Big Game: Advertising Opportunity Costs
Super Bowl marketing commercials have traditionally demanded premium advertising spend—merely from the number of eyes that watch and tune into the festivities; however, the past decade has saw with it changes in the overall marketing mix that brands have allocated in their budget surrounding the Big Game.
From experiential initiatives at the NFL Experience to hotel parties to pop-up shops and guerilla-style marketing taking place in the surrounding areas (within the host city), many brands have opted to reduce the noise of mass marketing and invest instead in smaller audiences with proven face-to-face initiatives surrounding the Big Game. Still other brands have directed their marketing efforts to influencers and social media platforms that provide exponential online impressions and exposure while still being cost conscious—in comparison to a 30 or 60-second TV spot (costing $5.6M per 30-second spot).
Nonetheless, despite an increasingly fragmented television landscape with its varied commercial-skipping-options, the Super Bowl remains an anomaly as viewers from all demographics eagerly tune in for one night of live entertainment.
Super Bowl 54 likely generated more than $400 million in advertising revenue for Fox, which would mark a new record, according to Adweek. The game had 80 units in-game. AB InBev was the biggest sponsorship spender in the NFL, according to IEG, as the drink and brewing company promoted a suite of brands. PepsiCo likely spent the second most on Super Bowl ads, buying 30-second spots or Pepsi Zero Sugar, Mtn Dew Zero Sugar, SodaStream, and Cheetos, as well as a 60-second commercial for Doritos. PepsiCo also co-owns Sabra, which had a 30-second ad as well.
Regardless of the metrics you use, the Big Game still brings in the largest advertising audience. Marketers understand the power of this moment as nearly 200 million adults (in the U.S. alone) were expected to watch Super Bowl 54, according to the National Retail Federation, and spend a little over $17 billion (with a estimated breakdown of: about 80% of the total was likely spent on food, 11% on team apparel and accessories, and 9% on televisions), according to a survey conducted by Prosper Insights and Analytics.
From Automakers and sites like Amazon to CPG brands and Casinos, sponsorship spending in the NFL—throughout its 32 teams—and at the Super Bowl itself remains an advertising mecca for mass media.