SBD/June 12, 2014/Marketing and Sponsorship

NFL Game Advertising Rates Could See Dropoff With Supply "Outpacing Demand"

Advertisers may press for lower rates than networks get for primetime entertainment
Advertisers and networks "have differing opinions over the value of NFL games" for the upcoming season, according to sources cited by Brian Steinberg of VARIETY. Sources insist that the networks' "interest is robust." However, buyers "caution a reduction in overall volume committed by marketers for next season" and the addition of eight Thursday-night games on CBS "might create headwind in the sales process." One media buyer said, "Supply is certainly outpacing demand." Steinberg noted advertising talks "likely won’t ramp up until after the networks have completed the bulk of sales for their primetime entertainment schedules." A source said that networks in recent years "typically sought a 7% increase in CPMs for football" and estimated that advertisers this year "might press for a rate that is below what TV networks are getting for their primetime entertainment offerings -- something TV executives will likely refuse, given football’s popularity among viewers." Speculation in the market that GM and Toyota are "trimming their NFL ad budgets" is "adding some heft to the pressure from buyers." Nissan North America Product Communications Manager Josh Clifton said the company is "pretty much on par for our spend" for NFL in '14 with what was spent last year (VARIETY.com, 6/11).
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