The NFL’s Ratings Woes Finally Hit Networks’ Ad Business

www.wsj.com ^ | 01/25/2018 | By Alexandra Bruell

[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.

[cgbg]

Please, please, please, do not watch the Super Bowl.

Hang out with friends and get them to do anything, anything other than watch the Super Bowl.

Boycott week!

[Mr Rogers]

My Dad usually worked 6 days a week. Sunday afternoon was lying on the couch, half-asleep while watching football. He’d be alert if the Baltimore Colts were playing, but watching football was one of the few ways he could relax on his day off. We typically lived in places that had 2 channels, sometimes a third if you could adjust the antenna just right.

Nowadays, I can’t understand why anyone watches pro football. Fully understand watching high school games live, or maybe college games.

And young people are tough to get out of a house, let alone onto a playing field! I suspect the reason for the drop in teen pregnancies is based on how few teens spend time together any more versus texting. When I’m hiking, or jogging, or riding horses, I mostly see old folks like me hiking, jogging, or riding horses! I sometimes wonder if those below 30 know they have legs, or what legs used to be used for...

What will really be interesting is if advertisers start asking not just, “Is the TV/Cable/Whatever on?” but, “Is anyone paying ATTENTION while my ads are being played?”