$3.6 million for a Times Square billboard
Companies are paying dearly for exposure to the 39 million people who visit the square each year.
When the ball drops at One Times Square this New Year's Eve, it'll fall on a cushion of luminous, stories-tall billboard ads and millions of dollars in sponsor fees.
One Times Square's owners recently did some refinancing and coughed up some documents detailing its multimillion-dollar ad deals. The Wall Street Journal got a look at them and, on Tuesday, revealed that Dunkin' Donuts (DNKN) shells out $3.6 million a year for its illuminated sign on the building that displays products, photos from Facebook (FB) fans and more. Anheuser-Busch InBev (BUD) adds another $3.4 million to the pot each year to show off cold bottles of Budweiser and long pours of its other brands.
For that payout, the companies get a look from what Travel + Leisure estimates to be 39.2 million people who flock to Times Square annually for Broadway shows, dinners and hundreds of photos they'll unrealistically expect people not to walk through. Add the nearly 23 million Americans who watched the ball drop during New Year's Rockin' Eve on ABC last year, another few million who saw it from a different angle on NBC and millions more who caught the event on broadcasts around the world, and advertisers have a bigger audience than they can get during almost any event on the planet.
As advertisers know all too well, casting a wide net in any one well-stocked place is going to cost them. During Super Bowl XLVI in Indianapolis earlier this year, for example, companies paid between an average of $3.5 million for each 30-second ad, according to Kantar Media. In return, they had access to a U.S. audience that averaged 111.3 million people throughout the broadcast and drew 167 million viewers total. For the 2013 Super Bowl, ad prices have risen to between $3.6 million and $3.8 million.
In fact, prices for advertising in both Times Square and the big game have been climbing steadily in recent years. Back in 2005, Ad Age reported that the average cost of a billboard at One or Two Times Square came in at $2.4 million a year. That's exactly the average price Super Bowl sponsors paid for a 30-second spot that year. In each case, the advertisers are only reserving their spot and haven't covered the cost of a digital, weatherproof Times Square sign or an advertising firm to produce a commercial.
Unlike the Super Bowl, however, Times Square doesn't have a prix-fixe cost for its ads and, occasionally, can offer a discount based on the ad's size and placement. While A-B InBev has dumped $239 million into Super Bowl ads during the last decade and has shown little restraint in buying up high-profile ads in Times Square and sporting facilities, News Corporation (NWS) holding Dow Jones isn't trying to sell truckloads of product and seems happy parting with a relatively cost-effective $1 million a year for its zipper on One Times Square.
That's still fairly high end for real estate in a neighborhood that was known for peep shows, porn theaters and cowboy-clothed hustlers a generation or so ago. Now that it's basically the most high-profile, Disney-approved outdoor mall in America, Times Square doesn't have to wait for the ball to drop to charge advertisers big bucks for its captive audience.
More from Money Now
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
While incompetent bosses like Michael Scott and Andy Bernard typically can’t survive in the workplace, office romances are a very real part of corporate culture.
- Southwest Airlines turns less legroom into $773M
- 'American Idol' gets sorry ratings for season finale
- Powerball's wacky sense of humor
- Millions of Facebook's users are actually pets
- Can crowd funding rescue the LA Times?
- Domino's debuts a DVD that smells like pizza
- Average US retirement age climbs to 61
- McDonald's aims to slim down its 145-item menu
- Bathroom reading goes digital with iPad TP stand
[BRIEFING.COM] The S&P 500 ended this week with a bang, roaring to a new all-time high on the back of stronger-than-expected economic data, influential leadership, and an ongoing appreciation for the Fed's monetary policy support.
The bullish bias was evident in premarket action as the S&P futures pointed to a higher start without the benefit of any definitive news catalyst. Stocks indeed benefited from a blast of buying interest at the opening bell on this ... More
More Market News
All hail the bull market, which ended the week with a big rally. But it also is starting to look a little like 1987, which suffered an epic blow-out.