No single event on American television generates more viewers on an annual basis than the Super Bowl. In turn, advertisers hoping to reach that massive audience are once again being forced to shell out big bucks for airtime when the Denver Broncos battle the Carolina Panthers for the NFL title Sunday.
CBS, which is showing Super Bowl 50, was asking in the $4.6 million to $4.7 million range for a commercial spot back in July. The network held back some slots for any companies looking to make a last-minute purchase, which it believes will go for “north of $5 million.”
“As you get closer and closer to the game, there’s going to be some advertiser who has to be in the Super Bowl,” CBS president and CEO Les Moonves said.
All told, the average price paid for a 30-second ad during this year’s big game will be right around that $5 million figure, per Benjamin Snyder of Fortune.
That’s obviously a hefty price to pay for such a small chance to make an impact with viewers. It’s also easy to get lost in the crowd with so many advertisers shooting for the moon with hope their commercials can stand out from the rest to leave a lasting impression.
Yet, it’s also a unique opportunity. Last year’s game became the most-watched program in U.S. television history with 114.4 million viewers, and this year’s total should be in the same area, if not higher, with several intriguing storylines to follow.
The high cost also doesn’t come as a surprise to companies, as the price has steadily trended upward. Jimmy Boyd of Boyd’s Bets highlighted that rise:
|Year||Price (Per 30 Seconds)|
Those are just the prices to purchase the airtime during the Super Bowl. There’s additional costs in order to prepare the entire ad campaign, of course.
Michelle Castillo of CNBC spoke with an industry source who stated the whole package can cost upward of $30 million. Forrester principal analyst Jim Nail told the outlet he isn’t sure how cost-effective buying the ad space is when considering the alternatives.
“I’ve always questioned how valuable it is compared to what you can do with that other $5 million on other kinds of television programs,” Nail said.
Ultimately, the overall cost certainly presents a certain level of risk, even for high-profile companies with large advertising budgets. But the chance to reach such a massive television audience also equates to potentially lucrative rewards.
There’s no magic formula for creating a hit commercial. Companies have tried everything from dramatic and comedic to simply packing as many celebrities as they could into 30 seconds with varying levels of success. Striking the right chord, especially in the age of social media, is a tricky task.
One thing’s for sure: The ads have become just as much of the Super Bowl experience as the game itself over the years. That’s why they carry a $5 million price tag.
Source: Google News Super Bowl Commercials
Super Bowl Ads 2016: Latest Info on Cost of 2016 Super Bowl Commercials – Bleacher Report