NFL becomes a popular advertising spot for automakers.

• During the National Football League season, automakers are increasing their advertising efforts after a decrease in recent years.
• NFL games in the upcoming months are predicted to benefit automakers such as Toyota and Hyundai.
• During the 2020 NFL regular season, an average of 17.9 million viewers watched NFL games on traditional TV, as per Nielsen's data.

During the National Football League season, automakers are increasing their advertising efforts after a decrease in recent years.

The NFL and its games are expected to be major advertising platforms for Detroit automakers, with Toyota being the "Official Automotive Partner of the NFL" during football season.

""Numerous variables affect budgets, but automakers are recovering, as stated by Ryan Briganti, head of ad sales at CBS Sports, which broadcasts NFL games on CBS and Paramount+. We advertise autos across our entire portfolio," said Briganti."

Due to historically low vehicle inventory levels caused by the Covid-19 pandemic and supply chain problems, the automotive industry reduced its advertising and marketing budgets. However, with growing vehicle inventory levels amid high interest rates and economic fears, automakers are now turning to live sports, particularly the NFL, to promote new products.

The company anticipates boosting its advertising budget by over $400 million in the second half of the year to market new or revamped vehicles. However, GM refused to disclose specifics about the spending, including how much of that amount is linked to NFL advertising. Nevertheless, the company emphasized that its advertising expenditure remains below historical norms.

Automakers rely heavily on the NFL as a key element of their advertising strategy, with 44% of their national TV ad spend budgets allocated to the league during the 2020 season, compared to 31% spent across all sectors, according to Guideline.

According to Alberto Leyes, head of product strategy at Guideline, the NFL has a significant impact on the automotive advertising industry.

Fueling TV viewership

On average, 17.9 million viewers watched NFL regular season games last year, while the Super Bowl attracted 123.7 million viewers.

Despite customers leaving pay TV bundles, the NFL's consistent viewership has led to an increase in the value of its media rights deals, which have contributed to the rise in NFL team valuations. According to CNBC's Official 2024 NFL Team Valuations, an NFL team is now worth an average of $6.49 billion.

Despite the downturn, live sports continue to attract the most significant ad spends in the advertising market, particularly in the streaming and digital sector.

"According to Leyes, the growth in media spend in 2024 was much stronger than in any of the post-Covid years. Additionally, he stated that they anticipate a strong second half of the year due to the return of NFL."

In the previous NFL season, the automotive industry was the most visible brand, with over 10% of TV ad views, as per iSpot's ad data.

The TV networks and streaming service ESPN have experienced consistent growth in automakers' advertising spending over the past five years, with a positive increase of double-digits, according to Andrew Messina, senior vice president of sales at Advertising. Messina highlighted the significant growth from Hyundai, Mercedes-Benz, and Chrysler parent.

Messina stated that brands are now extending their commitments to include sponsorship opportunities in addition to ad spots.

On "Sunday Night Football," which is broadcast on NBC and streamed on Peacock, automakers have a significant presence in marketing, according to Mark Marshall, the chairman of global advertising and partnerships at NBCUniversal. While traditional TV remains the primary platform for auto ads, there has been a growing trend towards streaming services, with Peacock having streamed exclusive NFL games in the past year.

NFL broadcast viewership grew by 7% last season, while ad spend in NFL programming doubled that rate at 14%. Additionally, automotive ad spend increased by 17% over the past two seasons and is predicted to rise again this year, as stated by Leyes.

VideoAmp's chief marketing officer, Jenny Wall, stated that auto brands have experienced 139% year-over-year growth as they strive to optimize their media spend in the intricate U.S. market.

New ad campaigns

This week, "Roll Deep" is the new ad campaign launched by Toyota, as the "Official Automotive Partner of the NFL."

The campaign debuted an "anthem spot" for Toyota, which also had a prominent role in the NFL's first game of the season Thursday night.

The automaker announced that it will launch a "season-long content plan" across various formats, including linear broadcast, digital, paid social media, and in-game.

After reviewing its marketing and advertising expenditure, Toyota opted for a new partnership with the NFL, as stated by Dedra DeLilli, vice president of Toyota North America marketing communications.

The automaker had previously advertised and sponsored NFL games, but now it has decided to become the official automotive sponsor of the league, as it believes this partnership provides the best value for its media spend.

"The most appealing aspect of this partnership is that we have access to 218 million highly diverse, highly engaged fans of the NFL, which is almost 72% of the population. You are not going to find scalability and diversity like that in any other U.S. sport," DeLilli stated.

"It's a match made in heaven," she said.

DeLilli refused to reveal Toyota's NFL advertising budget, despite their successful collaboration with the Olympics and Paralympics in Paris this year.

The Jeep brand is set to feature in new ads for the upcoming NFL season, but a spokesperson refused to disclose further information.

For the seventh consecutive year, NBC's Sunday Night Football kickoff show will feature Hyundai as its presenting sponsor.

Hyundai Motor America CEO Randy Parker stated that the company's spending plans will remain the same as the previous year, despite the company's reluctance to disclose specific details.

"He stated to CNBC that catching consumers while they are watching live television is crucial for their strategy. He emphasized the importance of this approach, particularly during sporting events, which see a consistent increase in viewership year after year."

NBC Olympics, a subsidiary of NBCUniversal, which is owned by Comcast, holds the U.S. broadcast rights to all Summer and Winter Games through 2032.