🏟 The Business Behind Super Bowl Commercials
🏟 The Business Behind Super Bowl Commercials
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Executive Brief: The newsletter is short and sweet today. I discuss the business of Super Bowl commercials and include some of the best commercials from last night’s game. Then, I post a few relevant Twitter threads for you at the end in case you want to dive deeper. Enjoy!
The Super Bowl is a money-making advertising machine.
While the dollar amounts aren’t made public, the Super Bowl generates tens of millions of dollars for the NFL from sponsors, TV partners, advertisers, commercials, ticket sales, merchandise sales, strategic partnerships with other media and businesses, and more.
It cost advertisers around $5.6 million to secure a 30-second commercial during the Super Bowl in 2021. That’s roughly $187,000 per second. CBS sold out all its advertising spots last year, which reportedly generated $545 million.
Reports suggest that NBC charged $6.5 million for 30-second ad slots for last night’s Super Bowl LVI.
Not only does the NFL make more money for Super Bowl ads, but they also lengthen the game to fit more ads in.
The average NFL game lasts three hours and 12 minutes.
The average Super Bowl game lasts upwards of four-plus hours. That factors in the Pepsi-sponsored 30-minute halftime show. Pepsi secured the rights to the halftime show in 2012 as a part of a marketing deal valued at over $2 billion.
That said, the value of the halftime show could range from $25 million to $50 million depending on the show. So, there’s a great return on investment over time.
Most advertisers are more than content by their marketing investment on Super Bowl ads.
Why?
The 2021 game averaged 96.4 million viewers (including streaming). The 2018 game averaged over 100 million viewers.
Nothing reaches half the marketplace in homes and other demographics like the Super Bowl. The game is generally universal now, with many non-football fans watching for the commercials or because of the cultural component.
Advertisers understand this and know it’s the best way to secure instant brand awareness. So, they spend whatever it takes to secure a spot.
Culturally, the commercials have become just as big as the game for many.
Here are some of the best commercials from last night’s game without further ado.
FTX - Larry David commercial. Larry lands some great bits here. This is the extended version.
Coinbase — This commercial crashed their website it was so effective at driving traffic.
E-Trade by Morgan Stanley - The commercial returns for its second Super Bowl as the big bank pokes fun at current themes in the financial markets.
DraftKings - The sports betting company continues their “Life’s a Gamble” advertising with a new character.
Greenlight - The financial literacy app runs an ad using Ty Burrell on his quest to be very financially unwell.
Sam’s Club (Walmart owned) - The company spent serious money on hiring Kevin Hart for the ad:
Hellman’s Mayo - the ad focuses on food waste and has former NFL linebacker Jerod Mayo tackling consumers who are trying to throw away food including SNL’s Pete Davidson. Hellman’s mayo was probably enjoying the free publicity from Kanye West’s Instagram tirade about Pete yesterday too… especially how well it lines up with his joke in the ad.
Crypto.com - One of my favourites, the LeBron James spot.
Doritos Super Bowl Commercial
If you want more Super Bowl business-related content, check out the Twitter threads below:
Andrew Petcash wrote this thread on the $1 billion business of the Super Bowl (click the image to open):
Ronen Ainbinder also wrote a thread discussing the business behind the Super Bowl and how revenue can be made:
Thank you for reading. Have a great day, and we’ll talk next week!
Please subscribe, share with friends, and follow me on social media if you like this newsletter. You can also drop a comment below to let me know your thoughts.
Kendal
Question of the Day
What is your favourite Super Bowl commercial of all time?
Games of the Week
NBA
Tues, February 15: Boston Celtics @ Philadelphia 76ers @ 7:30 p.m. (E.T.)
Wed, February 16: Denver Nuggets @ Golden State Warriors @ 10:00 p.m. (E.T.)
NHL
Tues, February 15: Dallas Stars @ Colorado Avalanche
Thurs, February 17: Pittsburgh Penguins @ Toronto Maple Leafs at 7:00 p.m. (E.T.)
Beijing Winter Olympics
Winter Olympics occur in Beijing, China, from February 4th to February 20th.