In the run up to Super Bowl XLVIII last week a non-industry friend remarked how absurd they thought it was for Hollywood studios to spend $4 million to purchase a 30-seocnd television commercial during the game. That’s how much Paramount Pictures paid for its spots promoting “Transformers: Age of Extinction” and the Russell Crowe starrer “Noah”. Sony shelled out just as much to tease “The Amazing Spider-Man 2”, as did Disney for “Captain America: The Winter Soldier”.
Spending what appears to be a big chunk of a film’s marketing budget on a single spot seemed wasteful to my friend and they just couldn’t see how the math penciled out. Initially, neither could I… that is until I sharpened my pencil and ran all the numbers as we’ll go over in a moment.
First, for those readers not in the United States (as we have many) and who aren’t familiar with the Super Bowl, it is the annual championship game in American football. Each season culminates with two National Football League teams emerging from a round of playoffs to square off in a single game that is watched on television by tens of millions throughout the U.S. alone. It is often one of the most viewed television broadcasts each year.
In fact, since the year 2000, when 88.5 million viewers tuned in, the average audience for the Super Bowl has increased 25% to 111.5 million viewers this year. At least that’s according to the official numbers published by Nielsen, the company that keeps track of such data. Three of the last four Super Bowl broadcasts have set average viewership records.
In that same time frame the cost of running a 30-second Super Bowl commercial rose 90% from USD $2.1 million in 2000 to this year’s USD $4 million price tag. Despite the high cost of advertising during the game’s broadcast demand for doing so has never waned and ad inventory has always sold out.
And here’s why. Super Bowl ad buys are a huge bargain.