Could Sky-High Super Bowl Commercial Costs Be A Sign Of Broadcast TV’s Strength?

clear tv keyConstantly the safest bet for broadcasters, upcoming winter sporting events are bringing in the big bucks at a time when cable company bottom lines are in a bit of a perilous place. According to an Oct. 30, 2017 article from Variety magazine, NBCUniversal experts to make $1 billion in advertising revenue from just Super Bowl LII and the Winter Olympics in South Korea. The February airing of both major events are a “remarkable sign of confidence in advertiser interest in both sports events,” according to the Oct. 30, 2017 report, which adds that the Super Bowl alone should deliver approximately $350 million in ad revenue for NBCUniversal.

Just how do broadcasting companies wind up netting such massive revenues? Let’s take a look at the cost of doing business. According to the article, major broadcasters are charging on average $4.8 million for a 30-second television commercial during the big game. What’s more, that figure is an increase of 100 percent over the 2016 total of roughly $2.39 million for the same ad in 2016. While watching a football game carries no million-dollar economic burden for Clear TV Key owners, the sky-high spike in commercial costs could be an off-shoot of the “cord-cutting” phenomenon. How is that possible? Keep reading to learn more about our theory and how Americans ditching cable TV is a trend that shows no sign of slowing down.

Clearly, there are big bucks in television and some companies have plenty to leverage during the most-watched television event of the year. However, the TV landscape hasn’t been all that stable in recent years and cord-cutting is just one reason why. Millions of Americans who’ve grown tired of paying at least $1,000 each year for cable television access have given up on the service and invested in even more cost-effective digital television antennas from companies like Clear TV Key. It’s not inconceivable then that these major broadcasters have realized that so many more people are watching nationally-syndicated channels and not the cable TV they’ve since given up on. With that in mind, it’s easier to ask for much more money for a 30-second spot because more eyes are on your station and not specialty cable television channels. In fact, Prosper Insights and Analytics found that nearly 18 percent of adult viewers watching the big game deemed commercials as the main draw and Sports Illustrated states that those who watched 2017’s competition present a “golden opportunity for marketers to reach more than a hundred million Americans.”

Clear TV Key owners have no horse in this race; they’ve simply decided to exhibit economic independence by cutting the cord with their cable provider and saving hundreds of dollars each month. In exchange, viewers can tune into local and national news broadcasts, sporting events, children’s programming, classic movies and much more – not to mention movie studio-quality 30-second commercials during the Super Bowl and Olympics.

 

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