For the second consecutive year, the average cost of a 30-second ad during the Super Bowl is US$ 7 million. Although many companies are tightening their marketing budgets and many prefer to advertise online, the cost of a Super Bowl ad continues to rise.
The reason is simple: there is no other opportunity to reach the number of people that a company reaches during the Super Bowl.
In an increasingly fragmented media landscape, the number of opportunities for companies to reach a mass audience through television advertising has decreased. Popular programs are increasingly migrating to streaming platforms, along with the audience. More and more, networks rely on live events, such as awards shows and sporting events, to attract viewers.
However, not all live events yield the same results. Leagues like the National Basketball Association and the National Hockey League have struggled to retain and grow their audiences.
But the National Football League continues its strong upward march, both in terms of viewership and media deals. In 2021, television networks paid US$ 110 billion for the league’s broadcasting rights over a decade, and the N.F.L. continues to set record viewership numbers. More than 115 million people watched last year’s championship game.
The Super Bowl is an unprecedented mass marketing opportunity on television. A decade ago, the average cost of a 30-second commercial was US$ 4 million; a decade before that, it was US$ 2.4 million. Analysts say the rising cost is a result of the law of supply and demand: with a fixed time period and limited ad spaces for each Super Bowl broadcast, competition is fierce. CBS, which will air Sunday’s game, sold out its ads within weeks last November. Paramount, the owner of CBS, will air nearly a dozen commercials to promote its films.
Super Bowl LVIII will be held at Allegiant Stadium in Paradise, Nevada, very close to Las Vegas. It is the first Super Bowl held in the state, and Allegiant Stadium – home of the Raiders – opened in 2020. The kickoff is scheduled for 6:30 PM ET next Sunday, February 11.
Don’t understand anything about American football? That’s okay! Besides the commercials created exclusively for this live event, keep an eye on the halftime show. This year, the show will feature Usher.
Source: The New York Times