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Are Super Bowl Ads a Strategic Touchdown for Brands?
The Super Bowl isn’t just about touchdowns and halftime shows — it’s also a battleground for advertisers vying for consumer attention on one of the biggest commercial stages of the year. As the country finalizes preparations for Super Bowl LVIII, the impact of commercials on retail sales has become a topic of interest. The big question: Are they worth the money?
According to an ad study completed in 2023 by Veylinx, a behavioral research company, Super Bowl commercials do indeed drive consumer demand. According to their results, “2023 Super Bowl advertising fueled a 6.4% increase in demand among viewers.” Some of the top advertising winners from last year’s game include Michelob Ultra, Pepsi Zero Sugar, Frito-Lay PopCorners, and Heineken 0.0 with a 19%, 18%, 12%, and 11% increase in demand, respectively.
Neil Saunders, managing director and retail analyst at GlobalData Retail, affirms the Super Bowl’s significance, emphasizing its unparalleled reach and impact on sales and brand affinity. “The Super Bowl remains one of the key advertising occasions of the year for retailers and brands,” he noted. “That said, retailers need to be tactical in determining what the purpose of a Super Bowl spot is. Is it simply to burnish the brand or is it intended to drive customer behavior in some way?”
For this year’s Super Bowl, which is set to be held in Las Vegas on Feb. 11, advertising space sold out last November and cost as much as $7 million for a 30-second ad during the game, according to The Hollywood Reporter. In comparison, a 30-second ad in 1967 was about $40,000.
Companies also have to account for the cost it takes to produce the ads and pay for celebrity appearances or animation. But even with these exorbitant prices, advertisers think the ads are worth the cost. Traci Freling, a marketing professor at UT Arlington, told CBS News, “This is the only opportunity every year, year after year, where you can reach over 100 million Americans in one fell swoop.”
However, she doesn’t think all ads are worth “about $200,000 per second.” She believes the game can be a good fit for food and beverage brands, Hollywood promotions, and car companies specifically. “We expect our funny bones to be tickled,” she explained. “We don’t expect our heartstrings to be tugged or to be thinking about something really serious during the Super Bowl.”
So far for this year’s game, we can expect big ads like Michelob Ultra with Lionel Messi, a Doritos commercial with Jenna Ortega, and a funny Bud Light commercial that the company hopes will help it recover from a consumer boycott last year. We’ll also see Budweiser’s iconic Clydesdales in their 46th Super Bowl appearance.
Some commercials that did well last year include one from tech giant Google. Per Lisa Goller, B2B content strategist for Lisa Goller Marketing, “Google’s Fixed on Pixel spot stood out last year for magically erasing flaws, exes, and background nudists from photos. Even ardent iPhone fans praised that feature as an engineering marvel long after Super Bowl LVII.”
Temu is another prime example with its “Shop Like a Billionaire” ad, which aired twice during the game. According to Saunders, “Temu used its Super Bowl ad to create awareness, and it resulted in a massive spike in downloads of the app which, over time, translated into more customers and sales. That was a very smart use of a very expensive advert.” Per EDO, the TV outcomes company, the Temu commercial “outperformed the median Super Bowl ad by 10x.”
However, the landscape of Super Bowl advertising is evolving. Melissa Minkow, director of retail strategy for CI&T, has observed a shift away from consumers wanting “brands to take a stance on political issues,” favoring creative messaging and entertainment value over overt political statements. “Now it seems there’s a preference for leaving politics out of marketing and brand identity altogether,” she said.
She has also noticed the oversaturation of celebrity endorsements. “While it’s fun seeing celebrities in commercials, there’s so much branded celebrity and influencer content, I think the stakes are higher for brands to deliver creative messaging, independent of who serves as the spokesperson in the campaign,” she explained.
As for what products the ads endorse, she added, “I don’t think consumers have particular preferences there. I think it’s more just about ‘Is this content either relevant to me because it’s about products I use, or is it at least entertaining?’”
According to Veylinx’s study, women in particular drove the increase in demand in 2023, accounting for a 21% increase in demand growth. This year, that may remain consistent thanks to the “Taylor Swift effect.”
