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TVI: Why Spend $4 MILLION on One Lousy Ad? Superbowl 2008

Why Spend $4 MILLION on One Lousy Ad?

In 2012, nearly fifty percent of Americans in the country’s top fifty-six media markets sat down to watch Superbowl XLVI. Brands who placed advertisements that year paid an average of $3.8 million for each 30-second slot, with SodaStream spending a reported 25% of their annual US advertising budget on their SuperBowl campaign. All of which begs one question: Why do it?

Image by http://www.portent.com/

Because it gets you in front of 89 million Americans:

As of the 2012 Superbowl, over 40% of twitter users who followed JetBlue, Amazon, and Under Armor respectively also followed the official NFL twitter stream.  For these brands, the overlap in existing customers indicated that a large portion of the 89 million Americans who watch the Superbowl were likely to convert.

Because it greatly increases your visibility in the consumer conscious:

By December of 2011, Chobani owned over 50% of America’s Greek Yogurt market. Dannon, which used its Superbowl slot to push it’s Oikos Greek Yogurt, needed the 1000% increase in media coverage it got following the ad to challenge that market domination.  Since February of 2012, Dannon’s Oikos has seen a 10% increase in growth.

Because the NFL is tied to your brand:

In 2011, Arby’s ran a number of promotions tied to the Denver Broncos, Papa John’s had a contract that made them the “official pizza of the NFL”, while Outback Steakhouse sponsored the NFL on a national level.  For these brands, Superbowl ads were merely one facet of a larger football-related marketing effort.

 

But that doesn’t mean it ALWAYS makes sense:

In 2011 Denny’s, which spends approximately $70 million annually on US advertising, made the choice not to run a SuperBowl ad.  When asked why, Denny’s Frances Allen explained that while Super Bowl ads made “a big splash”, restaurant and hospitality customers were really more likely to respond to consistency over time. Denny’s internal research had shown that, for a restaurant, maintaining a consistent TV, outdoor, print, and online presence over the course of the year had a far bigger impact that one flashy boom.

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