The cost of TV advertising is falling, but football ad prices surge

The news: The cost of a 30-second spot on primetime TV is decreasing, per an Ad Age report. As advertisers and viewers continue to shift toward streaming services, what was once some of the most desired inventory on linear TV is becoming more affordable—excluding sports broadcasts, which continue to command the most expensive ad prices in video.

By the numbers: Ad Age found that the cost of advertising declined for 33 of 53 returning series on Fox, ABC, NBC, CBS, The CW, and Prime Video. Some year-over-year changes were compared with 2022 figures due to last year’s Hollywood strikes, which put many scripted productions on hold.

• The NFL had the three most expensive broadcasts across tracked channels. “Sunday Night Football” on NBC took the top spot at $1,008,746 per 30-second spot, up 14% from last year. “Monday Night Football” on ABC came in second at $637,718 (up 13%), followed by Prime Video’s “Thursday Night Football” at $562,918 (down 3%).
• The gap between football broadcasts and non-football shows is stark. “American Idol” on ABC ranked fourth with $131,943 for a 30-second spot. Only one scripted series, NBC’s “Chicago Fire,” ranked in the top 10.
• The top three spots were consistent with last year. Prime Video’s sustained presence among leading broadcasts, which include popular shows like “The Bachelorette” and “Dancing with the Stars,” reinforces the value of sports content as viewership shifts to digital channels.

Our take: The significant ad cost gains of football on linear TV can partially be explained by the $12 billion in election spending, much of which went to primetime TV sports broadcasts in hopes of reaching a high volume of voters.

• But with election spending about to fade, the report provides insights into what content will remain dominant as the transition to digital media continues apace. Only a few years into Thursday Night Football, Amazon’s ad value far exceeds non-sports linear broadcasts. While its slight decline could be due to the election, even those ad dollars are sliding more to connected TV.
• Scripted content’s absence from the top 10 could suggest that viewers are leaning more toward unscripted reality series. Leading streaming services have invested heavily in both scripted and unscripted content production, with scripted series “Squid Game” and unscripted “Love is Blind” ranking as two of Netflix’s most popular offerings.