What is the CPM for NFL? NFL Advertising CPM in 2024
When it comes to advertising, especially in the high-stakes world of sports, the NFL stands out as a golden opportunity for brands to capture attention. But before diving headfirst into NFL advertising, it’s essential to understand a key metric: CPM. So, what exactly is CPM, and why does it hold such significance in the context of NFL advertising? Let’s break it down.
Understanding CPM: Cost Per Mille
How CPM is Calculated
CPM, or Cost Per Mille, is a standard metric in advertising that represents the cost to reach 1,000 people with your ad. The formula for calculating CPM is simple:CPM=
CPM= (Total Cost of Ad ÷ Number of Impressions (in thousands)
For example, if you spend $500,000 on an ad that reaches 10 million people, your CPM would be $50. In the context of NFL advertising, this metric takes on added importance due to the vast and highly engaged audience that NFL games attract. However, the CPM for NFL games can vary widely depending on various factors, such as the timing of the game, the teams playing, and the platform on which the ad is displayed.
Why CPM Matters for NFL Advertising
The CPM for NFL games is more than just a number—it’s a critical indicator of the value you’re getting for your advertising spend. A higher CPM means you’re paying more to reach each set of 1,000 viewers. But in the case of NFL advertising, this isn’t necessarily a drawback. The NFL’s audience is vast, engaged, and diverse, making it a prime target for advertisers. For many brands, the high CPM is a worthwhile investment because of the quality and quantity of viewers they can reach during an NFL game.
The NFL Audience: A Goldmine for Advertisers
The NFL isn’t just another sports league; it’s a cultural phenomenon with a fanbase that spans demographics, regions, and even countries. For advertisers, this audience represents a treasure trove of potential customers.
NFL’s Reach and Influence
The NFL’s reach is unparalleled in American sports. With millions of viewers tuning in each week, NFL games consistently rank among the most-watched programs on television. The Super Bowl, in particular, is a global event, drawing over 100 million viewers in the U.S. alone and millions more around the world. This extensive reach means that NFL advertising doesn’t just put your brand in front of a large audience—it puts it in front of a diverse and engaged audience.
Viewer Engagement Levels
But it’s not just about the number of viewers; it’s about how deeply those viewers are engaged. NFL fans are known for their loyalty and passion, making them more likely to pay attention to the game—and the commercials—than viewers of other types of programming. This high level of engagement is a key reason why CPMs for NFL games can be higher than for other types of broadcasts. Advertisers are not just buying impressions; they’re buying the attention and interest of a highly engaged audience.
Factors Influencing CPM in NFL
Several factors can influence the CPM rates for NFL advertising, and understanding these can help you make smarter decisions about where and when to place your ads.
Time of the Year and Specific Games
Timing is everything in NFL advertising. The CPM for a regular-season game is different from that of a playoff game, and the Super Bowl is in a league of its own when it comes to advertising costs. Prime-time games, like Sunday Night Football, generally command higher CPMs due to their larger audiences. Additionally, specific matchups—such as rivalries or games featuring star players—can also drive up CPM rates.
Advertiser Demand and Competition
The basic principles of supply and demand play a significant role in determining CPM rates for NFL games. The NFL’s popularity means that there’s always high demand for ad slots during games, and when multiple advertisers are competing for the same spots, CPM rates can skyrocket. This competition is especially fierce during high-profile games, where the audience is not only large but also highly engaged.
Platform and Ad Format
Where and how your ad is displayed can also impact CPM. A 30-second spot on live television during a game will typically have a higher CPM than a digital ad on the NFL’s website or app. Video ads generally have higher CPMs than static banner ads because they tend to be more engaging and harder to ignore. Additionally, ads that are integrated into the broadcast, such as those that appear during halftime or as part of a sponsored segment, can command higher CPMs due to their increased visibility and impact.
Comparing CPM for NFL with Other Sports
Given the high stakes and high costs associated with NFL advertising, it’s natural to wonder how its CPM compares to that of other major sports leagues. Here’s a look at how the NFL stacks up against two other giants of American sports: the NBA and MLB.
NFL vs. NBA
The NBA has a younger, more global audience, and its games are spread out over a longer season compared to the NFL. However, when it comes to CPM, the NFL generally commands higher rates. This is largely due to the NFL’s larger and more diverse audience, as well as the concentrated nature of its season. With fewer games and more at stake in each one, advertisers are willing to pay a premium to reach NFL viewers.
NFL vs. MLB
Major League Baseball has its own loyal fanbase, but its CPM rates tend to be lower than those of the NFL. This is partly because baseball games are more frequent and spread out over a long season, diluting the audience. In contrast, the NFL’s shorter season and the high stakes of each game create a sense of urgency among advertisers, driving up CPM rates. Additionally, the NFL’s ability to draw in viewers who might not typically watch sports—such as for the Super Bowl—gives it an edge over MLB in terms of advertising value.
