Super Prices
Jack Doubek
As the end of the professional football season draws to an end, the USA receives one of the largest spending days of the year, the Super Bowl. An event this large is no joke and plays a major role on the country’s GDP for the entire year. Not only is there an enormous amount of hype leading up to the big game, but football fans across the country stock up on millions of chicken wings, beverages, and lots of other necessities to throw a good Super Bowl party. Even if they aren’t watching the game at a party, restaurants are packed with fans. The average Super Bowl related consumer spending has almost doubled from 8.71 billion dollars in 2007 to 15.3 billion in 2018.
Not only do stores and restaurants make an huge profit on Super Bowl Sunday, it one of the biggest days for TV advertisements. With an estimated over 100 millions viewers of the game, it is the best chance for companies to get their word out and attract new or returning customers for their products. But getting all these viewers for an advertisement doesn’t come without a super price. Since Super Bowl XXXVI in 2002, advertisement prices have more than doubled for a 30 second commercial from 2.3 million dollars to a whopping 5 million in 2018.
With all of the prices from food to advertisements to tickets rising dramatically over the past few years, what is the cause? Besides the high demand and low amount of tickets creating scarcity among fans, some say that it is due to our economy. According to NBC News, the high costs for Super Bowl tickets is caused by the “low unemployment and a booming economy…”, creating more “Americans willing to splurge…” (Spector). Due to the growing GDP of America, people are making more money and more willing to spend on Super Bowl Sunday. Not only are people able to pay for higher for tickets and buy more food, but businesses are able to pay more for an advertisement on the one day a year where some people admit that they watch television for the commercials. So while we wait for the Green Bay Packers to get their act together and get to the Super Bowl again so us Wisconsinites can actually care about the game, the numbers will continue to rise as long as America’s economy continues to grow and we care about the real kind of football.
Works Cited
All products require an annual contract. Prices do not include sales tax (New York residents only). “Super Bowl 30-Second Ad Costs 2002-2018 | Statistic.” Statista, www.statista.com/statistics/217134/total-advertisement-revenue-of-super-bowls/.
Gordon, John Steele. “The Super Bowl and the GDP .” Commentary Magazine, 30 June 2015, www.commentarymagazine.com/culture-civilization/popular-culture/super-bowl-gdp-madonna%E3%80%80/
Spector, Nicole. “Has the Booming Economy Led to Pricier Super Bowl Tickets This Year?”NBCNews.com, NBCUniversal News Group, 4 Feb. 2018, www.nbcnews.com/business/consumer/has-booming-economy-led-pricier-super-bowl-tickets-year-n844281.
“Super Bowl Consumer Spending 2007-2017 | Statistic.” Statista, www.statista.com/statistics/217141/super-bowl-weekend-related-consumer-spending-in-the-us/.
Staff, Marketplace. “5 Things You Need to Know about the Super Bowl Economy.”Marketplace, Marketplace, www.marketplace.org/2018/01/26/business/5-things-you-need-know-about-super-bowl-economy.
I’m not particularly surprised that the Super Bowl brings in a lot of money for restaurants and retailers selling gear. I do wonder how this compares to other sports, for example the Soccer World Cup. My gut is that the World Cup has more spending since it is a worldwide event. However, soccer has much less room for advertising which means companies are probably less interested in the game. Also, only a handful of countries that aren’t always that big are going to be hyped about the final rounds.
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I agreed that the spending is a lot and that people go wherever to watch the game. I also agree that the commercials are very expensive on that day. I think it was beneficial that he put charts in.
ReplyDeleteI think that the rising price are becasue of the economy, but I also believe that prices are rising becasue companies during Superbowl Sunday want to make more money and make more profit. People are willing to buy these products at extra prices because they are throwing a party and need food or they really wanna see the game or they are willing to "splurge" for the Superbowl.
ReplyDeleteI agree, during the time of the Super Bowl many people are spending large amounts of money for their Super Bowl parties. People go out and buy all the things they need such as unnecessary drinks, food and other parties “necessities”. In 2007, the Super Bowl spent about 8.71 billion dollars and has been increasing ever since. This past Super Bowl spent over 15.3 billion dollars. All this money that is spent preparing for parties and that is made during the Super Bowl is a great time for mass growth in our countries GDP. The growth in our GDP is a very good thing because it raise the GDP for the country dramatically and contributes largely to the yearly GDP. This is because many people are going out to buy chicken wings and beverages at a much larger rate than normal.
