After TV networks paid "twice as much" for U.S.
broadcast rights to PGA Tour events in '99, golf company
execs are "anticipating higher-than-usual rate increases"
during their ad negotiations with the networks, according to
Dale Gardner of GOLFWEEK. The Tour's new rights package, a
four-year, $400M deal signed last year, comes at a time when
the golf industry "prepares to close the books on a year of
generally slower sales and shrinking profits." Although
several media buyers "are predicting" a 15% to 20% jump in
ad rates, one "veteran" buyer said rates for golf broadcasts
may stay "in line with previous years" and increase by 7% to
9% for a 30-second spot. Taylor Made Dir of Communications
Mike Kelly said that ad rates are "up substantially, and
we're spending more money in alternative media. Golf
manufacturers can't afford price increases year after year
after year." Taylor Made plans to shift more of its ad
money to infomercials, the Internet, direct mail, print
media and special events. Kelly: "You're going to see less
and less golf manufacturers on network television."
Gardner notes that while golf equipment manufacturers "will
continue to be an obvious target," TV networks "hope to lure
in" more non-golf companies in the future. CBS Sports
Senior VP/Sales Scott McGraw: "We're trying to encourage new
players and grow the ad base for golf" (GOLFWEEK, 11/7).
