The regular season hasn’t even started, but it’s safe to say the television partners of the NFL are already grand winners.
According to Sports Business Journal’s John Ourand, each of the NFL’s TV networks are reaping in record advertising revenue. Ourand adds that each network has said they have more ads sold than they did at this time last year.
These numbers defy projections that foreshadowed a lackluster market for advertising. Instead, TV networks are charging more for ads and advertisers are still buying advertisement space frantically. Ourand reports that NBC has seen approximately a 10 to 12 percent increase in ad sales, the highest spike among the main networks. NBC is charging $700,000 for a 30-second ad during its Sunday Night Football broadcast and $560,000 per 30-second spot for its Thursday Night Football broadcast.
Believe it or not, the bulk of the advertising revenue isn’t coming from daily fantasy sports websites DraftKings and FanDuel, who spent a whopping $150 million on advertising last year combined. Both companies have scaled back their advertisement spending drastically, according to Ourand. It seems like fans won’t be exposed to “success stories” from daily fantasy players during every commercial break.
This also could be considered an enormous surprise considering the perception of the unsafe nature of the game. People are clearly still watching games despite increased scrutiny regarding player safety.
“The NFL is still that live appointment television that delivers a mass audience,” Seth Winter, NBC Sports Group’s executive vice president of sales and marketing told Ourand. “The advertisers know that predictability and scale are the two most important things when they invest their media dollars.”
This unexpected boom in the advertisement market is remarkable and it will be interesting to see whether it is sustainable in the future.