Advertising is one of the most-important gizmo in the marketing of products and services. Sports advertising is one type of OOH(Out Of the House) advertising method in the form of sponsorship, billboards around the stadium, plaque on players’ jersey, the boundary line of the field, etc. OOH advertising is more effective than television advertising. People tend to ignore the commercials in between the live-streaming of a match in television or flip through the channels at the time of the advertisements while people cannot absolutely ignore the advertisements on the players’ jersey, on the fields, billboards around stadium, below the score-board, etc.
Popularity of sports advertising vs. regular television advertising
Sports are becoming popular day by day and fan base of the team, or player is increasing with the passage of time. Sports fanatics present all over the world psychologically identify themselves with their favorite sports team or players. The brands and products sponsored by the player influence people to a greater extent. Youngsters often chose to follow the brands that are sponsored by their idols (players) and to create hype among their social group. On the other hand, regular television advertisements are often ignored by the viewers because of the monotony of the same advertisement. Sports advertisement, on the other hand, reduces wastage coverage and targets ad messages geographically.
Cost benefits of sports advertising over regular television advertising
- CPM- The CPM(Cost Per Thousand) of sports advertising is much less than that of regular television advertising. Television advertising incurs more cost as it is based on the running time of the commercial advertisement.
- Capital investment- Sports advertising needs low capital long-term costs in the form of sponsorship contract with the team or players or club while the capital cost is much higher in case of television advertisement that is incurred during the production of the advertisement film.
- Revenue- Sports advertising generates revenue faster just after or before the sports event while television advertisements generate less revenue and too after a long time.
- Margin or extent of the advertisement- Sports advertising does not have any limited margin or extent. If a company wants to advertise its brand in the billboards as well as the jerseys, it will be able to do it. On the contrary, the running time for the television advertisement is limited.
Sports advertisement as a mode of OHO helps to build a brand, drives its growth and influences the sports fanatics. It increases the effectiveness of an advertisement in promoting a brand campaign at lower CPMs and higher ROIs in advertising. So, sports advertising is more cost-effective for the company than television advertisements where the company has to pay for the advertisements on a regular basis. Sports advertising inspires a larger group by creating compelling advertisements that people cannot ignore or skip. It reinforces the television messages when the people away from home and enjoying the recreational activity like sports. Thus, sports advertising creates a stronger impact on people’s mind than regular monotonous television commercials and helps in maintaining low CPM and other overall costs.