Whatever the reasons behind the NFL’s decline in ratings, and they’re likely myriad, it was always going to be tough for that big of a drop to not impact the bottom line. According to AdWeek, that’s exactly what happened: It didn’t happen until the final month of the regular season, but the 10 percent drop in NFL ratings this year finally dented the bottom line when it came to football-related ad revenue, according to new data from Standard Media Index. 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. If you’re wondering why it would have been possible for the league to lose ratings but still gain ad revenue, it’s because the rate went up; however, that ended up not being enough, as makegoods rose over the last month of the year, wiping out the potential for growth: The data from SMI, which tracks 70 percent of national ad spending from global and independent agencies, is based on total ad spend on NBC, CBS, Fox and ESPN broadcasts during the regular season. While the average cost of a 30-second spot grew 1.2 percent this season, from $499,000 to $505,000—and commercial loads were flat—it ultimately couldn’t compensate for a jump in makegoods to make up for this season’s 10 percent ratings drop in total viewers. Makegoods accounted for 23 percent of units this season, up from 21 percent in the 2016 season.
NFL ratings decline leads to an increase in makegoods, $300 million drop in ad revenue
Awful Announcing | Jan 26