TV networks including ESPN are "bracing for a drop in advertising revenue for football games in the coming season, which could drag down sales growth for sports broadcasts overall," according to sources cited by Lucas Shaw of BLOOMBERG NEWS. Sources said that a decline in ratings for NFL games last season has "hurt sales this year, along with a saturated market for college games and spending cuts by drug and auto companies." Sources added that while the networks have "raised prices for spots during NFL games next season, total ad revenue for the broadcasts is trending a few percentage points below a year ago." N.Y.-based Horizon Media Dir of National Broadcast & Sports Media Adam Schwartz said that some advertisers, including women’s brands, are "showing more interest in sports." Meanwhile, some ad buyers said that NBC "accepted smaller rate increases this year to take share from CBS and Fox, where sales declined as a result" (BLOOMBERG NEWS, 7/12). Ad Age last week reported Viagra and Cialis likely will reduce their presence on NFL broadcasts this fall.
PEACOCK STRUT: In L.A., Meg James reports NBCU has "edged out its rivals to solidify its position" as a market leader in the just-concluded TV upfront ad sales season. The company "struck deals for the upcoming television season" worth nearly $6.5B. The total "includes sales for commercial time on the NBC broadcast network, Spanish-language Telemundo and such prominent cable channels as USA, Bravo, E!, MSNBC, CNBC and Golf Channel." NBCU also "increased its digital video ad commitments 42% compared with last year, and it boosted its projected NFL revenue by 5%" compared with '16. NBCU President & CEO Steve Burke said, "This was our best upfront ever." James notes there are "soft sectors in the advertising market, including such groups as car companies, retail stores and Hollywood movie studios, which are releasing fewer movies." But TV networks "benefited from a controversy earlier this year when several major brands including Verizon, JPMorgan Chase & Co. and Johnson & Johnson yanked their ads from Google’s YouTube video site when they discovered that their promotions ran in proximity to offensive videos." In addition, some advertisers "fretted about the effectiveness of their online ads." NBC ratings for next year are "expected to be higher because the company boasts" Super Bowl LII, the '18 PyeongChang Games and '18 FIFA World Cup on Telemundo (L.A. TIMES, 7/12).
