During that past years Super Bowl commercials have been increasing year to year. This year a 30 second ad price is worth $5 million for a spot on February 4th. But it really is worth the price for the companies paying for the ad. The Super Bowl is the gets roughly 114 million people and some are watching just for the commercials. They are known to be very funny and people just love seeing what new ads companies put out for the Super Bowl. With over 114 million people watching, the VP of Ad Sales at NBC Sports Group hoped that February 4th will set a record for single-day revenue for a single company. That is just crazy to think about how much a sports event can do for a company who will usually make a lot more than $5 million from the 30 seconds people will see. Everyone always looks forward to the Budweiser, Doritos, and Coca-Cola commercials so it will be interesting to see what they put up with the $5 Million for the 30 second ad. It also will be interesting to see if this years Super Bowl will get the same viewing number with all of the kneeling issues the NFL has been dealing with so I guess we'll just have to wait and see if the $5 million was really worth it after all.
http://www.businessinsider.com/super-bowl-commercials-cost-more-than-eagles-quarterback-earns-2018-1
7 comments:
In my opinion, the $5 million price tag is way too high. Super Bowl ratings have decreased in each of the past two years (https://www.statista.com/statistics/216526/super-bowl-us-tv-viewership/), and I would expect the same trend to occur this year as well. In addition, I don't think the cost is very profitable for a firm, as firms would have to earn $5 million in sales plus the additional advertising expenses to create the ad in order to break even. As a prediction, I think there will be more PSAs and informative advertisements than in years past because of the current political climate in the US.
I am surprised by this - I would expect costs to be lower or stagnant this year due to the lower numbers of watchers. However, I think that showing This is Us (which is hugely popular right now) will boost numbers for both the Super Bowl and This is Us.
I agree w/ Nate. 5 million is a lot but again at the same time, this is one of the biggest events ever meaning that there will be millions of people watching the game. Looking forwarding to see what each firms commercial will be like this year.
Most of the people think that 5 million dollars for an ad that is only 30 seconds are not something that is going to be profitable for the firms, but I believe these commercials are profitable. The reason for this is that these commercials are not only seen when the super bowl is on, there are people that keep watching them for weeks and people keep posting things about the commercials in social media which makes that even more people are going to see it and talk about it. Also, the companies make these commercials to be memorable so people will remember for example Budweiser with their horses that everyone knows.
We have to remember that along with the $5 million dollar price tag to book the spot comes the additional hundreds of thousands or even millions of dollars required to simply plan, execute, and edit the commercial. Many of these commercials hire celebrities to be spotlighted as endorsers for campaigns in the Super Bowl, and people like Beyonce come with a ridiculous price tag. As Nate and Madeline have mentioned previously viewing numbers are down and vying for an advertisement spot during the Super Bowl is just not economically justifiable option for many companies.
It may not be profitable for a firm to spend $5 million on an advertisement, but the Superbowl is a special event because it brings people together and places in front of TVs. A lot of people use subscription services such as Netflix, Hulu, and youtube red to avoid commercials however for the most part people seem to enjoy the creative and funny Superbowl commercials that role out every year. Advertisements shouldn't be what makes or breaks a company, however, those commercials have subliminal effects that leaves one with an opinion of the company. I think the ads are important for companies because it drives competition and is another way companies can gain advantages. People notice the coca-cola advertisements and I think there would be negative repercussions if they just stopped the advertisements one year during the Superbowl and Pepsi still did one.
Some people who are not interested in watching the Superbowl, mostly those who do not follow the sport, watch the Superbowl only for the advertisements mostly because they see the best on that channel on that particular day. Yes, it might be pointless for companies like Budweiser, Cheetos and Pepsi to spend so much on advertising during the Superbowl simply because they are well established and well known brands that most people are aware of, and the main idea of advertising is to create awareness. But spending $5 on an advertisement which people will remember, and might watch again even after the Superbowl is over can enhance the company's image.
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