Posted on 01/26/2018 7:26:33 AM PST by Red Badger
Ad revenue dipped 1.2% as lower ratings more than offset higher prices
Advertising revenue from in-game NFL programming declined 1.2% to $2.42 billion during the 2017 regular season, according to Standard Media Index, as the league feels the impact of declining viewership.
SMI’s figures include NFL advertising across NBC, CBS, FOX and ESPN, from Sept. 7 to Dec. 31.
The price of 30-second spots increased 1.2% from $499,000 to $505,000, according to SMI. At the same time, the delivery of “make goods” grew from 21% to 23% of the units due to lower ratings. Media companies typically give advertisers make goods, or extra commercial space, when they don’t hit their agreed-upon audience or ratings targets.
“For the first time since we have been tracking the market we saw a slight drop of in-game dollars,” said SMI Chief Executive James Fennessy in a statement. “Despite a fairly significant fall in ratings, CPM’s were strong and demand continued to be high.”
According to SMI, NFL ad revenue was up 9.6% in 2015, and 3% in 2016.
Viewership of NFL games was down 9.7% compared with the 2016 regular season, according to Nielsen. Industry insiders have chalked up the ratings woes to a range of possible factors, from off-the-field controversies and backlash to players’ protests during the national anthem to there being too much football on TV. Many believe cord-cutting has led to a structural and long-term downshift in viewing.
(Excerpt) Read more at wsj.com ...
I don’t even know who buys ads with the NFL as I haven’t watched in years. Other than beer companies (I don’t drink beer) I wouldn’t know who to boycott.
https://deplorablesrepublic.com/2017/10/04/nfl-sponsor-advertiser-boycott-list/
https://www.nflpa.com/players/partners-sponsors
It was irritating - it lasted about a couple of plays before turning the radio off.
For most any sports event, I have it streaming to my laptop or tablet in the background while watching a movie or regular program on the main TV.
Maybe, if it is a championship, I will watch the last few minutes of it on the regular TV.
That’s pretty much how I am now. I haven’t watched a game from start-to-finish in years.
Agreed. Especially when Kevin Harlan does the play-by-play. The man is brilliant in his descriptions and with his enthusiasm for both teams.
Years ago, while listening to my first MLB game over the radio, I came to the conclusion that it’s no coincidence that football shot to prominence in the early 1960s, just as televised sports was coming of age.
Football is made for TV, and generally it’s better to watch a game than to hear it over the radio.
Baseball is perfect for radio. And listening to the game that way is at least as enjoyable as watching it on TV.
Whoo hoo, thanks for posting that!
Actual advertising revenue dropped $29 million.
If you project the stated 2015 growth rate forward, the drop relative to what might have been expected before Colin cancer spread and was found to be terminal is far worse. My rough projection is that insulting the fans, our flag, our anthem, our country, and our ancestors cost them 18% or $440 million this year, in ad revenue alone. I suspect the price tag will be even higher next year. The NFL is still a juggernaut, but that doesn’t mean it is immortal.
Every young person either played sports in some capacity or admired those who did. That’s just not so anymore.
A company buys ads in terms of expected readership and vierership. Circulation and eyeball statistics.
I believe there is a feedback delay. It takes awhile for companies to discover solid proof, that fewer readers and viewers are seeing their ads, because said readers and viewers left the NFL bigtime.
So stadium attendance drops, TV viewer drop, and only now do companies have solid data to justify cutting add buys.
Sooner or later that flows into endorsements and salaries.
“Just wait until businesses and public corporations are sent notices for renewals on seasons tickets that they can no longer tax deduct. LOL, Trump’s tax code is going to be a kick in the nuts they’re never going to recover from.”
Basically that has happened. We have a couple of younger relatives fairly high in their company totem poles.
Shortly, after President Trump’s tax cuts were signed. Their CFO’s told them, their company would not be buying any more box seats at pro games and any college games.
Locally from just one medium size company, 8-10 box seats were cancelled for all games at the Raiders, Fornicating Niners, Giants, A’s, Warriors and UC Berkley.
Our relative in the SW was told no Cowboys or any seats for any pro teams, any Texas college team and any Oklahoma college team.
I never thought of that ... knowing the younger set isn't watching so deliberately promoting the SJW silliness to reel them in.
Problem is the SJW silliness only lasts through the anthem, then the ones who tuned in for it are going to tune out.
Unless the NFL decides to allow SJW silliness on the field throughout the game. Which I would personally love to see because it will totally turn off the diehard football fans.
I really should invest in popcorn stocks. :)
I was an Oilers fan then living in Houston.
That's when I first started souring on the NFL.
Today, I can't remember the last time I watched a game or any part of one.
Screw the anti-American NFL!!
Interesting.
I do think there will still be purchases by business interests, just NOT AS MUCH. But, nobody knows how big a decline it will be first year. I’d guess, 30-50%, which is a very painful blow.
But, just wait until the firs business hiccup comes along and the board of directors says to slash and and all unnecessary spending. LOL, there will not be a penny of corporate money going to pro/college sports.
In the end, this will help fix sports. Fans should be able to have access to affordable tix, not inflated nonsense pricing.
The worst of all this is coming to the perennial losers that have only survived due to corporate tickets. Those games where a 30k stadium has 8000 people show up. Generally, those 8000 people didn’t pay a dime for those tickets, they were corporate freebies.
Same goes for stadium concessions then. The prices were totally retarded because the vendors counted on the generous credit cards of salesman wining and dining customers.
I own a financial institution. Most of my colleagues are conservative in the money business. We collectively no longer clamor for tix because we despise the NBA and NFL because of all the things that you are aware of here.
Once this implosion gathers some steam, next thing you know the advertisers will no longer want to pay for in stadium advertising, tv and radio commercials....
Anyone that thinks this is “no big deal” is kidding themselves.
Once this implosion gathers some steam, next thing you know the advertisers will no longer want to pay for in stadium advertising, tv and radio commercials....
Anyone that thinks this is “no big deal” is kidding themselves.
“As you noted in your reply, the marginal teams will be the big losers.”
Also, the basic law of economics, supply and demand will continue to hammer down the prices of tickets.
For Christmas, my wife bought me 3 winter/spring Under Armor long sleeve shirts at our local UA discount store. She got them at 40% off and an extra 10% for my military service. She carries a copy of my DD214. Plus an extra 10% for buying 3 items.
If “White shoes” had been flagged for Unsportsmanlike Conduct at the time, we wouldn’t have to put up with all the end-zone crap since then.
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