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Here are the cases for and against an $8 million Super Bowl ad

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Here are the cases for and against an $8 million Super Bowl ad

This article is part of Digiday’s annual coverage of Super Bowl. HexClad is a direct-to consumer cookware brand that will run its first Super Bowl ad this Sunday. The DTC brand, along with Haagen-Dazs and Duracell, is among the newcomers who have spent significant advertising dollars to secure a 30-second or 60-second slot in the Big Game. Daniel Winer is the co-founder and CEO at HexClad.

This is a risk. Winer said that the price of a 30-second ad was $8 million, which is a lot for even big companies. “So, you’re left wondering if the juice will be worth the squeeze?

It’s obvious that HexClad is taking a risk, as the brand has a 30 second Big Game spot featuring Gordon Ramsay. With such a high price tag, advertisers are forced to make a decision: either they will land a perfect landing, or they risk losing millions of dollars in advertising, which is the norm for the Super Bowl. Some are avoiding the Super Bowl because of the high cost, not to mention the production and talent costs.

For example, major automotive brands like Kia and BMW, who have run Big Game ads in the past. There are no-shows this year, leaving room for new entrants such as HexClad. It begs the question, who should advertise during the Big Game?

The case for Super Bowl ads

123,4 million viewers

The first point is perhaps the most obvious. A lot of people are watching the Super Bowl. This gives advertisers the opportunity to reach hundreds of millions of simultaneous viewers – 123.4 Million viewers to be precise. These are the figures from last year’s broadcast on CBS Television Network, Paramount+ and NFL digital properties including NFL+. CBS Sports. This year’s game is to be broadcast on Fox. Nick Drabicky wrote to Digiday in an email that “if you have something to share, this is the largest stage possible.”

Nick Drabicky was svp, general manager of client service at January Digital Marketing agency. He added later, “You are buying eyeballs, so this is where you should do it.” According to The Hollywood Reporter, the Grammy Awards attracted 17.09 million viewers. Those figures do not include streaming.

The last bastion for live sports

Marketers are increasingly focusing on live sports. They pour money into this space, believing it to be the last bastion for live broadcasts and monocultural moments. Marketers say that the Super Bowl has always been a great place for advertisers to get their marketing message in front of everyone at once.

I would argue that the Super Bowl, and the audience it attracts, is probably more valuable than ever before. This is due to the fragmentation in media,” said a senior agency executive on condition of anonymity.

Advertisers could stretch their ad dollars to other prime-time broadcast TV moments in the past (remember ABC’s Thank God It’s Thursday broadcast lineup? The Big Game is no longer the only prime-time broadcast television moment that advertisers could stretch their ad dollars across. (Remember ABC’s Thank God it’s Thursday broadcast lineup, anyone? In an increasingly fragmented landscape of media, these moments are rare and far between. The exec stated that “there’s a greater disparity between Super Bowl audiences and all other audiences.”

This is not to say that similar media moments like the Grammys or World Series, NCAA Final Four, and the Academy Awards aren’t valuable. Michelle Spigner is the strategy director at Mother LA. She says that the Super Bowl remains the biggest draw. Spigner said that in a media landscape with a lot of fragmentation, it’s rare to see nearly half the country seated at the same table and watching the same event simultaneously. The Super Bowl audience is growing and marketers will pay attention to that.

Fans are eager to see ads.

In a world of skippable advertisements, the Super Bowl is a rare event where viewers flock to social media in order to discuss both the Big Game and the corresponding ad spots.

Danilo Boer is a global creative partner with FCB. He said in an email that this is the only time when people want to hear and see from brands. “The commercial is culture, so why not be a part of culture when the culture wants you?” asks Danilo Boer, global creative partner at FCB, in an emailed statement.

Super Bowl ads: a case against them

Increasing costs

Every year, the cost of advertising for the Super Bowl gets more expensive. This year, spots range from $7 million – the original price – to $8 million – the figure quoted to advertisers at the last minute. This is just the cost of the spot, and does not include production, media buys, talent, or other budget items. Here’s what a $7M budget for a 30-second Super Bowl spot can buy in 2025.

This dollar amount could be a barrier for smaller brands and those who don’t have the means to pay $8 million for an ad.

Most advertisers who justify the high cost of a Super Bowl spot have a new product launch, a movie premiere, or another message that requires a grand stage. Drabicky, of January Digital, said that it is only worth going to the Super Bowl if you have big news. “This isn’t a good idea if you are a small brand that doesn’t have the money to do it. Better yet, I wouldn’t mortgage your brand for a single spot,” Drabicky added.

Little Caesars pizza, for example, is back this year in the Super Bowl advertising its new Crazy Puffs product. Avocados From Mexico is a regular Super Bowl advertiser but this year they are not participating. Instead, they have chosen a digital spot over a traditional one, according to Jasmine Dadlani of McKinney. The agency that represents both brands. “Big news equals Big Game,” she said.

Alternative options

Staying on the Avocados from Mexico brand, this year, instead of a broadcast spot, they are partnering with former NFL star Rob Gronkowski to do a digital activation. Opendoor, a real estate company, made a similar decision last year. They ran a halftime spot on YouTube, Opendoor.com, and the local Atlanta market.

Advertisers are increasingly looking for efficiencies in their media spend. They’re taking a closer look at the dollars they invest to ensure that they get the best return. In these cases, a better and more affordable option may be to work around the Super Bowl in order to capitalize on its cultural significance, rather than pay $8 million to be officially involved. David Corns, CMO of Opendoor, said that the brand’s national awareness increased due to the organic media coverage and attention. He said that re-thinking ‘traditional’ marketing strategies may be the best option for brands who want their message to endure beyond the Big Game.

Tough competition

According to Forbes, an estimated 50 brands will advertise at this year’s Super Bowl. This could mean stiff competition, particularly for newcomers in the space. Spigner, from Mother LA, said that the Super Bowl “is where brands go to make noise like they can’t anywhere else.” According to the anonymous agency executive, the Super Bowl will be saturated with advertising from brands that have the same mindset.

According to the exec, “so much attention is paid to a lot high-profile creative.” “There are a lot distractions at the Super Bowl.”

A spot in the Super Bowl is a big wager. For some, the reward is worth the risk. Others believe that the millions of dollars expected to be spent on a Super Bowl advertisement could be better used elsewhere.

Despite the grand stage of the Super Bowl, the decision to run an ad spot isn’t simple, said Spigner. He added that the decision boils down to three questions: Does the impact justify the cost? Does the brand message need mass attention? Is the idea good enough for it to become a “watercooler moment”?

On Super Bowl Sunday, advertisers who are participating in this year’s Big Game can expect to get answers.

www.aiobserver.co

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