NFL advertisers are 'nervous' amid protests, ratings dip

Four weeks into the current NFL season television ratings are down nearly 10% overall compared to the first four weeks of last season. Sunday’s games in Week 4, according to Nielsen, had the smallest audience of any season so far: an average 14.2 million viewers.

Add that ratings dip to the ongoing controversy around player protests, and you might reasonably wonder how official NFL sponsors, as well as brands that buy advertising during NFL games, feel right now about the league.

The answer: “They’re nervous,” says Brian Cristiano, CEO of ad agency Bold Worldwide. “Everyone is looking at the numbers, they’re looking at the ratings… they’re nervous. They’re like, ‘Are we overpaying? What are we going to do? Can we have makeups? How else are we going to get this exposure back?'”

 

NFL advertisers anxious, but far from panicking

 

In case you doubt that advertisers pay close attention to the week-to-week scandal and scrutiny in and around the league, Cristiano, who works with brands that advertise with the NFL, says they monitor all of this, “probably too much — to their detriment. They’re looking at the press, they’re looking at the ratings numbers, as if it really matters that much in the long run, instead of looking at next season, next year, and where the NFL is going to be in 3-5 years.”

And where is the NFL going to be in 3-5 years? Making its games available on more and more non-traditional platforms, if its deal this season to let Amazon stream 11 games is any indication.

[Cristiano was the special guest on Episode 5 of our Sportsbook podcast on the business of football. You can listen on iTunes or scroll to the bottom of this post.]

If you’ve been listening to our Sportsbook podcast closely, Cristiano’s point about advertisers anxiously monitoring contradicts what Elizabeth Lindsey of Wasserman said on Episode 2 of the podcast:  Scandals around the league rarely do much to ward off sponsors because of the NFL’s reach.

But in fact, both experts agree: The NFL isn’t going anywhere. Look no further than the reaction from the 35 companies that are official NFL sponsors this season to what has been the biggest story in sports for two weeks, and one of the biggest ongoing news stories in the country: silence, almost across the board. Only six (Under Armour, Nike, AB InBev, Ford, Hyundai, and Bose) have issued statements about President Donald Trump’s condemnation of player protests, plus one (P&G) that responded when asked by Yahoo Finance.

The rest are silent because they would prefer to avoid taking a side, and risk alienating any NFL fans, still the most valuable demographic in sports.

RELATED: A look at how NFL players protested during Week 4 of the season: 

