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Why Are Super Bowl Ads So Expensive?

The price tag for a 30-second slot reads $5 million for 2016's big game.

Feb 08, 2016

University of Minnesota Twin Cities

868

Why Are Super Bowl Ads So Expensive?

Every year, the Super Bowl attracts tens of millions of viewers. Although the battle between the nation's top two football teams is one to watch, so are the commercials. Not only are viewers on their toes to see what their favorite brands like Budweiser and Doritos come up with next, brands and advertisers are right there with them as they crane their necks to take in the cost.

This year, a 30-second slot during Super Bowl 50 costs $5 million, according to Fortune. This number is reportedly 11 percent higher than the previous Super Bowl, and is only part of a long-term trend. Between 2005 and 2014, the price of a 30-second Super Bowl ad has increased 75 percent, Fortune states.

In a Business Insider article, CBS Chief Executive Les Moonves predicts that this price could potentially skyrocket to $6 million. *Jaw drop*

Clearly, the price tag on an advertisement less than a minute long has become outrageously expensive and will only continue to increase. So, why are businesses willing to pay this amount? Why are Super Bowl ads so expensive?

Marketers are willing to write the check in order to access the tremendous audience only the Super Bowl can offer. According to Fortune, "Some 114.4 million people on average tuned into the 2015 Super Bowl to watch the Seattle Seahawks play the Patriots, making the game the most-watched broadcast in the history of U.S. television." Keep in mind that this number does not include larger viewing parties, such as at bars, restaurants and private viewing events.

Not only do Super Bowl ads gain an incredible amount of exposure during the game, they remain under the spotlight for weeks to follow. Millions of people re-watch their favorites on YouTube, generating millions of views and hits. Furthermore, people share Super Bowl commercials on social media, exposing those advertisements to an entirely new network of viewership. News outlets and talk shows even take time to discuss certain ads.

For example, Clevver News posted a Budweiser 2014 Super Bowl commercial on YouTube shortly after the 2014 Super Bowl aired that generated over two million views. In addition, over 486 comments trailed the video, creating a discussion around the ad.

Thanks to outlets other than television, like YouTube and Facebook, the game will be forever changed when it comes to Super Bowl advertisements. Marketers aren't just paying for the 30-second slot during the one of the world's most-watched broadcasts, they are paying for the aftermath as well. They are paying for the millions of hits on YouTube. They are paying for the thousands of shares, likes, and comments on Facebook. They are paying for the discussion around their commercial, product and business.

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