ReplyDeleteI was already aware of the high price that it cost to have in advertisement run during the super bowl, but you should look at the revenue that restaurants/bars generate during the super bowl. I’m guessing that this too greatly contributes to the GDP growth that stems from the super bowl. It’s good to see that the increase in spending on the Super Bowl is because of the thriving economy in the U.S.
ReplyDeleteThe Super Bowl is one of the biggest events of the year in America, so it would make sense that it helps our economy. All the fans traveling, families throwing parties, even the host city will have their citizens out having a good time for the game. All of this adds up making it an economy booster. I find it amazing how consumer spending and the commercial creation costs have both nearly doubled previous amounts. I understand that prices may be what is truly increasing, but at the same time people must be buying more. And the ones creating those outrageous 30 second commercials must be doing more in order to reach the $5,000,000 average. Overall the Super Bowl draws in a lot of attention across the country and it definitely gets people to fork over more money than they are used to spending.
ReplyDeleteSuper Bowl Sunday is almost a holiday in the US. No matter who's in it, there are parties everywhere. The economic aspect is something I have always overlooked. I never made the connection that me purchasing burgers and brats at the grocery store contributes to this 15 billion dollar Super Bowl spending. By being restricted to the stadium the teams will play in, they are able to factor in the benefit of having scarcity. The writing talks about how as unemployment rates drop and the economy gets better, tickets for the Super Bowl are becoming more and more expensive. In addition, with a limited number of tickets, the ticket value increases. I wonder when the cost of these tickets will become 'too much' and the consumers will find it is no longer worth spending that much to watch the game. A major shock to me was the price of a 30 second commercial for the Super Bowl. With the prices steadily increasing for a slot during the game, it has reached now 5 million in 2018. With this number so high, it begs the question, at what point will the price of the commercial exceed the profit brought in by it? This most likely varies brand to brand; however, at some point it has to become a loss in profit.
ReplyDeleteIt is so crazy how much money is spent on the Superbowl. It blows my mind that 30 seconds is worth 5 million dollars to some companies. If you think about it all the companies that are able to spend that much money on 30 seconds has to be pretty well known already to have 5 million dollars so what is going to change if a viewer sees there commercial during the Superbowl and not during its regular air time? Probably nothing. People like to watch the commercials to see if they are funny or entertaining but I don't think it's really changing anyone's minds on whether to buy the good or service.
ReplyDeleteI agree with you, in regards to the fact that our nation’s GDP is impacted by the Super Bowl popularity, consumer spending, and increase in advertisement spending. The statistics you provided within your post enhanced the impact of the Super Bowl. All of this money spent counts as consumer spending and the commercials potentially count as business investments. While those prices for commercials costs billions of dollars, businesses are still willing to buy that 3-second time slot which, again, increases GDP.
ReplyDeleteIt's insane how much money is brought in because of one final game. For every sport there are fans and band-wagoners that go out and purchase merchandise of the championship team. Every Superbowl, World Series, Stanley Cup, NBA Championship, and other sports have a positive impact on our GDP every year. When a sports team wins a championship, people don't really think of the money that is being spent within a few minutes. As soon as the team wins, the doors open and people are ready to buy their championship gear to show the love for their team. All the money they pay for commercials is made up with the revenue being generated after a big game or series. It makes you wonder how much more or less money would have been generated if the opposing team had won the championship.
ReplyDeleteNot only is the Super Bowl a money opportunity for people trying to sell their products, it can also be a game changer for advertising agencies. The seller has to pay the NFL as well as advertising agencies big bucks to produce an advertisement that will sell. The ad agency works hard to earn that money, and if they are successful, the seller will keep coming back to the ad agency they can trust.
ReplyDeleteThe idea of a single commercial costing a company that much money sounds insane, but it must be well worth it as each year the same company's continue to have commercials during the Superbowl every year. These companies are all established ones as well, like Doritos for example, I don't understand how it could be economically beneficial for a company that is already successful and what I would say is their peak to have a such a commercial, I don't know how one commercial could cause people to buy more Doritos than they would've anyway.
ReplyDeleteIts awesome to see that the high prices of the Super Bowl are due to a booming US economy. It was also very good connection that due to the growing GDP people are making more money and willing to spend more on goods associated with the big game. However I also agree with Liam's comment above in that paying millions for a 30 second- 60 second commercial can't possibly make a company as big/successful as Pepsi gain much of a profit than it did before hand. Overall as long as people can afford to spend money they will, especially on the biggest game of the year.
ReplyDeleteAndrew Retherford
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