Wednesday, January 22, 2014

Super Bowl TV $ ad costs through the years

Ad spending during the Super Bowl games has always been a huge topic not only for the creative content but controversy over the cost of the ads. To think that a 30 second ad sold for roughly $42,000 (Super Bowl I in 1967) and now 48 years later the cost for a 30 second spot for Super Bowl XLVIII is $4 million, with a few advertisers paying up to $4.5 million. This represents an increase of 9,423%.

The spreadsheet below lists Super Bowl ad prices for a 30 second spot over the past 48 year Super Bowl history (from it's first in 1967 through the 48th in 2014). As of Jan. 25, the spreadsheet has been updated with the respective national TV network airing that Super Bowl year (see the last column to the right of spreadsheet below). For those interested in a PDF version, a link will be available shortly or you may email me at gmbdaly [at] gmail [dot] com.


Worth noting, is that a 30 second spot ad during Super Bowl XLVIII (2014) sells for $4 million compared to $2.4 million for the previous decade (2005).

Interestingly, this 66.7% increase over the past 10 years (2014 - 2005) is the fifth lowest % increase in Super Bowl history compared to 1985 which has the highest percent increase at +377.5% for a 30 second spot at $525,000 versus $110,000 a decade earlier during Super Bowl 1976.


I wonder what this tells us about our economy. What do you think it means for the future of Super Bowl TV ad rates? According to a recent BusinessWeek blog by Eric Chemi, Super Bowl Ad Insanity Explained in Six Charts, assuming the average growth rate continues into the future,"my take is that rates can potentially reach $6 million in the 2020s, $8 million in the 2030s, and $10 million by 2040" says Chemi.

These stats are still speculative however given the recent % changes year to year averaging about $200,000 a year increases over the past few years, here is how I anticipate increases: $5 million by 2020, $6 million by 2025, and $7 million by 2030, $8 million by 2035, $9 million by 2040, and $10 million by 2045. Similar but about $1 million less than Chemi's take.


Super Bowl Sunday, known as the biggest advertising day of the year will reach well over $2 billion ad spending over the past 12 years (from 2003 - 2014).

Stay tuned for my next blog which will include the Super Bowl XLVIII 2014 $ Ad Spend Grid.

Here is the link to the Super Bowl XLVII 2013 $ Ad Spend Grid.

The usual big ad players --Pepsi and Budweiser (Anheuser Bush)-- along with popular brands Toyota and Volkswagen -- are returning to the game but many in it for several years such as E*TRADE, Cars.com, GM Ford, and Subway are all out this year.

What do you think? Are the Super Bowl TV ads generating enough awareness and momentum for a brand? Can the $4 million price per 30 second TV ad be the reason why big brand, repeat advertisers are pulling out this year?


