Home Business Money Matters NFL Television Advertising Rates up Despite Falling Ratings, Revenues

NFL Television Advertising Rates up Despite Falling Ratings, Revenues

NFL Television Advertising Rates up Despite Falling Ratings, Revenues
Action during a recent game between the Jacksonville Jaguars and the Buffalo Bills. Photo: CNN Money

Despite declining ratings and ad revenues of National Football League (NFL) programming on U.S. networks, costs for average 30-second commercials across all networks showing NFL games in September were up 4 percent to $489,193 versus a year ago – and 10 percent higher than 2014.

According to Standard Media Index (SMI), broadcast television network spending was down 13.2 percent, with prime-time revenue down 16 percent. All cable networks were virtually flat – up 0.7 percent for September.

SMI points to a shift in money, placed in August – into the Olympics – as the reason for the decline. The average unit cost across four major broadcast networks – ABC, NBC, CBS and Fox – during the prime time (excluding sports) – was down 7.6 percent to $86,000 for a 30-second commercial from $93,300 in 2015. SMI also points to much lower broadcast spending resulting from FanDuel and DraftKings, two sports fantasy leagues – which spent around $100 million collectively a year ago. Much of this caused by state legal actions declaring the businesses were illegal gambling efforts.

“A large part of that spending went into sports programming – especially the NFL,” explains Wayne Friedman on the TelevisionNewsDaily website of MediaPost. But all this comes against sharp declines – double-digit ratings drops – so far this season.”

Sunday afternoon NFL programming has seen an 11 percent increase in the cost per 30-second commercial on Fox and CBS; with NBC witnessing a 9 percent gain for Sunday Night Football. CBS’ Thursday Night Football was flat versus the same time last year, while ESPN had a double-digit decline on their 30-second commercials for Monday Night Football from the same period in 2015.

This story first appeared in the blog, The Sport Intern. The editor is Karl-Heinz Huba of Lorsch, Germany. He can be reached at ISMG@aol.com. The article is reprinted here with permission of Huba.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.