×
You will be redirected back to your article in seconds

NBC Expects More Than $1 Billion in Ad Sales from Super Bowl, Winter Olympics

NBCUniversal projected it would take in more than $1 billion in ad revenue from its broadcasts of Super Bowl LII and the Winter Olympics from PyeongChang, South Korea, both of which are set to be telecast next February, a remarkable sign of confidence in advertiser interest in both sports events.

The Comcast-owned company currently expects to snare around $350 million in ad revenue from the Super Bowl, said Dan Lovinger, executive vice president of ad sales for NBC Sports Group, and anticipates getting a revenue increase in the “low double digits” percentage range above the approximately $800 million it secured from its coverage of the Sochi Winter Olympics in 2014.

“Our marketplace is healthy,” said Lovinger, speaking with reporters Monday. He characterized sales for both events as “brisk,” and suggested NBC had only a “handful” of 30-second spots left in its Super Bowl inventory. “If an advertiser is interested in a premium position within the game, they really need to be in discussions with us,” he said. He said executives “are asking and getting north of $5 million dollars” for 30-second spots in the game, and declined to discuss whether some individual sponsors may be paying less.

NBC’s description of ad sales activity would suggest a change in the recent dynamics of selling the Super Bowl. For the past several years NBC, CBS and Fox have run into headwinds selling Super Bowl inventory. Fox did not announce this year whether it had actually sold out its broadcast of Super Bowl LI.  The cost of an average 30-second spot has rocketed more than 100% between 2007 and 2016  – rising to $4.8 million from $2.39 million – according to data from Kantar Media. With that price hike has come new skepticism about the game from Madison Avenue.

Lovinger credited the company’s ability to start talks with potential advertisers earlier than usual, owing to NBCUniversal’s broad portfolio of ad inventory across broadcast, cable and digital properties. The company has been passing along research about the ability of a Super Bowl ad to generate social-media chatter and YouTube views, among other consumer reaction, he said. Lovinger said NBCU is seeing interest in both events from marketers of technology and automobiles, as well as retailers. Movie studios, he said, are particularly interested in the Super Bowl.

The company has seen no diminishing of advertiser interest in the PyeongChang event despite recent unrest in that part of the world, said Lovinger. But he did suggest NBCU would likely lower its ratings guarantees that it makes to advertisers, a sign that other forms of media are luring consumers away from a linear TV broadcast. “We are probably guaranteeing somewhere in the neighborhood of where we finished our Sochi games, perhaps a tad lower,” he said.

The company may consider selling so-called “six second ads” in its Winter Olympics broadcasts, he said. More commonly known in the industry as “billboards,” the short on-screen shout-outs are typically given to advertisers spending a higher amount of money with a network. “There are some natural transition points from a programming perspective,” he said, like when a broadcast switches from one event to the next, or when a show shifts from an anchor to a venue where a sport is being played.

 

 

More TV

  • BBC to Cut 450 Jobs in

    BBC to Cut 450 Jobs in News Division

    The BBC is to cut 450 jobs in its news operation as part of a cost-cutting exercise. The BBC, which remains the U.K.’s most widely consumed source of news, said it planned to reorganise its newsroom along a ‘story-led’ model, focusing on news stories more than on programmes or platforms. This is designed to reduce [...]

  • Bud Light Asks Super Bowl Viewers

    Bud Light Asks Super Bowl Viewers to Pick the Ad They Want to See

    Most Super Bowl advertisers put a glitzy commercial in the game and hope for the best. Anheuser-Busch wants viewers to have a stake in the pitch that gets presented on Game Day. Bud Light made two different ads starring Post Malone, and is asking fans to help pick which of the pair ought to run [...]

  • good-morning-america-strahan

    At 'Good Morning America,' Robin Roberts Maintains Her 'X-Factor'

    Robin Roberts used to play basketball in college. She says she’s still building muscles while working at “Good Morning America.” The ABC morning program is many things all at once. It’s a news program. It’s a pillar of the economics of ABC’s parent Walt Disney. And increasingly these days, it is a broader media entity [...]

  • Gabrielle Carteris SAG AFRA PRESIDENT

    SAG-AFTRA Unveils Guidelines for Intimacy Coordinators

    SAG-AFTRA has unveiled the guidelines for intimacy coordinators who are on sets when union members’ work involves nudity and simulated sex. The union released “Standards and Protocols for the Use of Intimacy Coordinators” on Wednesday, six months after announcing that it would standardize the guidelines for such scenes. “SAG-AFTRA believes that implementation of these standards [...]

  • BTS The Late Late Show with

    BTS Goes Into the Woods With James Corden for 'Black Swan' Live TV Debut (Watch)

    BTS took James Corden back into the woods for the live television premiere of the group’s new “Black Swan,” unfolding on a deep-forest set two nights after their Grammys debut, which was also the subject of a short interview on the late-night show. Speaking of their appearance on the Grammys, the group said, “Everything about [...]

  • Verizon Fios to Carry Bloomberg Television

    Verizon Fios to Carry Bloomberg Television

    Verizon Fios will start to offer Bloomberg Television as of January 29, extending the U.S. reach of the business-focused news network. Fios TV customers can be found in New York, Philadelphia, Washington D.C., Boston and other homes on the east coast,. Bloomberg says its TV network is available in more than 433 million homes worldwide. Bloomberg [...]

  • NBC International Studios Strikes First Look

    NBCUniversal International Studios Strikes First Look Deal With StoryHunter

    NBCUniversal International Studios has inked a multi-year first look deal with audio and short form video start-up StoryHunter. The agreement will see the Studio develop both scripted and unscripted television content from original StoryHunter IP. StoryHunter will also work with International Studios’ production companies including Carnival, Heyday Television, Monkey and Working Title Television on off-television exploitation of their shows including podcasts and social media activity. [...]

More From Our Brands

Access exclusive content