Room only for ‘real player’ as Super Bowl ad costs hit historic high
Super Bowl commercials are more expensive than ever before but they are also offering a better deal for advertisers, according to CNN Business.
Super Bowl LVI broadcaster NBC said last week that all advertising spots have sold out, with some ads costing US$7 million (Bt22.81 million) for 30 seconds, which is a new record.
NBC said all the advertisers will run their ads across NBC, Telemundo and streaming, including its streaming platform Peacock, for the first time. In past years, some ads had been sold to different platforms separately.
The company added that 40 per cent of the advertisers – 30 companies – in the game are new.
The Super Bowl is watched by around 100 million viewers even though ratings for some other sporting events are dropping.
The NFL has been the most popular TV programme for a long time while the Super Bowl remains the most watched event in the US.
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It has been a place for giant companies to introduce new wares or launch brand campaigns while new companies with big budgets could also introduce themselves.
"The fractionalisation of attention because of streaming and social media makes the Super Bowl more important than ever,” Patrick Crakes, a former Fox Sports executive turned media consultant, told CNN Business.
“If you’re in business with the NFL and you’re advertising during the Super Bowl, you’re a real player,” Crakes said.
“You’re likely looking at about 70 ads, so you’re getting pretty close to $500 million in ad revenue from the game for NBC,” Tim Calkins, a marketing professor at Northwestern University's Kellogg School of Management, was quoted as saying by CNN Business.
“And that, by the way, is just during the game. That doesn’t count before the game, after the game and all of the other opportunities there are to run additional advertising." Calkins added.
According to research firm Kantar, the Super Bowl in-game ad revenue was $434.5 million.
"$500 million is a lot of money for anyone, but in the world of media, Super Bowl spots are on a whole other level," Calkins explained.
"That is why the NFL is such a valuable sports franchise, because there’s this ability to charge advertisers this much to be on these events,” Calkins said.
