European advertisers are bracing themselves for dramatic inflation
in the cost of reaching TV sports audiences, with the UEFA Champions’
League football competition already driving prices up around Europe.
According to new research from The Media Edge, major sporting
competitions such as the Champions’ League are proving so popular among
advertisers targeting 16- to 34-year-old men that the cost of
advertising airtime in such events is almost 40 per cent higher than
during regular televised sports programmes.
In the UK and Spain, advertisers are paying a premium of between 24 per
cent and 38 per cent for a 30-second spot in the Champions’ League,
compared with other top five sporting events. In Italy, where interest
in the event is even greater, The Media Edge calculates that advertisers
are paying premiums of up to 1,200 per cent.
The report notes that the impact of these rates is already pushing some
advertisers out of the game.
Media fragmentation, as more channels launch, is set to compound the
problem, with broadcasters able to charge higher prices for special
events that generate big audiences. The report claims that in the
future, only a handful of advertisers may be able to meet the prices
demanded by broadcasters.
Martin Thomas, the total communications director of The Media Edge,
said: ’We have heard a great deal about audience fragmentation in an age
of expanding broadcasting opportunities. A natural by-product of this
trend will be to increase the advertising value of those few television
events, such as sporting occasions, that can guarantee significant