Automakers are making a grand comeback in NFL advertising, signalling a shift after a period of restraint. This renewed focus on the National Football League (NFL) highlights the automotive industry’s strategic move to leverage high-profile sports events to boost brand visibility.
The Resurgence of Automotive Advertising in the NFL
After a slowdown in recent years, automakers are eagerly investing in NFL advertising once again. This revival is not just a fleeting trend; it’s a calculated move driven by shifting market dynamics and increasing vehicle inventories.
Key Players in the NFL Advertising Arena:
- Toyota Motor Corporation: Debuting as the “Official Automotive Partner of the NFL.”
- Hyundai Motor Company: Continuing its prominent role in NFL broadcasts.
- General Motors: Planning a significant increase in advertising spend.
- Stellantis: Preparing new campaigns around its Jeep brand.
Why the NFL? The Appeal of Football Advertising
The NFL has long been a powerhouse in TV viewership. During the last NFL season, games attracted an average of 17.9 million viewers per game, according to Nielsen. This massive audience is a goldmine for automakers seeking to maximise their advertising impact.
Notable NFL Viewership Stats:
- Super Bowl: 123.7 million average viewers.
- NFL Regular Season Games: Consistently high viewership, even with the decline of traditional TV.
This robust viewership makes the NFL a compelling platform for automotive advertising, despite recent challenges such as the Covid-19 pandemic and supply chain issues that led to lower vehicle inventories and reduced advertising budgets.
Automakers’ Strategic Ad Spend Increases
Automakers are significantly boosting their ad budgets to capitalise on the NFL’s massive audience. General Motors, for example, plans to increase its advertising expenditure by over $400 million in the latter half of the year. This increase is aimed at promoting new or redesigned vehicles and reflects a broader trend of escalating automotive ad spend.
Automotive Advertising Spend Insights:
- 2023 Increase: 17% rise over the past two seasons.
- Expected Growth: Continued increase in 2024, particularly in NFL-related advertising.
Ryan Briganti, head of ad sales at Paramount’s CBS Sports, notes that while various factors affect advertising budgets, the automotive sector’s renewed interest in NFL advertising is evident. Automakers are leveraging the NFL’s extensive reach to connect with a broad audience.
The Impact of NFL Advertising on Automakers
Automakers have historically allocated a significant portion of their ad budgets to NFL advertising. Last year, 44% of national TV automotive ad spend was dedicated to NFL programming, according to media planning and data company Guideline. This is a substantial share compared to the 31% spent across all sectors.
Key Benefits of NFL Advertising for Automakers:
- Wide Reach: Access to a diverse and engaged audience of 218 million NFL fans.
- High Engagement: NFL games attract large live audiences, offering valuable advertising opportunities.
Alberto Leyes, head of product strategy at Guideline, underscores the NFL’s substantial impact on the automotive advertising industry. The NFL’s consistent viewership and high engagement make it an essential part of automakers’ advertising strategies.
Recent Trends and Future Outlook
The advertising market, overall, is showing signs of recovery, with live sports continuing to command the highest ad spend. The NFL’s value in media rights deals has surged, contributing to the rising valuations of NFL teams. Currently, the average NFL team is valued at $6.49 billion, as reported by CNBC’s Official 2024 NFL Team Valuations.
Advertising Market Trends:
- 2024 Growth: Stronger growth in overall media spend compared to post-Covid years.
- Automotive Ad Spend: Increased by 17% over the past two seasons, with further growth anticipated.
Jenny Wall, chief marketing officer at VideoAmp, highlights a 139% year-over-year growth in automotive ad spending, reflecting the sector’s strategic focus on live sports and precise media investments.
New Campaigns and Partnerships
Automakers are launching new ad campaigns and expanding their sponsorships to align with NFL events. Toyota, for example, has kicked off its new campaign, “Roll Deep,” marking its role as the NFL’s official automotive partner. The campaign includes a comprehensive schedule of content across various platforms, from linear broadcast to digital and social media.
Toyota’s Ad Campaign Features:
- “Roll Deep”: New anthem spot debuting for the NFL season.
- Season-Long Schedule: Content across linear broadcast, digital, and social media.
Hyundai continues to be a key player, maintaining its role as the presenting sponsor of NBC’s Sunday Night Football kickoff show. Although specific spending details are not disclosed, Hyundai’s commitment to NFL advertising remains strong.
Stellantis is also expected to unveil new ads focused on its Jeep brand, though further details are pending.
Conclusion
Automakers are making a significant return to NFL advertising, driven by increased vehicle inventories and the NFL’s unmatched viewership. This strategic move underscores the value of sports advertising in reaching a large, engaged audience and highlights a broader trend of increasing ad spend in the automotive sector.
As automakers like Toyota, Hyundai, and General Motors ramp up their NFL advertising efforts, the industry is set to benefit from the NFL’s vast audience and high engagement levels. The renewed focus on NFL advertising not only reflects changing market conditions but also demonstrates the enduring power of live sports in the advertising landscape.
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