Media advisory: Are Super Bowl ads 'worth' the multimillion dollar investment? Experts weigh in


Thu, 01/29/2015

author

Mike Krings, George Diepenbrock

LAWRENCE — It's no secret that many of the expected 110 million-plus viewers on Super Bowl Sunday care just as much — or even more — about the outrageous commercials as the game itself.

It's estimated for Sunday's Seahawks-Patriots matchup that 30 seconds of ad time costs roughly $4.5 million, according to The Wall Street Journal. Do these steep investments translate into economic success for companies?

It depends, says Jessica Li, an assistant professor of marketing in the University of Kansas School of Business. Li, whose research focuses on consumer behavior, is available to discuss issues surrounding advertising and the Super Bowl.

Q: Why is Super Bowl ad time so expensive? Is the cost worth it for companies?

Li: Companies are willing to spend millions of dollars for a spot during the Super Bowl because of the changing way viewers watch TV. The Super Bowl is one of the few shows that people watch live, meaning they won't fast-forward through the commercials.

In addition, many people enjoy watching commercials during the Super Bowl, and some watch the Super Bowl mainly for the commercials, because they know those commercials tend to be entertaining and unique. The buildup to the Super Bowl also means that companies can build hype around the commercial before it even airs via social media or other outlets. This allows them to get more bang for the buck.

Finally, some companies find Super Bowl parties, or the fact that the event is a social one, to be appealing. There is a greater likelihood that people will talk about an ad they really like, leading to higher levels of engagement and involvement. All of these factors suggest that for some companies, spending millions is worth it.

Q: Are there examples that this investment might not pay off?

Li: There are numerous cases to show that there is very little return on investment. The RadioShack commercial featuring characters from the '80s that aired last year is a good example. It was funny, creative and talked about, yet it didn't really generate sales. Many analysts say RadioShack should have spent that money elsewhere.

It's important, however, to remember that an innovative campaign doesn't always equal profit. Sometimes it can build long-term brand equity, but some companies aren't looking for that.

To schedule an interview with Li, contact George Diepenbrock at 785-864-8853 or gdiepenbrock@ku.edu.

Max Utsler, associate professor in the William Allen White School of Journalism & Mass Communications, can speak about Super Bowl advertising, associated costs and effectiveness of advertising during sporting events. Utsler teaches classes on sports, media and society and each year examines past ads and previews future installments while analyzing whether a 30-second Super Bowl commercial is worth the multimillion dollar investment.

A KU faculty member for more than 25 years, Utsler performs research in sports marketing, advertising and sports talk radio and teaches classes in sports marketing, sports and the media, innovation, the business of media and television news reporting. In addition to his academic work he does freelance work for MLB.com and works in production for CBS with the Kansas City Chiefs and college basketball.

Q: Is there a clear answer of whether it is worth the multimillion dollar investment for Super Bowl ads?

MU: There is not a clear answer at all. Some advertisers bail after one year. Some go and come back. Some stick with it.

Q: You take “a look back and a look ahead” at ads in your class analysis. How has Super Bowl advertising evolved over the years, and how do you examine the future in this analysis?

MU: The main change is the full-scale marketing campaign of which the actual game ad is only a small part. Most ads debut days or even weeks before the game on social media. We’ve seen a rise in contests and sales promotions. In the last three years we’ve seen a huge rise in the overall social media strategy. In other words, if all a marketer does is buy a 30-second spot in the game, it probably will be money not so well-spent.

To schedule an interview with Utsler, contact Mike Krings at 785-864-8860 or mkrings@ku.edu.

Thu, 01/29/2015

author

Mike Krings, George Diepenbrock

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