Costs of Super Bowl
Not only is the Super Bowl the biggest game of the NFL post season, it is also the most expensive show to advertise commercials on. Currently, a 30 second commercial during the Super Bowl is selling for a list price of $2.4 million dollars. Plus another million for the cost associated with making a decent commercial. Now for a 30 second commercial the cost is roughly $3.4 million dollars during the Super Bowl.
But just because you are advertising during the Super Bowl, it doesn’t mean that you are going to have a great business. Various dot coms like Computer.com, OurBeginning.com, netpliance.com, and onmoney.com all advertised during the 2000 Super Bowl and all of them have gone under.
Since advertising during the Super Bowl is not a guarantee, should business do it at all? Should only large businesses? What about lowering the cost of advertising? Should we do anything at all or just let everything be since there has to be a winner and a loser?
6 comments:
The big companies are the ones who do more of the commercials now days, like Anheiser Busch. They put out many commercials and I'm sure when it comes to half time many people make a quick beer run. I think the only people who seriously benefit from the commercials are the beer companies, plus they're the ones who can affoard it.
Beer and chips companies benefit directly for advertising during the Super Bowl because consumers will go out and buy their product during the game at somepoint. where as dotcom companies might not benefit directly from advertising during the Super Bowl and are taking a bigger risk in advertising than the food companies are.
If a bussiness has the capability to relate to the audience and establish some credibility with the audience, then im all for it. The losers on Super Bowl Sunday are the ones who failed to reach the audience. It just so happens that majority of people watching the game happen to drink alcohol, therfore the alcohol commercials win big.
If the business feels they can connect with the viewer's and have a legitimate shot at selling there product, then advertising during the super bowl is a very good idea, because it's garunteed to reach a huge and wide audience.
Well nothing is a guarantee, so should companies not advertise at all? No, companies that feel like they are financially stable enough to air a thirty second commercial during the Super Bowl should definitely do so. You have a list of companies that have gone under for paying millions of dollars, but I'm sure the list of companies that have exploded post-Super Bowl is even longer. Lowering the cost is a possibility, but if the demand wasn't so high I'm sure ABC wouldn't charge such a high price. ABC should keep doing what their doing, and if the price does rise to high, companies will naturally become elastic, and no longer buy the air time.
I would tend to agree with the opinion of Deeken's above. These companies are taking a risk in order to better their company. The often used quote, "you have to spend money to make money" has never been more true than in this instance. A company takes a chance that advertising on a huge stage like the super bowl, will make turn their company into a household name, thus turning huge profits.
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