Sky TV cashes in on Lions test
Sky Television is charging 2011 Rugby World Cup advertising rates during the All Blacks’ final test against the British and Irish Lions this evening.
But University of Otago marketing senior lecturer John Guthrie said the premium to advertise on Sky or at the Eden Park test venue would not necessarily boost customer sales for advertisers.
Simply being associated with the ‘‘feel good’’ event was more likely to have a long-term return through positive brand exposure, Guthrie said.
The likes of Sky and Eden Park had probably upped average advertising rates by at least 30 per cent, he said.
However, he said advertisers would balk at a 40 per cent rate increase.
Sky advertising director Rawinia Newton would not release exact figures on the advertising deals, but said the pay TV company charged a premium similar to that of the 2011 Rugby World Cup to advertise during the the Lions test broadcasts.
Newton said the package deal to advertise during all the games had sold out and some companies had to be turned away. She said Sky justified its hefty premium with the larger audience reach.
Nielsen ratings suggested 1.2 million people watched the first Lions test on television, she said.
Newton expected even more people would watch the final test.
Guthrie said that if the All Blacks lost the game, it would not ruin viewers’ feelings towards sponsors because most of the adverts aired during the game, not after it.
The Lions tour had paid off for the hospitality industry too.
Paymark statistics said weekly spending in bars, restaurants and cafes increased 25 per cent in Wellington the week it hosted two Lions tests last month.
Christchurch saw a 12 per cent surge the weekend the Lions played there. But the first test in Auckland last month lifted local spending by only 7 per cent.
Paymark spokesman Paul Brislen said Auckland’s supporter spend was modest because Auckland regularly hosted big events, so the Lions tour had less of an impact on its economy.
Brislen said Auckland’s hospitality sector could expect the same 7 per cent to 8 per cent rise in sales this weekend.