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Super Bowl Ads: Expensive and Worth It!

Posted in Services on January 10th, 2012 by admin – Be the first to comment

Cited: MSNBC

Every year we hear about the huge cost involved in advertising anything on any media outlet for the Super Bowl, and this year’s NFL extravaganza will be no exception. Already, ad space for Super Bowl XLVI is sold out and will likely top last year’s record setting take. Industry experts see no end in sight with most agreeing that companies will continue to lineup to spend millions to advertise their products on the Super Bowl.

Every year, the advertisers come up with new wrinkles to set their ads apart from the crowd and this year the talk is that viewers will see more long-form ads, those longer than 30 seconds, and many more linking to social networks. The big game is scheduled for Sunday, February 5 and will be broadcast by NBC. Spokesman for NBC say that ad space for the event is already sold out, though some space for the pre-game is still available. NBC is being pretty closed-lipped about the amount that is being paid by sponsors for the advertising space but AP has put the price tag at $3.5 million to $4 million for 30 seconds. The price for this prime space has certainly risen with and above the level of inflation as an equal amount of time for the Super Bowl 20 years ago sold for less than $1million.

Some feel that this is money well-spent as advertisers are buying into the largest TV audience in the U.S. Last year more than 111 million Americans watched the Super Bowl, with many of them watching the catchy ads. There’s no reason to expect that this year’s audience won’t be the same or larger.

The social media is expected to be on the forefront of the advertising for Super Bowl XLVI, with advertisers expected to go all in trying to tie their spots heavily to Facebook and Twitter. This is part of the reason behind advertisers leaking the ads to YouTube well in advance of the game and in this way, increasing the bang for the buck.

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My Take:

It seems like quite a lot of money to spend for well-known brands that already have a huge share of the market. The money could be better spent by these companies on more humanitarian causes that in the long run might do more for their image, if not their bottom line.

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