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Inside the Revenue Generation and Marketing Frenzy of a Super Bowl

With kickoff just around the corner, let’s take a look at just how big of a deal (literally) the Super Bowl is from a business perspective.

Max Simpson

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Photo via CBS

Every year, millions of Americans — and even more around the world — take time out of one particular Sunday to watch one of the most captivating, polarizing and moving spectacles in culture today: the Super Bowl.

Aside from the occasional Olympic Games or World Cup, it dominants the sports landscape around the world across all industries, too, from sports to entertainment to technology to finance. With kickoff just around the corner, let’s take a look at just how big of a deal (literally) the Super Bowl is from a business perspective.

Viewership

An estimated 103.4 million people watched last year’s Super Bowl on NBC. Consider, even though last year’s viewership was a seven-percent drop from the previous year’s broadcast (111.3 million), Super Bowl LII still ranks in the top 10 of the most-watched U.S. television broadcasts of all time.

During last year’s big game, NBC’s online viewership also averaged an additional two million fans throughout the course of the game on the NBC Sports app, NBCSports.com, and the Yahoo Sports app. With usually 180 countries broadcasting the game in 25 different languages, it has no shortage of a diverse audience.

TV Advertising Revenue

According to estimates by Kantar Media, NBC generated roughly $414 million in advertising revenue from last year’s game. In fact, NBC claimed that it had sold out of all the company’s Super Bowl commercial spots for last year’s installment.

Many viewers have grown accustomed to the Super Bowl being filled with dazzling commercials, often playing into the tongue-in-cheek humor that advertisers look to capitalize on with such a large, captivating audience.

READ MORE: How Music Will Play a Huge Role at the Super Bowl 

“For now, the Super Bowl is simply the biggest sports and entertainment event in the U.S.,” said sponsorship consultant Jim Andrews. “From an advertising standpoint, no other broadcast delivers the audience that the Super Bowl does. From a promotional perspective, there are few, if any, other platforms that can impact such a massive number of consumers. If you are a mass marketer that wants to reach the most people at one time, nothing else comes close.”

Last year’s broadcast contained a staggering 49-plus minutes of commercial time. In total, ads accounted for 22 percent of the total broadcast. There is a rhyme and reason, as NBC averaged over $5 million for every 30-second commercial spot that aired. To put this in perspective, since Super Bowl 36 in 2002, the average advertising cost has more than doubled over the last 16 years, rising nearly $1 million in the last four years alone.

Host City Economic Impact

Last year, over a 10-day period leading up to, and including, the Super Bowl, approximately $370 million in new net spending was generated throughout the Minneapolis area, where the Super Bowl and prior events were held.

The fanfare brought over 125,000 visitors to the city with 95 percent coming from outside Minnesota and six percent coming from outside the United States. Since 1988, Minnesota ranks fourth amongst Super Bowl host cities in terms of total gross economic impact. Much of the economic impact goes beyond the dollars and cents as fans travel from far and wide to take in the unique experience of this yearly spectacular event.

“One of the trends happening in the sports industry is a focus on connecting with fans and sponsors with unique content using experiential marketing,” said Adam Grossman, CEO of Block Six Analytics. “The audience has some of its best opportunities to see things in the game, halftime concert, television ads, and the social media conversation that it has never seen before. The ability for the echo of the Super Bowl content to reverberate throughout the entire year is critical and makes the event an essential annual sports experience.”

Social Media

Planning social strategy around the Super Bowl is a huge advantage that businesses have to hone their brand. Content and direct advertising of Super Bowl ad campaigns tend to see a massive uptick in content posts beginning in January and surging throughout the postseason leading into the Super Bowl.

As social media continues to grow, brands will continue to hone in on an ever-consuming online audience.

READ MORE: Why Winning Should No Longer Be a Strategy When It Comes to Driving Attendance

According to Nielsen, there were 170.7 million interactions between the three big social media platforms regarding last year’s Super Bowl throughout the day as the game was being played out. And with brands such as Pepsi, Doritos, Dodge, T-Mobile, and Tide showcasing ads that combined for over 136,000 mentions over the course of last year’s Super Bowl, it demonstrates the role social media plays in broadcasting exposure to ever-engaging fans.

