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The Value of Sports in Television Advertising

The Value of Sports in Television Advertising

The Value of Sports in Television Advertising

In the age of online streaming and on-demand TV, revenue from traditional TV advertising has been decimated. Now that viewers can easily access their favourite TV shows anytime they want, live TV events have become a much-needed source of income for television networks.

The primary reason behind the ever-increasing value of sports is because these events are one of the few programmes that audiences still watch live. In fact, sports are watched live 99% of the time versus a paltry 53% for regular TV content. What’s more, live viewing means that it’s not possible for the audience to the skip ads. With a massive amount of viewers forced to watch the ads, it’s not surprising that sports has become the most lucrative genre on TV.

Live sports are now one of the very few options available to advertisers who want their ads to be seen by very large audiences. Consequently, the cost of advertising during a live sporting event has shot up significantly over the past few years. For example, the cost of airing a 30-second commercial during the Olympic Games (the 2016 event was viewed by approx. 3.6 billion people) is estimated to set marketers back a whopping £400,000!

Given the sky-high rates that advertisers are willing to pay, it’s no surprise that competition for airing rights has become fiercer and fiercer among TV networks. For example, Sky and BT Sport paid a record £5.136 billion for live Premier League TV rights for three seasons from 2016 – 2017. In contrast, Sky only paid only £304 million for exclusive rights to five seasons of the Premier League between 1992 and 1997.

In our latest infographic, we look at the value of live sports events in television advertising. We provide an in-depth look into the increasingly crazy figures that TV companies and advertisers are willing to pay for live sports events. We also look in detail at why, in a time when the TV industry is generally losing viewers, the live sports sector is booming.

Read our infographic below for more information.

The Value of Sports in Television Advertising
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