Automakers increase advertising in the NFL following a reduction.
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Automakers are re-entering the advertising arena during the NFL season after a period of reduced spending. Major players like Toyota, Hyundai, and various Detroit manufacturers are poised to leverage NFL games as key advertising venues in the upcoming months. Notably, Toyota has secured the title of "Official Automotive Partner of the NFL," marking a first for the automotive giant.
Ryan Briganti, who leads ad sales at Sports, which broadcasts NFL games weekly, noted, "There are numerous factors that can influence budgets, but automakers are beginning to ramp up their spending." He highlighted that automotive ads are prevalent across their entire portfolio.
In recent years, the automotive sector significantly curtailed its advertising budgets due to a lack of vehicle availability, a situation exacerbated by the Covid-19 pandemic and supply chain disruptions that resulted in historically low inventory levels. However, as vehicle supplies have improved amidst rising interest rates and economic uncertainties, automakers are increasingly turning to live sports, particularly the NFL, to market their new offerings.
General Motors anticipates boosting its advertising budget by over $400 million in the latter half of the year compared to the first half, aiming to promote new or revamped vehicles. While GM did not disclose specific figures related to NFL advertising, it emphasized that its overall spending remains considerably lower than historical averages.
The NFL plays a vital role in the advertising strategies of automakers. According to media planning firm Guideline, approximately 44% of national TV automotive ad budgets were allocated to the NFL during last year's season, a significant increase compared to 31% across all industries.
Alberto Leyes, head of product strategy at Guideline, remarked on the substantial influence of the NFL on automotive advertising. NFL games consistently attract large audiences, with last season's regular games averaging 17.9 million viewers, and the Super Bowl drawing an impressive 123.7 million viewers.
The NFL's steady viewership, even as audiences shift away from traditional pay TV, has contributed to a rise in the value of its media rights deals, which have been a major factor in the increasing valuations of NFL teams. Currently, the average worth of an NFL team stands at $6.49 billion, as reported in the latest NFL team valuations.
The overall advertising market has shown signs of recovery this year, particularly in streaming and digital sectors. Live sports continue to command the highest advertising expenditures, regardless of economic fluctuations. Leyes noted, "We've observed a much stronger growth in 2024 compared to any post-Covid years, and we anticipate a robust second half of the year with the NFL's return."
Last season, the automotive sector was the leading industry in terms of TV ad impressions, accounting for over 10% of total impressions, according to iSpot. Disney, which broadcasts "Monday Night Football" on its networks and streaming service ESPN, has experienced consistent double-digit growth in automotive ad spending over the past five years, particularly from brands like Hyundai, Mercedes-Benz, Nissan, and Stellantis.
Brands are also expanding their commitments to include sponsorship opportunities alongside traditional ad placements. Automakers have secured significant advertising slots on "Sunday Night Football," which airs on and its streaming service Peacock. While traditional television remains the primary channel for automotive ads, there has been a noticeable increase in advertising on Peacock, which has streamed exclusive NFL games recently.
Guideline reports that viewership of NFL broadcasts increased by about 7% last season, while advertising expenditures in NFL programming grew at a rate of 14%. Automotive ad spending has risen by 17% over the past two seasons and is projected to continue increasing this year. Jenny Wall, chief marketing officer at VideoAmp, highlighted that auto brands have seen a remarkable 139% year-over-year growth as they refine their media spending strategies in a complex market.
Toyota, as the NFL's "Official Automotive Partner," has launched a new advertising campaign for the season titled "Roll Deep," which includes an anthem spot. The company is set to engage in a comprehensive content strategy throughout the season across various platforms, including linear broadcasts, digital media, and social channels.
According to Dedra DeLilli, president of marketing communications at Toyota North America, the decision to elevate their partnership with the NFL followed a thorough review of their marketing strategies. While Toyota has previously engaged in advertising and sponsorships related to NFL games, they determined that becoming the official automotive sponsor offered the best value for their media investments.
DeLilli emphasized the appeal of this partnership, stating, "We have access to 218 million highly diverse and engaged NFL fans, representing nearly 72% of the population. Such scalability and diversity are unmatched in any other U.S. sport." Toyota did not disclose its specific advertising budget for the NFL, following a successful partnership with the Olympics and Paralympics earlier this year.
Stellantis is also expected to unveil new advertisements for the NFL season, particularly for its Jeep brand, although details remain undisclosed. Hyundai will maintain a significant presence during NFL broadcasts, serving as the presenting sponsor for 's Sunday Night Football kickoff show for the seventh consecutive year. While Hyundai did not provide specific spending details, CEO Randy Parker indicated that their budget is expected to remain consistent with last year's levels.
Parker stated, "We aim to reach consumers when they are watching live television, which we believe is strategically crucial. Sporting events consistently attract increasing viewership year after year."
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