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It’s no secret that the NFL’s meddling television ratings are the league’s elephant in the room. The NFL reportedly lost $30 million in Ad Revenue in this season alone, due to a 10 percent drop in NFL ratings that required the league to pay various makegoods–or a partial repayment of money charged to advertisers due to the viewership not hitting expected numbers of the rate charged.
According to AdWeek, In-game NFL advertising revenue during the regular season declined 1.2 percent this year, to $2.42 billion, down from $2.45 billion in 2016. The irony is that the average cost of a 30-second television spot increased this season from $499,000 to $505,000, but the boost was unable to make up for the price of the makegoods.
Via AdWeek:
The top category in the NFL this season was automotive, which spent almost 50 percent more than the No. 2 category, consumer electronics. But the spend in both categories declined year-over-year: automotive fell 5.4 percent, and consumer electronics dropped 3 percent. Other categories increased their NFL spend this season, including insurance (up 30 percent), alcoholic beverages (a 16 percent jump) and quick-service restaurants (a 6.4 hike).
Verizon spent $2 billion on advertising during the 2017 season.
NBC, the network of this year’s Super Bowl, is expected to reel in commercial ad revenue in the range of $500 million, averaging more than $5 million for a 30-second spot. They are expecting to set a record for single-day revenue generated by a single company.
[h/t AdWeek]