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NFL Week 4: How players protested during the national anthem
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NFL Week 4: How players protested during the national anthem
NFL Football - Miami Dolphins vs New Orleans Saints - NFL International Series - Wembley Stadium, London, Britain - October 1, 2017 Miami Dolphins players kneel during the U.S. national anthem before the match Action Images via Reuters/Paul Childs
NFL Football - Miami Dolphins vs New Orleans Saints - NFL International Series - Wembley Stadium, London, Britain - October 1, 2017 Miami Dolphins players kneel during the U.S. national anthem before the match Action Images via Reuters/Matthew Childs
NFL Football - Miami Dolphins vs New Orleans Saints - NFL International Series - Wembley Stadium, London, Britain - October 1, 2017 New Orleans Saints players kneel before the U.S. national anthem before the match Action Images via Reuters/Paul Childs
NFL Football - Miami Dolphins vs New Orleans Saints - NFL International Series - Wembley Stadium, London, Britain - October 1, 2017 New Orleans Saints players during the U.S. national anthem before the match Action Images via Reuters/Matthew Childs
NFL Football - Miami Dolphins vs New Orleans Saints - NFL International Series - Wembley Stadium, London, Britain - October 1, 2017 Miami Dolphins players during the U.S. national anthem before the match Action Images via Reuters/Paul Childs
Sep 28, 2017; Green Bay, WI, USA; Chicago Bears players kneel in the end zone prior to their game the Green Bay Packers against before the national anthem at Lambeau Field. Mandatory Credit: Benny Sieu-USA TODAY Sports
Sep 28, 2017; Green Bay, WI, USA; Fans hold up an American flag during national anthem prior to the game between the Chicago Bears and Green Bay Packers at Lambeau Field. Mandatory Credit: Jeff Hanisch-USA TODAY Sports
Sep 28, 2017; Green Bay, WI, USA; The Green Bay Packers link arms during the national anthem prior to the game against the Chicago Bears at Lambeau Field. Mandatory Credit: Jeff Hanisch-USA TODAY Sports
Sep 28, 2017; Green Bay, WI, USA; Green Bay Packers wide receiver Randall Cobb (18), quarterback Aaron Rodgers (12), tight end Richard Rodgers (82) and wide receiver Davante Adams (17) link arms during the National Anthem prior to their game against the Chicago Bears at Lambeau Field. Mandatory Credit: Benny Sieu-USA TODAY Sports
Jacksonville Jaguars players stand during the national anthem before their NFL football game against the New York Jets in East Rutherford, New Jersey, U.S. October 1, 2017. REUTERS/Eduardo Munoz
Jacksonville Jaguars players kneel before the national anthem before their NFL football game against the New York Jets in East Rutherford, New Jersey, U.S. October 1, 2017. REUTERS/Eduardo Munoz
Oct 1, 2017; Minneapolis, MN, USA; Detroit Lions linebacker Jalen Reeves-Maybin (44) and linebacker Steve Longa (54) kneel during the national anthem before the game against the Minnesota Vikings at U.S. Bank Stadium. Mandatory Credit: Brad Rempel-USA TODAY Sports
Oct 1, 2017; Cleveland, OH, USA; Members of the Cleveland Browns raise their fists during the national anthem before the game between the Cleveland Browns and the Cincinnati Bengals at FirstEnergy Stadium. Mandatory Credit: Ken Blaze-USA TODAY Sports
Oct 1, 2017; Arlington, TX, USA; Los Angeles Rams linebacker Robert Quinn (94) raises his fist during the national anthem against the Dallas Cowboys at AT&T Stadium. Mandatory Credit: Matthew Emmons-USA TODAY Sports
Oct 1, 2017; Arlington, TX, USA; Los Angeles Rams linebacker Robert Quinn (94) raises his fist during the national anthem against the Dallas Cowboys at AT&T Stadium. Mandatory Credit: Matthew Emmons-USA TODAY Sports
NFL Football - Miami Dolphins vs New Orleans Saints - NFL International Series - Wembley Stadium, London, Britain - October 1, 2017 New Orleans Saints players take the knee before the start of the national anthem Action Images via Reuters/Matthew Childs
Oct 1, 2017; East Rutherford, NJ, USA; New York Jets players lock arms during the national anthem before a game against the Jacksonville Jaguars at MetLife Stadium. Mandatory Credit: Brad Penner-USA TODAY Sports
The New England Patriots players stand together for the U.S. National Anthem before their NFL football game against the Carolina Panthers in Foxborough, Massachusetts, U.S., October 1, 2017. REUTERS/Brian Snyder
The New England Patriots players stand together for the U.S. National Anthem before their NFL football game against the Carolina Panthers in Foxborough, Massachusetts, U.S., October 1, 2017. REUTERS/Brian Snyder
BALTIMORE, MD - OCTOBER 01: The Pittsburgh Steelers stand on the field during the National Anthem on October 1, 2017, at M&T Bank Stadium in Baltimore, MD. (Photo by Mark Goldman/Icon Sportswire via Getty Images)
Oct 1, 2017; Glendale, AZ, USA; Members of the San Francisco 49ers kneel during the National Anthem prior to a game against the Arizona Cardinals at University of Phoenix Stadium. Mandatory Credit: Matt Kartozian-USA TODAY Sports
Oct 1, 2017; Glendale, AZ, USA; Members of the San Francisco 49ers kneel during the National Anthem prior to a game against the Arizona Cardinals at University of Phoenix Stadium. Mandatory Credit: Matt Kartozian-USA TODAY Sports
Oct 1, 2017; Denver, CO, USA; Denver Broncos inside linebacker Brandon Marshall (54) and free safety Darian Stewart (26) react along with teammates during the American national anthem before a game against the Oakland Raiders at Sports Authority Field at Mile High. Mandatory Credit: Ron Chenoy-USA TODAY Sports
Oct 1, 2017; Denver, CO, USA; Denver Broncos inside linebacker Brandon Marshall (54) and free safety Darian Stewart (26) and cornerback Aqib Talib (21) and cornerback Chris Harris Jr. (25) react along with teammates during the American national anthem before a game against the Oakland Raiders at Sports Authority Field at Mile High. Mandatory Credit: Ron Chenoy-USA TODAY Sports
Oct 1, 2017; Atlanta, GA, USA; Buffalo Bills players shown during the National Anthem prior to the game against the Atlanta Falcons at Mercedes-Benz Stadium. Mandatory Credit: Dale Zanine-USA TODAY Sports
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The future of NFL advertising

 

The NFL “will continue to dominate” American pro sports leagues, says Cristiano. “But the NBA is nipping at its heels. I don’t think they’re going to overtake the NFL any time soon, but the difference is the access level to the players, the personalities, in the NBA. Whereas in the NFL, it’s all behind ‘the shield,’ and that’s not what fans want.”

So, what do fans want?

Unfettered access to the athletes, not manufactured and processed by editing — real, raw, stripped back. “Instant engagement, access to the players, big personalities, they want real stuff,” Cristiano says. “And they want it in video format, for the most part.”

One example: When Pittsburgh Steelers receiver Antonio Brown held up his phone in the locker room and went live on Facebook after a Steelers playoff win last season. Brown was criticized by some for doing it while Steelers coach Mike Tomlin was addressing the team, and the team fined him $10,000, but fans loved it.

Facebook, with its 2 billion users, has more than 5 million advertisers on its platform now. Cristiano says many brands complain about how powerful Facebook has become, and that organic, free posts rarely work anymore — they have to spend. “The other thing [they say] is, Oh, it’s taking attention away from television, it’s taking attention away from broadcast.’ So what? The brands are complaining about it, and trying to keep things the way they are, instead of figuring it out, Okay, if it’s taking attention away, how do we jump on this?'”

The future of NFL advertising, as Cristiano imagines it, is still far away because companies have been slow to adapt. But once they wake up, expect ads to rely less on the ad window between gameplay. “What else can I do that’s off of the 30-second platform of broadcast TV, and how can I now capture some of that audience and give the fans what they’re asking for that the NFL is not doing? They don’t need to rely on that break between the action, they can create it.”

Daniel Roberts is the sports business writer at Yahoo Finance. Follow him on Twitter at @readDanwriteSportsbook is our sports business video and podcast series.

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‘Football is football’: Why NFL scandals don’t matter to NFL sponsors (podcast episode 2) 
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