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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.

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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.

Marketing

How Two Top Brands Market Products Via Partnership With NASCAR

NASCAR has developed longstanding relationships with Mobil 1 and Mars, both of which are marketing products through a relationship with the sport.

Kraig Doremus

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Photo credit: NASCAR

To be successful, any organization or league needs to have open communication with its partners.

NASCAR has been able to develop longstanding relationships with Mobil 1 and Mars, and both brands are marketing products differently through a relationship with the sport.

ExxonMobil: A Look at Marketing Its Mobil 1 Annual Protection Oil

The Mobil 1 brand has been involved with NASCAR for over 15 years and the relationship has been successful due to a common goal – both ExxonMobil and NASCAR want to share the sport, not just with fans but with consumers as well.

In December, ExxonMobil’s Mobil 1 brand was honored by NASCAR with the Marketing Achievement Award thanks to its successful relationship with the sanctioning body.

“The relationship has been so successful because of our common goal to share the great sport of NASCAR with fans and consumers,” said Kai Decker, motorsports and sponsorship manager, lubricants marketing of ExxonMobil. “We are able to utilize both our digital and social platforms to connect with racing fans. It really has been a mutually beneficial partnership.”

Mobil 1 has been focused on heavily promoting its Annual Protection Motor Oil, and NASCAR has been able to serve as a catalyst for the promotion of the product.

WATCH: Inside Toyota’s Massive Daytona Activation

“NASCAR has been huge in promoting Mobil 1’s Annual Protection motor oil via its ability to test technology at the track, as well as include messaging about the motor oil in many NASCAR sponsored events,” said Decker.

One of the unique aspects about Mobil 1 is that it is not just involved with the sanctioning body, but also has a relationship with a top-level Monster Energy NASCAR Cup Series team, Stewart-Haas Racing, which is co-owned by three-time Monster Energy NASCAR Cup Series champion Tony Stewart.

“Our relationships with NASCAR and Stewart-Haas Racing complement each other brilliantly,” said Decker. “Both partnerships helped launch Mobil 1 Annual Protection motor oil and continue to help Mobil 1 share the value of our motor oil with passionate fans across their digital and social channels.”

ExxonMobil leveraged its relationship with Stewart-Haas by using Kevin Harvick, driver of the No. 4 SHR Ford, in a pair of television commercials.

“(Kevin) Harvick was fantastic in the two TV spots,” said Decker. “He is great at representing Mobil 1 and the competitive edge that it gives Stewart-Haas Racing on the track.”

Last season, the Mobil 1 brand became one of the partners in NASCAR’s Ultimate Performers Program with the Mobil 1 Performance Award. It was a clear fit for the brand since Mobil 1 is committed to both racing and automotive excellence. The campaign was a hit on digital and social media too.

“Social and digital marketing continues to be important and invaluable in reaching consumers, so we appreciate NASCAR’s continued focus on their prominent social channels and website,” Decker said. “NASCAR is an attractive platform enabling us to demonstrate performance on the track and turn it into a great Mobil 1 experience for fans and consumers.”

Mars: A Partnership Focused on Innovation

In addition to ExxonMobil, Mars has had a longstanding involvement in NASCAR – one that goes back to the early 1990s when Snickers, a Mars brand, was featured on the Stavola Brothers Racing machine driven by Rick Wilson. Since one of its products was featured on Wilson’s car more than 20 years ago, Mars’ involvement in the sport has soared to new heights.

Not only did Mars begin to sponsor drivers like Ernie Irvan, Elliott Sadler and currently the No. 18 Joe Gibbs Racing Toyota driven by Kyle Busch, the executives focused on a business-to-business approach for building relationships.

“Our partnership with NASCAR was a natural progression of the increasing visibility (and success) at the track, and our desire to create more ways to connect with fans, and foster relationships with the other blue-chip brands that share partnerships with NASCAR,” said William Clements, global vice president of sponsorship and family properties for Mars Inc. “Our partnership with the sanctioning body has made M&M’S synonymous with the colorful fun that fans love about NASCAR. From the drivers, to the cars, to the fans, NASCAR is an amazing platform for M&M’S.”

The executive team at Mars is proud of the different successes they’ve had with various Mars brands via its partnership with NASCAR, including getting the message out about the need for dog adoption for Pedigree, the support of Skittles Sweet Heat and even introducing the popular UK brand Malteasers into the U.S. market.

Clements knows that Mars would not have the success it has achieved in NASCAR without a proper marketing approach.

“Our NASCAR marketing involves a 360 approach that allows us to leverage every relationship, partner and efficiency possible to generate awareness for our brands,” said Clements.

READ MORE: How NASCAR Stays Up to Speed in the Ever-Changing Digital Space

Mars used a unique marketing approach for the return of M&M’S Crispy in 2015, bringing back the popular racing film “Days of Thunder,” but with a twist. The Mars team reimagined several scenes of the movie using driver Kyle Busch, wife Samantha, crew chief Adam Stevens and even team owner coach Joe Gibbs, as actors.