Mark Price, an adjunct professor at the University of St. Thomas, underscored the need for retailers to adapt swiftly to changing consumer demographics. “The rise of teenage girl viewership of the Kansas City Chiefs (the Taylor Swift effect) challenges retailers to adapt their marketing strategies to capitalize on this phenomenon quickly,” he explained. “Products and marketing channels need to be quickly reevaluated. We will see following the Super Bowl which retailers could pivot in such a short time frame.”
The Super Bowl remains a critical advertising occasion for retailers and brands alike, offering a platform for companies to amplify their message and drive consumer engagement. However, the question of whether ads are worth it and if they will be successful hinges on strategic intent and creative execution rather than mere participation. As the advertising landscape continues to evolve, retailers must remain agile, adapting their strategies to capitalize on emerging trends and consumer preferences.
Discussion Questions
Do you believe Super Bowl ads justify their high cost, and which product categories or brands do you think typically find the most success in this advertising space?
How can advertisers strike a balance between endorsing their products and providing engaging content that captures consumer interest during the Super Bowl?
Given the evolving landscape of advertising and consumer behavior, what trends do you foresee shaping the future of Super Bowl commercials and their impact on retail sales?
Poll
Loading …BrainTrust
Zel Bianco
President, founder and CEO Interactive Edge
Michael La Kier
Vice President, Brand Development - IGA, Inc.
Much depends on what a brand wants to use the advert for. Last year, Temu used its spot to build awareness and it paid enormous dividends in terms of driving downloads of its app and user numbers. Other brands use the opportunity to create stronger levels of demand, some of which manifest quickly and some of which build more slowly over time. The key thing is to determine a purpose and then engineer the ad around that purpose. But regardless, this is a big occasion when viewers are in the market to be entertained so ads need to be engaging and imaginative.
They can, but – as one would expect with such a qualified endorsement – it’s a big gamble. So logically we’ll continue to see a lot of image sustaining ads from familiar names, for whom $Xmillion is only part of the marketing budget. If you’re a small business – and keep in mind we don’t mean “small” in the traditional sense – looking to be bigger and want to go for broke, go ahead, you’ll make it…one way or the other (literally).
Super Bowl LVIII will be the most-watched game in NFL history. Why? Great ads? No. Great game? Maybe. The venue? Not likely. Celebrity Influencer? Bingo! The impact of Taylor Swift’s presence will create the biggest buzz around the Super Bowl. Any advertiser should understand the impact (and demographic) of her mass of followers to optimize ad spend that is already absorbently high. I hope she makes it to the game. The future of Super Bowl commercials includes influencers and micro-influencers, and “pre-hyping” ads before they air on game day (ala Uber Eats). The impact of retail sales will be massive.
Did the advertisers who bought their spot(s) in November get a bargain that Taylor Swift made the Super Bowl?
Yes, Gene, I would say so!!
I think there is a whole range of motives and outcomes to Super Bowl ads. Some outcomes are immediately measurable and some may have to benefit from a cumulative view over the years. There are ads that are monuments to the ego of the brand and the marketing staff. Kind of a “We’ve arrived!” moment. There are breakthrough ads that plant a brand firmly in the consciousness of the viewers. Apple, way back when. And then ads that reinforce an underlying brand connection. The Budweiser Clydesdales with their 46th appearance! Yikes. I’m not sure what the total $$$ add up to for the ads run that day, counting both production and air time, but it seems like it’s all a bit over the top. A giant indulgence satisfying a whole bunch of egos. The question about it all being “worth it” gets to be very philosophical for me.
While Super Bowl ads may increase “demand”, demand does not equal an increase in sales…nor will an increase in sales mean that the ad contributes a positive ROI.
Do you think when the CEO approves the expenditure for a Super Bowl ad, ROI is ever part of the conversation?
If it’s a global brand, there is no better forum to reach a world wide audience than the Super Bowl except for the World Cup. Also, many advertisers do a good job of extending its reach and frequency by running the ads after the Super Bowl on line and off. It’s also one of the few times that Americans get together for a truly shared experience.
