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Revenue Down on Board Ads?

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Old
12-19-2009, 07:06 PM
  #1
Shootmaster_44
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Revenue Down on Board Ads?

I have no credible information, but I was at the Oilers/Kings game on Wednesday. What I noticed is that the arena staff came out during each intermission and changed a few of the ads on the boards. Is this normal in most NHL rinks? I've been to games in previous seasons and have never seen them do this.

So my question is are board ads not able to generate the same amount of money they used to? Conversely, is this a sign of NHL arenas/teams trying to squeeze as much money of the ads on the boards as possible?

On a side note, who sells the ads on the boards? Is it the team or is it the arena? Being from a non-NHL city, at Credit Union Centre it would appear that it is the building and not the Blades who sell the ads. But what is the case in a NHL arena?

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12-19-2009, 07:32 PM
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LadyStanley
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Could be.

I've only seen ads change pre-game.


(Now, I know that some boards change between different teams/sports being played, but that's different.)

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12-19-2009, 08:38 PM
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Buck Aki Berg
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If the staff is coming out between periods and changing the ads, that would lead me to believe that the team/arena has more sponsors that they have room for. In which case they could be making more money - instead of selling one piece of space to one company for 100% of the cost, they could be selling it to two companies for, say, 65% of the normal cost (kind of like the opposite of a volume discount)

When you consider that Centre Ice, online streaming (legal or otherwise), and timeshifting have made in-arena ads more visible to more people, I'd be hard-pressed to believe that they're losing value.

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12-19-2009, 08:48 PM
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Actually, I read about this a while ago. Some team or teams realized that they could derive more revenue by selling by the period. In essence, 1+1+1+1 = 3.5

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12-19-2009, 08:53 PM
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I've seen that done in Montreal. As others said, I think it's a way to maximize revenue by having more than one sponsor for the same spot.

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12-20-2009, 10:33 PM
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Noticed they were doing this in Toronto as well.

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12-22-2009, 10:08 AM
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Josh Collopy
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I work for a company that monitors and values sponsorship in sporting events and have done a few projects relating to board signs. Board signs are sold by each individual club and not the league. However, during a nationally televised game the league reserves the right to take over certain locations and place league sponsors in that spot. I believe when that happens, the team then refunds 1 games worth of costs back to the original holder of that location. The league also holds the right to locations 15-22-37-44 which are in each corner; this is where the NHL.com, NHL on NBC, or any other league mandated logo goes.

A few things I have noticed that could be playing a part of it.

1. Many companies are watching their sponsorships dollars more closely today which has caused some to scale back their sponsorships. This leads to leads to companies only being able to afford for example a board sign during 1 period instead of the entire game. As was said before this actually turns into a benefit for the team as they are able to sell boards by the period which allows them to charge a higher rate.

2. A second theory I have been working on myself is based around the teams and players involved in the game to determine which locations are more favorable. I have done enough studies to know which locations generally receive the most exposure during a game, but I have been looking into the effect of the teams involved have on the exposure numbers. For example, a high scoring team will garner more exposure for the signs located in the end that they attack twice, thus making those board signs the more lucrative locations.

Just some of my thoughts based on the work I have done.

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Old
12-22-2009, 10:16 AM
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Buck Aki Berg
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Quote:
Originally Posted by Josh Collopy View Post
2. A second theory I have been working on myself is based around the teams and players involved in the game to determine which locations are more favorable. I have done enough studies to know which locations generally receive the most exposure during a game, but I have been looking into the effect of the teams involved have on the exposure numbers. For example, a high scoring team will garner more exposure for the signs located in the end that they attack twice, thus making those board signs the more lucrative locations.
I'm actually surprised there's that much thought put into the ads we see on the boards right now. I remember a few years back, there was some serious discussion into making the entire boards into those electronic board ads that you see in a couple of spots in a couple of arenas, and how they could be tailored to show specific ads at specific times, but I didn't think that companies went to these lengths to get the exposure they want.

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12-22-2009, 10:33 AM
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Josh Collopy
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Quote:
Originally Posted by Haymaker View Post
I'm actually surprised there's that much thought put into the ads we see on the boards right now. I remember a few years back, there was some serious discussion into making the entire boards into those electronic board ads that you see in a couple of spots in a couple of arenas, and how they could be tailored to show specific ads at specific times, but I didn't think that companies went to these lengths to get the exposure they want.
The major project I have done in regards to board signs was in Detroit and the 1 digital sign they have never seems to show very well compared to others I have seen, that could be a product of it not being as good of quality as some of the other arenas have. The amount of exposure also depends heavily on the design and colors of the sign, for example signs using big block letters and red lettering tend to show really well, for example State Farm has great board signs. I think that the static signs provide better exposure than the digital signs, generally speaking.

For those of you in the New York and Colorado markets, the Rangers and Avalanche, and maybe some others I am unaware of have begun to use digital techniques to super-impose logos on the glass behind the nets and at center ice behind the benches. I have a feeling that this could become pretty standard amongst all NHL teams.

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Old
12-22-2009, 11:37 AM
  #10
danishh
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they do this for a few in ottawa as well. I'm not sure whether its a matter of revenue being down so much as its that teams can maximize revenue by selling by period.

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12-22-2009, 04:02 PM
  #11
Jonas1235
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Why don't arenas make inserts in the boards, so they can put the ad into the top of the boards. They'd be able to change them every period if needed.

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