“It was incredibly successful in exposing a new generation of fans to the iconic movie and M&M’S Crispy, and it leveraged all of the resources we have at our disposal as an official partner. The series was filmed and edited by NASCAR Productions and had great exposure on NASCAR.com and NASCAR digital properties.”

The team at Mars knows that NASCAR has significant value from a marketing standpoint not only because of the various platforms available for exposure, but also because of innovation.

“Much like Mars, NASCAR is grounded in innovation,” said Clements. “While that can easily be seen on track and the sport’s desire to make the competition as strong as possible, it is also evident in the sanctioning body’s desire to innovate for its partners. We have a fantastic working relationship with our colleagues at NASCAR who understand what we need from a business standpoint, and are open to discussing and innovating new ways to reach fans and our key customers.”

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Bojangles’ Channels Its Inner LeBron James for NBA All-Star Weekend

The restaurant chain has turned to James’ iconic powder toss as the imagery behind its Biscuit Baller campaign.

Jeff Eisenband

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Photo credit: Bojangles’

The NBA All-Stars have descended upon Charlotte this week, but for those other than Hornets star Kemba Walker, this is just a temporary stay. For Bojangles’ Famous Chicken ‘n Biscuits, this is home.

And the brand, headquartered in Charlotte since its inception in 1977, wants to make sure it highlights its own All-Stars — its master biscuit makers — during the week.

Bojangles’ has centered its NBA All-Star marketing campaign around this image of not an actor or a model, but of Master Biscuit Maker Nate Cox. Cox is tossing flour in the air while rocking his “It’s Bo Time” apron. For NBA fans, this photograph should appear similar to the manner NBA players throw up chalk before games.

Specifically, it should remind fans of LeBron James’ chalk technique.

“The heroes of our brand are our master biscuit makers,” says Colby Anderson, digital media manager for Bojangles’ Restaurants, Inc. “They make biscuits fresh all day, every 20 minutes.

“[Nate] posed for us. Throwing flour in the air is not one of the 48 steps of making biscuits, but he was happy to play along with us and we were happy to feature him.”

The most notable part of the campaign can be found on a billboard in Uptown Charlotte at 22 West 11th Street in Uptown Charlotte. There, Cox’s pose is actually enhanced by simulated flour, which shoots from the top of the billboard, extended from his toss. That’s when Cox really looks like LeBron James, while greeting fans for NBA All-Star Weekend.

Cox first became a Bojangles’ certified master biscuit maker three years ago while working as an area director in the Charlotte location. He changed roles to field marketing coordinator, Charlotte, in May 2018, but he is still a master biscuit maker.

And now, he’s basically the face of Charlotte Tourism for the week.

“It would be a shame if we had fans from all over the country and outside of our footprint visiting our hometown and leaving without tasting a Bojangles’ biscuit,” Anderson says. “I think for some players who will be playing in the game, it’s the same thing.”

Of Bojangles’ 757 locations, 313 are in North Carolina. Bojangles’ is currently in 11 states and Washington D.C., but the brand has no locations west of Alabama and none north of Pennsylvania.

Bojangles’ is a partner of the NBA All-Star Host Committee in Charlotte and has been a sponsor of the Charlotte Hornets “for decades,” according to Anderson. Bojangles’ is currently the official tea of the Hornets. The brand is also the title sponsor of Bojangles’ Coliseum, which hosted the NBA Celebrity All-Star Game on Friday night.

For NBA All-Star Week, Bojangles’ has opened up the #BiscuitBaller campaign on social media. Between February 13 and 17, fans can upload a photo to www.BiscuitBaller.com and use a series of flour-tossing frames. By hashtagging #BiscuitBaller and #Sweepstakes on Twitter or Instagram, fans have the chance to win prizes, including a Bojangles’ gift card, an Xbox One S, the game NBA 2K19, and a live demonstration with a Bojangles’ Master Biscuit Maker.

READ MORE: Nike and Jordan Partner With Snapchat for Custom AR Lens

Nate Cox and his fellow master biscuit makers will not be on the court at Spectrum Center this week, but they will feel some of the fame in Charlotte.

“I know there are some people happy to see them on Saturday morning, but I don’t think they get the same recognition,” Anderson laughs, comparing master biscuit makers to NBA All-Stars.

If you’re in Charlotte, you might want to show that appreciation by going to Bojangles’. But if you’re under the sign, you might want to turn your windshield wipers on. Watch out for (simulated) flour.

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Nike and Jordan Partner With Snapchat for Custom AR Lens at NBA All-Star Weekend

Fans at NBA All-Star Weekend in Charlotte can touch up their own Snapchat lens at Nike and Jordan Brand’s “Own the Game” pop-up.

