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Interesting convo I had recently with a large sports advertising/marketing firm

WestTexasHusker

All Legend
10 Year Member
I can't reveal a whole lot, but very recently I was in a meeting with a large, well-known consulting firm that works with major media on sports advertising. After the meeting, I got to have a discussion in private with two members from this firm. They represent various advertisers in all sorts of sports, including CFP, the bowls, NCAAB, NHL, NFL, etc. According to these two, college football will not get to 40 teams, because national advertisers want the whole country. There also was talk that this year's CFP wasn't inclusive enough, and that certain advertisers are getting dollars back because viewership in a number of regions didn't hit what was promised.

Take that for what it's worth, probably not much.
 
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I am very interested in what happens to TV revenues if pharmaceutical companies are no longer allowed to advertise on TV. Will there be companies that come in and fill that huge gap.

Pharmaceutical companies advertise heavy on tv, including sports and cable news.
 
I can't reveal a whole lot, but very recently I was in a meeting with a large, well-known consulting firm that works with major media on sports advertising. After the meeting, I got to have a discussion in private with two members from this firm. They represent various advertisers in all sorts of sports, including CFP, the bowls, NCAAB, NHL, NFL, etc. According to these two, college football will not get to 40 teams, because national advertisers want the whole country. There also was talk that this year's CFP wasn't inclusive enough, and that certain advertisers are getting dollars back because viewership in a number of regions didn't hit what was promised.

Take that for what it's worth, probably not much.
40 teams would still cover the whole country, right? I mean, every major market is represented in those top 40 teams. Maybe CO is the biggest left out? UT?

Ratings will move around depending on the games themselves. The regular season, IIRC, was at an all time high, ratings wise.
 
40 teams would still cover the whole country, right? I mean, every major market is represented in those top 40 teams. Maybe CO is the biggest left out? UT?

Ratings will move around depending on the games themselves. The regular season, IIRC, was at an all time high, ratings wise.

Have no idea, was just passing along what was shared by people in the industry.
 

Last I looked we had 50 states, and while that may change, it'll likely be more not less.
40 teams wont cut it
Well Alaska, Maine, Vermont, New Hampshire, North Dakota, South Dakota, Montana, Rhode Island do not have A NCAA division one football team. Delaware is moving up to D1 and will be in CUSA So there is really only 42 states that need to be covered. Hell Texas has 13 Division One football teams all by it's self
 
Well Alaska, Maine, Vermont, New Hampshire, North Dakota, South Dakota, Montana, Rhode Island do not have A NCAA division one football team. Delaware is moving up to D1 and will be in CUSA So there is really only 42 states that need to be covered. Hell Texas has 13 Division One football teams all by it's self

There is an idea being floated that the Big 10 and SEC could break off and form their own league. That may well happen, but the two folks I talked in this instance indicated that advertisers would be resistant.

Maybe the Big/SEC don’t care and they do it anyway. They’ll still capture big time advertising dollars, but they won’t have any sort of monopoly on it. There will be other leagues getting plenty as well, which is as it is already.

So ultimately, this could be a zero sum game. No one is going to be hoisting any “gotcha, we won” trophies.
 
Well Alaska, Maine, Vermont, New Hampshire, North Dakota, South Dakota, Montana, Rhode Island do not have A NCAA division one football team. Delaware is moving up to D1 and will be in CUSA So there is really only 42 states that need to be covered. Hell Texas has 13 Division One football teams all by it's self
So if Texas has 13 of the forty.....
 


Considering all industries through time, the market corrects. Certain people will always push for more revenue, I hope they've found the line, pushing change to drive in more money under the guise of fairness has eroded my interest.
 
Well Alaska, Maine, Vermont, New Hampshire, North Dakota, South Dakota, Montana, Rhode Island do not have A NCAA division one football team. Delaware is moving up to D1 and will be in CUSA So there is really only 42 states that need to be covered. Hell Texas has 13 Division One football teams all by it's self
Actually both Dakotas have TWO NCAA Division 1 football teams within their borders. They just happen to be in the FCS part of D1.
 


What do you mean by that? Translate please.

I took it as, while the aggregate viewership of the CFP was good (though not as good as projected), much of the aggregate was concentrated in certain geographic areas. There wasn't a World Series or Super Bowl effect, where penetration was broad. Companies advertise in national events for national eyeball penetration. It is very expensive.

To figure out how this clock works, you've got to take it apart a bit. We have TV programming only because of advertisers underwriting it to sell their product. Unless we are talking PBS. Media "bids" on certain programming (Yellowstone, the Pop Tarts Bowl, Daytona 500, and Days of Our Lives) based on what they think they can sell advertising to support and then make a profit on top of that.

Once media makes the buy, they "own" the "inventory" for that series or event. They've got an investment tied up in it, and now the fun begins: They then go to advertisers to convince them that they need to buy a spot to advertise their product. Hopefully, they sell the inventory sufficiently that there is plenty of profit left over for their buy from the event.

But...during the sales pitch to potential advertisers, assurances (sometimes guarantees) are made that a minimum number of eyeballs will be reached. National advertisers obviously want broad exposure, because they are paying a king's ransom for it.

Whether we are talking Big 10, SEC, Big 12, ACC, or even D2 or NAIA, all of those events have some sort of commercial value to advertisers. The Big 10 is receiving more media money, not because the networks are charitable, but because the networks feel they can sell the advertising for Big 10 games for big bucks because of the exposure to eyeballs.

Advertising is ultimately driving the media money train. You can reach a point of diminishing aggregate returns by consolidation. For example, if you had a league of the top 10 media programs - Ohio State, Texas, Notre Dame, USC, etc. - that might be a $2 billion deal for those 10 - $200 million a piece. So those particular programs would greatly benefit, but the national audience for that would be cut substantially. Buick would still want to advertise for it, but at greatly reduced cost, due to the reduced number of eyeballs.

This really boils down to how hard the big money schools want to squeeze the juice. With the Big 10 and SEC now demanding 4 playoff spots "just cause", it would appear they're squeezing pretty hard.
 
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