Now consider that Internet companies and other types of companies spend several million dollars now just to advertise for a measly 30 seconds on a televised Super Bowl ad. The $4.5 million cost for that 30-second spot from this year does not even include the cost of producing and filming the commercial itself. This could be big business for Yahoo’s advertising platforms, even considering that the game is not a Super Bowl.
Also, unlike most regular season games, this game is playing at 9:30 a.m. Eastern Time. This may be earlier than many East Coast fans and the rest of America wants to watch games, but it will have no football competition for viewership at all.
Yahoo shares ticked higher by about 1% on the news announcement, to as high as $43.75. Shares were last seen up 0.7% at $43.45 in midday trading, against a 52-week range of $32.93 to $52.62.
Whatever the cost is in the millions here, this effort could be a game-changer for Yahoo if it is a success. If the effort does not generate massive profits, at least Yahoo got the chance to try without having to make another acquisition.
Another benefit is that it could greatly elevate Yahoo’s image in online streaming. There has been speculation that games might stream officially on YouTube or other platforms, but this round goes to Yahoo.
Yahoo President and CEO Marissa Mayer said:
We’re thrilled that the NFL has chosen Yahoo for this historic opportunity. It marks a significant change in the way users can access this amazing content. The NFL and Yahoo have both long engaged football fans around the world. Our partnership provides the ultimate football experience—with digital availability, designed for the modern fan.
Roger Goodell, Commissioner of the National Football League, said:
The NFL has always been committed to being at the forefront of media innovation. Through this partnership with Yahoo—one of the world’s most recognizable digital brands—we are taking another important step in that direction as we continue to closely monitor the rapidly evolving digital media landscape.
Here are some additional NFL statistics included in the press release:
- The 2014 NFL regular season reached 202.3 million unique viewers, representing 80% of all television homes and 68% of potential viewers in the United States.
- NFL games accounted for the top 20 and 45 of the 50 most-watched TV shows among all programming last fall (2014).
- Five NFL game telecasts in the 2014 season were watched by at least 29 million viewers (versus just one in the 2013 season).
- For the third consecutive year, an NFL game was the week’s most-watched TV show in all 17 weeks of the season.
- At least two NFL games were the week’s most-watched TV shows in 16 weeks of the season.
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