Five big questions re: the Sphere:
1) What is the Sphere?
2) Who built it?
3) How much did it cost to build?
4) What does the Sphere mean for advertising?
5) What types of events will the Sphere host?
Big question #1: What is the Sphere?
Quick answer: The Sphere is a one-of-a-kind spherical-shaped entertainment venue in Las Vegas. A 580K screen wraps around the entire structure, making it the largest video screen in the world.
Video: Las Vegas $2.3BN Mega Sphere
Big question #2: Who built it?
Quick answer: Initially, the Sphere was a partnership between Madison Square Garden Company and Las Vegas Sands Corporation before being spun into a separate company (Sphere Entertainment Group).
Big question #3: How much did it cost to build?
Quick answer: $2.3B vs. an initial estimate of $1.8B (28% over budget).
Big question #4: What does the Sphere mean for advertising?
The big picture: As the world’s largest video screen billboard, the Sphere could usher in a new era for advertising long predicted in movies such as “Back to the Future” and “Minority Report.”
Largest video screens in the world, according to Wikipedia:
1) Sphere (USA) – 580K sq ft
2) Resorts Worldwide (USA) – 162K
3) Fremont Street Experience – 130K
4) Phoenix Island (China) – N/A
5) Mall Taman Anggrek (Indonesia) – 94K
Bottom line: 3D billboards exist today in cities such as Tokyo, Seoul, and London.
Quick math for potential advertising revenue for the Sphere:
1) $450K per day
2) 365 days per year
3) $164M per year
4) 5 90s ads every 15 minutes
5) 20 90s ads every hour
6) 480 90s ads per day
7) $937.50 per spot
Quote from Alejandro Donzis – CEO @ Beeyond Media:
“The Las Vegas Sphere represents an evolutionary step in how we perceive and interact with advertising. It’s not just about grabbing attention anymore, but about creating meaningful, engaging, and dynamic experiences for audiences.”
Interesting: In their estimation, each person who sees the ad in person will generate 15 extra social media impressions.
Out-of-home advertising, according to eMarketer:
1) 2019 – $8.7B
2) 2021 – $7.1B
3) 2023 – $9.2B
4) 2025 – $10.1B
Big question #5: What types of events will the Sphere host?
Quick answer: 600 events will be held at the arena each year, including concerts, movies, and boxing matches. U2 is currently playing a 25-show residency through December.
Quick math on U2 concert residency at the Sphere:
1) 25 shows
2) 18K attendees per show
3) ≈ $600 per ticket
4) $11M per show
5) $270M total