The Business of the NFL and Super Bowl 50
The National Football League took in more than $7 billion in revenue from its various television deals alone during the 2014 season according to ESPN. That profitability, which has accelerated in recent years and is more than double the $3 billion the NFL earned in 2010, makes it one of the richest (if not the richest) sporting leagues in the world. As the NFL's popularity has burgeoned, so too has television viewership for its games. That's especially true of the Super Bowl, the most-watched sporting event in the United States, which now draws more than 100 million viewers anually. All those eyeballs account for why host networks are able to charge such high advertising rates during the game. This year's host, CBS, is charging $5 million for a single 30-second spot. Harvard Business School associate professor Thales Teixeira, an expert in marketing, pays close attention to advertisers' strategies for the big game. In recent years, Teixeira says spots have increasingly moved to capitalize on the fact that most viewers are watching the Super Bowl with smartphones in hand. The kind of direct audience response smartphones have enabled helps explain why ad rates continue to rise for the NFL's marquee game and businesses continue to pay it. For more NFL-related cases and research, see the links and description below: And don't miss HBS professors Bharat Anand, Jan Hammond, and V.G. Narayanan debating the merits of halftime sponsorship and other statistical components of the Super Bowl while wearing eyeblack and tossing the pigskin: Related Cases
The Globalization of the NFLThe NFL's Digital Media Strategy |
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