HomeBlog – Insights by CredAbleBlogA Billion Dollar Marquee Event – SUPER BOWL

A Billion Dollar Marquee Event – SUPER BOWL

Published on 24 Feb,2022

The popularity of the first Super Bowl has led to the Super Bowl becoming one of the biggest business opportunities for brands and companies. The first Super Bowl was held on January 15, 1967. Arising out of a merger of the National Football League (NFL) and the American Football League (AFL), it was originally called the “AFL-NFL World Championship Game.” It was hosted in Los Angeles, California, at the Los Angeles Memorial Coliseum. And, the first Superbowl ad appeared in the year 1969, when Chrysler featured The Possible Dream advertisement. Since then, Superbowl commercials have come a long way in terms of Cost, Viewership, and Impact generated. Iconic brands such as Coca-Cola, Apple, Budweiser, Doritos, and GoDaddy featured some of the most successful ads and achieved huge success from the campaign. In this article, we will explore in detail, how SuperBowl has become one of the game-changing events in the marketing world.

In markets such as the UK, the NFL is constantly striving to increase the popularity of the games, and as such the Super Bowl has been broadcast in recent years by the free public broadcaster BBC as well as the pay-TV broadcaster. The unrivaled viewership and commercial nature of American football mean that the cost of airtime during the first Super Bowl is the highest on the market.

It is estimated that the three television networks that broadcast the Super Bowl pay the NFL more than $1 billion a year for the rights to broadcast NFL games that season, including the rights to broadcast the Super Bowl on a rotating basis. The NFL hasn’t disclosed the value of the NFL’s contract with the network to broadcast regular-season football games, but reports say CBS, Fox, and NBC will pay about $3 billion a year for it combined, for a total of about $27 billion from 2013 to 2022. , CBS can collect nearly $1 billion to promote a football game, a large portion of the total amount the NFL pays annually for broadcast rights.

Total pregame, in-game and postgame ad spend during last season’s Super Bowl on NBC was $482 million, according to consulting firm IEG. A 30-second Super Bowl ad has reportedly cost $6 million in recent years, up from $5.6 million a year ago, with national ad revenue of $545 million (up from $448.7 million a year ago). ). Figures do not include advertising revenue during pre-game or post-game programming. The retailer’s revenue will be slightly lower than last quarter’s $15.3 billion as fewer people say they will watch the Super Bowl this year.

With NBC, the exclusive broadcast network for Super Bowl LVI, ad sales per 30-second broadcast hit a record $6.5 million, up from $5.5 million last year, and are expected to eclipse the total in recent years. The average cost of a 30-second Super Bowl LV is reportedly a 6% increase from the average price of a 30-second ad in 2021 and a 10% increase from five years ago.

In the 2019/20 regular season, all domestic long-distance games increased by 5% year-on-year to an average of 16.5 million games. The rights to the game were recently awarded to NBC, CBS, and Fox. In addition, the NFL has signed a new contract worth $100 billion through 2033, in which CBS, ESPN/ABC, and Fox will have the TV rights to three Super Bowls, while NBC will have the broadcast rights to play two Super Bowls. The NFL’s revenue for the 2020 season is estimated at $12.2 billion, down from roughly $15 billion in 2019. The NFL currently has more than $100 billion worth of TV deals for the 2033 season with Amazon, CBS, ESPN/ABC, FOX, and NBC.

For the first time, Super Bowl commercials will air on cable, Peacock’s streaming service, and Telemundo’s first Spanish-language broadcast (ads were sold separately on all platforms in previous years). Most of the new advertisers fall into the categories of cars, technology, and travel. As a bonus, these brands reach a younger audience; TikTok and Instagram are two of the best social networks for Generation Z.

This year, the brand decided not to take the spot, instead of launching a TikTok challenge for fans. The brand will present who will win the competition in a future promotional video.

Groupon teamed up with NFL player Rob Gronkowski for the game; fans can join the game every day on the Groupon app, and if they win, they’ll have the chance to celebrate with 15 friends at Gronkowski’s mansion on Super Bowl LVI. The NFL has received nearly 35,000 requests from fans vying for a chance to represent their team as a candidate. In partnership with the league, each club has selected the 2021 Fan of the Year to play in the Super Bowl at SoFi Stadium and represent their team in the stands. Every NFL team votes its Fan of the Year in November. Games are dedicated to great fans who inspire others with their love of football and show what it means to be a fan.

Coinbase’s Super Bowl ad is probably the best marketing campaign the FinTech industry has ever seen. Check out: Ad Meter 2022: Coinbase

Here’s some crazy math proving that:

112 million people watched the Super Bowl this year. Coinbase confirmed that more than 20 million people visited their landing page in one minute.

Let’s be conservative here, disregard later visits, and use 20M as the estimate.

Let’s assume 10% signed up and a further 10% added money to their Coinbase wallet. That’s 200,000 new users.

Their annual revenue per user (ARPU) is $90 with the lifetime value (LTV) of around $200-$300.

Again, let’s be conservative here and assume this cohort has an LTV of $150.

$150 x 200k new users = $30 million in revenue.

Let’s look at the cost now.

Since their creative was just a QR code, let’s assume the production cost is thus negligible.

Coinbase reportedly paid $14 million for a minute-long ad. In addition to the media cost, the company offered $15 in free BTC for signing up, so this has to be accounted as customer acquisition cost (CAC).

200k x $15 + $14M = $17 million spent.

Once you do the math, you arrive at $13 million in new revenue.

And this doesn’t even account for the viral effects for everyone discussing the ad + more engagement and exposure once their site wasn’t able to handle the traffic.

That’s how you do marketing & branding on steroids.

From Bayfront Park, which hosted the free Super Bowl LIVE fan festival of the Miami Super Bowl host committees, to the Miami Convention Center, where the NFL hosted its Lowes-presented Super Bowl, and beyond, brands have definitely brought the heat to the big game. The offerings, which are expected to change significantly over the next two weeks, include sportswear, accessories for football fans, sportswear and fashion, snacks, sodas, sauces… anything the avid fan’s heart desires. For those looking to change their diet and exercise habits thanks to the big sports hype (minus the performance bit), there’s a lot to advertise too.

With the rise of digital advertising, it’s not just about advertising. While the first Super Bowl’s commercial spending and media contracts continue to raise significant funds for the NFL, sponsorship also remains a key driver of the organization’s revenue.

Cited Sources

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