NFL Dominates Live TV Viewership

The NFL continues to dominate viewership on traditional TV, with an average of 17.9 million viewers for last year's regular season games and 123.7 million viewers for the Super Bowl. Despite customers leaving pay TV bundles, the NFL's consistent viewership has driven a surge in the value of its media rights deals and team valuations.

• An NFL team is worth an average of $6.49 billion, according to CNBC's Official 2024 NFL Team Valuations.
• Live sports, especially the NFL, still fetch the most significant ad spends, even during economic downturns.

Automakers Increase NFL Ad Spend

After pulling back advertising and marketing budgets in recent years due to low vehicle inventory, automakers are now capitalizing on the NFL as a major advertising platform.

• During last year's NFL season, about 44% of the automotive ad spend budgets in national TV were for the NFL, compared to 31% across all sectors.
• Automakers were the most-seen brand industry, with more than 10% of TV ad impressions during the NFL season, according to iSpot.
• Companies like GM, Stellantis, Hyundai, and Toyota are expected to increase their NFL advertising spend this season.

Toyota's "Official Automotive Partner of the NFL" Campaign

Toyota has launched a new ad campaign called "Roll Deep" as the "Official Automotive Partner of the NFL," kicking off a "season-long schedule of content across linear broadcast, digital, paid social and in-game formats."

• Toyota decided on the partnership after reviewing its marketing and advertising spend, seeking scalability and diversity in reaching NFL fans.
• The automaker had previously advertised and sponsored around NFL games but felt the official partnership offered the best value for its media spend.

NFL Partnerships for Automakers

Several automakers have formed partnerships and sponsorships around NFL broadcasts and events, including:

• Stellantis is expected to launch new ads for the NFL season, including around its Jeep brand.
• Hyundai will continue as the presenting sponsor of NBC's Sunday Night Football kickoff show for the seventh consecutive year.
• Disney has seen "positive, continuous double-digit growth" in ad spending from automakers like Hyundai, Mercedes-Benz, Nissan, and Chrysler parent Stellantis.

Reasons for Increased NFL Ad Spend

Automakers are increasing their NFL ad spend for several reasons:

• Vehicle inventory levels have been growing, prompting the need for advertising to promote new products.
• Live sports events like the NFL offer a way to reach a large, engaged audience as viewers continue to leave traditional TV.
• The NFL's consistent viewership and valuable media rights deals make it an attractive advertising platform.

Ad Spend Growth and Trends

The advertising market has shown signs of a rebound this year, particularly for streaming and digital players, with live sports still fetching the most significant ad spends.

• According to Guideline, viewership of NFL broadcasts grew about 7% over the past season, while ad spend in NFL programming doubled that pace at 14%.
• Automotive ad spend increased 17% over the past two seasons and is expected to increase again this year.
• VideoAmp reports a 139% year-over-year growth in auto brands' ad spend as they seek more precise media spend in the U.S. market.

Automakers' Strategic Approach to NFL Advertising

Automakers are taking a strategic approach to their NFL advertising campaigns, considering factors such as:

• Reaching a diverse and engaged audience through the NFL's widespread popularity.
• Leveraging live sports events to capture viewers as they continue to leave traditional TV.
• Utilizing a combination of traditional broadcast, digital, and social media platforms to maximize reach and engagement.