We asked a number of people a bunch of questions about the Super Bowl. Here is Bill Reynolds, VP, Director of Media at Erwin-Penland, on whether or not Super Bowl ad space prices will rebound.
Until this year, the Super Bowl ad pricing trend had been increasing faster than inflation — thanks to a lack of marquee events and must-see TV. The general public these days prefers tuning-in to a four-hour, mega-sporting event just to see how far brands will go (and how much they’ll spend) to make us laugh, go “whaaa?” or flat out insult us with their inanity. So far, it hasn’t hurt the Super Bowl’s abilities to rake in the big bucks — including $2.8 mill for a 30-second spot.
You might say: wait, prices are down. But this year’s drop is not because the marketing value is less. It’s more a game of perception for advertisers. How can I keep the public (and my stockholders) happy? Now, more than ever, no one wants their constituents complaining that they’re wasting funds just so consumers can be entertained. They really have to prove the value these expensive spots bring to everyone affected by the brands’ bottomline. Super Bowl prices are highly publicized and it’s not that easy for the everyday layman to understand how companies that are delivering lower profits, closing plants or laying off employees can justify the millions of dollars going in to this four-hour spectacle.
Even with digital channels becoming more influential, marketers still can’t beat the price/reach ratio Super Bowl TV ads provide. What digital does is helps extend the value of this buy from a one-day wonder to a much longer shelf life. It won’t affect spend on Super Bowl ads, but it will give marketers the opportunity to create long-lasting buzz and, in return, more bang for their buck.
The Super Bowl has a unique ability to deliver massive reach with audiences who are attentive to commercials, hip on hype and are only growing more influential as the media world continues fragmenting into smaller and smaller viewer segments. Even with mediocre halftime shows and limited controversy, ratings remain high with only a subtle year-to-year variation based on who’s playing and how competitive the game is. Even if a 5 percent variation in ratings translates into millions of viewers, it doesn’t really affect the advantage Super Bowl has over other major events in the media world.
So the question becomes not if prices will rebound, but when. As the perception game dies-down, brands will once again get excited about the glamour — and financial return — a Super Bowl spend provides. Whether the market will shift in 2011 or 2012, only time will tell.
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