a television. Quicken Loans tried to take advantage of the tournament as well by sponsoring the billion dollar bracket challenge but was overshadowed by Warren Buffet who walked away with most of the attention with people ignoring their name on the contest. Ad space has been bringing in more revenue year after year as well. Last year it brought in $1.15 billion in television ad revenue and it is expected to increase this year as well. It has brought in more money than the NFL which is interesting. The last thing they mentioned in the article was that they are thinking of expanding the tournament by adding another round.
This article deals with marketing in multiple ways. The first thing that really stood out to me was the television ad revenue. It impressed me because of how large the number was. It was very unclear in the article what the figure was actually for because it could have been for other advertising as well but I found in another article that it was just for television alone. The ad revenue is larger than you think. It has gained more ad revenue compared to all of the professional sports leagues in the United States barely beating out the NFL.
I feel that the “First Four” is also a great marketing tactic. They have taken 4 games and created play-in games for the tournament. The NCAA has taken these games though and have called them the first round of the tournament and once the field of sixty-four is set that is now the second round. They have taken these games and have people thinking that they really are first round matchups which is great because it brings greater interest and kind of jumpstarts the tournament. This is great because at the beginning of the tournament the people are limited to the couple of games at the beginning of the week that they are able to watch instead of changing back and forth between multiple games once the “second round” begins.
Finally, the different ways that you can watch the games in the tournament is a great tactic by CBS-Turner. They have taken the games and spread them across four channels which gives one the option of changing between games in case one is bad compared to another. They also give one the opportunity to just keep going to the ending of each game because the games are staggered and don’t have the same start times. Also, for the final four the games will be broadcasted on three different channels. One will be a national broadcast of the game and the other two channels will have broadcasters for each of the two different schools that are playing in the game. And last but not least, they have continued to improve the online experience. The applications have been vastly improved over the years and this year has become more user friendly. One is also able to follow each team through the application and see what people are saying about each team.
Overall, I believe what CBS-Turner has done is great for the tournament. You give viewers the opportunity to catch the magic of the postseason without missing endings to each game. It has given great customer service as well because people have so many new ways in which they are able to follow the tournament instead of just watching the games on television or checking the scores on the internet. Finally, the television ad revenue is ridiculous and the fact that it is supposed to be more than last year’s tournament has to mean that they are doing something right.
