Media Bytes
MAY 4, 2006
CALLAWAY STRIKES PGA DEAL WITH CBS
By John Consoli
Callaway Strikes PGA Deal With CBS
John Consoli MAY 04, 2006 - Callaway Golf has made a sizable ad buy on 17 CBS owned-and-operated stations and 12 other CBS affiliates covering 35 markets during each weekend's CBS network telecasts of Professional Golf Association Tour, beginning this Saturday and running through August. The commercial buy includes 30-second spots, supplemented by a 10-second sponsorship tag stating that the golf coverage is being "brought to you locally by Callaway Golf." The deal was put together by Callaway's agency, KSL Media, working through the CBS Television Station Group, and the individual affiliates. With the CBS Network national ad pods more than 90 percent sold out, and prices for ad spots on the network being driven up to between $100,000 and $150,000 per 30 for the non-major PGA Tour, Callaway and its agency decided to put a chunk of ad dollars only in the markets where its retail sales are the strongest, some of the major cities and Sun Belt cities. In the process, Callaway spots will most likely air in pods free of its competitors, which is virtually impossible and cost prohibitive in national telecasts. "We're investing our money where our retailers and customers are," said George Fellows, chairman and CEO of Callaway Golf. "By defining our own geographic network, positioned in a non-competitive commercial pod, and enjoying a price advantage, we can create a tailored marketing initiative." Kal Liebowitz, chairman of KSL Media, said, "Callaway can't outspend our competitors nationally, can't out shout them, doesn't have the deepest pockets, so we decided to try to buy smarter and more efficient." Liebowitz said the agency took a chunk of extra dollars that had been set aside by Callaway and put it towards this campaign. "We found that there was not much demand for advertising on national golf telecasts locally," he said. "Other than some car manufacturers with local tie-ins, the telecasts were wide open, so we jumped in. Running in local pods next to a Mercedes ad is better for us than running in a national pod with our competitors." Liebowitz said Callaway has not pulled money from its CBS national telecasts and will continue to have a presence there. Tom Kane, president of the CBS TV Station Group, said based on this deal, will also begin pursuing similar deals. "We're going to pursue more non-tradtional deals like this," Kane said. "We can now compete with the national networks by partnering with advertisers that need geographic emphasis." The first spots locally will begin airing this weekend when CBS televises the Wachovia Championship from Charlotte, N.C.