The Super Bowl has turned in to almost an American holiday, not just because of the game, but because of the concert during the halftime show, the parties in the winning city afterwards, and the new, funny, and even emotional commercials. With over 100 million people watching, advertising agencies, top companies & industries race to secure commercial ad space that can cost on average $175,000 per second! Although Super Bowl commercials are not a type of transit ad, we wanted to look at how utilizing an effective ad space can be so beneficial to the company or business at hand. Although costly, this type of ad spend can prove to do wonders for your business, so is it worth it?
What’s the Price?
In 2007, the average cost for a 30 second commercial was $2.7 million, and now it has almost doubled at an average of $5.25 million. These costs easily surpass the price of ads at other sporting events such as the NBA Finals which cost an average of $751,000 and the MLB World Series which cost an average of $674,000.
What are the factors?
The extraordinary price for super bowl commercials can be explained by a few factors. First, the total number of viewers and the fact that the Super Bowl is only one game that is usually close, while in the NBA and MLB they can have anywhere from 4 to 7 games to decide a winner and some of those games can be blowouts. The average viewership for the super bowl is 80% more than the NBA Finals and the MLB World Series. And also, if you create a good enough ad you will be forever remembered in people’s minds which is invaluable advertising wise. For example, companies like Budweiser or Doritos are always expected to bring the funniest or most heartwarming commercials each year which certainly drives up sales. The pure number and concentration of viewers is an advertisers dream and why they are willing to pay big money for the unwanted slots.
What slots are more valuable?
Believe it or not, advertisers not only want their ad in the Super Bowl; but they want it during a specific time and hence pay more for the slot. These more popular slots are the first and last commercials during a commercial break, More viewers are likely to see the first commercial and last commercial before they go to the bathroom or go grab food. Also, the 1st and 4th quarters are more valuable because more people will watch the beginning of the game when the score is close and even more will tune in, in the 4th quarter. Also, there is a little increase in price for commercials around the halftime show as people who don’t like football will watch the halftime show.
The Super Bowl started out as a simple game between the AFL and the NFL, but now it is an advertising dream with the excitement surrounding the event and the massive number of viewers. If you submit your own Super Bowl commercial, you might have the chance to become just as popular as Budweiser and Doritos. Although, it won’t be cheap.