Big-ticket sports have long been considered a recession-proof medium, but the economic downturn is having a negative affect on the TV sports marketplace.
The vulnerability of this marketing sector became clear as fourth quarter ad sales were down 15 percent according to several drtv media buyers and network executives. Long-term sponsorship packages have long been like a safety net, practically guaranteeing financial stability.
But as the market becomes more fragmented, the TV market seems to be shutting down.
Industry changes
Financial services and domestic auto have practically fallen to the wayside, although foreign auto has picked some of the domestic auto slack. Hyundai has remained quite active, buying time on a variety of sports. Two good examples of this are TNT’s Thursday Night NBA showcase and ESPN’s college and pro football properties.
Even though profits from the banking and credit card industries are dwindling fast, the insurance sector is still pulling its weight with companies like Geico, Nationwide and Progressive still going strong.
Super Bowl ad spots
The fact is, big sports drtv ad sales is no longer a sellers market.
Even spots available during the National Football League games are affected by the troubled economy and going for discounted rates. NBC recently admitted that there are still eight Super Bowl spots still available. Currently returning sponsors from last year are Anheuser-Busch, Hyundai, Coca-Cola and Pepsi-Cola. General Motors has pulled back as a result of the current auto industry crisis.