The Super Bowl is one of the most watched sporting events in the world, attracting over 100 million viewers in the US alone and a total of 200 million viewers around the world. For many people, the ads shown during the Super Bowl are more entertaining than the game itself. However, with a 30-second ad slot costing a staggering $7 million, the question arises: is it worth it?
How much has the cost of a Super Bowl ad risen?
The cost of a Super Bowl ad has risen exponentially over the years. In 1967, the cost of a 30-second ad slot was $42,500. By 1990, it was $700,000. At the turn of the century, it set you back $2 million. Last year, it was $6.5 million. This year, it has jumped to $7 million for a 30-second ad slot. Adjusting for inflation, the 1967 ad slot cost just over $350,000. So even after inflation, the cost of a Super Bowl ad has risen by over 2,000% in 50 years.
Why do brands pay so much for Super Bowl ads?
One reason is the viewer numbers. There are about 200 million global viewers, and the price of an ad slot is often based on CPM (cost per thousand views). When priced in this way, the Super Bowl’s CPM is very reasonable at $35 per thousand views. For comparison, the median Google Search CPM comes in around $40 per thousand views.
However, the benefits of a Super Bowl ad go beyond just the number of views. A 30-second ad during the Super Bowl can capture people’s attention in a way that other ads cannot. It has a cultural impact that other ads do not have. Moreover, a Super Bowl ad can lead to increased sales, improved brand recognition, and a higher return on investment (ROI). According to Kantar research, the 2021 Super Bowl ads delivered an average ROI of $4.60 per dollar spent, with ads for Mountain Dew, Verizon, T-Mobile, and General Motors achieving the best results. In 2016, a startup called Death Wish Coffee aired an ad during the Super Bowl, and afterwards, sales boomed, leading the company to move into a new space that was triple the size of its existing facility to keep up with demand.
What is the total cost for a Super Bowl Ad?
Of course, the cost of a Super Bowl ad is not just limited to the ad slot itself. Advertisers must also consider production costs, which can range from $2.5 to $3 million, and celebrity talent, which can cost anywhere from $500,000 to upwards of $10 million. When all these costs are added up, a Super Bowl ad can cost anywhere from $10 million to $20 million for just 30 seconds of exposure on the TV screen.
Despite the high cost, it is usually worth it, with a Kantar study showing that Super Bowl ads in 2021 delivered an average return on investment of $4.60 per dollar spent.
If you want to learn more about if it is worth paying $7 million for a Super Bowl commercial, check out our recent episode of The Dive!