How the first programmatic Olympics changed the advertising landscape forever
This year at the 2024 Paris Olympics, athletic prowess was not the only stand-out feat on display. What’s being termed as “the ultimate case study” for programmatic buying in live sports coverage, the 2024 Summer Games saw NBCU allow the programmatic purchase of Olympic ad inventory through its digital streaming platform, Peacock, for the first time in history!
The Significance of This Move for Small to Mid-Sized Advertisers and How It Changes Everything
NBCU's decision to make the 2024 Olympics ad inventory available for programmatic buying proved to be a game-changer, especially for small to mid-sized advertisers. Traditionally, securing ad space during the Olympics—a premier global event—has been the domain of advertising giants with deep pockets. However, the introduction of programmatic buying levels the playing field, allowing smaller advertisers to compete alongside industry titans in a way that was previously unimaginable.
This move opens up access to premium live sports spots, often seen as the holy grail of advertising due to their massive, engaged audiences. For small and mid-sized brands, this opportunity means they can strategically bid for ad placements that align with their target audience’s viewing habits, without needing to commit to the enormous budgets typically required for such placements.
Moreover, the ability to access first-party data through NBCU's platforms enhances targeting capabilities. Small and mid-sized advertisers can refine their campaigns based on insights, optimizing ad spend and maximizing ROI. This level of sophistication was once only available to the largest advertisers, but with one landmark decision, it was made accessible to a vast range of businesses.
The impact of this shift extends beyond just ad placements. It symbolizes a broader trend in the advertising world, where technology is breaking down barriers that once separated the big players from the small ones. The programmatic approach makes it possible for smaller brands to be agile, creative, and competitive in an arena previously dominated by global giants.
Highlighting the Force that is FAST
According to data from NBCU, $1.2 billion was committed in ad revenue, $350 million of which came from new buyers advertising in the Olympics for the first time. This means that nearly 30% of the ad revenue pie was committed by advertisers who were only able to participate in this landmark event because of the ability to buy programmatically. That is a staggering statistic highlighting the growing power of FAST (Free Ad-Supported Streaming Television) over linear TV.
Moreover, this influx of new advertisers demonstrates that the demand for accessible, data-driven ad opportunities is strong. While programmatic buying during the Olympics may have lacked granular control over specific sports or events, it still offered robust audience-based targeting, with advertisers leveraging first-party and third-party data to reach viewers most likely to engage with their messages.
The Future of Programmatic Buying in Live Sports
The 2024 Paris Olympics has changed the landscape of programmatic advertising forever. With these revenue numbers and campaign success metrics, this will likely serve as a staging ground for more live sports and events to open up the floodgates for programmatic media buying. This signals the ever-growing significance of CTV (Connected TV) and marks a shift toward more accessible, data-driven advertising opportunities in live sports.
