Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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One realises just how much of a big business international sport is when one hears the announcements of deals like the one whereby NBC has paid $7,75 billion for the exclusive rights for the next 5 Olympics. Television companies literally bid billions against each other to secure the exclusive rights for the coverage bearing in mind that in most cases we are talking about the exclusive right to the coverage in their country only! NBC in America does not have most of the major sporting events – ESPN for example has most American football and so the Olympics have become terribly important to them as this is the one sporting event they have had over the last few decades. Citing their close relationship with the international Olympic Committee, it was revealed that they did not even bid against other television stations – the figure was just agreed between NBC and the IOC. It reminds me, and this is a slightly different topic, of discovering an excellent advertising strategy and that is that Investec found that television rights and stadium advertising in South Africa were far more expensive, when it comes to rugby, than they were in New Zealand with the result that they have not really entered into many advertising agreements in South Africa and that most of the stadium advertising you will see for Investec involves stadiums overseas and in particular in New Zealand. It is not because New Zealand is a market of theirs – in fact, I am not sure that they have any presence at all in New Zealand and I certainly know that their Australian presence has not worked out, and it is something they are reversing – it is simply because they can advertise in the stadium in New Zealand and get the same coverage on TV, for considerably less than they would pay for the same coverage, for example, at Loftus Versfeld. Ultimately, it is all about what is shown on TV, and it does not matter to the advertiser whether the product is coming from New Zealand or from next door – just as long as their advert is shown at the most effective rate.
Posted by Michael de Broglio on Monday 19-May-14
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Comments
Sorea said:
on Monday 19-May-14 05:08 PM
Same amount of coverage for cheaper? Smart company. And in the same breath this just goes to show where some people don't mind throwing money at a situation, while others look at it from a different point of view and realises the same results but without the excessive expense.
Jade said:
on Monday 19-May-14 03:38 PM
7.75 billion dollars! That is an unbelievable amount of money.
It amazes me how much of a big business international sport is, as you say. If you just look at the money involved in the English Premier League, it is just shocking. The amount of money that the clubs throw around for transfers, and that does not include the sickening salaries they pay the managers and the players as well as the amount of money that is spent by advertisers like Samsung, not just at the stadiums, but advertising on the players shirts, and in the corners of the screens is just unbelievable. There is this new habit of making the screen smaller whilst the game is still on so that the border is now a very unwelcome advert.
I wouldn't be surprised if advertisers pay sportsmen in the future to change their name or team name to their brand name.
I think that Investec's advertising tactics are incredibly smart. If I create a business one day, I want that marketing team on my side.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
