April 11, 2008

Beer Ads and College Sports: NCAA Over the Edge

College students and their increasing consumption of alcohol is a never-ending problem all across the country. As I explored the web this week, I found an article about the recent NCAA Basketball Tournament and the amount of beer advertising during its televised games. Apparently, some school officials are upset about the amount of beer ads that were played during this year's Final Four Tournament. On Wednesday, April 9th, over one hundred University Presidents and Athletic Directors, with the help of the Center for Science in the Public Interest, wrote a letter to NCAA President Myles Brand expressing their concern on the excess amount of beer advertisements played during last weekend's telecasts (see picture to right). These officials believe that the NCAA needs to reconsider its policies on alcohol advertising, especially since it violated the present policy, which limits beer advertising to sixty seconds per hour and no more than one-hundred and twenty seconds per telecast. According to the CSPI, the two semifinal games last Saturday played a total of four-hundred and forty seconds worth of beer ads, and Monday night's final in which Kansas beat Memphis contained two-hundred and seventy seconds worth. I decided to dig deeper into the blogosphere and search for related blogs on this issue. One blog I discovered titled "Dude! Several Colleges Call Beer Ads During NCAA Tournament 'Embarrassing'" agrees with the decision of school officials to have the NCAA limit alcohol advertising during college sports. The author of this blog, nicknamed Sportz Assassin, believes that drinking alcohol is the personal responsibility of the student, and the NCAA should follow its own policy of limiting beer commercials during telecasts. A second blog I found is titled "270 Seconds of Beer", in which author Heather Koerner shares her opinion of selling beer at sporting events, and gives her praise of the university officials against the advertising and selling of beer during college sporting events. I also chose to comment on these blogs and offer my own opinion on the matter since I myself am a college student and have seen these ads first-hand. I linked these comments to their appropriate web page and have conveniently displayed the comments below.

"Dude! Several Colleges Call Beer Ads During NCAA Tournament 'Embarrassing'"
Comment:
First off, I'd like to thank you for your insight on this subject. I watched the two semifinal games last Saturday and have to say, I did notice an abundance of beer ads. I actually thought I was watching a replay of the Super Bowl. I agree with you when you say that drinking alcohol is the responsibility of the college student. As a college student myself, I have had my share of drinking experiences. Whether before football games, during post-game parties, or just a regular Thursday or Friday night, I have been there and done that. However, it concerns me greatly that college students drink so much alcohol. I feel it is not primarily because of the ads aired during basketball or football games because these ads are displayed everywhere and played during every type of telecast, not just college sporting events. Fraternities and even sororities throw weekly parties where beer is the main beverage consumed, and popular drinking games such as beer pong are consistently played. I also agree with you when you say that "the abuse of alcohol by college students is a big issue and a sore spot for these colleges." Year after year, you hear of another college student dying due to alcohol poisoning or even riots occurring near campuses (such as the one at USC earlier this spring). The universities that signed this letter are obviously accustomed to this type of behavior on their campuses. They are concerned with students’ safety, which is one of their top priorities once a student signs that letter of intent. I do not blame these officials for trying to do the right thing. The NCAA did violate their own policies, and if they continue to do so, they will have a lot more people on their case than the one-hundred university officials. I know you stated that "the NCAA needs to follow their rules," but I was wondering if you think their alcohol advertising policies will change for the better or worse in the near future. Will the "High and Mighty" NCAA eventually decide to increase the allowed time for alcohol advertising, and even allow hard alcohol advertising? Thanks again for your insight on this issue and I appreciate any response that you wish to leave.

"270 Seconds of Beer"
Comment:
I would like to commend your post on this matter, as it directly relates to me. I myself am a college student, so I understand why these universities are apprehensive towards beer advertising. The main concern of these colleges is to try and prevent students from consuming alcohol. Beer, known as the most popular alcoholic beverage amongst college students, is consumed more than any other beverage during sporting events, including college and pro. Most beer ads leave a lasting impression on the viewer, such as the recent "Dude" campaigns for Bud Light (pictured to the left), but remembering these ads does not mean that students will go buy that brand of beer. Personally I believe the decision to limit the amount of beer ads during NCAA sporting events is appropriate. How do you think the NCAA should handle this situation? The NCAA profits greatly from beer promotion, so do you think they will simply increase ad prices or end up increasing the amount of time allowed for beer ads? I believe that the NCAA will do nothing, at least until the current contract with beer companies ends. Even with the increase of alcohol related incidents (such as the seventy thousand sexual assaults and seventeen hundred deaths) on college campuses each year, there continues to be nothing or very little done to prevent them.

As a frequent attendee of sports games (mainly professional hockey and college football), I am aware of unruly fans that consume too much alcohol. I enjoy going to all sporting events, and most of the time I am not affected by these fans. There are some instances, however, when they just get out of hand and take it too far. If someone wants to drink in the presence of their own home, that is fine with me. I do not understand why people want to mix their drunkenness with sporting events and bother surrounding fans. Even though beer is not sold at most college stadiums and arenas, it does not prevent students from drinking before games. You mentioned having beer spilled down your back too many times to count, which is funny because there have been many instances when I have witnessed this occur. I often wonder how these guys even drive home after the game. What if they decide to drive home drunk? This inexcusable behavior is why some people do not even deserve the right to drink alcohol. I appreciate your opinion on this significant issue, and I value any feedback you would like to offer.