Betting

During last year’s Super Bowl LII, a whopping $158-plus million was bet in Las Vegas’ sports books. This paced ahead Super Bowl LI betting intake of $138.4 million within Nevada sportsbooks. During last year’s big game, Americans were expected to dole out $4.76 billion in bets. Granted, only three percent was actually bet within Nevada sportsbooks. The other 97 percent with local bookmakers and overseas sportsbooks.

Yet this year, with multiple states legalizing sports gambling, the sheer betting numbers will continue to grow. 

Player Payouts

It definitely pays to win big.

New Orleans Saints head coach Sean Payton’s recent attempt to fire up his team at the start of the playoffs involved displaying a staggering amount of money in the locker room.

This large sum, which was to the tune of $225,000, was stacked with so many dollar bills, it echoed scenes found within a Hollywood movie (plus the Lombardi hardware accompanying the stack of cash wasn’t bad either). In actuality, the payout for going all the way in the postseason hovers closer to $201,000 per the NFL’s latest collective bargaining agreement.

But, it even pays to lose on the big stage. With playoff bonuses coming with each victory throughout the playoffs, Super Bowl losers ultimately do not walk away empty-handed. After last year’s Super Bowl LII loss to the Philadelphia Eagles, every New England Patriots player still walked away with a $56,000 check, bringing their total playoff earnings to a cool $135,000.

There is no denying that the Super Bowl presents a multitude of revenue generation and added value exposure opportunities for companies and brands. As the spectacle continues to evolve and grow, the business of football will continue to eclipse the conversation and the market.

Max Simpson is a contributing writer for Front Office Sports. A graduate from Arizona State University, Max currently works for the Reno Aces & Reno 1868 FC with time spent with Sun Devil Athletics and the Arizona Diamondbacks. For @frntofficesport, Max highlights unique partnerships, brand marketing strategies, and content activation. He can be reached at max@frntofficesport.com.

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Powerade Commits to Building Soccer Fields In New Campaign

As part of the brand’s new “Power Has No Gender” campaign, Powerade is building three mini-pitches with the U.S. Soccer Foundation.

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Photo Courtesy: U.S. Soccer Foundation

With a light on soccer with the Women’s World Cup, Powerade has made a commitment to help continue the growth of soccer in the U.S. by helping create better access to the sport.

The sports drink company has launched its “Power Has No Gender” campaign as the official sports drink of the U.S. Women’s National Team and partnered with the U.S. Soccer Foundation to build three small soccer fields in honor of current players: Alex Morgan in Los Angeles; Crystal Dunn in New York; and Kelley O’Hara in Atlanta.

The “Power Has No Gender” campaign is the first portion of a greater “Power Has No Limit” campaign to discuss the challenges athletes face in sports because of race, age, gender, ability, access or identity, said Jasmine Lipford, Powerade Senior Brand Manager. Lipford cited a Women’s Sports Foundation statistic that girls have 1.3 million fewer opportunities to play school sports than boys, a gap the company wants to help bridge with the pledge of support to the U.S. Soccer Foundation.

“The FIFA Women’s World Cup is a powerful time in women’s sports. It is the one time every four years that women have a dominant presence on the sports page, captivating the entire globe and sports fans everywhere,” Lipford said. “Because this is such a powerful time in women’s sports, and as the official sports drink of the U.S. Women’s National Team, the FIFA Women’s World Cup presented the opportune time to channel the excitement and vigor that surrounds the tournament to help Powerade shed light on the challenges that young female athletes face.”

The new campaign from Powerade is meant to harness the popularity of the Women’s World Cup and help propel women athletes to an equitable level of their male counterparts, Lipford said.

U.S. Soccer Foundation Executive Director Ed Foster-Simeon believes partnering with Powerade on the three mini-pitches is a show of commitment on the brand’s part to actually make a difference in communities.

READ MORE: Concacaf Unveils First-Ever Women’s Soccer Plan

“It’s an opportunity to do something together that has a meaningful impact,” Foster-Simeon said. “Boys and girls face many barriers to safe places to play. Access is one of the major challenges we face to growing the game.”

