Why Are There So Many Ads in the NBA?

From the top of the basketball backboard to the sidelines where the announcers sit, to sponsorship logos etched on the court itself, to sponsorship logos on players jerseys, a typical NBA game is inundated with advertisements and sponsorships.  And while these sponsorships help the NBA to post record profits, they come at the annoyance of casual and avid fans alike.

Below, we are going to look at and review just why there are so many ads in the NBA.  We will look to discuss how these advertisements and sponsorships affect the integrity of the game and whether or not the NBA is expected to add even more sponsorship opportunities to the game in the future.

What Are Advertisements and Sponsorships?

Before we dive into why there are so many ads in the NBA, it is important to distinguish just what an advertisement and sponsorship is.  In marketing, an advertisement is a non-personal form of communication that is meant to help sell or promote a product or service.

And while the message is not individually personalized, it is highly targeted.  In the world of marketing, advertisements are meant to be placed where they are most likely going to be acted against.  This means that ads will be decided and placed based on the likelihood of the potential audience.

And in the NBA, the audience viewership highly skews towards males.  That is why so many of the ads and sponsorships look to appeal to the male gender.  And while not all of the ads and sponsorships appeal to men alone, the majority do.  And this is done purposefully as the majority of viewers of an NBA game are men.

Why Does the NBA Have Ads, Sponsorships, and Commercials?

Although the NBA is in the sports and basketball business, it is, after all, a business.  And as a business, they must consider their bottom line and total yearly revenue and profit.  And while the NBA and its franchise teams make money from ticket, merchandise, and food sales, they can substantially increase their overall revenue by offering advertising and sponsorship opportunities to willing advertisers.

And as advertisers and marketers are always looking for ways to reach their target audience, the NBA provides one of the best ways to do so.  In the world of marketing and advertising, capturing an individual’s attention is becoming increasingly difficult. 

With the advent of smartphones and the prevalence of digital screens, from tablets to laptops to smartwatches, marketers are finding it increasingly difficult to capture an individual user’s attention.  However, if you are watching an NBA game, then you are likely paying close attention to the game at hand.

And your focused, undivided attention is valuable to marketers and advertisers alike.  With your undivided attention on the game, marketers and advertisers are able to place advertisements and sponsorships across the court, on players jerseys, and atop the backboard, where viewers are most likely to see them.

And with television viewership declining year-over-year, one of the last remaining television attractions remains to be sports.  This is because, as compared to other television shows which can be recorded and watched at a more convenient time, sports are broadcast live, meaning that a casual or avid fan must watch the game live to keep up with the score and avoid spoilers.

This simple fact places the NBA in a unique position, wherein marketers and advertisers are more likely, and more willing, to run advertisements and sponsorships with the league, understanding that the likelihood of their advertisement being viewed by the audience is much higher, making them more valuable.

Why Are There So Many Commercials During an NBA Game?

While the NBA is riddled with advertisements and sponsorships across the basketball court, they do not actually control the number of commercials that at home viewers are shown.  Rather, those commercials are placed by the respective broadcast channels.  These channels, such-as ESPN, ABC, TNT, and NBA TV, pay hefty fees to secure the rights to broadcast NBA games.

And these television rights are not cheap.  In 2016, both ESPN and TNT renewed their contracts with the NBA to broadcast live games.  This 9-year deal cost both ESPN and TNT upwards of $2.6 billion per year.  And in order to recoup those costs, both ESPN and TNT must place and run a slew of commercials throughout the program.

And that $2.6 billion amount does not include all the work and salaries that go into producing the programs.  From paying for hosts, to paying for staff, to flying between cities and recording the games, these broadcast channels are forced to add commercials, advertisements, and sponsorships wherever they can.

Is the NBA Going to Add More Sponsorships and Advertisements?

While it’s difficult to predict whether or not the NBA and its franchise teams are going to add even more advertisements and sponsorships, there is a high likelihood of them doing so.  As with any business, the push for additional revenue and profit is an ever-growing challenge.

And while the NBA and its franchise teams can increase the prices of tickets, merchandise, and food items, those increases can directly affect the bottom line, with casual and avid fans alike opting to simply not purchase those items. 

However, while advertisements and sponsorships are definitely an annoyance, they generally do not cost the viewing audience anything.  As such, the NBA and its franchise teams are more likely and more willing to add sponsorship opportunities as an additional means to increase yearly revenue.