As is the common theme right now, the corona virus has had major and far reaching effects on the economy. With many sports being canceled, including our own here at Los Altos, as well as, more importantly, professional sports, many things are going to change. The obvious economic impacts of these cancellations are that there is much less money going in and coming out of profession sports leagues, with no tickets being sold, and no support staff to pay as much. But there are more impacts. With no game being played, there are no games to be watched on Tv, leading to no ads, and a lot of disruption.
Many people watching professional sports a lot, on average a person will watch almost 4 hours a week of sports, that's a huge amount of time. With all of this time being removed, and with very little to take its place many marketing departments are going to be thrown into chaos.
Just advertising for sports costs around 400 million dollars a year, and that's just the ads for the actual games. The adds ran during the game cost fortunes more. These cost of these adds are 37% of the total cost on TV advertising, more than a third. With all this money not being spent on adds for these games, as there are no games, marketing departments are going to have a lot of money free, and almost nowhere to put it.
https://www.statista.com/statistics/288902/hours-spent-per-week-consuming-sports-in-the-us-by-method/
https://www.statista.com/statistics/470562/sporting-and-athletic-goods-industry-ad-spend-usa/
https://adage.com/article/media/sports-account-37-percent-all-tv-ad-dollars/300310
Subscribe to:
Post Comments (Atom)
Money CAN Buy Happiness
You have probably heard the very common phrase, "Money Can't Buy Happiness." However, according to a study by psychologists...
-
Since the COVID-19 outbreak started, prices of personal protective equipment has surged due to the high demand and often, hoarding. T...
-
The SAT. AP Tests. SAT Subject Tests. PSAT. What do all of these things have in common? They come from one source: CollegeBoard. They prov... -
This morning, how did you get to school? Most of us probably answered, "by car." If not, there's a good chance that your ...
This was an interesting post and it is going to be difficult for many companies to figure out how to effectively market now that they have lost sports as a way to advertise. I don't think that many companies will be able to come up with a good solution in such a short time, because the industry is not quite used to abrupt changes. In the documentary we watched, we saw that marketing strategies evolved over time, and some came to rise and some fell. I don't think there were any incidents of an option that became unavailable so quickly in the documentary so it will be interesting to see how companies react.
ReplyDelete