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Super Bowl commercials. Where's the ROI?

You may have heard that there is a football game going on this Sunday. Indeed, it is time again for the Super Bowl. This year, it is a rematch of four years ago, featuring the New England Patriots and the New York Giants. Many advertisers have already spent a reported $3.5 million per 30-second TV commercial. Keep in mind, that doesn’t include all of the money spent on developing and producing these ads. 

The good news for advertisers comes from Retail Advertising and Marketing Association’s (RAMA) survey that estimates 173 million viewers will be tuned in to catch all of the action this Sunday. This is up from last year’s viewership of 171 million. But will enough viewers be interested in the commercials as well as the game? 

According to the RAMA survey, nearly three-quarters of viewers (73.0%) say they see the commercials as entertainment. The survey found 16.9 percent say the commercials make them aware of the advertisers’ brand while only 8.4 percent say the commercials influence them to buy products from advertisers. Some question if this 8.4 percent is enough for advertisers to expect a return on their investment (ROI). Owner of Greensboro’s downtown agency, King’s English, David McLean says it is.

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"Absolutely, if it's the right media choice for the brand. The sea change in media brought on by the internet and exponential growth in media outlets probably make Super Bowl advertising a little less of a juggernaut than it was ten years ago, but you still can't argue with the power of an American tradition attracting over 100 million viewers. Ironically, it was during the internet boom years when we saw examples of corporate and creative egos gone wild with famously wasteful Super Bowl spots, such as EDS' 'herding cats' spot,” says McLean.

“Dot-com start-ups foolishly figured they could put most of their chips on the Super Bowl and just be crazy enough and they'd quadruple their already dubious value overnight. That era probably gave Super Bowl ads a black eye. Regardless, today, if the brand is a fit for the audience and the client can afford it without sapping their entire budget, Super Bowl advertising can be just as effective as any other buy," says McLean.

But other industry experts claim measuring the value of a Super Bowl ad may not be as simple as tracking the numbers or following the bottom line. The fact that viewers of all ages watch the Super Bowl for the commercials as much, if not more, in some cases than the game itself gives more merit to the high cost of Super Bowl ads and the elite status they maintain year after year.

Among this year’s featured TV spots that include familiar advertisers such as Coca Cola, Pepsi, Doritos, Volkswagen, GoDaddy and more, expect to see a fresh new face, or rather a fresh new baby, sharing his advice with a new daddy at the hospital on behalf of the advertiser, eTrade. (eTrade TV commercial featured to the left of this article) Once unheard of, this year most of the Super Bowl ads have already been seen online and even featured on morning news programs, with advertisers hoping their ads will be viewed more on such resources as youtube.com to begin a viral buzz for their brand that may or may not turn into actual revenue.

With advertisers spending a good deal of time and money to promote their commercials weeks before the kick off, some marketing professionals see this as an annual ‘I’m cool and you’re not’ contest, where corporate executives act more like preschoolers who want to be able to whine the loudest so that they can be crowned the ‘king of commercial coolness.’ But the high cost of Super Bowl commercials didn't always reach in the millions.

In 1967, NBC reportedly charged its advertisers $37,500 for a 30-second spot in the Super Bowl. Today, as the economy is still struggling to find its feet, Public Relations Specialist, Anne Wear in High Point says spending millions on 30 seconds of air time is a pretty big gamble with no guarantees of success.

 “I think purchasing a Super Bowl ad is more of a status symbol. Companies are hoping that their commercial goes viral after being seen on the Super Bowl. So, they are betting $3.5 million that their ad will be the memorable one. It's kind of like playing the lottery. Every so often one ad is head and shoulders above the rest and is the ad talked about at the office on Monday. But, to be honest, most of the time, the ads don't have that kind of staying power,” says Wear.

 It is that ‘staying power’ or the expectation that millions of viewers will remember these ads for weeks and months after the Super Bowl that advertisers are banking on to make a profit, surpassing their advertising costs. However, Tom Smigielski, a marketing executive for several notable firms, including the Triad and now Senior Account Executive for Collins + Company in Myrtle Beach, South Carolina says some of these so-called ‘memorable ads’ may come at too high of a price when the lasting impression they leave is in the millions of young minds that make up another segment of the Super Bowl’s television viewing audience.

  “The ads have evolved from a feel-good company message to different methods of getting a company message across.  Styles include use of humor and relying on the old adage of ‘sex sells.’  The sexual innuendo of the past has also evolved to a more pronounced use.  Although welcomed in many sports bars across the country, not all ads are welcomed in suburban homes where many of those gathered around the game include young children.  There is often a fine line that advertisers need to consider when determining their message, because not only will they be seen by their target audience, they will also be seen by the young impressionable children of that market,” says Smigielski.

Brian Wear, a freelance videographer in High Point says, just like many who watch the annual event, he has his all-time favorite Super Bowl commercials. He agrees that some ads are so well-produced that it’s hard to forget them even after a year or more.  

 “One of the recent Super Bowl ads that I really enjoyed was the Betty White ad from two years ago. It was very well done. It was memorable because of the humor used. But, I couldn't remember the sponsor of the ad. I looked it up, and it was Snickers. It didn't change my spending habits at all. The memorable ad was more of a reflection of what a good sport Betty White is in pretending to be tackled than any reflection on Snickers,” says Wear

 Former Triad Assistant Creative Director and now Creative Strategist and Owner for a New York firm, Funky Tea Party, Jeff Zielinski says a 30-second commercial in the Super Bowl should only be one element of an advertiser’s more comprehensive ad campaign.

 “It's no secret that effective ad campaigns today need to involve a mixed bag of tricks. If a company is only considering the 30 seconds on screen, they are throwing their money away. However, if they take the time to string the right pieces together it can be well worth the investment. Take, for example the ongoing Doritos approach. Crowd-sourcing not only saves them boat loads of production money but it creates a huge buzz for the brand well ahead of game day. They've carved out an amazing social experience that transcends the chosen commercial. And the free PR it garners is simply icing on the cake. That's how you make $117,000 per second count,” says Zielinski.

 Come Monday morning, after the Giants or the Patriots claim victory and one player from the winning team is featured in that traditional commercial saying, “I’m going to Disney World,” the long-term value of those Super Bowl ads may fall between the indigestion you have from too much bean dip and cheese or a wardrobe malfunction during the half-time show with Madonna. Then again, there may be two commercials out of all of the Super Bowl ads that are viewed by millions on youtube.com and other social networks for months to follow.

As many Super Bowls in the past have shown, popular ads are a far cry from effective ads. Should businesses and corporations believe that they have money enough to gamble on their individual success, without hurting employees and the overall stability of the company, more than likely, companies will do what companies do. They will take a chance and spend millions on 30 seconds without knowing what financial impact their commercials will have.

At the same time when Super Bowl commercials  receive enormous viewership and public accolades even without a financial benefit to the company, what is a strong enough reason for a corporation not have a commercial in the big game? As the saying goes, 'it's just business,' or should it be, 'that's entertainment?'

, Greensboro Business Development Examiner

As owner of GS Consulting, Gillean uses media training, media relations, and online opportunities including business and social networks to help clients gain media awareness. She has established brand identities for local companies, and managed media relations campaigns including press releases,...

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