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NBC sells out Super Bowl for record advertising revenue

Posted on 31 January 2009 by Robert Seidman

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As NBC sports chief Dick Ebersol has even admitted they had the very good fortune of selling out 85% of the spots well beforehand and before the economy had completely been rocked. Reports are that the few remaining spots that were sold this week sold for noticeably under $3 million. I saw estimates of $2.4 million, but given the economy, still not shabby.

Also not pointed out in the release below is that between promotion of NBC properties, one GE spot and the first Hulu commercial ever more than 10 thirty second spots got soaked up. Hulu is a joint venture of NBC Universal and News Corp and the way the deal was set up apparently included $50 million in free television advertising.

Past Super Bowl ratings and 30 second spots costs.

Here’s the NBC press release:

NBC SELLS OUT SUPER BOWL & SETS NEW RECORD

All-Time Super Bowl Record $206 Million in Advertising Revenue

Also Sets New Full-Day Super Bowl Revenue Mark of $261 Million

TAMPA – January 31, 2009 – Super Bowl XLIII on NBC is sold out. NBC has sold all game advertising for tomorrow’s broadcast of Super Bowl XLIII and set a Super Bowl record of $206 million in advertising revenue, NBC Universal President and CEO Jeff Zucker announced today. NBC’s $261 million in revenue for the full Super Bowl day, especially impressive in the current economic downturn, also sets a new Super Bowl milestone.

“These advertising milestones show the power of the NFL brand and the strength of the Super Bowl as a TV property in this economic climate,” said Zucker. “The Super Bowl has become one of our country’s biggest holidays, a uniquely American day, and advertisers recognized the value in being a part of it, as their commercials are nearly as big a part of the day as the football itself. This is an extraordinary story for NBC against the backdrop of this economy.”

“The plan to aggressively sell the majority of our advertising early in the process at the record unit price of $3 million showed tremendous foresight,” said Dick Ebersol, Chairman, NBC Universal Sports & Olympics. “To finish selling out the Super Bowl in these last two weeks, in this economy and at record levels, is a testament to the dogged determination of Seth Winter [SVP, Sales & Marketing, NBC Sports].”

A total of 32 advertisers have taken time in Super Bowl XLIII across a broad spectrum of categories.

Fans of the advertisements featured in this Sunday’s Super Bowl will be able to view those ads almost immediately after they air, on popular websites NBC.com, Hulu.com and Superbowl.com. In addition, users will be able to post their favorite ads on a blog or webpage through both the NBC.com and Hulu.com widget applications. Hulu will allow users to vote on their favorite ad, with the winner announced on Tuesday.

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30 Responses to “NBC sells out Super Bowl for record advertising revenue”

  1. Bill Gorman says:

    Unlike the upfronts in the spring in which all networks get to boast about their results in an unaudited fashion, only one network gets to make claims about its Super Bowl advertising, but again, no one gets to audit them. ;)

  2. Ben says:

    Strictly speaking in hypothetical terms, what if the superbowl only attracted 50m viewers – would the advertisers get some money back from their paid ad rates. Similarly, what if it attracted like 125m viewers – would they have to pay even more?

  3. Julia says:

    Ben, if it gets more they would not have to pay more. If it gets less, it depends how much less, but if the advertisers are mad enough, NBC will have to make it up to them, which means giving them free spots or very reduced rates in other programs. But no money is actually exchanged.

    That’s how it works normally, but the Super Bowl may be a different story. I don’t think it’s ever been a problem, though.

  4. Ben says:

    Thanks Julia, i wondered how there can be a consistent ad rate when ratings fluctuate all the time, for both normal programming and sports.

  5. Sam says:

    Anyone have an idea of what the ratings are expected to be for the game this year?

  6. Julia says:

    Sam, there’s no way to know until tomorrow. I’m putting my (pretend) money on 88 mil. I don’t see it breaking 90.

  7. johnthemon says:

    wow

  8. clutz says:

    Julia, with my (pretend) money, I think we may barely crack 90 million. Right around the 90-91 million total viewers is my guess. These are small-market teams but there’s plenty of historical significance this year. Plus, a touch of “celebrity” status in Kurt Warner on the AZ side, and Pittsburgh has Polamalu ;)
    http://www.youtube.com/watch?v=At69PJ3ymIg

  9. clutz says:

    @Julia, I’m hoping – and almost ready to put pretend money – on 90-91 million total viewers. We might barely crack that 90 million mark. Lots of history in the making might boost viewer interest of these two small-market teams.

    Plus, how can any human being on Earth pass on a chance to see Troy Polamalu? ;)

  10. David says:

    Never heard of Troy Polamalu. I couldn’t name a current football player if my life depended on it. Only football player I ever heard of is Walter Payton and he is dead. I wonder what percent of people in the united states could name a current football player?

  11. Bill Gorman says:

    Any football player at all? At least 75% of functioning US adults.

  12. cool says:

    I dont know any football player name. That’s why I’m gonna watch Wipeout Bowl tonight.

