Super Sunday for Sponsors
Super Bowl Sunday gets bigger every year, and this year’s golden anniversary celebration is no exception. Sage Data Service is headquartered at Embarcadero Center in San Francisco, meaning we’ve been right in the middle of all of the festivities over the past week. In addition to being the biggest sporting event of the year, the Super Bowl is big business. It is a virtual convention of corporate sponsors and the stakes are very high.
Fortune Magazine published an article outlining the cost of a 30-second ad during the Super Bowl as $5 million dollars. The article also illustrates the various reasons for companies to advertise in the Super Bowl, pointing to the success of smaller companies in gaining brand recognition, while perennial advertisers Coca Cola (KO) and Budweiser (BUD) adopt a more defensive posture to protect their brand.
A company to watch is Amazon (AMZN) which is making its first foray into Super Bowl advertising this year to promote its Echo product. While fans will be watching the game, Amazon is hoping that it will get the audience it needs to push Echo to the next level above the “cult following” that it presently has. Investors will also take note, as Amazon has big plans for Echo which includes integrations with other companies, including the ability to request a ride with Uber.
While social media is an early indicator of success, the real scoreboard is a company’s financials. It will be telling to review the first quarter statements to determine how much was spent on the ad campaigns, as well as the possible impact. Comparing companies who advertise during the Super Bowl with competitors who may not have is also a good way to begin to gauge the success of the campaign, and to compare the companies in general. This year’s Super Bowl and the events surrounding it have been huge, and time will tell whether companies used this time to effectively promote brand and improve the bottom line.