How the rich AFL broadcast deal stacks up for advertising

Chris Pash
By Chris Pash | 7 September 2022
 
Image: Screenshot

Seven and Foxtel, by inking Australia’s richest sports broadcast deal to deliver $4.5 billion to the AFL, will be riding on the advertising halo of sport.

The deal, keeping broadcast rights to the AFL until at least the 2031 season, means Seven will have at least the same number of free-to-air games, via Seven and 7Mate.

Digital rights give the 7plus AFL hub live and replay matches as well as catch-up and highlights packages on video on demand, live and free on any device, at any time.

Ben Willee, general manager and media director, Spinach: “The announcement of an astonishing deal will no doubt keep the fans, clubs, players and most importantly the bean counters at the AFL happy.

“The big relief will come from the fans that don’t have to invest in another streaming service. Sounds like everyone wins right?

“Not so fast. The devil is in the detail, and we’re looking for more details of FOXTEL’s exclusive Saturday games whilst maintaining the same number of games on free-to-air. Not to mention, I’m wondering how much contra is in this deal?

“The execs at Network 7 will be popping champagne given the success of including 7+. It’s a big opportunity, not just to deliver more impressions on 7+, but the ability to collect more first party data is the key to future success in BVOD.”

Chris Parker, CEO, Awaken: “When I worked for Toyota almost 10 years ago, the AFL was such a pivotal sponsorship as it has the broadest demographic reach, it inspires kids, is more gender diverse than other codes, and the association increased brand appeal and consideration.

“With such easy access to big streaming services our local networks really only have news, reality and sport to entice attention.

“The halo effect that the AFL offers will translate to media buys across Seven and Foxtel/Kayo as brands want to be seen and included in the passion.

“A really exciting part for advertisers is the greater targeting that we will be able to do over the next four years across streaming / BVOD.

“The third party integrations and data targeting is reducing media wastage and allowing brands to tap into the AFL for core segments. Hopefully, this will improve with better integrations to make it smarter and more accessible, also earning Seven/Foxtel a greater amount of revenue.

“All around a great win for the local TV industry and the AFL, keeping the rights local, but it does set a very high bar for rates that will need to earn back the investment from advertisers.”

Tom Carlon, senior trading manager, UM Sydney: “The recent long-term deal between the AFL, Seven and Foxtel represents exciting opportunities for both media agencies and advertisers.

“With both Seven (7Plus) and Foxtel’s (Kayo) streaming arms growing substantially (+29%, +22% YoY respectively) it gives advertisers a great way to tap into screens based buying and one step closer towards the converged screens buying approach.

“Particularly as we have seen the AFL dominated by long legacy deals across the betting, insurance, and telco categories this opens new and exciting opportunities for advertisers to tap into.”

Cassie Longmuir, business director, Half Dome: “It’s a mammoth deal and the size of it doesn’t surprise me. The AFL landscape has changed significantly over the last seven years and is expected to grow continuously over the next six years.

“The AFLW has seen record-breaking growth in viewership numbers, which is expected only to keep increasing as more people engage with the sport.

“An additional four teams added to the competition bring more local teams, supporters and aspiring young athletes.

“This will bring more people to connect with the sport, increasing numbers across broadcasting and game attendance.

“The AFL has put significant work into growing the grassroots program in NSW and Queensland, as the NRL or Rugby Union has typically dominated these states.

“It would be remiss of me not to mention the COVID-19 pandemic. Since this pandemic, the love for sport has only increased for both local and international sporting codes.

“As the general entertainment TV genre is plateauing in reach, this will only mean that sport, particularly AFL, will be in demand more than ever.

“Across the TV industry, Channel Nine and Paramount will need to work extra hard to innovate their products, content and partnerships to keep up with the growing beasts of Channel 7 and Foxtel.”

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