HUFFINGTON POST
In the off chance you have $4 million burning a hole in your pocket, some people at CBS Sports might like to have a word with you.
That's the average cost of a 30-second Super Bowl ad spot on the network this year, CNN Money reports, and $500,000 more expensive than last year's average price -- a then record $3.5 million.
"We don't confirm exact pricing, since all spots are sold with different considerations and often in different packages," explained CBS spokesman Dana McClintock to CNN Money. "But it's safe to say that spots are going for $4 million each, and in some cases more."
Some advertisers this year have jumped the gun on marketing their Super Bowl ads, reports the New York Times. Traditionally, the expensive spots aren't rolled out until after New Year's Day, as publicity doesn't sink in when audiences are still engrossed in holiday festivities.
But as social media rises in prominence, advertisers have been keen to try and enter the conversation early. Some might call the strategy a false start, but with ever-increasing prices, "It’s only smart to extend the conversation,” Ellis Verdi, president of DeVito/Verdi in New York, told the Times. “You want to get as much benefit as you can.”
To all those procrastinating ad-men out there, fear not: While most 2013 Super Bowl ad spots sold in May of last year, some ad space can still be had -- for a very expensive price.
Well I honestly think that the prices are reasonable. The ads should be that much. Because if you want a advertising spot for the biggest football game of the year, then you better be prepared to pay some big money.
ReplyDeleteMatthew Hodek
Per. 3
I agree with Matthew on this one too. Most ads get more money than they are paid. The companies will get more viewers and buy more of the product. Only because the commercial looks cool. And famous characters are in it.
ReplyDeleteDavid Hoang p3
this was way too much to spent for a ad. These companies Cheat the NFL on this one.
ReplyDeleteTappe P7
I think that businesses that buy a super bowl ad are not very smart with managing money. Even though lots of people look forward to them and talk about them a lot, it still doesn't make much sense to me. I know that the whole goal of commercials is to endorse your item, but I can not see the companies making their money back with a profit also.
ReplyDeleteJared Streiff
P2
In think that it is stupid that everyone gets excited for the super bowl.People it is just football.It is also crazy that people pay big money for just to go to the super bowl,that is just crazy.You could just go for a cruise for that much money.I think the super bowl is a waste of peoples time because all they do is just sit their cheering for a team to win and they get fat.You could be doing something active instead of sitting on your butt and cheering for a stupid game of football.If u think about it their is really no point for cheering for a football game.
ReplyDeletechelsey jensen
p7.
I watched the super bowl, but don't really care for the commercials. But I guess it depends on whats it about. Some commercials these day do not have anything to do with what they're selling anymore.
ReplyDeleteP:7
P. Kevin Bouphasavanh
4 MILLION DOLLARS! Just for a Super Bowl ad! This is so crazy. The only thing that I love to watch is the commercials and see how funny or dumb they are. But why 4 million dollars? Just doesnt make sense. The businesses do the commercials just for popularity. But I think that it is a high price because they got to paid for the actors/actresses that started in the commercial, the camera crew, equipment, and every person that helped flim and editting the commercial just so it is perfect.
ReplyDeleteMcKenna Butler
Hour 4
My opinion is that spending that much money on a Super Bowl ad is a waste of resources, but the Super Bowl people are smart by using their resources. The reason the prices are so high is due to a economic feature called supply and demand. The higher the demand is the higher the prices get and since there is no other Super Bowl, they can inflate their prices as much as they want. If businesses think that it is a good resource and gamble it's their choice.
ReplyDeleteAlyssa Crowe
3rd hour
Its pretty crazy how these people spend 4 million dollors on a Super Bowl ad. They expect to make money off of it, so I see why most of the ads are very entertaining and well played. After watching the Dorritos I was hungry for some! I bet Dorritos easily made there money back from all those ads, because of the large number of people they were reaching. Some people watch the Super Bowl just to see the ads, there like fireworks!
ReplyDeleteAlex Pederson
3rd hour
In order for an advertiser to spend that much money on an ad, they have to be pretty confident that they'll get that much money (and more) back. The Superbowl is probably one of the most viewed yearly television events and they may make a lot of money off of it, but I'm sure they'd have to have a professional look at the projections and everything. It would be completely stupid to spend that much money on a television commercial.
ReplyDeleteI agree with Jared. Paying 4 million dollars for a 30 second ad it ridiculous. Plus the companies probably dont make any profit.I think they should reduce the price and maybe then the company would make a profit and want to do it again next year.
