Advertising is one part of Marketing, and one component of "Promotion" in the Nine P's of Marketing. Plus that $4 Million is media costs only and does NOT include:
- Production costs and fees for actors, sets, equipment, advertising agencies, directors, crew and personnel.
The Super Bowl XLVIII will be on February 2, 2014. NBC is charging $4 million per spot. This is for new advertisers and does not include the rates that major advertisers who are regulars on the network’s NFL packages. They pay substantially less; it’s the late-comers to the party that drive the average price up.
It’s that time of the PR spin, too. The stories before the game.
One was from CNBC today which is totally unbelievable.
- With one spot, Nestle expects its new peanut butter cup to climb from nearly no awareness to as much as 80% thanks to its $4 Million Super Bowl spot. Really? In my opinion, not based on reality, research, marketing or the marketplace.
More background on the Super Bowl:
For CBS in 2013, a single Super Bowl XLVI spot topped $4 million with ads ranging between $3.7 million and $3.8 million and topping $4 million.
A premium can be charged or a preferred position for a typical 30-second spot in the first quarter of the game, which can average around $100K extra. This premium was due to the larger audience and better chances that consumers will recall the ads early in the game. Viewers are usually “in a better state of mind.” The audience averages 111 million.
Prices for advertising time only can typically cost millions of dollars. NBC tapped Madonna for Super Bowl XLVI. CBS had Beyoncé.
FOX in 2011 reported that Super Bowl XLV sold out, fetching between $2.8 million and $3 million per :30.
In 2009-2010, the cost of a 30-second spot ranged from $2.5 million to $2.9 million. These amounts excluded production costs and fees for actors, sets, equipment, advertising agencies, directors, crew and other personnel. Here's more:
During the broadcast advertising time has also grown from 40 minutes, 15 seconds in 2001 — or 82 messages — to 45:10, or 84 messages in 2009. There was a big rise in 2010, to 47:50 and 104 commercials.Which product is advertised the most on the Super Bowl? Not beers, movies or cars. It’s the network’s own programming promotion. In a typical Super Bowl, 15% to 20% of all commercial time is a plug by the network for its own programming and shows.
Sales and the pace of sales in 2010-2012 were fueled by the heavy competition among car makers. There was a record of eleven different car brands which announced Super Bowl deals, including nine different auto brands.
It’s our country’s highest-profile advertising showcase, with households staying glued to their screens and not using TiVo-type products and services during the ads. Marketers get a huge audience, but they also face high expectations especially when the audience can judge and be a critic with the click of a mouse. With the high price tag, it’s a lot to spend if the creative is poor or dumb, lacks strategic direction, or just plain awful. The cost of a Super Bowl spot every year has been an annual contest of brinkmanship for the networks, in setting its price.
Super Bowl XXXVIII, broadcasted on 2/1/2004 from Houston, Texas on the CBS network, was noted for a controversial halftime show in which Janet Jackson’s bare breast was exposed by Justin Timberlake in what was referred to as a "wardrobe malfunction". A record $550,000 fine was levied by the FCC, as well as an increase of FCC fines per indecency violation from $27,500 to $325,000.
While the Super Bowl still commands the highest-priced commercial unit — around $3.8 million — other major sports events and the Oscars can pull in total dollars, too.
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I am a senior Forensic Marketing Expert, Advertising/Marketing consultant with Londre Marketing Consultants, LLC plus I teach Marketing and Advertising. I own a copyright for this concept, the Nine P’s/9 P's
©2007, which augments the Marketing Mix (Product, Price, Promotion and Place) or the 4P’s by the American Marketing Association, Neil Borden and Jerome McCarthy in the study and practices of Marketing.
The Nine P's/9P's help identify marketing problems in a number of areas and help develop marketing’s objectives, strategies, tactics and solutions. The Nine P's are insightful. In Marketing. the "Customer," or potential customers are king, but are missing in the 4P's. There needs to be more focus on the "Customer," or "People." "People," market segments utilizing demographics, geographics, psychographics , behavioral characteristics and technographics are a vital component of the 9P's.
I consult and teach using the concepts and practices of the
Nine P's/9P's of Marketing.
In the study and practice of Marketing, Marketing and Brand Managers develop plans, strategies and tactics. The Nine P’s include these important components:
- People (Segmentation and Targeting)
- Product
- Place (Distribution)
- Price
- Planning
- Promotion
- Partners
- Presentation
- Passion
For more on ideas, concepts and Marketing solutions: Go to
LondreMarketing.com and look under “
Articles and Resources” and the 9P’s/Nine P’s ©2007. Specifically you will find them detailed at
9P’s/Nine P’s.
Or for more fun, marketing strategies/tactics and facts: Go to
Marketing Trivia with 54 stimulating questions and answers at
Londre Marketing Consultants, LLC. Here to help. All the best.