Joey Fernandez
Mrs. Straub
AP Economics
3 December 2016
The Art of Advertisment
You don’t have to be a football fan to understand just how popular the Superbowl is. It’s the one day in a year where lovers of football and casual watchers alike can come together for parties, food, and to watch the increasingly clever advertisements that are aired during the breaks. People are now starting to watch the superbowl solely for the ads, which is an advertiser’s dream because on every other day, ads are considered annoying and intrusive.
Because of this phenomenon, the demand for airtime during the superbowl has increased exponentially over the years, and with limited timeslots that are available, the increase of price for airtime has reflected this over the last 50 years. Companies, however, will forgo this cost, because the revenue gained by presenting their products in interesting ways will outweigh both the accounting cost and opportunity cost.
The side effect of this continuing trend, is that advertisers try harder and harder for to get their product to stand out in the limited time they have, so they invest huge amounts of money into writing and producing both dramatic and entertaining commercials meant to leave a lasting impression on the viewer. This increase in quality have led to a culture of expecting the best out of superbowl commercials, so we tune in with our friends and family to the most watched sporting event in america even if we don’t really care about the outcome.
"Chart/table From: Super Bowl 2015 Data (Updated)." Chart/table From: Super Bowl 2015 Data (Updated). Web. 7 Dec. 2015.
Lkramer@syracuse.com, Lindsay. "Super Bowl 2015: How Much Does a 30-second Television Commercial Cost?" Web. 7 Dec. 2015.
It seems that perhaps a change in consumer tastes as a result of the improved quality of advertisements has raised their interest in Super Bowl commercials, which has in turn created a change tastes of the producers of the advertisements, as they wish to capitalize on this now highly influential event to obtain more customers. From the price increase of $500,000 per 30 second ad slot between last year and this year it is obvious the price of ads for the event has not yet reached or exceeded its equilibrium, it will be intriguing to see how much prices increase in the coming years and if the industry will be able to find an equilibrium.
ReplyDeleteThis was a very interesting take on the economics of the super bowl. It is very prominent as the playoff months continue to approach. I too am interested to see just how high the price of advertising in this industry will rise. It doesn’t appear that the equilibrium will be discovered anytime soon. I agree with the 16.6% of viewers who said they would rather have the money passed on to us for savings. I doubt that someone viewing a commercial would be more likely to purchase a coke than beforehand. It seems as if a new company could benefit more from this huge advertising opportunity. Unfortunately, it is obvious that only the biggest companies can even afford to purchase a slot. Overall, nice job bringing statistics to make your points more clear.
ReplyDeleteI think that you made a little generalization when you said that many people watch the Super Bowl solely for the ads. I'll agree that the ads are very funny and entertaining, but I think that the people watching them are watching the game as well. Also I would love to see the before and after of each company that advertised during the Super Bowl. Also I would love to see what types of companies advertise during the Super Bowl to see if there is any correlation between the companies airing the ads. I personally, view the ads as entertainment as they do not impact my shopping or purchases in anyway. But I can agree that the product exposure to millions of people is worth the price of those ads and can see how their profits would increase after the Super Bowl.
ReplyDeleteI mainly watch the Super Bowl for the intriguing and funny advertisements, and some of the commercials I have seen I still remember. This was a very clever way to draw in consumers by using this strategy because it has progressively increased sales of various products and services. I believe that based on the advertisements, products are more in demand since individuals are most open to watching ads while they are having a good time and enjoying themselves with friends and family.
ReplyDeleteUsually I only watch the end of the game because that is the most important part. While watching I often see creative commercials that grab the viewers attention. No matter what the product is, if there is a funny commercial for it the product seems better just by the way they advertise it, they do this so they get more people to buy their product.
ReplyDeleteAlthough I do not just watch the super bowl for the commercials, they usually do catch my eye. Recently I've been noticing that the advertisements have been kind of boring and dry compared to the past years. 2006 through 2009 had the best super bowl ads to my opinion, I know they will bring in lots of consumers from airing their ads, but they need to step up their game a lot more, so they can attract even more attention. They want ads that people will love so much they will go and look them up on YouTube because they found them so funny. If they do something like that, then their commercials will be more memorable, but until then they are just commercials to me.
ReplyDeleteI have always found large advertisements (that get aired on the Super Bowl) to either be very clever and entertaining, or simply dumb. In 2015, I have noticed big companies coming together to make one commercial. I believe this is due to the large expense of creating an ad on TV, and companies want to split the expenses. An example of this is when I saw a new movie and car commercial come together to make a advertisement. My first reaction was "what's happening?" Though by the end of the ad, I finally caught on that both of the companies were working together for one ad. I wonder in the future if companies will create a commercial with both businesses in the ad to cut down on cost, including advertising for the Super Bowl? Otherwise, interesting blog post Joey.
ReplyDeleteLike others, I watch the Super Bowl but not just for the commercials- they're just an added benefit. I liked the graph you included that highlighted survey results about what people think about the commercials on Super Bowl day. Maybe if companies spent more money on their everyday commercials people would like them more? After reading this article, I would be interested to know by what percent certain companies sales increase by after the unveiling of their commercial? This would be revealing to show how effective the commercials are at really getting people to buy products. Is spending $500,000 on average, on a commercial really paying off?
ReplyDeleteTo be honest on of my favorite things is to watch the TV Commercials during the super bowls because they aren't plain boring like the rest of the TV Commercials that are currently being aired. One thing that I would suggest that you put is how many commercials are being aired during the time frame. And how much the air time cost considering that a big factor when the companies buy air time for their commercials.
ReplyDeleteI watch the Superbowl every year mainly to watch football but I also look forward to the commercials because most of the time they are actually pretty funny and entertaining. The amount of money companies spend on these commercials I think is kind of a waste though because at least from my perspective these commercials don't actually make me want to buy the product more.
ReplyDeleteYou bring up a good point when talking about advertisement. I personally find this annoying dealing with advertisements however, it does get them distracted and buy that particular product. Even in a comedy show, "South Park" showed how people get distracted from ads. It is really genius once you think about it. More money is coming in because of the ad, when the show a sale, coupons, saving money, etc. When you talk about the Super bowl, I think that is the time that everybody is wanting TV commercials because of how funny they make them and how clever they make them. I look at something and see how cool it looks and I really want to get it. It was unique to read this topic and overall you did a nice job.
ReplyDelete-Mike S
Advertisements are the main thing for the products sale towards the online or offline. It may depends on the impact which we put it in those theme of ads. Thank you for these statistics sharing.
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