Ad Execs Feel Less NFL May Be More

football

Do NFL broadcasters want the league to add two more regular-season games? It would seem to be a no-brainer, but a top executive at one network offered a less than enthusiastic take Thursday.

The greater inventory in an 18-game schedule wouldn't necessarily lead to higher revenues, CBS head of sports sales John Bogusz indicated.

"I'm not sure the overall market would expand if we have two more games to sell," he said at a conference run by Sports Business Journal.

Bogusz sat on a panel that included two top sports buyers, who also expressed muted interest in added games. "Part of me says it adds more inventory so it lowers cost," said Omnicom Media Group's Tom McGovern. But on the flip side, the product could become diluted and viewership could drop off.

"The more games you have -- every game is not a critical game," McGovern said, noting that college football's truncated schedule heightens interest each weekend.

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McGovern, a managing director, also said that increasing beyond the current 16 games could extend the season into February and upset the rhythm of the sports ecosystem, prompting a fan backlash. After the Super Bowl, attention turns to the Daytona 500 and college basketball.

Optimedia Executive Vice President Larry Novenstern was more definitive on what would happen with extra games. "I think the ratings are going to go down," he said.

The NFL has toyed with the idea of adding two more games, partly thinking it may have too many pre-season games (four), where fan interest seems to diminish each year.

In any case, any addition would not happen for several years, as the league would have to negotiate an expanded schedule with its players' union.

All panelists at the Thursday event said the NFL ad market this fall is robust, partly because with lower ratings the supply in prime time has gone down and advertisers are looking for space.

Also, leading automakers are starting to ramp up spending after a fallow period. "Both Ford and GM are back in the NFL spending considerably -- and just recently, Chrysler came back as well," said Bogusz, executive vice president of sports sales.

He added that despite some early skepticism, CBS will have higher revenues this NFL season than a year ago, although last fall was softer than normal.

Bogusz said CBS -- which has 62 Super Bowl spots to sell (possibly 65) -- is more than 80% sold, ahead of schedule versus past years. Beyond football, Bogusz said CBS had a tough spring and summer selling its slew of PGA tournaments -- as financial marketers, which use the sport to reach an upscale audience, had to cut back. Golf marketers also pulled back, as the economy may have contributed to people playing fewer rounds of the pricey sport.

"I'm not going to kid you -- we had a challenge getting through '09," he said.

As the NASCAR market slows, McGovern suggested the sport do some reevaluation. What should be the most exciting part of its season -- the dash to the Sprint Cup title -- has been taking place in recent weeks, in competition with the NFL and World Series.

A shorter season could help, he indicated. Also, NASCAR may have hurt itself by expanding into large markets that have a low concentration of NASCAR fans. A reemphasis on smaller markets in the South may yield a benefit.

Another topic that sports buyers have been weighing is how heavily involved they should be with mixed martial arts, particularly the Ultimate Fighting Championship. Novenstern said "it is a sport" -- a matter of some debate -- and the advertisers he represents are considering it.

McGovern, who works on behalf of PepsiCo, said the flagship Pepsi drink "probably won't be on it, but there may be another brand that's associated with it."

 

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