How NFL Advertising is Changing the Game
The NFL's dominant viewership, including 16.7 million average regular-season viewers and 113 million for Super Bowl LVII, has attracted diverse advertisers such as liquor brands (allowed since 2018), new beer advertisers beyond Anheuser-Busch, and booming gambling companies, leading to expanded sponsorship deals potentially worth $1 billion over five years amid rising game attendance and the league's need for increased revenue streams.
The NFL’s regular-season games in 2022 averaged 16.7 million viewers, while Super Bowl LVII attracted 113 million people.
Even more telling of the NFL’s golden status: Sports accounted for 94 of the 100 most-watched telecasts in 2022; the NFL accounted for 82 of those.
The NFL’s audience is attractive to brands across industry lines.
In 2017, a series began examining advertising across professional sports leagues, including the MLB, NBA, and NHL. The latest installment dives into the NFL and how its advertising has shifted.
More Opportunities
Some advertisers have historically been kept at arm’s length from the NFL. For example, advertisers promoting whiskey, vodka, rum, and other spirits faced restrictions until 2018. While some liquor brands partnered with individual NFL teams and have advertised in other major professional sports leagues before, this was still a major milestone—and a wakeup call to beer brands that have historically walked on unencumbered ground.
The beer industry may oppose this change; however, networks and leagues, even popular ones like the NFL, need more revenue opportunities. The NFL can no longer turn away those like liquor brands that feed it ad dollars.
On a similar note, beer advertisers not named Anheuser-Busch (AB InBev) got their first taste of Super Bowl advertising in 2022 as AB InBev’s exclusive rights to beer advertising during the Big Game ended.
Finally, gambling advertisers have grown fond of the NFL, especially of late given the pandemic-induced boom in sportsbook apps; casinos and mobile gaming apps recorded a record $54.93 billion in revenue during the first 11 months of 2022.
The NFL is fully aware of the gambling boom, signing deals with DraftKings, FanDuel, and Caesars Entertainment that could be worth roughly $1 billion in revenue for the league in the next five years.
NFL Sponsorships Grow
The average NFL crowd increased by 3.25% per game in 2022, the second-largest figure in almost two decades.
Brands are taking notice, evident by the fact that NFL sponsorship revenue increased by 4% in 2022 to $1.88 billion. For comparison, that’s 15% more revenue than the NBA generates from sponsorships.
Jessica Gelman, CEO of KAGR, a key data analysis vendor to the league, said, “What has impressed me is how the NFL is reaching down [for younger fans] while maintaining the older fan base, and it’s been successful doing that.”
The NFL’s widespread appeal has attracted brands like Gatorade, Visa, and Verizon. The sponsorships didn’t come without some shakeups, though. Most notably, Pizza Hut lost its status as the NFL’s official sponsor to Little Caesars.
Super Bowl LVII Advertising Recap
The 113 million people who tuned in for Super Bowl LVII were once again greeted by ads from household names like Mars, Rémy Martin, and RAM (despite a 30-second TV spot costing up to $7 million).
Key takeaways:
- Advertisers from five categories were responsible for 75% of the ads: media & entertainment, technology, food, alcohol, and automotive. Media and entertainment advertisers dominated the night with 23 commercials from 13 companies.
- The number of automotive advertisers, including Toyota, BMW, and RAM, dropped to six. Inflation was the primary deterring factor for these advertisers.
- There were 3.5 minutes of beer ads, with whiskey and cognac each getting 60 seconds of screen time. Despite AB InBev relinquishing its exclusive rights to alcohol advertising, the company still accounted for 5% of the run time.
While Super Bowl ads came with a steep price tag, the return is there for advertisers willing to dig deep into their wallets. According to Kantar, Super Bowl ads in 2022 drove an average ROI of $4.60 per dollar spent.
Thursday Night Football Attracts Big Brands
Amazon’s Thursday Night Football package kicked off in 2022 after the company purchased the exclusive rights to stream the games outside local broadcast networks for $1 billion annually.
The investment seems to have initially paid off for Amazon, with the company seeing record signups for the first broadcast.
“By every measure, Thursday Night Football on Prime Video was a resounding success,” said Jay Marine, global head of Amazon’s sports division.
But is there a return for advertisers?
Maybe not. Thursday Night Football audiences missed estimates by up to 25%, forcing Amazon to compensate advertisers.
Despite the growing pains, it’s impossible to deny the unique opportunity afforded to advertisers.
For example, DraftKings ran TV-style commercials during the game and is the title sponsor of the pre-game show.
According to DraftKings CMO Stephanie Sherman, the real differentiator comes with the second-screen viewing experience. The on-air talent can take out their phones and direct viewers to specific bets or combinations of bets in the DraftKings app.
Sherman continued, “We’re really excited about all the different ways in which activating this partnership provides ample opportunity for us to leverage different metrics and methodologies.”
The NFL Offers a Prime Opportunity for Advertisers
Although the league has shown it can still draw large TV audiences, it’s aware of the cord-cutting trend. The league is working to combat this via its own channels or through various partners, such as Amazon Prime.
The NFL also has more sponsorships and is opening the door for advertisers it’s historically kept out.
At the same time, the NFL offers brands increasingly appealing ways to get in front of an incredibly engaged and niche audience. Despite the price tag often tied to these ads, brands will continue investing in America’s most popular sport.
Related
The State of Sports Advertising: Navigating a Seismic Shift in the Streaming Era
The sports advertising landscape is rapidly transforming as live sports increasingly shift from traditional cable to Connected TV and streaming platforms like Amazon Prime Video and Apple TV+, leading to fragmented but highly valuable sports media rights deals and new opportunities for advertisers to engage audiences through diversified, multi-platform strategies.
2023 MediaRadar Prediction: Gambling Advertisers Bet Big on Traditional Formats
In 2022, gambling advertisers, led by companies like DraftKings and FanDuel, increased their spending by 22% to over $738 million—primarily investing 69% in traditional media such as national broadcast and cable TV (notably CBS and NBC) and print ads—reflecting a strategic focus on established formats despite the younger demographic and growth of betting apps, with TV ad spending alone rising 27% year-over-year.
MediaRadar Blog
The MediaRadar Blog offers research-backed insights and updates on advertising trends, including expansions in connected TV and sports advertising, shifts in political ad spending, new market intelligence tools, customer-centered innovation programs, and evolving strategies in finance and live sports streaming advertising.
NFL Sponsorship Trends for the 2023-2024 Season
The 2023-2024 NFL season sponsorship trends highlight the league's massive viewership and growing in-person attendance, emphasizing the benefits of brand exposure and fan loyalty, while predicting that technology—such as streaming, apps, and integration with short-form content and events like the NFL Apple Music Half-Time Show—will increasingly shape how sponsors engage with fans amid evolving media consumption habits.
How is the NFL Dominating the Field of Playoff Advertising?
The NFL has significantly increased its dominance in playoff advertising by capturing 62% of playoff ad revenue—up 19% since 2014—maintaining a 90% advertiser renewal rate despite controversies, expanding its number of advertisers, and attracting top spenders like Verizon, Ford, and Toyota, with technology, automotive, and financial sectors leading the $1 billion-plus ad spend during the playoffs.
The NFL is Making a Comeback
Despite a $4 billion revenue loss during the pandemic due to limited attendance and a 7% drop in TV ratings, the NFL has rebounded strongly in its second pandemic season with a 20% increase in viewership compared to last year—the highest since 2016—packed stadiums, expanded playoff content, and growing optimism leading to increased advertising spending and anticipated larger future media contracts.