With Super Bowl being the biggest TV event of the year, it is no surprise that the cost of ads is going through the roof. Right now a 30 second ad during the big game is a hefty $4 million. After a rise in 60 second ads in 2008 and 2009, that trend is on the decline. With prices that high, it makes no wonder.
What Does a $4 Million Ad Get You?
The exposure from that pricey 30 second ad can make a huge change in your business. In 2011 GoDaddy.com saw a 41% increase in its business in the week following the Super Bowl. During that same time frame, other Super Bowl advertisers like Groupon and Verizon Wireless saw only a 3% and 2% increase respectively in their business.
Depending on the size of your business and the value of a customer, even a 2-3% increase in business may warrant the $4 price tag. It was certainly worthwhile for Mercedes-Benz who also advertised during that game and saw a tidy 9% increase. However, if your market share is already high, your industry competitive and there is little to distinguish you from competitors, costly Super Bowl ads may not be the way to go.
A Super Bowl ad is no guarantee of success in your business. Super Bowl 34 held in January 2000 had 19 .com advertisers. Of those, 8 no longer exist.
So What is An Advertiser to Do?
Every year companies spend more and more on advertising. The big names that consistently advertise in the Super Bowl, like Anheuser-Busch, PepsiCo, Coca-Cola General Motors and Walt Disney keep coming back, so there must be significant value in doing so. In fact the exposure that comes from a Super Bowl ad comes down to about 3 cents per viewer, which is actually a very smart investment.
Opinions vary on whether or not the cost of Super Bowl ads is worth it. Take a moment and review the stats to see what you think.