Jeff Eisenband

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Photo credit: Nike

There are only 27 NBA All-Stars in Charlotte this weekend, but if you’re in town, your Snapchat friends don’t have to know that.

You can make them believe you’re No. 28.

As part of Nike and Jordan Brand’s “Own the Game” pop-up during NBA All-Star Weekend, Nike is partnering with Snapchat to allow fans to produce custom augmented reality art (“ARt”) lens. At the space at Charlotte’s Mint Museum Uptown, Snapchat is using Lens Studio, a free desktop app from Snap, stylized for All-Star Weekend with Nike and Jordan Brand accessories.

“This is the first time we’ve done this with even our organic community or even a brand,” says Shawn Dedeluk, creative strategy lead, Snap, Inc. “This is the first time we’ve allowed consumers to make augmented reality in this way. The software is available for anyone to download on their own, but we’ve never done an activation in person like this before, especially on this scale.”

READ MORE: Timbers’ Kayla Knapp on Building a Social Voice From the Ground Up

Lens Studio appears to be complicated at first glance, but the creative process is simple. Each AR custom creation in Charlotte starts by selecting one of four templates: Sunglasses, segmentation, hat, headband. Fans can then use All-Star designs, Nike and Jordan logos, phrases and quotes from Nike and Jordan All-Stars (Anthony Davis, Giannis Antetokounmpo, Jayson Tatum, Kemba Walter, Kevin Durant, Kyrie Irving, LeBron James, Paul George, Russell Westbrook and Victor Oladipo) to personalize the lens. Background, borders and colors can also be adjusted.

Upon finishing, fans are given their own Snapcode to unlock the lens and share with friends. So, if you want to show your friends and family what they are missing out on, outside of Charlotte, let them use your custom lens.

The Snapcode can also be shared in the Snapchat Lens Studio community forum.

“For us, the world is mobile, and our consumer, that’s where they live,” says Sean Tresvant, vice president of global marketing, Jordan Brand. “When we’re trying to engage with our consumer, let’s meet them where they’re at when they’re on mobile. So we’re trying to give them a great experience, a great mobile experience where they can use augmented reality.

“We use [Snap’s] experts in the space. They know what works on their platform. Then you take what we’re experts at, our athletes and our brand assets. And when you look at some of the assets, whether it’s Russell Westbrook and his saying on why he owns the game, “Why not?” or Kemba Walker on how he owns the game, or someone like Giannis, it’s all fun and authentic to who they are as athletes versus us telling them what to do.”

Along with the custom lenses, Snapchat’s official Lens creators Alie Jackson, Ben Knutson and Shaun Lakey have created their own ARt pieces featuring a variety of Nike and Jordan Brand NBA All-Stars that can be found by accessing stickers and images around the activation (think, Pokemon Go AR). Nike and Snapchat have also created specific filters for the week.

Snapchat has been using AR on its interface for a number of years now with its lenses, but putting the power into its users’ hands is new.

“We’ve really popularized AR on our platform,” Dedeluk says. “It was the first time most people at mass had seen augmented reality and it’s a core part of our experience. So it’s not anything that’s been added on. It was something that was a part of the experience for a really long time. I think it’s 70 percent of our users on any given day see or play with augmented reality on Snapchat. So it’s core to the experience. It’s something that people love on our platform, they come back for it. This is the first time we’ve been able to like get people hands-on, making their own AR, walking away with a lens that they made here, on-site.”

On the Nike and Jordan side, Tresvant calls Snapchat a “natural” social partner, and the two brands continue to take steps together.

“I think we’re really pushing it out this year where it’s truly social, it’s truly unique and customizable,” Tresvant says. “And we’re pushing it out to communities. Last year, it was just a filter. Now, it’s all about customization and the fan or the community can do what they want and push it out.”

READ MORE: Channeling Napoleon Dynamite a Success for Blazers All-Star Campaign

Along with the Snapchat activation, Nike and Jordan Brand also have a half-court, vintage sneakers on display and various customization stations at the “Own the Game” pop-up. Nike Adapt BB, the first-ever power-lacing basketball sneaker, is available in the pop-up, as well as a series of other Nike and Jordan products at a retail hub.

Meanwhile, around the corner, a Nike SNKRS pop-up has been activated, similar to what the brand did at the Super Bowl in Atlanta. SNKRS members can use SNKRS Pass to reserve kicks for pickup, or SNKRS Reserve to request an appointment, or SNKRS Cam to unlock pairs of kicks on the fifth floor of “Own the Game.” SNKRS can also be expected to provide the unexpected, cycling through different pairs of sneakers, new and old, throughout the weekend.

“Own the Game” requires a free NikePlus membership to register and enter.

Be on the lookout for NBA All-Stars popping their own custom Snapchat filters as they come through the space this weekend.

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