NBC Picking Up Steam On Rio Ad Sales, Expects To Break Revenue Records

Ad sales for the '16 Rio Games had been lagging compared to the '12 London Games until recently, as a surge of big-dollar deals has NBC Sports Exec VP/Sales & Sales Marketing Seth Winter promising a big year. "We will break revenue records here, there’s no doubt about that,” Winter said on a conference call with the media Thursday. NBC is “well on pace” to exceed $1B in national sales for Rio. The Games air from Aug. 5-21, and will mostly air live in the U.S. because of the favorable time zone. NBC has re-defined the technology, financial services, automobiles and drinks category to reflect the changing market and lure additional revenue, he said. Also, NBC has granted fewer exclusive advertising deals in light of the strong demand. NBC cleared $1B during London and reported $850M in ad sales for the '08 Beijing Games. The pace of sales is now much stronger than London’s, he said. "A couple months ago, we were behind London, and we were -- I wouldn't say we were concerned, but we were behind London,” Winter said. "But there were a couple of significant pieces of business that dropped. And you know, in the Olympics, we are not talking about frankly $3, $4, $5 million pieces of business. We're talking $25, $30, $50 million pieces of business." Winter said NBC expects primetime ratings during the Games comparable to the 21.0 rating the Seahawks-Vikings Wild Card game drew on Sunday. He also plugged the Olympics as a smart vehicle for political campaigns. “We do hope they participate, because we think there’s no better environment in which to articulate a positive message than in the Olympics," Winter said (Ben Fischer, Staff Writer). Automobiles, technology, consumer packaged goods, insurance, QSRs and movie studios "have been strong categories" (ADAGE.com, 1/14). In Philadelphia, Bob Fernandez notes NBC needs $1.2B in ad sales "to break even, because that's what it agreed to pay for the games when it won the TV rights" in '11 (PHILADELPHIA INQUIRER, 1/15).

DIGITAL SALES EXPECTED TO BE WAY UP: ADWEEK's Tim Baysinger reported NBC is predicting a 50% "increase in digital ad sales over London." In an effort to "protect the TV broadcast, NBC is requiring a certain level of ad spend on linear for those that want to buy digital spots." Winter: "Your linear investment is best suited and plays out better if there is digital inventory to solidify the level of engagement, the level of brand recall. It's kind of an insurance policy against your linear investment resonating with the public." NBC Olympics again this year will "partner with social platforms and recently launched on Snapchat" (ADWEEK.com, 1/14).