The fields being built will be a small contribution to the U.S. Soccer Foundation’s goal of building 1,000 mini-pitches by 2026 in its “Safe Places to Play” program, but each small step is powerful in helping bring soccer to more communities in the U.S., Foster-Simeon said. The foundation has already built nearly 300 fields and Foster-Simeon said plans are in place to reach 500 in the near future.

Foster-Simeon said the foundation shifted its focus about a decade ago to reach underserved communities where access to programming and fields are limited. Taking note of similar mini-pitches across Europe and Central and South America, the fields can be built in underutilized spaces not large enough for full-sized fields, often in urban environments.

“It transforms a dead space in a community and turns it into a vibrant, live and accessible space for the entire neighborhood,” Foster-Simeon said. “It creates a hub of activity.”

The U.S. Soccer Foundation does take some steps to help program the fields, but time is quickly filled by community-based programs. The foundation claims fields are programmed an average of five hours daily with 350 children using them regularly.

While the U.S. Soccer Foundation’s goal is to create better access for all children, Powerade’s current focus is on women athletes as it launches the greater “Power Has No Limit” campaign.

READ MORE: Budweiser Signs On as Presenting Partner of Women’s International Champions Cup 

“Sports are crucial for girls, girls who play sports are more confident about their abilities and competencies, and are 14% more likely to believe they are smart enough for their dream career,” Lipford said, referencing a study by Ruling Our eXperiences Inc. “Giving young female athletes access to the tools they need to practice their game – including access to fields – will help these girls not only achieve their soccer dreams but will also pave the way for the next generation of World Cup hopefuls.”

Powerade is currently only committed to the three fields with the U.S. Soccer Foundation, but there could be more in the future with its goal to push these campaigns for access forward.

“Our goal is to show them these three pitches and the impact they can have,” Foster-Simeon said. “Hopefully they’ll be excited.”

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NHL Keeps Running On Dunkin’ With New Deal

Dunkin’ became an NHL league-level sponsor in 2017, which was the company’s first-ever national sports league partnership.

Ian Thomas

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Photo Credit: Jeff Curry-USA TODAY Sports

Dunkin’ has signed a multi-year extension of its deal with the NHL, continuing its position as the official coffee, donut and breakfast sandwich of the league in the U.S.

The deal, expected to be announced tonight prior to game five of the Stanley Cup Final in Boston, marks the twelfth major partner that the NHL has signed or renewed its deal with in recent months.

Dunkin’ became an NHL league-level sponsor in 2017, which was the company’s first-ever national sports league partnership. Over the course of the last two seasons, the partnership has seen Dunkin’ become one of the NHL’s most active corporate sponsors in terms of its presence at major NHL events, partnerships with local teams, marketing campaigns and other fan-facing efforts.

READ MORE: Following NBA’s Lead, NHL Taps Massive Chinese Market for Fans

NHL Group Vice President of Partnership Marketing Evin Dobson said that since becoming a sponsor, Dunkin’ has ranked at the top or in the top three of the league’s internal metrics regarding fan awareness or engagement of its partners.

Dunkin’ has been front and center this Stanley Cup Final as well, as its national advertising campaign starring Eastern Conference Champion Boston Bruins forward David Pastrnak has been heavily featured during NBC’s television coverage of the playoffs. The campaign was created by BBDO Worldwide, which was named Dunkin’s new agency of record in April 2018.

“When you have an advertising campaign that even the broadcast talent is talking about on-air, you know you’re creating great fan engagement with what you’re doing,” Dobson said.

Tom Manchester, Dunkin’ U.S. senior vice president of integrated marketing, said much of the deal with the league will be similar to how its current deal is structured – it will continue to hold exclusive rights in those U.S. categories, it will activate around the partnership at NHL league events and it will have a presence across broadcast, digital and social media channels throughout the season, which includes a multi-million dollar partnership with NBC Sports for custom in-game features during games. Dunkin’ will also activate alongside the NHL’s esports tournament, the NHL Gaming World Championship, which will hold its final in Las Vegas later this month.

However, the new deal will see Dunkin’ adding two new local team partnerships in the deal, with the Carolina Hurricanes and the Vegas Golden Knights. Dunkin’ now has 15 NHL team-level deals.