The allure and attraction of a Super Bowl ad campaign are hard to resist. Especially since there are an estimated 115 million viewers, who will be a captive audience. Before the rapid change in the industrial advertising complex operating model, it was unheard of not to invest in a Super Bowl ad. However, consumer behaviors have changed with the emergence of TikTok, Instagram, and other social platforms.
We have entered the “attention economy,” where the old advertising rules no longer resonate with the modern customer. In the attention economy, one viral campaign, or Super Bowl ad, does not equal sustained growth. Companies must be very strategic with their expectations for the Super Bowl ads, as the costs for a 30-second ad are $7 million.
By being purpose-driven with the Super Bowl ads, companies can leverage this platform for brand awareness and the potential spike in sales. However, the critical success factor in the attention economy is always sustained sales growth.
Very thoughtful comment! I like it.
Thank you, Gene!
Grocery is the perennial Super Bowl winner, as the game is all about celebrating with food and friends. Fun and iconic CPG brands (Doritos, Mountain Dew, Budweiser) often earn laughs, social buzz and a sales lift. A relevant spot can be worthy every penny.
Tech companies also stand out. Google, Apple and IBM Super Bowl spots are often praised and studied by marketers for their bold, captivating messages. (Thank you for including my example of Google’s magnificent Fixed on Pixel ad.)
Looking ahead, we’ll see Super Bowl commercials convert faster as media moves closer to consumers and content gets more shoppable. The path from discovery and impulse to purchase keeps getting shorter.
Maybe I will be able to click on Travis Kelce after he scores a touchdown and order a #87 jersey?
That’s the dream right there: Shoppable TV.
I guess I am old school. Maybe, even old, old school. I leave the room during the half-time show and use the commercials to fill my snack p[late to take nature’s call. I get annoyed at the Super Bowl party when most attendees are not watching the game, but shush everyone when the commercial comes on.
I am with you. There are far too many advertising breaks on American television. It’s annoying. Although the one thing I will say about the Super Bowl is that the ads are generally more entertaining and interesting than the average commercial!
Super Bowl ads are a strategic safety for brands. Translation-not worth it, like, ever. Oh sure once in a while something is launched with a memorable Super Bowl ad (wasn’t the 1984 themed anti IBM Apple ad a Super Bowl ad? Pretty sure it was), but for the most part these ad prices are vanity exercises for the brand in question. Run this test: ask yourself two weeks after the Super Bowl which ads were memorable, if you remember more than three, then I am incorrect.
But for the cost? No.
Millions of captive viewers, eating and drinking together, and willing to actually watch tv commercials means a playground of brand and growth opportunities.
The best Super Bowl commercials tell a story about the company or product with humor and emotion – leaving the viewer feeling they’ve gained new trust, interest or hope to eventually act, now or later.
Say what you will about the NFL, it’s hard to top its reach of 100 million viewers with the SuperBowl. For that alone, most brand managers would throw their brands in the SuperBowl ad ring, save the exorbitnat cost. But, only a few brands have the financial chops to even enter this advertising game and when they do, it’s rare that it doesn’t pay off. This is the one time a year when consumers watch TV and actually look forward to seeing the commercials. Any brand manager worth their salt would want to be part of this, so long as it’s a relevant space and audience for the brand.
That being said, brands still must know how to traverse this space. Post the recent rise in brand’s social concienceness and post the pandemic’s seriousness, I believe that consumers are looking for levity, entertainment and a sense of camaraderie from the SuperBowl this year. If brands can land this then consumers will respond favorable and the ROI for favorable responses have kept–and likely will continue to keep many brands coming back for years.
In my opinion, Super Bowl ads can justify their high cost if they effectively align with strategic intent and creative execution. Product categories like food and beverage, entertainment, and automotive typically find the most success due to their broad appeal and capacity for memorable storytelling. Advertisers must strike a balance by ensuring that their ads not only endorse products but also provide engaging content that resonates with consumers emotionally or humorously. Also, the future trends in Super Bowl commercials may focus on creative messaging over political statements, increased diversity in celebrity endorsements, and targeting specific demographics like women and teenage viewers, reflecting evolving consumer behaviors and preferences.