Wed, May 22, 2002 - Page 1 News List

World Cup ad money rolls into TVBS

By Annabel Lue  /  STAFF REPORTER

TVBS cable network (年代) is hoping to reap a windfall selling advertising time during the month-long 2002 FIFA World Cup.

"We estimate more than NT$300 million in sales from this event," said Wang Lin-hsiang (王麟祥), an executive at TVBS, in charge of World Cup programming.

Although the event is still 10 days away, Wang said, they have sold about 80 percent of the advertising slots, creating some NT$200 million in sales.

"The company has already earned back the cost of broadcasting rights," Wang said proudly.

TVBS paid NT$200 million to Paris-based Federation International de Football Association, the world governing body of football, for the exclusive rights.

The 64-match global soccer tournament will kick off on May 31 and run through June 30. TVBS will air the games live on two of their network's channels, Much TV and ERA TV.

"We charge more than NT$100,000 for every 10 seconds during prime time," said Chang Jen-shu (張仁淑), deputy sales manager at TVBS.

That figure is about five times more than what TVBS charges for normal programming aired during the same timeframe.

In the initial 16 team preliminary match ups, 10 seconds of ad time will sell for NT$25,000, Chang said. Six hundred seconds of ad time will be aired per hour.

As the succession of games heats up, Wang estimated TVBS would make a big bucks from the frenzy created, with TV commercials shown during the final round going to the highest bidder.

"Currently we have sold only 80 percent of the advertising time slots during the final competition, and we plan to sell the remaining 20 percent to whoever offers the highest price," Wang said.

Four years ago, when Chinese Television had exclusive rights to broadcast the World Cup, the company paid the NT$30 million franchise fee and generated NT$100 million in advertising sales, Wang said.

World Cup ad prices

* Ad time during the 16 team preliminary round costs NT$25,000 per 10 seconds.

* Eighty percent of ads for final matches have already sold for NT$100,000 per ten seconds, with the remaining 20% to be sold to the highest bidders after the Cup heats up.


The broadcasting fee was much lower, as the games were not broadcast live due to time zone differences.

Taiwanese companies investing in World Cup commercials are mobile phone companies, sportswear makers and soft-drink companies, Chang said.

Promoting brand recognition is the major motive behind the spending.

"Showing off company logos, slogans and products during world-class tournaments is a very efficient way to upgrade a brand's image," said an industry professional surnamed Ying () at an international media buying company in Taipei.

But, with soccer only enjoying a small following in Taiwan, the viewership appeal will be limited, he added.

"People watch the World Cup because it's a worldwide event, a hot topic, not because he or she plays soccer or is a soccer fan," he added.

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