ReplyDeleteDanielle Knott
2nd hour
$4 million is ridiculous. I understand that the price would obviously be high because, well, it's the Super Bowl, but 4 million? I feel advertisers do it for publicity. People see the advertisement, it entertains them, and they talk about it to their friends and family. Therefore spreading the word even more and drumming up business. But honestly, how many people are going to go buy Doritos because they saw a 30 second ad during the Super Bowl? And would it really be $4m more than their average profit? They could use their money more productively.
ReplyDeleteJoseph Runnels
3rd Hour
i think that paying that much for a 30 second commercial is just stupid. like joe said they could use their money more productively. even though its the biggest game of the year it is not worth it.
ReplyDeleteGarrett R. p7
I think this is a reasonable price for advertisement. It's not only the biggest television event of the year just for the game, people thrive on watching the commercials. When I came to school on Monday the conversations that I had about the Super Bowl were how touching, funny and sad the commercials were. People my be spending $4 million for a 30 second spot on television, but they are making money; because if their commercial is remembered that company is more likely to have more products purchased because people will remember an effective or ineffective commercial. It's a good investment because for a company that makes billions of dollars in capital, $4 million dollars is nothing.
ReplyDeleteThis was Molly M from Per 3!!!!
DeleteI never really understood that whole drama about commercials. I mean everybody knows Coca Cola for example. Why would they pay $4 million for an ad? I just can't believe that they make more money through those ads. But besides that, I can see why commercials during the super bowl are so expensive. I don't know how many people watch that every year,but it must be a lot and the more people watching something the higher the prices for commercials...
ReplyDeleteLuise Benkert
2nd hour
I agree with everyone who says it is ridiculous to spend $4 million on a 30 second commercial. I find that amazing that they could pay that! I wonder if spending $4 million is like nothing to them? The companies must have to be confident in their product. I think they should reduce the price to have a commercial in the Super Bowl, because it is always the same companys every year, not saying I don't enjoy the funny commercials but maybe other companys can't afford it. If they lower the price, other companys would pay to have their commercial in it and it would be fun to see some different commercials.
ReplyDeleteSorry, this was Suzie Dalen from 2 hour
ReplyDeleteI think $4 million for a super bowl ad is pretty absurd. Yes, a lot of people watch the Super Bowl but you could advertise any other time and get the same result. Just because you have a commercial ad during the Super Bowl doesn't mean people will go out and buy your product. I think people are more caught up in the actual game than an ad they saw that lasted 30 seconds.
ReplyDeleteSkylar Solberg Per. 2
If the companies are willing to pay $4,000,000 per 30 seconds, then they have that money to spend. I don't really think that it's a big deal. It seems like a really big deal to us, because $4,000,000 is a lot of money, but for big name companies like Doritos and Coke, it's not really a dent in their budget. Plus, they're just going to earn that money back in profit. What I don;t understand is why they can't have good commercials when it's not the Super Bowl. Not that I watch a lot of TV, but they're usually hilarious and it would probably help market their sales all around. Like I said, $4,000,000 is a lot of money , but the Super Bowl has to make money in ways too. I'm sure paying for it is very expensive!
ReplyDeleteI do think that paying $4 million on a 30 second commercial is a tad bit ridiculous. But I guess if you have that much money floating around why not spend it? Like Amy said they will more than likely earn as much or more in profit as they spent on it anyways so why not? To be honest the only reason I watch the Superbowl is for the commercials.. They are amazing, I just wish they would have the good commercials all the time instead of just on Superbowl Sunday.
ReplyDeleteMolly Butler Period 7
I think it is crazy for someone pay $4 million for an 30 second ad. I mean when will the prices be too much? At some point the ad wont be worth the while for the company and they will stop making one. Especially if the prices keep going up.
ReplyDeleteAlex Burke
Period 7
There are a couple of points to bring up on something like this. One is the outrageous cost of the ad itself. $4 Million does seem high for a commercial. But then you can bring up the amount of viewers the super bowl gets. An average of 108.4 million people watched the Super Bowl this year. 108 MILLION views. And how many of those people watched the half time commercials? Even if only half watched, that's still 54 million viewers. Let's say 10% of those got thinking about Oreos because they saw the commercial and went to go buy some. That's 5.4 million people buying oreos at the $3-5 range. $1.6 billion dollars made off that $4 million dollar ad. Even if only 3% of the 54 million who might have watched the commercial bought some oreos, that's still $4.8 Million dollars which covers the cost of putting the ad on TV. The potential profit to any company is too great compared to the risk.
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