Price of Super Bowl Commercials Reach All Time High

Growing up as a dedicated and avid NFL fan, I have always been intrigued by the commercials surrounding the Super Bowl. But as I further engage in my business studies, I have grown a whole new interest in the business end of the advertising.

With Super Bowl 47 fast approaching this coming Sunday, the big game isn’t the only thing grabbing the attention of viewers around the world. Jon Swallen, chief research officer at Kantar, believes up to half of the expected 110 million viewers tune in for the commercials alone. The success of Super Bowl ads has increased tremendously over the past decade, and it is evident by the rate at which airtime costs are rising. Up 7% since last year, 2013’s main event has 30-second Super Bowl commercials selling for up to $4 million, and 60-second commercials for $7.5 million.

Over the past years, the market itself has put upward pressure on the prices, as advertisers compete for the limited airtime. The inexistence of pressure set by CBS proves that these advertisers invest steep amounts of money because they truly believe the price is worth the possible benefit. After all, the Super Bowl is the most viewed sporting event in US television.

Take a look at what Volkswagen has planned during their allotted time:

Volkswagen “Get Happy” Commercial

http://www.usatoday.com/story/money/business/2013/01/14/super-bowl-ad-costs-kantar-media/1833807/

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