Maximizing ROI with NFL Advertising
Given the high CPMs associated with NFL advertising, it’s crucial for brands to make the most of their investment. Here are some strategies to help you maximize your return on investment (ROI).
Targeting the Right Audience
One of the most effective ways to maximize ROI is by targeting your ads to the right audience. The NFL’s broad viewership means that not every viewer is necessarily your target customer. By using data and analytics to identify and target the specific demographics that are most likely to be interested in your product or service, you can ensure that your ad dollars are being spent efficiently. This can help you get more value out of your CPM by reaching viewers who are more likely to convert into customers.
Choosing the Right Time Slot
Not all NFL games are created equal, and neither are the time slots within those games. Prime-time games, such as those on Sunday or Monday nights, generally have higher CPMs but also attract larger audiences. By carefully selecting the time slots that align with your target audience’s viewing habits, you can increase the likelihood that your ad will be seen by the right people. Additionally, considering factors like team matchups, playoff implications, and even weather conditions can help you choose the optimal time to run your ad.
Case Study: Successful NFL Ad Campaign
Let’s take a look at a real-world example to illustrate these strategies in action. The “Dilly Dilly” campaign by Bud Light is a perfect case study of how to maximize ROI with NFL advertising. The campaign, which featured a series of humorous commercials set in a medieval world, became a cultural phenomenon. But the success of “Dilly Dilly” wasn’t just about the creative concept; it was also about smart ad placement. By airing the commercials during high-profile NFL games, Bud Light was able to reach a massive, engaged audience and create a viral sensation that extended far beyond the game itself.
The High Stakes of NFL Advertising CPM
Fox’s Sunday games and 11 Thursday Night Football broadcasts raked in $1.55 billion in ad revenue, outpacing NBC’s $1.37 billion and CBS’s $1.01 billion. NFL Network added another $83 million with its Thursday night simulcasts and standalone telecasts. As the provider of 75 of the 100 most-watched programs on TV, the NFL commands the highest ad rates, far surpassing popular shows like Paramount Network’s Yellowstone, where the ad rate is significantly lower.
The NFL’s high CPM, averaging around $60, is still a relative bargain considering the massive reach and engagement compared to underperforming primetime series. The upfront sell-off secured 87% of in-game NFL ad revenue for the 2021-22 season, with expectations for similar results in 2022-23. As the economy faces potential headwinds, networks are locking in deals early to secure ad revenue, with sectors like pharma, tech, and credit cards driving much of the in-game ad spend. Despite the high cost, the payoff in impressions makes NFL advertising a smart investment, with even Yellowstone likely to see its rates rise in future seasons.
How to Maximize Your NFL Ad Return on Investment
To make the most of your NFL advertising investment:
Target the Right Audience:
- Identify your ideal customer and tailor your ads to their interests and preferences.
Choose the Right Ad Format:
- Select ad formats that align with your goals and budget, such as TV commercials, digital ads, or social media campaigns.
Measure Your Results:
- Track the performance of your NFL ads to assess their effectiveness and make necessary adjustments.
Final Thoughts on NFL CPM
Navigating the world of NFL advertising can be challenging, especially when it comes to understanding and managing CPM. However, for brands that can afford the investment, the rewards can be substantial. The NFL offers a unique opportunity to reach a large, diverse, and highly engaged audience, and while the CPM may be high, the potential return on investment is equally significant. By targeting the right audience, choosing the optimal time slots, and understanding the factors that influence CPM, brands can make the most of their NFL advertising spend and achieve their marketing goals.
FAQs
1. What is a good CPM for NFL advertising?
A good CPM can vary widely depending on the time of year, the specific game, and the platform. However, anything under $50 for prime-time games can be considered competitive.
2. Why is the CPM for NFL games so high?
The high CPM for NFL games is largely due to the league’s massive and engaged audience. The demand for ad slots during NFL games drives up prices, particularly for high-profile matchups and prime-time broadcasts.
3. How can I lower my CPM in NFL advertising?
To lower your CPM, consider advertising during less high-profile games or using digital platforms where CPMs might be lower. Additionally, targeting your ads more precisely can help ensure that your spend is as efficient as possible.
4. Is NFL advertising worth the high CPM?
For many brands, the high CPM is justified by the quality and quantity of the audience they can reach. The NFL’s ability to draw in viewers who are engaged and likely to pay attention to ads makes it a valuable investment for advertisers.
5. How does NFL CPM compare to other sports?
NFL CPMs tend to be higher than those of other sports leagues, such as the NBA or MLB. This is due to the NFL’s large and diverse audience, as well as the concentrated nature of its season, which creates more demand for each