Super Bowl Ads Break Revenue Records Yet Still Reflect Recession; Chris Lester on Fox News

Posted by: Chris Lester, Principal Feb 02, 2009 0 Comments

This morning I had the pleasure of joining Fox News as a subject matter expert to discuss the Super Bowl ads. The fact that the networks are dedicating air time to the subject is a real indicator of what a cultural phenomenon the ads continue to be. And once again, I find myself putting in my two cents on the subject. I watched the game carefully, not only because it was truly riveting, but because I wanted to make sure that not a single ad was missed, including the 1-second Miller ad (which somehow I missed). Knowing that I would have to be on television bright and early the next morning kept me from over-indulging in lite beer and bean dip and allowed me to truly examine and enjoy the advertising from a professional perspective.

This year ad revenues broke the record at $206M, up from $186M last year. This in itself is a staggering number given the fact that ad revenues for traditional media are decreasing exponentially, and we are squarely in the middle of a global recession. The going rate was $3M for 30 seconds ($100,000/second) with NBC filling all of the available air time. This is a clear indicator that advertisers still see the Super Bowl as the premier ad event where they can have the greatest impact and realize the greatest return. Because the ads have become part of the show, viewers anticipate them and expect them to be creative and entertaining; in fact, they not only pay attention during the game, they flock to sites like YouTube, Spike, and Hulu, where many of the ads had been leaked ahead of time.

The advertisers are willing to pay handsomely in order to be part of the conversation that begins before the event and continues to thrive long after the game has been played: a conversation that is taking place online, through mobile devices, in social networks, and at the good old fashioned office. The life of the ads can spread way beyond the event, making the ads less of a luxury and more of an opportunity for advertisers.

Even though it was a record year, the effects of the recession could be seen. Many of the big advertisers from previous bowls were conspicuously missing, including the U.S. auto makers, the leading delivery services, and the big financial companies, to name a few. This created an opportunity for companies with traditionally weaker brands to take the stage and capitalize on the vacancy. Hyundai took this opportunity to upgrade their image and grab market share. E-Trade tried to lure investors from larger brokerages with a message of “control your own investments”. Pedigree dog food had a clear call to action and was the only company representing that market. Audi poked fun at the leading brands by positioning them as has-beens.

There were also some of the tell-tale indicators of uncertain times. Entertainment had a huge presence; there were a great deal of ads promoting films, TV shows, and amusement parks, all of which represent an escape from reality and thrive during recessions. The most telling was the Cash4Gold ad clearly communicating that we are experiencing tough times.

Budwieser, the leading advertiser, communicated strength and stability through the iconic Clydesdales, mixing humor with nostalgia. The career sites were at it again, surprisingly with the same message they’ve been promoting for years, “Hate your job? Get a new one.” I had expected to see more from them, including potentially different concepts given the unemployment rate. Humor was well represented in many of the ads, and Coke brought us a visually rich, lush, and beautifully branded piece that connected the brand with nature and took us on a dreamlike journey.

The recession has obviously caught up with many advertisers, but whether it will ever catch up with the Super Bowl, only time will tell. Many of this year’s ads were sold before September 2008, ahead of much of the worst economic news. With so much at stake, this year’s advertisers will be keeping their fingers crossed and carefully monitoring and measuring results.

Next year’s roster of advertisers will certainly be influenced by those outcomes. If a company like Hyundai can successfully steal some of BMW’s market share, then we may be looking at another record year. If not, we may be talking more about the bean dip than the ads.

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Chris Lester

Principal

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