#NFL Broadcast Sponsorship Rights on Snapchat Will Cost an Exclusive Sponsor $7mm

Social media unicorn Snapchat is looking to compete head-on with Twitter for NFL live broadcast sponsorship rights.  Read more from Ad Age.

Sponsorship Buddy's take:

1) While Snapchat has certainly took off in terms of unicorn-status ($1B+ valuation), its value from an advertiser's perspective is in question as the content is fleeting - it's time sensitive and disappears. The NFL will have a 1st-of-its kind (by a sports league) Discover channel, which will combat this.  The mix will include digital video ads, but most of the value will come from the popular lenses and filters used and shared with the masses equating to the majority of returns coming in impressions.

2) Snapchat has held the line on its advertising asks, which corresponds with the refusal to get bought via previous rich offers. It believes in itself.  Twitter is also holding an expensive line in the sand at $8mm for category exclusivity for its new Thursday Night Football rights. High standards make it tough to bring in early adopters, but both will likely succeed in getting (close to) these asks.  The results will become case studies that establish future rates.

3) The shift is on away from traditional TV advertising towards the digital and social marketplace.  Top leagues like the NFL are bulletproof when it comes to a reduction in TV-tied advertising and sponsorship and are only adding new inventory in order to multiply revenues tied to broadcast rights. Total viewership will continue to improve, but television networks will continue to struggle to maintain status quo, especially considering every league wants to get younger, not older from a demographic standpoint.

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