The NFL Lost $30 Million In Ad Revenue This Season No Thanks To Plummeting TV Ratings
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.
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.