A few days back, The New York Times advertising column featured Denny’s and some of the other companies
who’ve chosen to advertise in this year’s Super Bowl. Every year, marketing and business pundits debate whether this one-time venue’s premium advertising slot is worth the cost. The golden question is: Does it provide a real return on the huge cost associated with it?
Almost always, I take the pessimist’s view point of this debate. Unless the advertiser’s sole goal is to immediately drive one time traffic to a web site, or one time limited sales of a product, I just don’t see the bang for the buck (and even then the benefit won’t be higher than the cost). Most marketers leverage the Super Bowl both for ongoing brand building and the hope that it will create a spike that will lead to a continual rise in product sales. There may be some instances where the latter has happened, but I’d like someone to prove it to me.
This year, the advertising “opportunity” seems almost ludicrous. In the toughest of times, NBC has actually raised the rate of a 30-second spot from $2.7 million to $3 million (gee, what a deal.) One agency executive believes there is real value to be had here and asks the rhetorical question, “Where else can I hit 97 million people?”
That may be true (although I question whether a Cardinal/Steelers game will have that type of viewer turnout,) but I believe there are three important reasons why the Super Bowl makes even less sense now than in years past:
1.) The PR hit – Almost every company is cutting costs and laying off its employees. We’re talking about millions of people out of work. It would be an understatement to say that the general mood in America is somber (at best.) How will these advertisers be viewed by their employees, investors and other key constituents when they are seen as frivolously spending $3 million in 30 seconds, while so much turmoil is taking place in the background?
2.) The price actually went up – Give me a break. I just don’t know how any organization can justify raising prices now. Most have actually created cost concessions with the addition of greater benefits in their products/services. I’d probably walk away or terminate the relationship with any partner/vendor that had the audacity to actually raise prices instead.
3.) Use the money more strategically – Consumers are buying less and they are more selective about what they buy. Think about how far $3 million could stretch through a more strategic marketing program that is directly aligned with point of sales or thought leadership to make prospects/customers trust the company’s products/services more. I’d say that most advertisers would actually do better by spending the whole enchilada on events at their restaurants or at retail designed to create more direct publicity and interest in retail sales than through an ad that will be over in the blink of an eye. Just so it doesn’t seem like I’m only pushing public relations approaches, I think direct marketing (email, leveraging the Web), digital campaigns) could provide longer, more sustainable ROI as well.
Consumers may enjoy watching some of these lighter commercials. Does some brief laughter support the millions being spent? No.
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