Super Bowl Ads Heading for Touchdown

Apparently “You get what you pay for” is as true for Super Bowl advertising as it is for other purchases; at least marketing experts believe it. Take for instance the fact that despite asking record fees for ads at last year’s Super Bowl XLV, all the ad space was sold. And the same phenomenon is happening this year for Super Bowl XLVI.

Part of Super Sunday

Super Bowl XLVI

Experts are saying that next month’s Super Bowl will most likely surpass the take for last year’s, and next year will do better than this year. Companies and their marketing agents strongly believe, to the tune of millions of dollars, that it is an honor and a privilege to be a part of Super Sunday.

Profitable, Too

But it’s not just a privilege; its lucrative as well, say experts such as Brian Steinberg, the television editor for Advertising Age. “It’s a huge investments but it’s also one of the best ways to maximize their time. Fewer TV properties have that reach thanks to DVR and the Web. The Super Bowl is increasing, rather than losing, its audience.”

And as long as that audience continues to drink, snack and continue to watch TV, there is no end in sight to the money that can be made at the Super Bowl.

Sold Out

NBC is the network which will be broadcasting the game on February 5th, from Indianapolis. NBC has already announced that there is no more time left for ads during the game itself, but there are still a few spots left during the pre-game show. Despite the fact that NBC has not publicly disclosed how much each spot costs, the Associated Press estimates the charge to advertisers is somewhere between $3.5 million and $4 million for each 30 second time slot. Just 20 years before a half-minute cost advertisers only $1 million or less.

BIG Audience

That amount of money, however, buys the ad-men the largest TV audience in the United States all year. Last year’s figure was 111 million Americans who were glued to the game, many of whom watched with fascination the tens of commercials which were broadcast during the time-outs and other game breaks.

“There’s nothing to compare it to. Maybe the Oscars or some of the music (awards) shows, but not really,” said Stephen Master, head of sports for Nielsen, which tracks viewership.

“The Super Bowl works for different kinds of companies. It’s a wonderful venue for companies with a new product since it builds brand awareness so quickly. But it also allows the ability to rebuild or to recast a brand,” said Tim Calkins, professor of marketing at Northwestern University.

About Alison Meadows

Alison Meadows has a PHD in Economic Trends in Modern Times and is a known writer who focuses on hedge fund investments. Meadows, her husband, and three kids live in Boston, where she grew up and attended college. Contact Alison at alison[at]businessdistrict.com