April 4, 2008

Advertising Gold: Marketing in the 2008 Summer Olympics

On July 13, 2001, Beijing, China was honored with the right to host the 2008 Summer Olympic Games. Opening ceremonies are set for August 8th, with closing ceremonies commencing on August 24th. This summer, there will be twenty-eight different sports being played across thirty-one venues, with three-hundred and three medals being awarded to athletes coming in first, second, and third place. These upcoming 2008 Summer Olympic Games (logo pictured on the left) will prove that athletes will not be the only ones winning gold medals. Companies across the globe are anxious for the games to begin so they can promote and share their image and products with the world. Although advertising in Olympics held overseas is too expensive for some companies in the United States, the decision to market to a broader audience can and will benefit these corporations fortunate enough to sponsor the games. The costs of becoming a sponsor may thwart some companies from doing so, but the firms able to advertise during the games will see a greater profit and return for their money.

This year's Olympics may not only surpass previous Olympiads in terms of athletic performance, but it will be the most advertised ever. It is estimated that over seventy companies will be sponsoring the Beijing games, and they will consist of three tiers of support: Worldwide Olympic Sponsors, Beijing 2008 Partners, and Beijing 2008 Sponsors and Suppliers. Some of the Worldwide Olympic Sponsors are McDonald's, Coca-Cola, Visa, Kodak, and General Electric (see picture below to the right). Beijing Partners include Volkswagen, Adidas, and Johnson & Johnson; whereas Beijing sponsors and suppliers are comprised of companies such as UPS, Budweiser, Snickers, and Staples. These companies are looking for an advantage over their competitors, and the answer is the XXIX Olympic Games. Some firms are paying up to two-hundred million dollars for the privilege of becoming an Olympic partner, while others are spending an average of seventy-eight million dollars to be sponsors or suppliers. It seems like a hefty price tag to some, but the benefits that result from it are astounding. Olympic sponsors are already seeing their stock prices soar.

Every four years, the Summer Olympics are held in a different country and in an overall different setting. Going international may be troublesome for some well known businesses in the United States due to high costs, but popular firms such as McDonald's, Coca-Cola, and Visa are first in line to be partners. Advertising will help increase sales and stock price, which will in turn generate more profit. It is proven that the corporation promoting itself will increase brand and product knowledge amongst the millions of viewers and attendees of the Olympics. In fact, a recent study done by Initiative Sports Futures claims that the Opening Ceremony alone could be the first sporting event ever to attract over one billion viewers. Pierre Justo, the Beijing-based managing director of sports research for TNS Sports Asia, says "The scale is totally different from previous Olympic Games. Everybody is waiting for TV audiences, especially in China, breaking records. We will see figures we've never seen before." McDonald's stock price rose twenty-one percent after it sponsored the 2004 Olympics in Athens. Granted sponsoring the Olympics was not the only cause of this increase, but it can be inferred that it was a major influencer. From May 2004 to December 2004, McDonald's, Johnson & Johnson, and Kodak's stock prices all increased by six dollars and General Electric's rose five dollars. This is proof that advertising in the Olympics can be one of the smartest things a corporation can do. Their advertisements and logos are sure to be seen by millions of people all over the world, which will definitely increase market share and profits. Companies going international tend to do well overseas as well as in the United States, and global advertising and expansion are two major reasons why they succeed.

Corporations looking to expand internationally, especially within the thriving Chinese economy, have the opportunity to advertise and sponsor the upcoming Olympic games. It will provide a chance to grow while allowing each partnering company to showcase its products or services to the two-hundred and three different countries representing this years' Olympics. According to Nathalie Bastianelli, head of Havas Sport China, "This is the potential of the Chinese market [...]With its economic growth, the brands are very interested in this market and a big event like the Games is a good opportunity to get closer to the Chinese consumer." Adidas is one of the primary international corporations hoping to strengthen its presence in China, even though it already holds over thirty-five hundred outlets in four-hundred cities. Erika Korner, head of Adidas' Olympic program, states: "It was an obvious decision for us to sponsor the Olympics in a country where our growth is highest." Many companies are following suit, including UPS and Budweiser.

When August 8th arrives, there will be many familiar brands and advertisements displayed during each competition. The number of recognizable corporations on television as the games are in progress will be astonishing. Advertising and sports are considered norms in our culture, so when the two merge they create the best possible situation for a company to market itself. The potential is there to expand business and increase market share. Firms just have to be willing and able to spend the millions of dollars needed to sponsor 2008's games. The risk is sometimes worth the reward and the benefits will outweigh the costs, and advertising in the Olympics is one of those situations.
 
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