US NBCUniversal Sees Sharp Rise in Olympic Ad Revenue
Opening Ceremony Ratings 'Huge Hit'... 77% Higher Than Tokyo
Contrasts with Domestic Broadcasters' Opening Ceremony Ratings Plunge
NBC Also Develops Digital Strategy Based on Viewing Habits
Regarding the 2024 Paris Olympics and Paralympics, the American broadcaster NBCUniversal is thoroughly enjoying an Olympic boom accompanied by a surge in viewership ratings and increased advertising revenue. This is in stark contrast to the atmosphere of domestic terrestrial broadcasters, which failed to capitalize on the Olympic boom, recording opening ceremony ratings in the 0% range.
"It’s Profitable" - US NBC Hits Jackpot in Advertising and Ratings
NBCUniversal announced that advertising revenue for the 2024 Paris Olympics and Paralympics has surpassed the record set during the 2020 Tokyo Olympics, which was the largest ever at $1.25 billion (approximately 1.7 trillion KRW). The exact amount was not disclosed.
This expansion in advertising revenue was made possible as American advertisers flocked in anticipation of a 'jackpot' in viewership ratings. Some brands, including Coca-Cola, which had decided not to advertise during the previous 2020 Tokyo Olympics, returned. Additionally, IT companies, pharmaceutical firms, and automobile manufacturers significantly increased their advertising, with over 70% of advertisers being new clients.
NBCUniversal also achieved great success in Olympic viewership ratings. The broadcast of the Olympic opening ceremony on the 26th of last month attracted 28.6 million viewers, the highest since the 2012 London Olympics. During the first four days from the start of the Olympics, the average prime-time (usually 7 PM to 11 PM) viewership was 33.8 million, a 77% increase compared to the 2020 Tokyo Olympics.
Mark Lazarus, Chairman of NBCUniversal Media Group, told Bloomberg News in an interview, "The Paris Olympics are quite profitable for us." Mark Marshall, Chairman of Global Advertising, also said, "We are very satisfied in terms of ratings," adding, "Only this (the Olympics) can secure 200 million viewers within 17 days."
Well-Timed Viewing Hours... Smiles Over Europe Hosting Instead of Asia
The reason NBC was able to achieve these results is that this Olympics is held in Europe, resolving the time difference issue with the United States. The time difference between New York, USA, where NBCUniversal’s headquarters are located, and Paris, France, is only six hours.
The previous Olympics, the 2020 Tokyo Olympics and the 2022 Beijing Winter Olympics, were held in Asia, resulting in a large time difference with the US, causing difficulties for American broadcasters at the time. In fact, during the Tokyo Olympics, NBCUniversal’s average prime-time viewership was 15.6 million, a 42% decrease compared to the 27 million viewers during the 2016 Rio Olympics. During the Beijing Winter Olympics, NBC recorded its worst ratings in 20 years.
Unlike the US, Korean broadcasters are experiencing poor viewership ratings during this Olympics. There is even talk that the "Olympic boom is a thing of the past." According to Nielsen Korea, the cumulative total viewership rating for the opening ceremony broadcast by the three terrestrial broadcasters from 2 AM to 6 AM on the 27th of last month (Korean time) was 3.0%. By channel, KBS 1TV had the highest rating at 1.4%, followed by MBC TV at 1.0%, and SBS TV at 0.6%. Considering that the combined rating of the three broadcasters during the 2020 Tokyo Olympics opening ceremony was 17.2%, this represents a shrinkage to less than one-fifth.
Lower expectations for advertising revenue are leading to declines in corporate and broadcaster stock prices. Stocks in the advertising and broadcasting sectors, which were expected to rise during the Olympics, have currently stalled. The market analyzes this as an effect of "reduced interest in the Olympics due to early morning scheduling of events and failure to participate in many popular sports, combined with a slow recovery in the economy."
Efforts to Secure Gen Z Viewers Through Creators
In addition to the impact of the host location, NBC strengthened its digital strategy for this Olympics. Using its own streaming service Peacock, NBC is live streaming 329 events for the first time. In terms of hours, more than 5,000 hours of Olympic events are being broadcast via mobile and online platforms. This was part of NBC’s Olympic broadcast strategy following poor ratings and decreased advertising revenue in the previous Olympics.
NBC also put considerable effort into recruiting social media (SNS) creators. This was a strategy chosen to attract Gen Z viewers who watch videos online. Especially as the International Olympic Committee (IOC) relaxed restrictions to allow SNS creators access to press areas previously limited to media outlets, NBC was able to utilize new channels beyond traditional TV.
NBC reportedly spent a year just selecting and recruiting creators. The 27 creators recruited by NBC, active on platforms like TikTok and Instagram, are watching Olympic events throughout the Paris venues, interviewing athletes, and meeting spectators in the stands. They are also sharing Parisian food, culture, and cityscapes through SNS.
Geo Karafessian, Senior Vice President of Platform Partnerships at NBCUniversal Media Group, explained, "Of course, we wanted creators focused on sports, but we also judged it important to have creators who could showcase the city of Paris through food, lifestyle, and fashion." Lindsay Signor, Senior Vice President of NBC Sports Consumer Engagement, said, "We know the media environment is changing. This will be a somewhat long battle for us, but we feel we are ultimately moving in a good direction."
Broadcasts using creators are also underway domestically. SBS has recruited popular cartoonist and YouTuber Chimchakman and French-born broadcaster Fabian as commentators, delivering not only game updates but also scenes from the venues.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
