ViacomCBS closed its upfront advertising sales this week and has live sports to thank for it. The media conglomerate wrapped the cycle with sports, and particularly the NFL, being big drivers for growth.
Digital streaming options from the company like Paramount Plus and Pluto have made Viacom a strong option in the space. Year-to-year advertising commitments for its linear primetime schedule went up 6% from what it brought home in 2020.
ViacomCBS nailed down between $2.03 billion and $2.66 billion for the linear primetime schedule of its CBS broadcast network. That represents the companies highest-priced inventory.
This upfront cycle has been a banner one for the company, holding firm on their CPM rates, which measures the cost of reaching 1,000 viewers. ViacomCBS successfully pushed their CPM rates up by about 25%. For context, most networks during this cycle have seen CPM hikes of 16% to 22%. Networks took a bath in this arena last year (the average secured increases were between 3% and 4% in 2020), but ViacomCBS held firm in 2021 to great success.
The current climate is a perfect storm for networks to capitalize on. There are fewer terrestrial TV options that can reach a large audience while at the same time advertisers and businesses are recovering from the pandemic and ready to spend. Fox, Disney, and NBCUniversal have all experienced successful upfront cycles this year.
Sports have become the one bit of monoculture left, and that’s why networks still back up the brinks truck, as CBS did with the NFL this year. The Super Bowl is a perfect example of this. CBS carried the game this February, bringing its first-quarter ad revenue to $1.8 billion. That’s a 40% increase from 2020.
The Big Game rotates between the rights holders every year, but the gridiron and sports at large still sell like they always have.