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Super Bowl ad prices fall, still most expensive
Source: Agencies |
January 12, 2010, Tuesday
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THE economic slump appears to have taken a toll on Super Bowl ads, pushing the price down for only the second time in the game's history, though they're still the most expensive on television.
While early readings suggest there are better deals this year over last, Pepsi won't advertise its drinks for the first time in 23 seasons, joining FedEx and GM, who dropped out last year. In their absence, newcomers and smaller companies have snatched up slots in advertising's biggest showcase.
TNS Media Intelligence said yesterday that a 30-second commercial during next month's Super Bowl on CBS are selling for between US$2.5 million and US$2.8 million, based on reports from advertisers and media buyers. That's a drop from last year, when ads averaged US$3 million on NBC - a record, according to TNS. Prices remained strong last year because the majority of ads are typically bought in the spring, before the deepening of the recession, analysts said.
Final figures for this year will come in after the Super Bowl airs Feb. 7. CBS won't comment specifically about its prices, but company officials said they believe prices will be higher than last year.
"We don't calculate average price because it's not how we manage the business, but we're confident that if we did it would be higher than last year," said CBS spokesman Dana McClintock. "In certain cases, we're getting over US$3 million" per spot.
McClintock said it was difficult to peg a lower end of price range because some clients buy Super Bowl commercials as part of a package of ads throughout the football season and might get special consideration.
CBS officials said the pace of sales had been better than it was for NBC a year ago. As of Friday, only four of the 62 commercial slots remained to be sold.
CBS is keeping a few slots open so it can sell them at higher prices to last-minute buyers, said Bob Horowitz, president of Juma Entertainment. He said putting a single number on Super Bowl ads is tricky because they are often bought in packages that can include other events like the Olympics.
The only other year that prices declined was from 2006 to 2007, when 30-second slots dropped from US$2.5 million to just under US$2.4 million, said Jon Swallen, senior vice president of research for TNS.
CBS won't say what it paid for the rights to the Super Bowl. The three networks that now alternate carrying the game, CBS, NBC and Fox, get it in a package along with the other football games they broadcast through the season.
NBC Universal has said it expects to lose money televising the Winter Olympics next month, mainly from the US$820 million the company paid for the rights to the games. The company has said advertising sales were soft for much of past year, but they have increased as the Olympics draw near.
The 2009 Super Bowl brought in US$213 million in advertising revenue - just for ads airing during the game. That was a 14 percent increase from the previous year's US$186.3 million, when the average 30-second slot cost US$2.7 million.
In economic downturns, companies are more likely to buy Super Bowl advertising when they want to make an impact by jump-starting a brand or introducing themselves, said Tim Calkins, a marketing professor at Kellogg School of Management. Dr Pepper Snapple is doing that this year with an ad promoting new flavor Cherry Dr Pepper, featuring rock band Kiss.
But it's an expensive proposition for companies like Pepsi, FedEx and General Motors that would otherwise use the game to simply remind people they're still out there.
While early readings suggest there are better deals this year over last, Pepsi won't advertise its drinks for the first time in 23 seasons, joining FedEx and GM, who dropped out last year. In their absence, newcomers and smaller companies have snatched up slots in advertising's biggest showcase.
TNS Media Intelligence said yesterday that a 30-second commercial during next month's Super Bowl on CBS are selling for between US$2.5 million and US$2.8 million, based on reports from advertisers and media buyers. That's a drop from last year, when ads averaged US$3 million on NBC - a record, according to TNS. Prices remained strong last year because the majority of ads are typically bought in the spring, before the deepening of the recession, analysts said.
Final figures for this year will come in after the Super Bowl airs Feb. 7. CBS won't comment specifically about its prices, but company officials said they believe prices will be higher than last year.
"We don't calculate average price because it's not how we manage the business, but we're confident that if we did it would be higher than last year," said CBS spokesman Dana McClintock. "In certain cases, we're getting over US$3 million" per spot.
McClintock said it was difficult to peg a lower end of price range because some clients buy Super Bowl commercials as part of a package of ads throughout the football season and might get special consideration.
CBS officials said the pace of sales had been better than it was for NBC a year ago. As of Friday, only four of the 62 commercial slots remained to be sold.
CBS is keeping a few slots open so it can sell them at higher prices to last-minute buyers, said Bob Horowitz, president of Juma Entertainment. He said putting a single number on Super Bowl ads is tricky because they are often bought in packages that can include other events like the Olympics.
The only other year that prices declined was from 2006 to 2007, when 30-second slots dropped from US$2.5 million to just under US$2.4 million, said Jon Swallen, senior vice president of research for TNS.
CBS won't say what it paid for the rights to the Super Bowl. The three networks that now alternate carrying the game, CBS, NBC and Fox, get it in a package along with the other football games they broadcast through the season.
NBC Universal has said it expects to lose money televising the Winter Olympics next month, mainly from the US$820 million the company paid for the rights to the games. The company has said advertising sales were soft for much of past year, but they have increased as the Olympics draw near.
The 2009 Super Bowl brought in US$213 million in advertising revenue - just for ads airing during the game. That was a 14 percent increase from the previous year's US$186.3 million, when the average 30-second slot cost US$2.7 million.
In economic downturns, companies are more likely to buy Super Bowl advertising when they want to make an impact by jump-starting a brand or introducing themselves, said Tim Calkins, a marketing professor at Kellogg School of Management. Dr Pepper Snapple is doing that this year with an ad promoting new flavor Cherry Dr Pepper, featuring rock band Kiss.
But it's an expensive proposition for companies like Pepsi, FedEx and General Motors that would otherwise use the game to simply remind people they're still out there.
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