Advertisers are flocking to live sporting events on connected TV streaming platforms such as Amazon, Netflix, Peacock, and YouTube. In fact, 90% of advertisers plan to maintain or increase their budgets for live sports on CTV in 2024, with half allocating more funds to streaming than traditional linear sports. As viewers transition from cable to streaming platforms, advertisers are following suit. For instance, 65% of Americans are expected to watch live sports on CTV in 2024, triple the number from just a few years ago.
One platform, Netflix, is a relatively late entrant to live sports, but Netflix is catching up quickly, and advertisers are taking notice. Netflix live streamed its first NFL football game on December 25 with the launch of Netflix NFL Christmas Gameday, which featured two games, the Kansas City Chiefs versus Pittsburgh Steelers and the Houston Texans hosting the Baltimore Ravens. Weeks before Christmas Gameday, Netflix had sold all its ad inventory, with advertisers such as FanDuel and Verizon (the kickoff sponsor) securing spots. Let’s examine why Gameday attracted advertisers and whether the NFL doubleheader delivered on expectations.
Why Netflix NFL Gameday Attracted Advertisers
Advertisers were eager to secure spots on Netflix’s NFL Christmas Gameday even before its success was proven. The biggest ad deals secured for Netflix’s NFL Christmas games included major partnerships with FanDuel and Verizon. FanDuel served as the exclusive pregame sportsbook betting partner. The partnership featured a custom in-show segment that included Netflix Christmas Gameday talent, integrating the brand directly into the live broadcast experience. Verizon acted as the official sponsor of the kickoff segment. This prominent placement ensured Verizon’s brand visibility at a key moment during the games.
Their interest was due to several factors that made the NFL Christmas Gameday highly appealing:
The NFL’s Proven Track Record on Christmas
The NFL has consistently delivered massive viewership for Christmas Day games. In 2023, three NFL games averaged 28.68 million viewers, demonstrating the holiday’s strong appeal for football fans. Advertisers anticipated similar success for Netflix’s debut, capitalizing on the NFL’s popularity.
Netflix’s Global Reach
Netflix boasts more than 282 million subscribers in more than 190 countries, offering advertisers unprecedented access to a global audience. This marked the first time an outlet streamed an NFL game globally in multiple languages, including English, Spanish, French, Portuguese, and German. Advertisers saw this as an opportunity to reach diverse and expansive demographics.
Profile Matchups and Playoff Implications
The games featured playoff-bound teams (Kansas City Chiefs, Pittsburgh Steelers, Baltimore Ravens, and Houston Texans) — potentially competitive matchups that were likely to draw significant attention from fans. This bolstered advertiser confidence in strong viewership.
Netflix’s Investment in Talent and Production
Netflix assembled an all-star roster of NFL media talent from CBS, Fox, NBC, and ESPN for its broadcast. It also included marquee entertainment like Beyoncé’s halftime show and Mariah Carey’s pregame performance. These elements elevated the event into a cultural spectacle beyond just football, attracting advertisers looking to associate with premium content.
First-Mover Advantage on a New Platform
As Netflix’s first live NFL broadcast, the event represented a unique opportunity for advertisers to align their brands with a historic moment. The novelty of the partnership between one of the world’s largest streaming platforms and the NFL created buzz that advertisers wanted to capitalize on early.
Strategic Holiday Timing
Christmas Day is a prime advertising window when families gather around screens. Advertisers saw this as a chance to capture attention during one of the most-watched days of the year, as they have for decades since the NBA began hosting basketball games on Christmas Day.
These factors combined to make Netflix’s NFL Christmas Gameday an attractive proposition for advertisers despite it being untested on the platform. On top of that, Netflix’s most recent live sporting event, a novelty boxing match between social media influencer Jake Paul and retired boxer Mike Tyson, was marred with buffering issues and service failures. Netflix could not afford to fumble the ball on Christmas Day.
Netflix Delivers
The ad investments paid off as the games became the most-streamed NFL events in U.S. history, with over 24 million average viewers per game. Advertisers had plenty of reason to celebrate, and so did Netflix. To wit:
Massive Audience
In total, Netflix reported 65 million unique viewers for its Christmas Day football programming. A much anticipated halftime performance by Beyoncé during the Texans/Ravens game peaked at 27 million viewers, which actually outperformed the game itself.
