The automotive industry is experiencing a notable resurgence in advertising during the National Football League (NFL) season, a welcome shift after years of budgetary retrenchment. Major players such as Toyota, Hyundai, and Detroit’s automakers are leveraging the NFL as a principal advertising platform, aiming to reclaim lost market visibility. This renewed enthusiasm is rooted in a significant turnaround in vehicle availability, driven by improved inventory levels following global supply chain disruptions and the aftermath of the COVID-19 pandemic.
Ryan Briganti, head of ad sales at Paramount’s CBS Sports, emphasizes that while the variables affecting advertising budgets remain complex, there is a palpable uptick in automakers’ ad spending. Brands are diving back into the advertising pool, especially during the high-stakes environment of NFL games, where auto advertisements have historically attracted a vast audience.
Over the past few years, the automotive sector has faced unprecedented challenges, significantly constraining advertising budgets. Automakers encountered historically low inventory levels, compelling them to curtail both production and advertising in light of limited products available for sale. However, higher vehicle inventory levels and increasing consumer demand present new opportunities for growth.
General Motors (GM) plans to boost advertising expenditures by over $400 million in the latter half of the year, signifying a dramatic shift into a more aggressive marketing phase. Although GM refrained from detailing how much of this sum would specifically support NFL advertising, they noted that their investment levels still fall short of historical averages. NFL advertisements have become a cornerstone of automotive marketing strategies, with a staggering 44% of automotive national TV ad budgets directed toward NFL programming last season, according to data from media planning company Guideline.
The NFL’s Advertising Pull
The NFL is not merely a sports league; it is a marketing juggernaut with significant implications for advertisers, particularly in the automotive sector. With a staggering average of 17.9 million viewers during last year’s regular season games, the NFL offers automakers unparalleled access to mass audiences. This immense viewership is further supplemented by high-profile events, such as the Super Bowl, which attracted an average of 123.7 million spectators, amplifying the potential reach for brands.
As the NFL’s media rights have escalated in value, so too have team valuations, which currently stand at an average of $6.49 billion. This financial growth has inadvertently created a more lucrative environment for advertisers, particularly for those willing to engage consumers through high-stakes, live sports exposure.
According to Guideline’s research, while overall advertising markets show signs of improvement, the automotive sector is experiencing even stronger growth, with spending soaring by 17% over the last two seasons. Notably, automakers have invested heavily in strategically tailored ad spending as they navigate the U.S. market’s complexities, recording a staggering 139% year-over-year increase in advertising efforts.
Organizations like Disney, which broadcasts “Monday Night Football,” have reaped the benefits of this automotive advertising renaissance, noting continuous double-digit growth from automotive brands over the past five years. This trend suggests a robust integration of sponsorship opportunities, whereby automakers are not only purchasing ad spots but investing in long-term partnerships with networks to enhance brand visibility.
Toyota, having secured the designation of “Official Automotive Partner of the NFL,” is launching its new advertising campaign, “Roll Deep,” which includes a significant media investment throughout the NFL season. This campaign aims to capture the vast and diverse audience associated with the NFL. Toyota’s vice president of marketing, Dedra DeLilli, articulated the unique advantages of such a partnership, emphasizing the “highly engaged” nature of NFL fans and the unmatched reach of this demographic across the nation.
In addition to Toyota, other automakers like Hyundai and Stellantis are expected to unveil new advertising initiatives that align with the ongoing NFL season. Hyundai, for instance, continues to play a pivotal role in NFL broadcasts, maintaining its longstanding partnership as the presenting sponsor of NBC’s “Sunday Night Football” kickoff show. These strategic placements highlight an ongoing commitment to connecting with consumers during live events, maximizing audience engagement.
The resurgence of automotive advertising in the NFL season signifies a critical shift, aligning brand strategies with the realities of a recovering market. Automakers are recognizing the potential benefits of intertwining their marketing efforts with high-visibility platforms like the NFL to effectively capture consumer attention and drive sales. As companies like Toyota and Hyundai step up their advertising initiatives, the automotive industry stands on the precipice of a new era, leveraging sports advertising as a dynamic tool for growth within a competitive market.