Podcast Summary
March Madness: A Consistent Revenue Stream: The NCAA basketball tournament, or March Madness, provides a steady income stream for CBS and Turner through a 14-year contract, unlike the Super Bowl which rotates between networks and requires annual competition for highest ad rates.
The NCAA basketball tournament, also known as March Madness, brings in massive viewership with every game televised on CBS or Turner networks. This 14-year contract between CBS and Turner provides a steady income stream, unlike the Super Bowl which rotates between networks each year. During the off years for the Super Bowl, networks actually root for their rivals to drive up ad rates, as they will inherit and build on the price increase the following year. This business model for March Madness ensures a consistent revenue flow, while the Super Bowl networks must compete to secure the highest ad rates each year.
Super Bowl vs March Madness: Which One is More Profitable?: Networks face challenges in determining which sports event, Super Bowl or March Madness, is more profitable due to varying ad rate increases and number of games shown, while high production costs and rights fees may result in losses. Economists suggest auctioning off ad slots as an effective solution to maximize revenue.
While both the Super Bowl and March Madness generate significant revenue for networks, it's not clear which one is more profitable. The Super Bowl has seen steadier ad rate increases, but March Madness has increased the number of games shown, leading to higher revenue. However, networks pay a lot for the rights to broadcast these events and production costs, which can result in losses. From an economic standpoint, it seems networks may be leaving money on the table. A potential solution could be auctioning off ad slots, as economists believe it's an ideal mechanism for determining how much people are willing to pay and getting them to pay that amount.
Charging for Super Bowl ad rejection: Brands can generate publicity from Super Bowl ad rejection by paying a hefty fee, with accepted ads getting their money back and rejected ads not. The Super Bowl generates more revenue for athletes compared to March Madness.
The Super Bowl and other major sporting events like March Madness offer unique opportunities for brands to gain publicity, even if their ads are rejected. Jeff Ealy suggested charging a hefty fee for Super Bowl ad submissions, with accepted ads having the fee reimbursed, and rejected ads not getting their money back. This would effectively charge for the right to have an ad rejected. Although both events attract large audiences, the Super Bowl generates significantly more revenue for the athletes involved compared to March Madness, where college athletes do not receive salaries. This difference in revenue distribution is an important factor to consider when deciding which event to invest in for advertising purposes.
Exploring unconventional solutions to childhood obesity: Discussing radical ideas like restricting unhealthy foods and considering less harmful alternatives for weight loss to tackle childhood obesity
The fight against childhood obesity requires innovative and unconventional solutions. On a forthcoming episode of Freakonomics Radio, a roundtable discussion brings together brilliant minds to explore potential strategies. One proposal involves restricting unhealthy foods in grocery stores to specific areas, and considering the use of less harmful alternatives to tapeworms for weight loss. These ideas may seem radical, but they underscore the urgency and complexity of the issue. Tune in to Freakonomics Radio for more groundbreaking perspectives on childhood obesity.