New York, NY, January 8, 2009 –
As Super Bowl XLIII on February 1 approaches, it’s more than
just sports fans who are eagerly looking forward to the game. For
millions of consumers, the TV commercials that will appear during
the game are also the subject of growing anticipation. And participating
advertisers will once again be confronted with the difficult question
of whether the Super Bowl is a smart marketing investment or a wasted
use of the budget, especially in light of the current economic climate.
“The true cost to a Super Bowl advertiser far exceeds the
price of just the air time. There’s the expense of producing
elaborate, new commercials for the game and for an increasing number
of marketers, there are additional outlays for integrated communications
programs intended to leverage their Super Bowl sponsorship,”
said Dean DeBiase, CEO TNS Media. “While the cost premium
makes it more difficult to achieve a strong ROI, a select group
of advertisers believe that the potential reward is worth the investment,
even during a period when overall ad spending is under pressure.
However, as the long-term trend of data indicates, the Super Bowl
endures as the premier venue for advertising in terms of ad rates
and the ability of commercials shown in conjunction with the event
to engage and hold viewers.”
TNS Media companies (TNS Media Intelligence; TNS Media Research;
and TNS Cymfony) have again combed through their extensive databases
to report on key trends in Super Bowl advertising.
The Price of Advertising
The cost of an advertisement in the Super Bowl has quadrupled
in the past 20 years, reaching $2.7 million for a 30-second
unit in the 2008 game. For 2009, NBC is reportedly seeking $3.0
million for each 30-second spot. If this pricing level is achieved,
total in-game ad revenue should exceed $200 million for the first
time.
SUPER BOWL AD RATES AND REVENUE
1989-2008 |
| 1989 |
675 |
35.5 |
| 1994 |
900 |
52.2 |
| 1999 |
1,600 |
97 |
| |
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|
| 2003 |
2,150 |
130.1 |
| 2004 |
2,302 |
149.6 |
| 2005 |
2,400 |
158.4 |
| 2006 |
2,500 |
162.5 |
| 2007 |
2,385 |
151.5 |
| 2008 |
2,700 |
186.3 |
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Compared to the average cost of commercial time on prime time network
programming during the first quarter, Super Bowl spots are 18-20
times more expensive. This premium has held steady in recent years.
First Time Advertisers
In recent years, first-time Super Bowl advertisers have
been a significant presence, steadily accounting for 20-25%
of the companies that buy ad time. On the one hand, it indicates
that a number of marketers do not return to the game which could
be construed as a sign of weakness for the event. On the other hand,
a diverse mix of new advertisers has been filling the void, representing
both well-known and lesser-known brands. This reaffirms the Super
Bowl’s attractiveness to marketers willing to pay the price
for access to advertising’s biggest stage and an audience
of engaged viewers.
Number of Super Bowl Advertisers By Year
|
| Total |
29 |
35 |
33 |
32 |
34 |
| First-Time |
5 |
9 |
8 |
7 |
7 |
| % of Total |
17% |
26% |
24% |
22% |
21% |
|
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More Advertising, More Clutter
Over the past ten years, the volume of commercial time in the game
has been edging upwards even as the price of advertising has become
more expensive. The Fox telecast of the 2008 Super Bowl
contained over 44 minutes of network ads, an all-time high.
This included paying sponsors, messages from the NFL, plus “house
ads” aired by Fox to promote its own programming. The past
three games now occupy the top three spots in terms of all-time
Super Bowl ad clutter.
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Viewers Watch The Commercials
Advertisers have long assumed that Super Bowl viewers stick around
during the breaks to watch the ads but with recent improvements
in audience measurement it’s now possible to track viewing
second-by-second and quantify how commercials actually perform.
The data confirms that Super Bowl advertising has enormous
holding power. In the 2008 game, the index of commercial
viewers to program viewers was right around 100, indicating that
people opted to watch the ads instead of switching the channel.
The halo extended to pre-game spots as well, but not the post-game
as viewers gradually tuned away entirely.
Index of Commercial Viewers To Program Viewers: 2008 Super Bowl
|
| Pre-Game |
101 |
| First Half of Game |
101 |
| Half-Time of Game |
99 |
| Second Half of Game |
99 |
| Post-Game |
85 |
| Avg. Primetime Show |
90 |
|
|
Online Integration With The TV Ads
Given the high price of TV ad time in the Super Bowl and the intense
public scrutiny the commercials receive, the implications for ROI
are magnified. Many marketers seek to maximize exposure
and impact for their TV ads by successfully capturing online interest
and buzz. However in any given year only a handful actually
achieve this integration.
In the 2008 game, more than two-thirds of the coverage about Super
Bowl advertising in traditional and social media was generated by
just ten marketers. Brands that promoted early and consistently
generated more coverage and discussion than brands that waited longer
to announce their involvement or lacked consistent momentum in their
pre-game PR and word-of-mouth campaigns.
Top 10 Brands in 2008 Super Bowl
Ranked on Total Media Coverage
(includes Traditional and Social media)
|
| 1 |
Pepsi |
6 |
Doritos |
| 2 |
Anheuser-Busch |
7 |
GoDaddy.com |
| 3 |
Coca-Cola |
8 |
Victoria’s Secret |
| 4 |
Bridgestone |
9 |
E*Trade |
| 5 |
Audi |
10 |
Planters |
|
|
For the 2009 game, Pepsi has fired an early salvo with its announcement
of a 3-D ad in partnership with the DreamWorks movie studio.
Post-Game Discussion Of The Ads Drops Quickly
The aggregate volume of traditional media coverage and social discussions
about the Super Bowl commercials peaks the day after the game and
then plummets sharply. This short post-game window reinforces the
importance of brands having effective pre-game PR and word-of-mouth
marketing strategies to ensure an adequate share of the total dialogue
about the ads.
Conversation About the 2008 Super Bowl Ads Peaked The Next
Day
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About TNS Media
Established in more than 30 countries, TNS Media explores all media
- print, radio, TV, Internet, social media, cinema and outdoor worldwide,
24 hours a day, seven days a week, and offers a full range of insights,
analyses and audience measurement services.
TNS Media combines the deepest expertise in the industry to provide
media and marketing intelligence including advertising expenditure
monitoring, advertising creation monitoring, audience measurement,
market influence analytics, online consumer behavior tracking, news
monitoring, sports sponsorship evaluation and more. The TNS Media
companies track more than 3 million brands and provide vital market
intelligence to 16,000 customers around the world. For further information,
please visit www.tnsmediagroup.com
About Kantar Group and TNS
The Kantar Group is one of the world's largest research, insight
and consultancy networks. By uniting the diverse talents of more
than 20 specialist companies – including the recently-acquired
TNS – the group aims to become the pre-eminent provider of
compelling and actionable insights for the global business community.
Its 26,500 employees work across 80 countries and across the whole
spectrum of research and consultancy disciplines, enabling the group
to offer clients business insights at each and every point of the
consumer cycle. The group’s services are employed by over
half of the Fortune Top 500 companies. For further information,
please visit www.kantargrouptns.com
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