College Fan Bases

TooTall

Helluva Engineer
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The first measure is based on the idea of a “revenue premium”. One way to look at brand strength is to compare the revenues produced by two brands with similar quality. The idea is that if we control for quality differences then the difference in the revenue can be attributed to differences in preferences for each brand. In other words, we want to rate marketing place performance while “controlling’ for variations in team performance and other factors such as size of the alumni base or stadium capacity. I calculate these revenue premiums by comparing each school’s reported football revenues with the revenues predicted by a statistical model that includes factors such as stadium capacity, alumni base, won-loss record and other school level attributes.

The second metric is a measure of ROI (return on investment). ROI is related to brand strength because a stronger brand yields many benefits in the market. For example, in the case of college basketball (I want to avoid using college football examples for a moment), we might expect the blue blood programs to be more efficient operations in terms of recruiting investments. A less prestigious program might spend years building a relationship with a prospect to lose out if a last minute offer arrives from a Kentucky or Kansas.

The third metric is simply the relative football revenues reported by each school. We can probably think of this as a measure of pure market share. I like to include a top level estimate of revenue because this measure says something about the scale of each brand. The revenue premium metric is more focused on the intensity of fandom and the ROI measure captures some notion of brand efficiency. Top level revenue is a nice compliment to these measures.
 
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