  13. clutz says:

    Bill, you were even more generous than I would be. I would guess somewhere around 15-20% of the population, based rougly on the Nielsen ratings of Sunday and Monday Night Football. Plus, add a few for the sports bar dwellers ;) .

  14. Bill Gorman says:

    clutz, to my knowledge, my lovely wife hasn’t watched more than 5 minutes of an NFL game in 7+ years, but she knows who Tom Brady is. Of course, she’d likely identify him as Gisele Bundchen’s BF.

  15. clutz says:

    Cool and David neither one know Polamalu? So maybe it’s only us Burgh folk who know that name so well. I can tell ya most Pittsburgh females can’t say that name without a smile and a sigh ;) He’s all over You Tube though, so the world can see him!!!

    We have several sports names in the Pittsburgh metro area that, over the years, have evolved beyond celebrity to near-royalty connotation. In football, there’s Rooney, Bradshaw, Harris, Bettis, Cowher, Noll, Roethlisberger, Polamalu, just off the top of my head. Everyone in Pittsburgh knows hockey names Lemieux, Jagr, now Crosby, and Malkin too. As for baseball…well, I can’t think of the last time we bothered to know all those names. 1979, maybe?

  16. clutz says:

    Bill – Maybe a few Jessica Simpson fans could name Tony Romo too then?

    In all honestly, it’s the “ooh, he’s cute!” factor that got me watching Steeler football on a regular basis. Now I’m absolutely hooked on the game.

  17. Nick C says:

    I think cool is full of it. Not knowing one name of one football player in the nation? Really? I find that impossible to believe. Someone that sheltered can’t be taken seriously.

  18. Holly says:

    Does knowing Joe Montana’s name count?

    Seriously, I might recognize a couple names, but if you asked me to name a current football player, I’d draw a blank. I don’t like football so I don’t pay attention to any of the people involved in the game.

  19. Nick C says:

    Holly, if I say Peyton Manning, would you know I was talking about a football player?

  20. cool says:

    Nick C, I was not born in this country so I’m not interesed at all.

  21. Holly says:

    Nick, Probably, but if you told me he was a baseball player, I wouldn’t argue.

  22. clutz says:

    Woohoo! GO STILLERS!

  23. clutz says:

    Oops, hit Enter by accident. Can’t watch football and type at the same time, apparently? Anyway, I understand where you are, Holly, as I was there myself most of my life. No interest in football. However, Pittsburgh is so engrained, if you watch the morning news for weather and traffic, you’re bound to learn one or two Steelers’ names by osmosis ;) . Any town whose schools call a 2-hour delay due to sports evens it a bit obsessed, I guess ;) .

  24. Holly says:

    Actually, I lived outside of Pittsburgh for quite a while. I just didn’t watch the local news except for the weather.

  25. cool says:

    I prefer baseball too.

  26. Jeff G says:

    Does this total include the internal sales to other the NBCU entities?

  27. Justin Howard says:

    I am semi pro football player. I love a little bit of attention don’t get me misquoted. I play for fun though and I do not get paid.
    Before I made this team I was a student and still am a student.

    Listen to this:
    There is a 21 year old young man who REALLY is serious about is education, however. He can not even get a work study job. The baseball team is getting funding here at the school I attend. Everyone loves the sorority girls ,but is “upgrading” the campus worth having kids walk around here and not able to find a work place that can work around their schedule so that they may feed themselves etc. That yound man is me

    Now I play football for fun. I do. I HAVE NOTHING ELSE TO DO where I live.
    Nothing. No where to go. No places new to see. I could drink and get addicted to drugs to and have 3 and 4 kids but I’m choosing to do right.Why should I have to suffer the ardous discomfort of: NOT HAVING ACTIVITIES DESIGNED THAT ARE SUITABLE FOR ME, NOT ABLE TO FIND A WORK STUDY JOB, NOT ABLE TO GO TO PLACES IN WHICH I WONT BE JUST ANOTHER STEREOTYPE, OR EVEN HAVE INTERN OPPURTUNITIES.

    I see that the Super Bowl had a 209 million dollar revenue and an advertising mark of 261? Ad the money that went into the BCS National Championship, The New Orleans Bowl, The Bayou Classic, all NFL, MLB, NBA, NCAA football games, the NFL Playoffs, and then the Super Bowl and tell me how much money that is.
    Now…….
    10% of that can actually go to the bailout and to schools.
    America is not focused. Literally. The NFL is always going to be here.
    “Get involved” as I’m told. Sure. With what? I’m in school. I’m TRYING to keep myself on the team. I’m TRYING. I have news for you….the streets are going to be here to. Where am I going to go? I care whether I live but does anyone else?

  28. Will says:

    The real question to ask is how many of the ads NBC ran they actually got paid for. There were A LOT of NBC ads which amounts to paper profits (one NBC business unit paying the other). You can include the hulu ad as it’s a NBC joint venture with News Corp.

  29. Holly says:

    ^Isn’t that usually the case for sporting events? Part of the reason the nets are willing to pay so much for the rights to air them is because they can use them promote their regular shows. Did NBC air significantly more network promos than FOX or CBS in the years before?


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