Super Bowl: average price of 30 second advert costs $3.5 million

The average price of Super Bowl ads have risen more than 50 per cent in the
last 10 years, defying economic downturns and secular industry issues. NBC
sold out all 70 spots around this year’s game shortly after Thanksgiving
weekend in November and reached a new high with one slot selling for around
$4 million.

The game, including lower priced halftime slots, could easily generate over a
quarter of a billion dollars in ad sales.

“The overall demand for Super Bowl spots is very high this year,”
said Tim Calkins, marketing professor at Northwestern University’s Kellogg
School of Management. “Prices are high. Demand is high. I think that’s
a very positive sign for the economy.”

Consumer research forecasts that 60 per cent of fans watching the Super Bowl
will also be tied into a second screen such as a smartphone or tablet.

Anheuser-Busch, which typically buys exclusivity as the only beer advertiser
during recent Super Bowls, is again the biggest spender, according to
industry sources.

Not unlike past Super Bowls, Coca Cola Co and PepsiCo Inc will face-off for
soda supremacy. Both beverage makers have come up with campaigns that
attempt to leverage social media after their commercials air.

Coca-Cola’s TV commercials, which will air during the first- and
second-quarter breaks, will centre around its computer-generated Arctic
polar bears watching the game. The bears will then be brought to life on
Twitter, Facebook and on a dedicated Website doing such things as responding
to fans and commenting on the game. They will even have their own Twitter
hashtag –#GameDayPolarBears
– for fans to follow.”We wanted to interact with consumers in the
most simple and organic way so they would have nothing to do other than what
they usually do,” said Pio Schunker, Coca Cola senior vice president of
integrated marketing platforms.

Fans who catch Pepsi’s commercial with “X Factor USA” winner Melanie
Amaro performing the Otis Redding song “Respect” will be able to
download a free video of the performance by using the Shazam app on their
phones to capture audio from the commercial.

There are also partnerships with online radio service Pandora Media Inc and
social TV specialist GetGlue centred around the game and other free content.

“Our philosophy now is nothing happens in isolation,” said Shiv
Singh, global head of digital for PepsiCo Beverages. “Social TV is a
massive phenomenon and a critical element of our Super Bowl campaigns.”

The biggest spender by category is the autos industry, which made a big
comeback last year and was noted for one of the most memorable spots – Volkswagen’s
ad with a young child dressed in a Darth Vader outfit
believing he
can control the Passat car’s lights.

This year, Volkswagen’s Audi is hoping to win more creative kudos with a spot
that taps into the “Twilight” teen vampire pop culture phenomenon.
The 60-second advert, which will air during the first break in the game,
will highlight the new 2013 Audi S7 and its LED headlight technology, which
has unfortunate consequences for a party of young vampires.

Audi hopes to continue the conversation about the ad via the Twitter hashtag
#SoLongVampires.

NBC executives say the auto makers are leading a trend toward long-form
campaigns of 60 seconds or more, allowing high-end creative concepts to be
fleshed out in the commercial’s narrative rather than just going for a quick
gag and punchline.

Chrysler Group LLC, Toyota Motor Co, Honda Motor Co Ltd, Hyundai Motor Co, and
other automakers will also be advertising during the game.

General Motors Co’s mainstream Chevy brand will run seven TV commercials
before, during and after the game, for instance. It will also centre its
overall campaign heavily around web-based partnerships with NBC, Twitter and
Facebook.

Source: Reuters

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