From January 13, 2014 – Philadelphia Business Journal: “At $4M For Super Bowl Ad, It’s ‘Almost Impossible’ to See Return on Investment” – by Peter Van Allen
Some companies are having a hard time justifying Super Bowl advertising.
Even longtime advertisers are balking at the $4 million price tag for a 30-second commercial spot, said Joe Glennon, assistant professor of advertising at Temple University’s School of Media and Communication.
He cited E*Trade — the company that became famous by using talking babies — as an example of a company that couldn’t justify the cost of a spot in the Super Bowl.
“After years of questioning the real value of advertising during the Super Bowl — but still coughing up millions to be a part — E*Trade’s decision may be a sign of a larger trend of advertisers walking away from the big game and the even bigger price tag,” Glennon said. “At $4 million per 30-seconds, it is almost impossible for an advertiser to see a return on that investment.”
Advertising Age last week published its lineup of this year’s Super Bowl advertisers. No Philadelphia companies are on the list, at least for now.
Companies that plan to shell out the bucks for an intangible brand boost include Audi, PepsiCo, Mars, Coca-Cola, GoDaddy, Chevrolet, Nestle’s Butterfinger brand (which plans to go head-to-head with Hershey’s Reese’s Peanut Butter Cups).
As the advertising industry shifts, companies are looking for different results from the Super Bowl.
“Super Bowl ads do work well for establishing credibility or producing widespread interest for a new product. Like E*Trade years ago. That’s why the start-up could justify the $2 million,” Glennon said. “It has been a long time since television could be used to convince people to buy your product. Today, the medium is best used to remind current users of brand attributes and reinforce the positive feelings of choosing a brand.”
Last year, Red Tettemer O’Connell + Partners created a Super Bowl commercial for Century 21. The agency continues to work with Century 21, a spokeswoman said, but this year the real estate firm will focus its media buying on the Sochi 2014 Winter Games.