Advertising During the Super Bowl: Is it Worth it?

From the public’s point of view, spending $4,000,000 on a thirty second Super Bowl Ad makes little to no sense, however, this is not always the case from a marketing stand point. The aspect that sets major sports finals such as the Super Bowl a part from other advertising alternatives is that it has continued to see growth and expansion over the past decade almost regardless of what teams are playing. To me that seemed quite odd that no matter the match up, the Super Bowl has always taken positive steps forward in growth. As stated in a recent Wired.com blog posting, this is very appealing to those who advertise during the Super Bowl because the audience they reach gets bigger and bigger each year and therefore you can spread the cost over more and more people (firms that advertised during the 2012 Super Bowl paid between $0.03 to $0.04 per viewer). Undoubtedly the greatest victor from their decision to advertise during the Super Bowl is GoDaddy.com. In 2005, GoDaddy’s market share was 16% and only one week after the game, their market share was 25% and in 2011 they had $1.1 billion in sales and over 50% market share. A key aspect of their commercials is that they are always memorable for one thing or another (usually their racy/ borderline inappropriate content). On the other hand, there have also been firms who have spent the money to have Super Bowl Ad’s and no longer exist today such as pets.com and lifeminders.com. For some companies this is an all or nothing strategy and, for most, the current financial risk is outweighed by the potential future benefit. I genuinely enjoy the Super Bowl commercials and I think it will become increasingly important for firms to become more and more original such that they stand out among the other 60 plus advertisements shown during the game and maximize their return on investment.

1 thought on “Advertising During the Super Bowl: Is it Worth it?

Leave a Reply

Your email address will not be published. Required fields are marked *