NBCU Olympic Ad Revenue Is Snowballing
Report sees Peacock booking more than $1 billion in Sochi Olympic Ad sales
NBCUniversal forked over some $775 million for the media rights to the 2014 Sochi Olympics, but if history is any guide, the network is all but certain to recoup the cost of its original investment.
According to a new report from Kantar Media, given NBCU’s declared intention to air 539 hours of coverage from Sochi (a 24 percent increase compared to the 434 hours devoted to the 2010 Vancouver Games), the total volume of commercial time could add up to as much as 5,500 minutes.
Should that estimate pan out, NBCU could be on track to rake in around $1.05 billion in overall ad sales revenue, an estimate arrived at by multiplying the average cost of a 30-second spot in the 2002-10 Games ($95,500) by Kantar’s prediction that as many as 11,000 30-second units were carved out of the Sochi coverage.
NBC last week said that it has sold north of $800 million in Olympic ads……. Most of the heavy lifting at the Olympics is done by a select group of blue-chip advertisers. According to Kantar, the top 10 clients accounted for $334.6 million in Vancouver sales, or 41 percent of the $809 million booked. U.S. Olympic Committee sponsor AT&T was the biggest investor four years ago, spending $50.3 million, while IOC global sponsor General Electric—then a 49 percent stakeholder in NBC—spent $45.9 million.
The Sochi Games are the first in NBCU’s four-event, $4.38 billion package, which includes the 2016 Summer Olympics in Rio de Janeiro and the 2018 Winter Olympics in Pyeongchang, South Korea. Tokyo will host the 2020 Summer Games.
The top categories in the 2010 Games were: automotive ($130.8 million), financial services ($68.4 million) and telecom ($58 million).
See full Adweek Story Here: NBCU Olympic Ad Revenue Is Snowballing. Report sees Peacock booking more than $1 billion in Sochi sales
Author: Anthony Crupi
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