The cost this year is anywhere between $2.5 million to $2.8 million. Last year the average price for a 30 second spot was $3 Million. This has caused some of the "big players" in advertising to step back, allowing smaller companies the opportunity to advertise on the most watched event of the year. While big names like Pepsi and General Motors are putting less money into advertise during the Super Bowl, smaller companies such as Dr. Pepper, Snapple, and Diamond Foods have stepped up to the plate. About 20-25% of this years sponsors are first time advertisers for the Super Bowl. According to CBS.com:
"Big money is at stake. From 1990 through last year, the Super Bowl game has generated $2.17 billion of network sales including 1,400 commercials from 210 advertisers"
For the first time in 23 years Pepsi won't have an advertisement during this years Super Bowl. It will be interesting to see which companies will step up and pay the big bucks for spot. Many smaller internet companies have forked over the money to advertise over the past few years such as GoDaddy.com, who has had great success due to the ads. I would expect more internet based companies to follow in GoDaddy.com's footsteps.
It is obvious why the cost of a Super Bowl ad has dropped. The simple answer is the economy. Companies all over the United States are cutting back, many of them are slashing their advertising budget. It is unrealistic for them to spend the same amount of money for a single 30 second spot instead of a whole advertising campaign. Since demand is low for Super Bowl ads the cost has dropped.
The Super Bowl has become famous for having the best commercials aired during its program. We are used to hilarious, high budget, spectacles during the four-hour program. It will be interesting to see if the actual quality of the commercials will drop as well due to the lack of money being put into advertising.
No comments:
Post a Comment