Super Bowl Ads are Hotter Than Ever

For years the advertising industry has feared the end of television commercials as we know them.  “The end is near” many industry watchers have cried and warned, but that could not be further from the truth when it comes to one particular area of commercials — television ads for the Super Bowl.

A recent study by Betway offers several compelling arguments for the staying — and even growing — power of television advertisement during the Super Bowl.  Here are just a few of the findings:

Nothing tells a story like a Super Bowl ad.

TV commercials have gotten more sophisticated for decades now.  In the past they were almost entirely informational.  The Super Bowl has long been a pioneer at calling for commercials that told a story and left a lasting impression.  That impression lingered long after it was aired and well before they are aired again with new ones, creating an ongoing story often for generations to come. See the best stories conveyed in Super Bowls in the infograph below. We still discuss the “Mean Joe Green” advertisement decades after it first appeared. 

The cost for Super Bowl ads continue to blow up.

Do Super Bowl ads work? The fact their costs grow every year rather than level off or even decline like other TV ads point to an answer of “yes.”  In fact, 30 second Super Bowl ads continue to grow at a rapid rate — exponential or even “J curve.” The price per 30 second commercial has essentially doubled in the last ten years and is projected to continue to grow in the future.

The price per ad is staggering and growing.

Supply and demand drives our economic world. When demand out paces supply, the price always rises. All indicators point to huge demand for Super Bowl commercials.  There is no way that television ads would continue to generate the huge amount of revenues it garners if it were not for the return businesses get on their commercial investments. There is simply not another sport — professional or college — that garners ad revenues like the Super Bowl. This includes the NCAA Final Four, MLB World Series, or any other athletic event. They simply cannot “carry the water” of the Super Bowl when it comes to advertising revenue and that is because of the powerful reach..

Check out the results of this important study for more information:

 

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