Are Superbowl Ads Really Worth It?

Millions of eyes along with millions of opinions, watching and absorbing a mere 30-second video; is it really worth it to display an ad for a cost of $2.7 million? “YES!!!” seems to be the preferred answer to this question when the super bowl is involved.

Ever since Apple’s record breaking commercial during the super bowl in 1984, advertisement prices during the super bowl games are skyrocketing annually. This year the amount at a record breaking high of $2.7 million arouses a thought provoking question; is it really worth it to advertise for that much money? Most companies agree with the fact that it is. This fact can be proven from a census collected that shows vast numbers of people not only just watch the super bowl, but many specifically watch the game in order to view the expensive commercials. “The venue not only delivers a vast audience, it delivers a captive audience that often pays more attention to the commercials than the game itself,” 1 Today, about 40 percent of all U.S. households — 90 million people — sit down to watch the whole game, while about 140 million people tune in for at least part of it. Many non-football fans, watch the much-hyped commercials. This has become a spectator sport as the game itself. Companies are starting to believe that in order for consumers to learn about their existence, they must broadcast something extraordinary and out of the blue. A commercial being displayed during the super bowl, seems to be the perfect solution. “Nobody knows that you exist and you should consider stepping into the mainstream media. And the Super Bowl was right around the corner.” ² This choice seems to be pretty upright and obvious, but then again, why take a risk involving such big amount of money?

For profit obviously! The positive results of broadcasting these commercials are absolutely unbelievable. This result can be accurately observed from Go Daddy’s Super Bowl campaign. In just the first year, it helped boost market share from 16 percent to 25 percent. The following years, as the company continued to create Super Bowl ads, market share jumped to 32 percent in 2006 and 42 percent in 2007. Go Daddy’s CEO Bob Parsons likens a big budget ad campaign to golf. “First you have to tee the ball up right and then you have to hit it,” he says. “The Super Bowl teed up those customers for us and then we hit it.” ³ His analysis appears to be correct. In conclusion, it’d be safe to say that ads displayed in the Super Bowl are like bright fire works which elusively shine out one’s products, however, a risk of $3 million should only be taken if the company is sure that the ad’s failure will not result in tragic losses and bankruptcy.

Bibliography:

Zendrian, Alexandra. “The $2.7 Million Question: Are Super Bowl Ads Worth It?” 31 Jan. 2008. .

1 Richard Castellini, vice president of marketing for CareerBuilder

² Bob Parsons, Go Daddy CEO

³ Bob Parsons, Go Daddy CEO