READ MORE: NHL Turns to Corner Ice Placements to Grow On-Ice Ad Revenue

Dunkin’ will also launch a new activation around the league deal ahead of next season, Manchester said, declining to comment further as those plans have only just started.

“Over these last two years, the idea that coffee and espresso is a big part of the hockey world and hockey family’s lives has only been reinforced for us,” Manchester said.

Dunkin’s NHL deal also serves as “the centerpiece” of that outreach to hockey families, Manchester said.

In addition to its league-level NHL deal in 2017, Dunkin’ has also made additional investments into hockey, signing a deal with USA Hockey in 2016 as well as the NWHL in 2015, becoming the women’s league first corporate sponsor.

While both of those deals have since lapsed, Manchester said that on the NWHL front, the company is in talks with the league about renewing it. He noted that Dunkin’ views “women’s hockey as just as important as men’s.”

However, Dunkin’ is not planning on more broadly renewing its partnership with the U.S. governing body. Manchester said that while Dunkin’ had activated heavily around the U.S. Women’s National Hockey Team and players like Meghan Duggan during the 2018 Winter Olympics, it had nothing in place with USA Hockey at the moment – although he said Dunkin’ could potentially do something around the team or its players heading into the next Olympic cycle in 2022.

Both Dobson and Manchester declined to comment on the financial terms of the deal, other to say the multi-year deal’s investment level is in line with the previous deal. Fenway Sports Management, who is Dunkin’s sports marketing agency of record, negotiated the deal on behalf of the company.

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Concacaf Unveils First-Ever Women’s Soccer Plan

In August, Concacaf appointed its first-ever head of women’s football – former Canadian women’s national team player Karina LeBlanc.

Ian Thomas

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Photo Credit: Vincent Carchietta-USA TODAY Sports

Ahead of the start of the 2019 FIFA Women’s World Cup, Concacaf has rolled out its first-ever strategic plan to grow and develop the game of women’s soccer.

In August, the confederation appointed its first-ever head of women’s football – former Canadian women’s national team player Karina LeBlanc.

LeBlanc, who presented the plan in Paris this week to all confederation’s 41 members that includes all of the soccer federations across North and Central America and the Caribbean, said that even with two of the top five ranked women’s soccer teams globally coming from this region in the U.S. and Canadian national teams, there is still an opportunity to do even better.

“The mission we’ve set out on is to improve the lives of women and girls throughout our region through the sport,” LeBlanc said. “We need to change perceptions, grow participation and build a sustainable foundation so that we can do just that.”

Concacaf has designed its strategy to grow the sport of women’s soccer around three main pillars – communicating the importance of women’s soccer and advocating for key issues affecting women, development of the sport and creating pathways to develop and empower players both on and off the field, and through commercial means that will build a self-sustainable growth model for the sport.

LeBlanc said Concacaf’s vision for growing the game somewhat mirrors FIFA’s, who launched its own first-ever global strategy for women’s soccer in October. FIFA is holding a two-day women’s soccer summit in Paris, featuring executives and federation officials from across the globe aiming to “make the most of this new era of women’s football,” which FIFA President Gianni Infantino said in his opening remarks at the summit on Wednesday morning.

Other goals for 2019 set by Concacaf include leveraging the hopeful success of the region’s national teams at the 2019 Women’s World Cup, creating a women’s coaching mentorship program and develop a commercial strategy around the confederation’s women’s soccer brand, which is called Concacaf W.

“We believe we can hit some of these targets very quickly, but it was important to create something like this plan so that everyone is on the same page,” LeBlanc said. “We all agree it is critical that we create growth and opportunity for women in the sport.”

LeBlanc said some of the long term goals include creating new women’s soccer competitions across the region, assisting in the creation of women’s soccer-specific digital and social channels for all the federations to help inspire fans, and encouraging the launch of more women’s clubs across the region.

READ MORE: Budweiser Signs On as Presenting Partner of Women’s International Champions Cup

“From our standpoint, we are looking at ways to influence clubs to take a leap of faith and if they already have a men’s team, to also have a women’s team,” LeBlanc said. “Our goal is to change the mindset that women’s football is just a cause.

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