š What Makes Brands Spend >$200,000/sec? Super Bowl!
Coca-Cola, Doritos, and Budweiser all have one thing in common: They never miss the Super Bowl!
There's nothing that brings people together like sporting events. And where there's a crowd, there are advertisers.Ā
So, it's no surprise that most companies, big or small, popular or unknown are drawn to the Super Bowl, the event that is currently making headlines across the world.
But what is the Super Bowl and why does it hold such a massive appeal?
Super Bowl Advertising
Just like how we have the IPL in India, the US has the Super Bowl. Only that it is way bigger!
Ā It is the final championship game of the US' National Football League with a lot of fanfare, celebrity performances and tons of advertisements.
In fact, 42% of people watch the Super Bowl just for the ads!Ā
Thatās because unlike the repetitive IPL ads, Super Bowl ads have never-before-seen content created specifically for the event.
And all the brands and advertising agencies are ready to bring their A-game.
Yes, they are ready to shell out crazy money: $7 million (around Rs. 53 crores) for 30 seconds!
Compare that to the Rs. 13 lakhs-Rs. 14 lakhs that advertisers pay for a 10-second slot during the IPL.
It also makes sense for brands to throw money at this ad spot. Around 117 million viewers are expected to have watched the Super Bowl this year in comparison to the 31.57 million people who watched the IPL final last year.
Ā But do these ads actually work?
You bet! Legends are made within this crucial time span of 30 seconds. This year's Coinbase ad attracted so many people to the company's website that it crashed!
Appleās rise to fame also has roots in a Super Bowl commercial. That too way back in 1984.Ā
The company sold 90% more products than projected in the 90 days following the ad!
But come on. Spending millions of dollars for this. Isnāt it pushing it too much? Wouldnāt it be much cheaper to run social media campaigns?
Well, cheaper for sure. But most social media campaigns would fail to target such a diverse range of audiences as the Super Bowl.Ā
And most importantly, advertising in the Super Bowl has now become a status symbol. Even if you donāt garner a lot of sales, getting people to talk about your brand helps a lot in the longer run.
However, it's not just ads through which brands promote themselves during the Super Bowl. Nike has regularly been garnering audience attention just by fitting celebrities like Justin Timberlake, Adam Levine, and Travis Scott who were performing during the event with its shoes.
All in all, the event is a field day for marketing and advertising, earning over $500 million for the network broadcasting the event.
But how does the Super Bowl earn money itself? And how much?
Super Earnings with the Super Bowl
The Super Bowl has several revenue sources:
Ad Revenue accounts for $3 billion.
Brand Deals bring in $1.8 billion.
Ticket sales earn at least $66.5 million.
Plus, there's bids from cities wanting to host the event and merchandise sales.
So, in total, the Super Bowl earns around $5 billion- $6 billion (roughly Rs. 38,000 crores) for the NFL.Ā
But the real winner is the US economy, which sees a massive spending of roughly $14.6 billion thanks to the event.Ā
This is because people host huge Super Bowl parties and buy a lot of game-related merchandise to celebrate.
Surprisingly, IPL is also coming close to earning this amount. It could earn over $5 billion for the BCCI from broadcasting rights alone.
Is this a sign that we should be hosting more such sports events? Could they help boost our economy?
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