Pasadena Tournament of Roses Chief Executive David Eads, a native Midwesterner, laughed as he admitted to being one of many who can trace their desire to move to Southern California to watching the Rose Parade on TV as a kid.
“I watched the Rose Parade and the Rose Bowl game in the cold and the snow, and got the idea that would be a really cool place to live,” the Kansas native said.
Eads said the annual parade was launched in 1890 in part as a promotion to draw people to Southern California. A University of Michigan vs. Stanford University matchup launched the Rose Bowl New Year’s Day game tradition not too long after, in 1902. Both exposed visitors to the investment opportunities of the region.
But that was before television. Now, the Rose Parade is more than a relocation call to Midwesterners with cold toes. Eads said the parade gives the event’s corporate partners and float presenters a massive exposure to a global TV audience.
In 2018, an estimated 44 million individuals worldwide watched the usually sun-drenched parade via seven broadcast outlets: ABC, Hallmark Channel, HGTV, KTLA (Channel 5), NBC, RFD-TV and Univision, according to Nielsen Media Research Inc. The Tournament of Roses organization reported that KTLA alone drew 1.8 million households to view the parade.
Local companies with floats include Farmers Group Inc., based in Woodland Hills; Universal Pictures, based in Universal City; Glendale’s Dreamworks Animation; Dole Packaged Foods, headquartered in Westlake Village and Monrovia-based Trader Joe’s Co., among other California companies.
The parade’s viewership outpaces the football game it precedes: 28.3 million people watched 2018’s Oklahoma-Georgia Rose Bowl game, according to Nielsen’s research.
To put parade numbers in perspective, again according to Nielsen’s, 2018’s Super Bowl LII broadcast drew 103.4 million viewers, and network TV’s most-watched drama series, CBS procedural “NCIS” averaged 16.7 million viewers per episode in 2018.
Eads said there are two different entry fee schedules for corporate vs. nonprofit floats. Corporate-sponsored floats average a $17,000 entry fee, and nonprofit fees usually land somewhere between $5,000 and $10,000, he said. The costs of float construction can range from $250,000 to more than $500,000.
Still, that price for about two hours of exposure on the parade route could be seen as a bargain when compared to a reported $135,000 per 30-second spot on “NCIS,” or more than $285,000 for 30 seconds on a top-rated network comedy like CBS’ “The Big Bang Theory.”
Hometown team
While a business located anywhere might benefit from the national exposure, the impact is still greatest close to home. A recently released report from the Tournament of Roses estimates the 2018 parade and game had a combined economic impact of $192.2 million on the local economy.
Los Angeles companies and organizations say they reap a larger benefit than companies located elsewhere because they can involve their employees at a grass roots level in both the parade and many ancillary events. “They can activate around their brand,” Eads said. “Our partners can engage with 700,000 to 1 million people along the route.”
Companies that spoke to the Business Journal for this story were reluctant to reveal their financial investment and more likely to give a cheer about the feel-good vibe of the Rose Parade. Some, including Dole, use their floats to promote their charitable efforts. Dole’s $350,000 float, “Rhythm of Paradise,” promotes the company’s hunger relief programs.
Torrance-based American Honda Motor Co. Inc., the Rose Parade’s presenting sponsor, will show its float “Celebration of Dreams” in the 60-year-old company’s 58th Rose Parade. “Our participation is Honda’s way to say ‘Happy New Year’ to families around the world,” said Erik Wedin, American Honda’s corporate relations manager.
Bill Caswell, chief operating officer for Kaiser Permanente Inc. for Southern California, said Kaiser will have its 14th float in the Rose Parade in 2019. The company’s float salutes the 100-year anniversary of the Los Angeles Philharmonic Orchestra. As a result of an internal contest, two Kaiser physicians and three other employees will perform as musicians on the float along with Youth Orchestra Los Angeles.
“Each year it gets better and better,” Caswell said. “From a business perspective, we are celebrating both head and heart. … We have almost 13 million individuals through the U.S. (who have Kaiser health insurance). It’s a celebration for all of those individuals who partner with us in their health care.”
Caswell added, “The media coverage is exceptional. And we celebrate that.”
