Spending on NASCAR was up 31% in first quarter, one of very few sports to see ad dollars rise.
The past 15 months have been like a game of Twister for the major sporting leagues. The NBA, WNBA and NHL scrambled their regular seasons last year, playing a modified schedule in months when players are usually enjoying summer vacation.
The NFL made scheduling accommodations and changed attendance protocols. NASCAR navigated COVID-19 protocols in host states.
Little wonder that we’ve seen the results of these changes in lower sports viewership and, more significantly for media companies, in ad spending.
During first quarter of 2021, all TV advertising spending during NFL, NASCAR, NBA, MLB and NHL games and events fell 28% compared to 2020, reflecting a sports economy that remains in flux as we recover from the pandemic.
That’s according to numbers from MediaRadar, which offers advertising analysis for more than 3.1 million brands. CEO and Founder Todd Krizelman notes that while the decreased viewership was a factor in the declining spending, so were many other things.
“Other factors to consider include canceled games, postponed seasons and the loss of in-person attendance. Games are more fun to watch [on TV] when spectators are cheering,” he says.
Those were indirect impacts of the pandemic. Other reasons for pulling back on advertising were more direct.
“Many companies were negatively impacted by the pandemic. Some slowed spending due to budget cutbacks but others to improve perception,” he says. “For example, some advertisers sat out the Super Bowl so they could provide money to support vaccine awareness.”
Not every league felt the impact equally. Krizelman notes that NASCAR ad spending rose 31% in first quarter this year, up $14 million. He credits the finance and entertainment categories with fueling the bump, including spending by PNC Personal Banking, Chase Bank for Business, Paramount+, Comcast
During first quarter, a total of more than 1,500 advertisers invested in NASCAR, NHL, NBA and NFL, down 7% from 2020. That’s fairly stable, considering the NBA has 20% fewer games than during the same period a year earlier due to the modified COVID schedule.
Krizelman says he notes more stability.
“Out of the top 100 brands placing ads in sports in first quarter 2020, 83 of them returned in Q1 2021. This is a very high renewal rate,” he says. “Spend from the top 100 brands leapt from 35% to 65% of first quarter total spend in these sports leagues. This suggests that the biggest firms are becoming more concentrated, spending more.”
