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Swifter, Higher, Stronger, Dearer

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on 26 November 2013

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Transcript of Swifter, Higher, Stronger, Dearer

Swifter, Higher, Stronger, Dearer
Arche Quinlan,
James Taylor,
Emma Hjalmarsson,
Anthony Elmaleh,
Raghav Sikka
MKT 4605
How much did P&G pay to show this advertisement during the olympics?
Case Overview
Future implications: Television broadcasting vs. online platform coverage?
But, is the way we watch live sport changing?
Studies show that
sporting events get 6 times as many viewers than pre-recorded games.
Yes, Increasing numbers of viewers from online platforms such as tablets and laptops - leading to broadcasters boosting online presence to benefit.
What implications do you think the internet has / will have on broadcasting of sporting events?
Sports broadcasting is a big industry with strict laws regarding who can broadcast what.
This has lead to an increase in websites streaming events for free online - illegal but hard to police
This means new revenue streams - different methods of advertising - rather than a typical 30 second TV ad.
Now more and more
ways to view sporting events online - whether from the TV broadcasters or third parties.
The Barclays premier league now puts out to tender the rights to online highlights; currently owned by News International £20 million / $200 million HKD.
during the last 2 Olympics
The development of paid broadcasting rights for televised sports from 1948 until today.

The implication that sports immediacy and popularity has on the advertising world

Fascinating interaction of professional athletics institutions and global communications company’s

The complexity of the relationship between broadcaster, content providers and advertisers

The positive and negative effects of that the money involved in the industry has on sports, broadcasting rights, and advertisements
Recent changes – What does the future hold for televised sports and advertising
Case Overview
$500 million
expected sales
What are the pricing objectives of companies that want to secure broadcasting rights of a major sporting event?

A. Profit Oriented
B. Sales Oriented
C. Status Quo Oriented
BBC Paid £15,000 in 1948 for the rights to telecast the olympic games
In America, estimates of total spending on sports rights by television companies are about $20 Billion a year.
BT Sport pay £879 Million for the rights to the majority of the UEFA Champions League matches
Fox purchased the rights to a year of broadcasting NFL games for about $4 Billion.
B. Sales Oriented
C. Status Quo Oriented
A. Profit Oriented
UEFA Champions League Broadcasting Rights (2013):-
BT Sport (£897 Mil)
ITV (£220 Mil)
Sky Sports (£500 Mil)
Evaluating the Right Price Mix
Importance: Determines the revenues and profits a company can earn.
It is important to consider the overall financial, marketing, and strategic objectives of the company;the objectives of your product or brand, consumers & the resources you have available.
Profit Oriented: Paid Subscriptions & Advertising.
Targeting the Mass Market to Increase Revenue and profits through Global Events like the Olympics.
According to a Kantar Sports Media Study: 71% of the US Population are sports fans and 97% of them watch sports on TV.

A well developed Cost Structure needs to be in place: Cost, Benefit and Risk Analysis of the bid submitted by a broadcaster to secure broadcasting rights:-

Market Research: Target Market and Demand needs to be estimated and analysed.

Business Marketing Intelligence: Systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketplace.

Make sure revenue generated outweighs the costs in order to be profitable.

1) Sales Oriented
2) Profit Oriented
3) Status Quo Oriented
Be aware of threats and new trends from other channels (Example: Live free streaming)
Why is it so popular for companies to use sporting events to advertise their brand?
Guaranteed mass audience leads to mass selling
3.2 billion people watched the last World Cup
Top 8 television programmes in America are sporting events
More willing to pay for sports TV than any other programme
Bait to get viewers

Certain sports allows brands to target specific audiences
Cricket fans are more likely to be interested in purchasing a suit, mortgage brands and business travel
Football has a much broader audience
Tennis attracts the most females

Consumer Connection
Tap into consumers love for sports and athletes, creating a connection between consumers, sports and the product
Celebrity endorsement: build a relationship with consumers and gain consumer loyalty
Maslow’s Hierarchy of Needs: Status, acceptance, self-esteem

Desire for immediacy
Cannot skip over advertisement, guaranteed exposure
Study by Spectrum - live viewings get 30% of audience, recordings less than 5%

What do you think the challenges for advertising during big sporting events might be?
High costs: High competition for media time and athletes
Sold out years in advance
Conversation clutter and noise - difficult for brands to stand out
Restrictions. Censorships/watersheds, e.g China wealth disparity. Durex in UK
Will different cultures endorse the same advert. Ford Pinto/ VW Jetta/ Honda Fitta SRC

what makes a successful ad campaign?
Perform Market Research
Specify the goals of communication
Develop an effective message for the target market
Select effective media
Execute the campaign
Secure the budget
Evaluate the campaign relative to the goals selected
Key Takeaways
Social Media
Full transcript