Effective Advertising Strategy
Netflix made a crucial decision to stream the NFL games on both its ad-supported and normally ad-free tiers. Viewers apparently didn’t mind considering the high ratings. This advertising strategy ensured that brands reached a wider audience. Additionally, Netflix promoted its own content, including the upcoming season of “Squid Game.” This multifaceted approach allowed Netflix to offset the $150 million cost of NFL rights and demonstrated the potential of live sports to generate revenue on streaming platforms.
Social Media Visibility
According to Netflix, fan engagement on social media boosted the visibility of NFL Christmas Gameday. #BeyonceBowl rose to the #1 worldwide trend on X immediately as her performance kicked off, which was even more popular than #Christmas. Following her performance, Netflix occupied 10 of the top 12 trending topics on X in the United States. #NFLonNetflix also trended around the world, reaching a peak of #2 in Australia, #3 in the United Kingdom and Germany, #5 in Brazil and France, #6 in the United States.
Areas for Improvement
Christmas Gameday was not perfect. The first game especially encountered some technical glitches such as muffled sound, and throughout the day, some users reported buffering problems, but not to the extent of the Jake Paul/Mike Tyson event. In addition, the user interface could be a bit wonky at times. For instance, it was not always easy for users to find Christmas Gameday on their Netflix home screens. The fact that it could be a chore to find the event was a misstep.
In addition, for viewers who like to toggle from one streaming service to the next, the interface could be frustrating. If a user wanted to, say, toggle over to ESPN for NBA games and then rejoin NFL Gameday, they had to go through the process of selecting “Watch Live” in order to re-engage. This resulted in the viewer technically not seeing the action live, but from the point where they left the viewing experience. This was great for anyone who did not want to miss the action, but annoying if a user did not care.
But all told, Netflix proved it could pull off big-time, Super Bowl caliber programming.
Advice to Advertisers
Live sports on connected TV provides many opportunities for advertisers to build their brands well beyond Netflix NFL Christmas Gameday. Here are some examples for advertisers to consider:
Create Unique Partnerships That Resonate with the Audience
FanDuel integrated directly into Netflix’s pregame coverage, and other brands have innovated in the space. For example, PepsiCo partnered with Amazon’s Thursday Night Football, using dynamic QR codes on-screen to offer discounts and limited-edition items in real time. Verizon secured prominent placement as a kickoff sponsor during NFL broadcasts, ensuring visibility at key moments. Brands should focus on partnerships that make them active participants in the live sports experience through interactive elements, exclusive offers, or gamified campaigns.
Expand Product Placements Beyond Sports-Specific Ads
Chevrolet and Under Armour have effectively used behind-the-scenes segments or mini-documentaries featuring athletes during live sports broadcasts on platforms like Peacock and Hulu. These placements allow storytelling opportunities that connect with viewers during natural pauses in live coverage. Creating branded content tied to the culture surrounding the sport, such as training routines or community outreach, can extend the impact of your advertising.
Use First-Party Data to Deliver Geo-Specific Advertising
During major events, advertisers have used location-based targeting to serve regionally relevant ads. For instance, a telecom provider could advertise connectivity offers tailored to rural areas where streaming dominates over traditional TV. Geo-specific campaigns can create a personalized touch that resonates with local audiences, enhancing engagement and effectiveness.
Experiment with Augmented Reality (AR) Ads During the Broadcast
Brands like Nike and Adidas have used AR overlays during live sports streams to showcase products in innovative ways. For example, viewers could interact with 3D models of new sneakers or apparel during a timeout or replay. Interactive AR technology offers a unique way to connect with tech-savvy audiences, enhancing the viewing experience and encouraging real-time engagement.
Appeal to Niche Sub-Segments Through Cross-Promotion
Topo Chico Hard Seltzer has successfully co-sponsored live sports events and post-game analysis programs on platforms like Hulu, reaching viewers who tune in specifically for commentary rather than the live game. Extending campaigns to adjacent content, like pregame and postgame shows, captures additional viewer interest and expands brand reach.
Capitalize on Non-Sports Content in Live Events
As noted, a major factor in Netflix’s Gameday success was Beyoncé’s halftime show, which drew more viewers than the games themselves. Apple and Coca-Cola have similarly used entertainment tie-ins within live sports to elevate their campaigns. Aligning with non-sports content during the broadcast, such as halftime shows, anthem performances, or behind-the-scenes features can amplify brand visibility and appeal to broader audiences.
Contact True Interactive
By diversifying strategies and incorporating fresh examples, advertisers can maximize the unique opportunities offered by live sports on connected TV. True Interactive can help. We know the connected TV space and partner with businesses to build their visibility. Contact us to learn how we can help you.
