NFL Ad Revenue Plummets Thanks to Poor Ratings

  • Source: The Lead
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Over the last two seasons the NFL has witnessed astonishing losses in television ratings. With the 2016 and 2017 seasons bleeding losses, numbers are now down 10 percent across the board.

The NFL has dealt with a number of different problems over the last two years, and it seems they never can help themselves due to the way the league chooses to respond to those issues.

Some have blamed Colin Kaepernick, and his disrespectful national anthem protests, speaking against “social injustice” in America for the declining numbers. Others have found a way to falsely blame our president, while some are still concerned with the possible safety aspect of the sport.

Due to the plummeting TV ratings the NFL endured the past two seasons, ad revenue for the first two months of the current NFL season reported an extreme 19 percent loss.

Although the 2018 ad revenue recorded losses, TV ratings are starting to show signs of stabilization during this current 2018 NFL season, with only a few players still conducting Kaepernick’s famous protest. Owners and officials are making an effort to create a straight forward culture, with rules and expectations of players being established immediately within the NFL organizations.

However, the NFL’s rise in television viewership this season doesn’t mean they can forget about that monster 19 percent loss in ad revenue.

What this means specifically for the league is that TV partners are spending 19 percent less through the first two months of the current NFL season, per Standard Media Index. This drop in revenue turns into a big deal, especially when the overall business is dealing in billions of dollars.

Because the NFL ratings were so atrocious during the 2016-2017 seasons, advertisers were ready to negotiate with numbers and data that worked in their favor, while backing NFL negotiators into a corner.

Both parties understand the formula that sets the market price is often contingent on last year’s performance. Therefore, TV networks like NBC, Fox, CBS and ESPN couldn’t exactly fluff up any of the prices on their buyers after such a down year in ratings.

“The effects of the lower audiences last year are spilling into this season, as NFL revenue is down,” James Fennessy, CEO of Standard Media Index, said. “Nevertheless, as the market reports improving viewership, we will see how these trends change over the remaining months of the season.”

Over the first 12 weeks of the 2018 NFL season, the multi-billion dollar company is averaging 15.8 million viewers. During this time last year the NFL was averaging 14.9 million viewers. Although this bump in viewership is good for the NFL, the loss in ad revenue will most likely become another cause of concern for the NFL.