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Why do companies spend millions on Super Bowl ads? | Article

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A 30-second ad can cost millions of dollars

⭐️HERE’S WHAT YOU NEED TO KNOW⭐️

  • Super Bowl LVI (56) is coming up this weekend.

  • A lot of people will be tuning in to see the commercials, not just the football game.

  • Companies pay millions of dollars for only 30 seconds of advertising.

  • But experts say it’s worth it.

  • Keep reading to find out how they know that. ⬇️ ⬇️ ⬇️

The Super Bowl is coming up this weekend, and that means a few things.

People are talking about the NFL teams competing: the Cincinnati Bengals and the Los Angeles Rams.

But there’s also talk of commercials, like always.

It’s likely we will see some commercials trending during and after the game.

Companies pay more money to advertise during the Super Bowl than for any other program on television.

It costs a lot of money — between $5.8 million and $6.5 million US for a 30-second commercial.

So why do companies do it?

The short answer: It’s worth it.

Let me explain.

Why the ads cost so much

In 2021, about 91 million people tuned in to watch the Super Bowl.

Even though viewership has mostly trended down in the past few years, it still attracts a huge audience.

“Sports is one of the few things on television where people actually watch live,” said Paul Mirshak, who teaches sports marketing at Champlain College in Saint-Lambert, Quebec.

Most people stream their favorite TV shows, so they don’t see traditional commercials.

“The Super Bowl is an exception,” Mirshak told CBC Kids News.

Paul Mirshak teaches sports marketing in Quebec. (Image submitted by Paul Mirshak)

Unlike other major sports leagues, like the NHL and NBA, which have a seven-game championship series, the NFL has only one big game.

Plus, the Super Bowl is an event for many viewers, and the commercials are going to be part of the entertainment, Mirshak said.

Peter Widdis, a professor in marketing and innovation at George Brown College in Toronto, Ontario, agreed.

“You know that you’re going to reach an audience of 100 million people that are likely not going to click and change [the channel],” Widdis told CBC Kids News.

That’s why it’s going to cost so much for companies to advertise during the Super Bowl, compared with other traditional commercials on television.

Why it’s worth it

Mirshak said that even though it costs a lot, companies are reaching a huge audience all at once.

“Yes, it costs $6 million for 30 seconds of your time. But when you factor in the large audience of about 100 million people watching this game, and when you do the calculation … it’s actually pretty good value,” he said.

Companies are able to track and measure how successful their ads are by doing research after the game.

They can see how many people watched their ads on YouTube and if they were trending.

Plus, if an ad was successful, sales of products go up.

Apple CEO Steve Jobs poses with the computer that was the subject of a popular commercial during the 1984 Super Bowl. (Image credit: Paul Sakuma, The Associated Press)

One of the most famous examples was during the 1984 Super Bowl.

Apple introduced the Macintosh (now known as a Mac) computer.

“After the Super Bowl aired, they couldn’t keep computers on store shelves,” Mirshak said.

Celebrity cameos

Remember, the high cost of advertising on the network airing the Super Bowl — NBC — is just to get the air time.

That doesn’t include production costs, and some companies also spend big bucks on celebrity cameo appearances.

Mirshak said that’s also worth it, because there are about an hour of commercials throughout the game, and companies want to get their commercials to stand out.

This year, big-name celebrities such as actor Zendaya, comedian Pete Davidson and rapper Megan Thee Stallion have already been spotted separately in new teasers for Super Bowl commercials.

In an upcoming Super Bowl ad for Hellmann’s that’s already viewable online, former NFL linebacker Jerod Mayo and comedian Pete Davidson are featured. (Image credit: YouTube)

How to watch these commercials in Canada

It has been an on-and-off thing for Canadians when it comes to watching Super Bowl commercials.

Currently, these expensive Super Bowl commercials that air on NBC are not played in Canada during the live broadcast of the game on TV.

This came after Canada’s Super Bowl broadcaster, which is Bell Media, said it was losing lots of money because audience members were opting to watch American stations instead.

Instead, Canadian viewers will see ads from Canada, but they can watch the American ones on YouTube after.

Have more questions? We’ll do our best to look into it for you. Ask for permission from your parent or guardian and email us at cbckidsnews@cbc.ca.

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