In recent years, there has been a significant resurgence in automakers’ interest in advertising during the National Football League (NFL) season. Companies like Toyota, Hyundai, and the Detroit automakers are all set to capitalize on the popularity of the NFL and its games as key advertising platforms in the upcoming months. Toyota, in particular, has taken a major step by becoming the “Official Automotive Partner of the NFL,” marking a significant milestone for the world’s largest automaker. This move indicates a shift in the automotive industry’s advertising strategy, with a renewed focus on live sports, especially the NFL, to drive promotional efforts for new products.
Due to the Covid-19 pandemic and supply chain disruptions, the automotive industry had cut back on advertising and marketing budgets in recent years, as there was a shortage of vehicles to sell. However, with rising vehicle inventory levels, along with increasing interest rates and economic uncertainties, automakers are now looking towards live sports events like the NFL as a way to boost sales and market new offerings. General Motors, for example, plans to ramp up its advertising spend by over $400 million in the second half of the year compared to the first six months, with a focus on promoting new or redesigned vehicles. This shift underscores the importance of the NFL as a crucial component of automakers’ advertising strategies.
During the previous NFL season, approximately 44% of automotive ad spend budgets in national TV were allocated to NFL advertising, as compared to 31% for all sectors, according to data from Guideline. The dominance of the NFL in viewership on traditional TV is evident from the average viewership numbers of NFL games and the Super Bowl, indicating the league’s significance as a platform for advertising. The increased value of media rights deals for the NFL has contributed to a surge in NFL team valuations, with each team now worth an average of $6.49 billion, according to official reports.
The overall advertising market has shown signs of recovery this year, especially for streaming and digital platforms. Despite market downturns, live sports events like the NFL continue to attract significant ad spends. Data indicates that viewership of NFL broadcasts has been on the rise, leading to an increase in automotive ad spend as well. Automakers have been focusing on precision in media spends to navigate the complexities of the U.S. market, with impressive year-over-year growth in advertising investments.
Leading automakers like Toyota, Hyundai, and General Motors have been actively leveraging the NFL as a primary advertising platform. Toyota’s new partnership with the NFL as the official automotive sponsor highlights the company’s commitment to reaching a diverse and engaged audience of NFL fans. Hyundai, on the other hand, has maintained its prominent role in NFL broadcasts, including sponsoring NBC’s Sunday Night Football kickoff show for the seventh consecutive year. These strategic partnerships underscore the importance of reaching consumers through live television events, especially during sporting programs like the NFL.
As automakers gear up for the NFL season, it is clear that advertising during NFL games will continue to play a crucial role in their marketing strategies. With a focus on reaching wider audiences and promoting new vehicle offerings, automakers are expected to invest significantly in NFL advertising. The value of live sports events as advertising platforms remains strong, offering automakers a unique opportunity to engage with consumers and drive brand awareness in a competitive market landscape.
Leave a Reply