Are Super Bowl Ads worth the price? Some companies have had enough

Super Bowl advertisements have long been one of the best ways to get your brand exposure and eyeballs. Take Go Daddy for example. The company, known for its racy advertising, began airing 30-second commercial spots during the Super Bowl in 2005. Since then, Go Daddy has become the largest certified domain registrar in the world, with more than 36 million domains under its management.

The Super Bowl is one of the most-watched television events on a yearly basis, with somewhere between 40 – 43% of households watching (98 million viewers in 2009). Two days ago, Nielsen released survey results that stated just over half of the audience that tunes into the Super Bowl enjoys the commercials more than the actual game. “This survey reinforces the value of the Super Bowl as a marketing bonanza, featuring one of the most receptive TV audiences in the world,” said Randall Beard, executive vice president of Nielsen IAG. “With so many viewers waiting for the pitch, the pressure is on advertisers to create and place ads that will have a lasting impact.”

The big kicker is that Super Bowl ads are not cheap! Last year, a 30-second spot cost $3 million. With a lot of advertising turning towards social media in the past year, a very low-cost initiative, companies are becoming a little more hesitant to spend the money on one Super Bowl ad. Suddenly they can get far more “bang for their buck” online.

In mid-December, PepsiCo Inc. announced that they would not advertise in the 2010 Super Bowl, ending a 23-year run. Instead, the company has decided to put the money into a new, online marketing effort. Last year, between advertisements for Pepsi, Gatorade, and Cheetos, PepsiCo Inc. spent $33 million. They admit that the Super Bowl still brings incredible value to their brands. However, it is making less and less sense for them to put that kind of money into one event, when they can spread it out online. Pepsi spokeswoman, Nicole Bradley, said “In 2010, each of our beverage brands has a strategy and marketing platform that will be less about a singular event and more about a movement.”

Other companies have backed out of the Super Bowl as well. FedEx has decided not to advertise in 2010, for the second year in a row, citing cost issues. General Motors has also decided not to advertise in the Super Bowl. So, while the Super Bowl still possesses great value for brands, it simply isn’t making as much sense as it used to to spend that kind of money.

While some major companies are pulling out of the Super Bowl, others are finding ways to be innovative. This year, the Doritos brand has launched its fourth annual Doritos “Crash the Super Bowl” challenge, inviting regular people to create self-made advertisements to be aired during the big game. For the past few years Doritos has been getting interactive with its fans and consumers by allowing them this opportunity.

While they are promoting the campaign through Twitter and Facebook, their Twitter account (@DoritosUSA) has around 700 followers. While their Facebook page has about 750,000 fans, there is no real community there. Fans post infrequently, and their status updates don’t get a lot of interaction. It seems Doritos doesn’t focus too much on their social media accounts. I think the campaign could have been a real home run had the brand found a way to incorporate social media a bit more.

So what do you think? Is it still worth it for advertisers to spend the money on Super Bowl commercials when they can spread that amount of money over a much larger campaign through social media and probably see more meaningful results.  The Super Bowl has always been known for its great commercials, and I don’t think that will change just yet. Each year, we will see 30-second commercial spots continue to drop in price as brands see less of a reason to spend the money. Pepsi, FedEx, and GM have already bailed, and more companies will follow their lead. We now live in a world where brands have to engage. With that shifting mentality, it will be interesting to see if and when Super Bowl commercials will really become obsolete. by Sam Taggart


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