Question

Media companies benefit from broadcasting sporting events by selling advertising slots. We saw that some sports...

Media companies benefit from broadcasting sporting events by selling advertising slots.

We saw that some sports events attract far more advertising than other events. Explain what would cause some events to be more highly valued by advertisers than other events. (5 points)

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Answer #1

Number of advertisement is totally depends on the TRP of the sports event. It is needless to say if two popular team play with each other then the TRP of that game will be high. At the same time if two lesser known teams play with each other then the TRP of that game will be low.

It depends on the importance of the match as well. If it's a league match the number of viewers will be lesser than the knockout stage matches or the semi final and finals.

It is simple mathematics where the viewers are more putting more add will generate more revenue and where the number of viewers are low there putting more adds may brings loss for the companies.

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