Super Bowl's Price Bubble

According to the information in Mercury News.com, the super Bowl, the most-wachted and popular teleivision show in the US, is going to get $2.4 million for its advertising price.

Go back to the advertising history of the Super Bowl game, in 1967, the price for broadcasting a advertisement in the super bowl game was between $37,500 and $42,500. In 1985, the price increased to $500,000 and jumped to $1 million in 1995. And in 1996, the price reached 1.2 million, which is half of the price in this year.

More surprisingly, broadcasting three advertisements in the Olympic game can only cost the price for one in the Super Bowl game. Moreover, the Super Bowl's advertising price is still going up. Despite the increasing prices, "there may not be a stampede among big advertisers to purchase time during the Super Bowl this year."

What caused the huge demand of the advertising business?

First, according to the statistics in http://sports.yahoo.com/nfl/news?slug=ap-superbowl-ratings&prov=ap&type=lgns, The game was watched by an estimated 141.4 million people in the United States. Compared to the normal rate, it definitely provides a prime opportunity to those advertisers to propagandize themselve and increase their reputations. Furthermore, the advertising part of the Super Bowl game has already become a distinct part from the game itself. Majority of the audience are also looking forward to see the fancy advertisements. The two reasons above can explain the advertising price bubble of the Super Bowl game, for it can be seen as expectations of the factor for shifting the demand curve to the right. Following the increasing price of advertising, the demand curve should be therefore decreased. However, Considering about the advertising benefit for Super Bowl's adertisements, the demand changed in any given price and the entire prices are higher than any other television programs.