It’s officially Olympics season and spectators are preparing to chant “USA!” and exude country pride. Whether you’re a fan of gymnastic, swimming, or beach volleyball, odds are you will be tuning in at some point during the next few weeks to catch some of the action. Also ramping up for the big event is NBC, who is preparing to make a ton of money off of both traditional and digital advertising in Rio.
NBC has paid a heavy price to be the main source of all things Olympics - $1.28 billion, to be exact. AdWeek reported that back in March the network had already raked in over $1 billion worth of ad sales, with four months left to sell.
So why are big name companies like Nike, Coca-Cola, Kellogg’s, and more jumping on the advertising bandwagon so profusely? Well, it has a lot to do with the viewership. For example, the 2012 London Olympics earned 31 million views and that was with a 6-hour time-zone delay. Now that the Olympics are held in Rio Grande, Brazil, a city with a smaller time-zone difference from major US metropolitan hubs like NYC and Atlanta, advertisers and NBC alike are expecting the number of views to increase drastically. This can also be backed up by the fact that the 2014 World Cup, held in Brazil, gave ESPN a record audience.
That hefty $1 billion profit includes traditional and digital advertising, but according to AdWeek, digital ad sales are predicted to increase by 50% this year. Olympic viewers will be constantly streaming videos about the Games’ coverage. Whether from a live video on Facebook or directly from NBC’s website, you can be sure that all those videos will be accompanied by a slew of digital advertisements. In an infographic created by Flite, over 75% of fans plan to share or view Olympic content on Facebook. 70% of viewers also reveal they prefer to watch video ads to unlock free Olympic coverage. With all of this data pointing towards viewer engagement, advertisers really need to take advantage of this advertising gold mine.
So, in the next few weeks while you’re cheering for your country or favorite athletes to perform well, remember NBC is cheering too... over the insane profit they’re pulling in with digital and traditional ads.
Want to capitalize on the Olympics buzz? Contact Yashi today to see how you can activate your digital potential and go for the gold.