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HONDA'S TICKET TO RIDE ABOARD NBC'S FOUR-YEAR NBA DEAL
Published March 2, 1998
NBC "is close to inking" a multiyear advertising deal with Honda Motor Co., one of the first deals under its new, four-year NBA contract, according to Wayne Friedman of the HOLLYWOOD REPORTER. The deal will likely increase Honda's total ad costs by 30% to 35% compared with terms of its current NBA on NBC package. NBC's current NBA advertiser deals expire at the end of the this season. NBC currently receives "nearly" $100,000 per 30-second spot for a regular season game, and anywhere from $110,000-$500,000 a spot during the playoffs and championship. NBC is reportedly seeking nearly $90M for a four-year NBA automotive sponsor, compared with $55-$60M the net commanded from each of its current auto sponsors. Friedman added that although Honda's total costs will be higher, its CPM's, or cost per thousand homes, should only rise by about 10% because NBC will air more games in the next contract (HOLLYWOOD REPORTER, 2/2).