RESOURCES:
♦ AllThingsDigitalMarketing blog for Super Bowl 2014 Ad Spend Info http://myblog.allthingsdigitalmarketing.com/2014/01/2014-super-bowl-xlvii-commercial-tv-ads.html
♦ Watch Super Bowl 2014 commercials, www.superbowl-commercials.org/cat/2014‎
♦ Updated Super Bowl Odds for Every NFL Team Heading into Week 16, Bleacher report, http://bleacherreport.com/articles/1892519-updated-super-bowl-odds-for-every-nfl-team-heading-into-week-16
♦ 20 Most Effective Super Bowl Ads http://www.thedailybeast.com/articles/2013/01/31/20-most-effective-super-bowl-ads-video.html
♦ Fox Has Sold Its Super Bowl Ads At A Record High Price, Business Insider, http://www.businessinsider.com/fox-sells-out-of-super-bowl-ad-slots-2013-12
♦ The 6 Car Companies Spending Millions on Super Bowl Ads in 2014, The Motley Fool http://www.dailyfinance.com/2014/01/19/the-6-car-companies-spending-millions-on-super-bow/
♦ 5 Biggest Super Bowl Commercial Spenders, The Street, http://www.thestreet.com/story/12243655/1/5-biggest-super-bowl-commercial-spenders.html
♦Fox Says Super Bowl TV Ad Inventory Is Sold Out Variety, http://variety.com/2013/tv/news/fox-says-super-bowl-tv-ad-inventory-is-sold-out-1200917948/
♦ YOUTUBE SUPERBOWL 2014 ADS LIVE ALREADY http://www.superbowl-commercials.org/
♦ SuperBowlcommercials.org,http://www.superbowl-commercials.org/tag/ford
♦ Major Beer Innovation Promised by Anheuser-Busch InBev NV (ABI), From Super Bowl 2014 Onwards, http://www.ibtimes.com/major-beer-innovation-promised-anheuser-busch-inbev-nv-abi-super-bowl-2014-onwards-1452172
♦ Bud Light Hotel To Float Into NY Aboard Norwegian Cruise Line For Super Bowl 2014, International Business Times, http://www.ibtimes.com/bud-light-hotel-float-ny-aboard-norwegian-cruise-line-super-bowl-2014-1457138
♦ Pepsi Get Hyped at Halftime page, http://www.pepsi.com/en-us/d/content/943/Pepsi---There-Since-the-First-#Halftime
♦ Bruno Mars to perform at the Pepsi Super Bowl Halftime show, http://www.pepsi.com/en-us/d/content/15534270/Bruno-Mars-to-Perform-at-the-Pepsi-Super-Bowl-Halftime-Show


Additional resources from 2013 Superbowl: AllThingsDigitalMarketing 2013 blog, http://myblog.allthingsdigitalmarketing.com/2013/01/super-bowl-xlvii-commercial-tv-ads-sold.html
Super Bowl 2013 TV ads
Super Bowl 2013 Ads on Facebook
Super Bowl Commercial Time Is a Sellout, The New York Times
AdAge Advertisers in Super Bowl 2013, AdAge
UPDATED: Everything We Know About The Super Bowl ad Lineup So Far, Business Insider
GM to Forgo Pricey Super Bowl Ads, Wall Street Journal
Be a part of the USA TODAY Ad Meter panel!, USA TODAY
Advertisers Give Sneak Peek of Super Bowl Commercials Online, CBS San Francisco
Should Super Bowl Ads Be Released Early?, Sports Business Daily
Some SUPERBOWL Ad Resources 2012, AllThingsDigitalMarketing Blog
Kate Upton Mercedes Benz Super Bowl 2013 ad video, ABC
Best Buy Banking on Amy Poehler To Break Its Super Bowl Ad Losing Streak, The Consumerist
The Big, Big Business of Super Bowl XLVI, The Fiscal Times
Super Bowl ads: Coca-Cola says goodbye to bears, hello to 'Mirage', Newsday
Coca Chase 2013 Ad, Youtube; Vote on who you want to win at cokechase.com
Doritos® Teddybear Prison themed ad “Crash The Super Bowl,” YouTube; This year a public vote will choose one Doritos ad to air during the Super Bowl
How much did the 2013 finalists spend on their Crash the Super Bowl entries?, Video Contest News
Super Bowl’s Greatest Commercials 2013, CBS Press Express
Kate Upton stuns in a 'leaked' Super Bowl commercial, WTSP.com
The Best Super Bowl AdMeters Ever, USA Today Ad Meter
Super Bowl XLVII New Orleans Host Committee
Super Bowl Ad Tracker: What to expect


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To request a pdf of the Super Bowl 2014 advertiser $ ad spend grid(photo left is a snapshot from 2013), simply email gmbdaly [at] gmail[dot]com with "FOX Super Bowl 2014 GRID" in subject line or visit this link at ____________.

All photos are courtesy of Wikimedia unless otherwise indicated.

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“Super Bowl TV $ ad costs through the years ” is part of the annual Super Bowl advertising insights ▲▲▲ series by Gloria Buono-Daly

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