Price of Advertising During the Super Bowl at All-Time High

advertising, Naperville business planning attorneyThis coming Sunday, the eyes of the sports world will be focused on Levi’s Stadium in Santa Clara, California, as the Denver Broncos take on the Carolina Panthers in Super Bowl 50. The NFL championship game has become a media spectacle all its own, with days of advance radio and television coverage. The city has been full of sports and entertainment personalities, putting themselves out there to be seen and to promote their own brands, projects, and interests.

As an experienced business attorney, I have helped many clients develop viable advertising and marketing plans. While your company may not yet have designs of buying Super Bowl airtime, countless others are digging deep into their pockets to do exactly that.

Advertising: The Cost of Doing Business

During the game itself, some 115 million viewers are expected to tune in across the country, making it one of the most watched television events of the entire year. Many, of course, are primarily interested in the contest taking place on the field, but for a large number of other viewers, the real entertainment begins when the game action pauses. Super Bowl advertising has turned into a cultural phenomenon, with prices for a 30-second spot continuing to rise. This year, Fortune is reporting that a single half-minute ad during the championship game costs approximately $5 million, nearly 11 percent higher than a year ago.

A Number of Factors

Industry experts and financial analysts indicate that the price hike each year for Super Bowl spots is due the unique combination of elements the big game provides. Advertisers see the opportunity to put their best foot forward in front of what is essentially a captive audience. Some suggest that the cycle is self-perpetuating, as big money spent on ads turns into media attention, which draws interest from viewers, which pushes the prices up each year in an infinite loop.

Finding the Right Scale

Advertising is one of the most important things you can to do to help maintain continued profitability in your business. While you may not necessarily need to put your company’s products and images in front of a worldwide audience, you can and probably should develop an advertising strategy to reach your target demographic. To do so, you will need to research and plan carefully to be sure you are getting the biggest return on your advertising investment.

As you begin or continue an advertising campaign, it is important to consider how your efforts will fit into your overall business plan. That is where we can help. Contact an experienced Naperville business planning attorney at The Gierach Law Firm today and we will work with you in creating a business plan that suits your company’s needs. Call 630-756-1160 to schedule an initial consultation.

 

Sources:

US News

Fortune