March Madness By the Numbers…

$10.8 billion In 2011, the NCAA inked a 14-year, $10.8 billion TV deal with CBS and Turner Sports (home to TNT, TBS and truTV)

$8.8 billion Last year, the NCAA announces an eight year extension of that deal — for a combined total rights fee of $8.8 billion — that will keep the big game at Turner and CBS until 2032

$1.5 million The average price of a 30 second commercial during the 2015 championship game was $1.5 million, representing a slight increase over the 2014 championship game and nearly triple the ad rate for games during the 2014 NBA Finals

$213.3 million AT&T, GM and Capital One spent nearly $215 million on advertising during the 2016 NCAA men’s basketball tournament, more than any other corporate sponsors

19% Which consumer category spends to most to reach tourney viewers? The auto industry accounted for over 19% of overall advertising expenditures during the 2014 tournament w/ General Motors leading the way…

10 The tournament typically features ads from 85-90 different companies. A small proportion hold dominant positions and each year the top ten consistently account for more than 1/3 of total spending. In 2014, the top 10 advertisers spent a whopping $418.6 million.

28.3 million The 2014 championship game between the Duke Blue Devils and Wisconsin Badgers drew an audience of 28.3 million viewers, making it the highest-rated NCAA final in nearly 20 years

17.8 million Last year, 17.8 million fans tuned in to see Villanova’s thrilling win over UNC in the championship game, a drop from the previous year, but impressions on Twitter and Facebook jumped to a combined 56 million

10% What impact does a tournament birth have on participating smaller basketball schools?  According to Bloomberg, the excitement surrounding a big upset can result in a 10% increase in enrollment applications…one more reason to root for the "cinderella" teams!

90% According to the NCAA website, 90% of its revenue comes from television and marketing rights fees while the majority of the remaining 10% comes from championship ticket sales. The NCAA also reports that more than 90% of that revenue goes straight back to student-athletes in some form -- whether as scholarships, catastrophic injury insurance, emergency travel expenses, etc.

17 The NCAA has 17 primary sponsors that, in addition to spending money on advertising, have stadium signage opportunities that add to their overall on-screen exposure (not to mention the visibility the brand receives in the venue during the games). The most common are digital signage around the court visible to the TV audience, on-screen graphics and branded sets for studio programming. In 2014 these branded placements yielded a total of $112.8 million in sponsorship media value (an estimate calculated by Kantar Media, which takes into account the duration, source and prominence of a sponsor’s on-screen exposure and compares it to the impact of an equivalent TV commercial message). Capital One had the largest SMV ($29.0 million) followed by AT&T ($23.0 million). Each received more than seven cumulative hours of on screen sponsorship exposure, as compared to about 1.5 hours and 2.7 hours, respectively, of regular paid commercial time.

Source: Kantar media Sponsorship Media Value (millions) On-Screen Duration (minutes) TV Advertising Time (minutes) Capital One $29 million 465 minutes 91 minutes AT&T $23 million 428 minutes 163 minutes Buick $8.2 million 166 minutes 120 minutes Coca-Cola $7.4 million 132 minutes 69 minutes Enterprise $6.1 million 109 minutes 39 minutes Source: Kantar media

$100-150 million Previous Final Fours have generated tens of millions of dollars in economic impact for host cities; New Orleans reported $135 million in economic impact in 2012 while Atlanta reported $70 million in 2013. This year, analysts project a $100-150 million boost to the Phoenix economy.

125,000 More than 125,000 college basketball fans are expected to visit Phoenix to cheer their team during this year’s Final Four

90% Of the 125,000 college basketball fans expected to visit Phoenix, 90% will be coming from out of state.

$2,100 Final Four fans are expected to spend a whopping $2,100 per person on lodging, food and public transportation in the Phoenix area during the Final Four.

$8.4 million How much does it cost to host a Final Four? Estimates suggest that the state of Texas will pay $8.4 million in subsidies this year.

3,600 Over 3,600 volunteers will aid in all aspects of hosting the 2017 Final Four in Phoenix, from game-day production to community clean up and support

NOTE: To change images on this slide, select a picture and delete it. Then click the Insert Picture icon in the placeholder to insert your own image. 175,000 In 2014, more than 175,000 people attended Final Four Weekend sponsored events, according to the NCAA (which includes many additional sponsored events outside of the games like the Capital One Final Four Fan Fest.

70 million 70 million Americans will fill out brackets and wager approximately $10.4 billion (only 3% of that legally) on the NCAA tournament, according to research released this week

$10.1 billion For perspective, consider that a Boeing 737 jetliner costs about $10.1 billion, or about $300 million less the amount of betting projected for this year’s tournament

NOTE: To change images on this slide, select a picture and delete it. Then click the Insert Picture icon in the placeholder to insert your own image. $4 billion This year’s tournament could cost employers roughly $4 billion in lost productivity this year with time spent filling out brackets and watching games, according to WalletHub.

81% 81% of HR professionals say their organizations do not have policies in place addressing regulating office pools

9.2 quintillion The chances of filling out a perfect bracket in picking the winners of the tournament are 1 in 9.2 quintillion. In other words, it is nearly impossible. However, if you do correctly pick every game, it is likely that some company will give you a lot of cash. That publicity stunt has been in play for about three years now, although nobody has announced that promotion yet!

2 x It is TWO TIMES easier to win BACK-TO-BACK Mega Millions lotteries than it is to fill out a perfect bracket.

.0093% Of the millions of brackets submitted in last year’s NCAA “Bracket Challenge” contest (sponsored by Capital One), just .0093% of them correctly picked the Final Four teams

3 % As of 2013, only 3 percent of college basketball programs generated a surplus. Overall, they had a median loss of $811,000. An NCAA spokesperson couldn't immediately be reached for comment (according to cbsnews.com)

5.8% Does sponsorship work? NOTE: To change images on this slide, select a picture and delete it. Then click the Insert Picture icon in the placeholder to insert your own image. 5.8% Does sponsorship work? Buffalo Wild Wings’ stock price, one of the NCAA’s marketing partners, has outpaced the Standard & Poor’s 500 Index by an average of 5.8% each March in the past 10 years.

94 million Why does the stock perform so well in March? NOTE: To change images on this slide, select a picture and delete it. Then click the Insert Picture icon in the placeholder to insert your own image. 94 million Why does the stock perform so well in March? Well, its partnership with the NCAA and corresponding marketing campaigns certainly help. Last year, Buffalo Wild Wings sold 94 million chicken wings during March Madness.

NOTE: To change images on this slide, select a picture and delete it. Then click the Insert Picture icon in the placeholder to insert your own image. 1.7 million People eat more than chicken wings during March Madness. Pizza is always a big seller as well. In 2013, Domino's sold more than 1.7 million pizzas during the NCAA Men's Final Four weekend alone!

Questions for Class Discussion

How do you think March Madness contributes to a drop in worker productivity in the American workplace? Only 3% of collegiate basketball programs generate a revenue surplus according to cbsnews.com. Why do you think they continue playing if that is the case? Why is social media important to the tournament? Why do you think tracking the number of consumers who follow the tournament via some form of social media is important to the NCAA? To a broadcast company like CBS or Turner Sports? What about for advertisers/marketing professionals?

What are broadcast rights What are broadcast rights? Why do you think CBS and Turner invested so much in the rights to the NCAA Tournament? What types of companies sponsor the NCAA Tournament? What demographic are they targeting? What is economic impact? Why is it an important concept when it relates to mega events like the Super Bowl, Olympic Games and NCAA Tournament? How does participating in the tournament help smaller schools from a marketing perspective? Who do you think will win this year’s championship?