Score Big with Live Sports Advertising via OTT/CTV
Remember when watching a live sporting was as easy as turning on your TV and flipping to the network channel where the game was airing? Remembering if your team was playing on CBS or FOX was your biggest challenge. Times have certainly changed. With the rise of cord-cutting, fewer people rely on cable for their sports fix. Instead, streaming platforms have become the go-to for live sports viewership, reshaping the industry and presenting a winning opportunity for digital marketers.
The Evolution of Sports Broadcasting
Major sports broadcasting partnerships have undergone a seismic shift, with exclusive deals dominating the landscape. Here are just a few:
- NFL: Thursday Night Football is exclusive to Prime through 2033 after a 10-year $1 billion per year deal. Sunday Ticket moved to YouTube TV in a 7-year deal for roughly $2 billion per year. Netflix will host Christmas Day games through 2026.
- MLB: Friday Night Baseball is entering its fourth year on Apple TV+, while Roku has exclusive rights to Sunday leadoff games.
- WWE: Starting January 2025, RAW will stream exclusively on Netflix through a 10-year, multi-billion-dollar deal.
- MLS: Exclusive global broadcast rights are now on Apple TV+ for the next eight years.
- NBA & WNBA: Prime is now the exclusive home for 66 regular-season NBA games, with WNBA games joining in 2026 under an 11-year deal.
With these deals, live sports viewership on digital platforms has surpassed linear TV, a trend expected to accelerate in the coming years.
The Business of Live Sports Streaming
Streaming rights aren’t cheap. Some deals cost upwards of $1 billion annually. To offset these costs, streaming platforms are leveraging subscription price hikes and ad revenue, making live sports a critical advertising opportunity.
Why are live sports so appealing to advertisers? They’re brand-safe and incredibly effective at reaching target audiences.
Why You Can Win with Live Sports Audiences
Sports fans make up a significant portion of the US population. Here’s why this audience is so valuable:
- Widespread appeal: Bonaventure/Siena Research survey reveals 70% of Americans are sports fans. That’s over 200 million people!
- Real-time engagement: Fans want to watch games LIVE! The top broadcasts each year are dominated by sports events, underscoring the audience’s dedication. While watching games, many fans engage with their smartphones by looking up stats, placing bets or watching a second game on another screen.
- Digital shift: eMarketer recently released a forecast that put this perspective: It projected that over 105 million U.S. viewers watched live sports digitally in 2024, an increase from 95.5 million during the previous year. Meanwhile, 85.7 million people in the U.S. likely watched via traditional cable TV last year, a drop from 90.7 million in 2023.
Score a Home Run with Your Live Streaming Sports Playbook
To capitalize on this audience, digital marketers need to adopt smart strategies. Here are some tips:
- Plan for Scale: Live sports have finite ad inventory and variable audience sizes. Limit targeting, set frequency caps, and use allow/block lists strategically.
- Seasonal Buys: Rather than targeting a single game or sport, consider buying ad bundles for an entire season. For example, a package covering NHL, MLB, and NBA games increases your chances of serving impressions over time.
- Be Device-Agnostic: Fans access live sports across various devices, depending on the time of day and event. Broaden your approach to include all screens, don’t just limit yourself to CTV.
- Consider Direct Buys: Networks reserve inventory for local affiliates, offering access unavailable in open marketplaces. While CPMs may be higher, direct buys maximize premium inventory.
- Explore Open Marketplaces: streaming live sports inventory is growing in open marketplaces, providing another avenue for reaching sports fans.
Beyond Live Games: Tapping into Sports Content
Live games aren’t the only way to engage sports fans. Highlights, clips, replays, and talk shows provide contextual advertising opportunities. By using third-party segments or contextual targeting, brands can zero in on fans of specific teams or leagues.
Final Thoughts
The shift to digital live sports offers brands an unprecedented opportunity to reach engaged audiences. With nearly half the U.S. population tuning into live sports, and CTV dominating as the preferred medium, advertisers have a golden chance to connect with fans in real-time. By employing smart strategies and embracing the flexibility of digital platforms, your brand can score big in the dynamic world of live sports advertising.