If you had $2.6 million lying around the house, what would you do with it? For many companies, 30 seconds of air time is well worth the investment. Are these companies foolish, or is there a reason for all of the hullabaloo?
Use the following websites to answer the question. In additional, answer the following questions in your response:
Super Bowl scores touchdown for the economy
Are Super Bowl ads worth the money?
- How does the Superbowl affect the economy?
- What happens to the caps & shirts printed for the team that loses the Super Bowl?
14 comments:
1. I think that companies are foolish for spending so much money on their ads during the super bowl. People are watching it for entertainment and see it as only that. We don’t want to buy it just because it is funny, but maybe the companies feel that so many people are already watching the game, so they will definitely see the commercial. Still, I think that spending that much money is a waste.
2. The Super Bowl affects the economy by encouraging people to buy tons of food and drinks as well as TV’s, fan merchandise, etc. People want to make the game the best it can be by having big parties full of brand name chips and beer. Some even go as far as to buy huge TV’s to watch the game. People also spend tons of money on tickets for the game and transportation to the game.
3. When a team wins, caps and shirts are already made to celebrate the victory, but when the team loses, the companies lock up the merchandise and then send it to Africa for people to wear. This way, the shirts and caps are used for a good cause, and since those people don’t know about football and super bowls, they won’t even care if the shirts were wrong!
In today’s economy, it is difficult to get consumers to spend with the looming recession. However, there is one event that is seen by the masses that can get people to want to spend again. It has been reported that 140 million Americans watched the Super Bowl this year. That’s 140 million potential consumers for each company that airs a commercial. That type of advertisement is not available everyday. That’s why these in-demand spots are usually sold out by October. The ads are speculated over and people look forward to see who comes up with a clever commercial. And for those that don’t even watch the Super Bowl, people will want to know which commercial was the funniest. That gets people talking about the companies and their names are spread. So either way, companies are getting mass advertising with the Super Bowl.
As seen with the advertisers, the Super Bowl is a time of spending. People rush out to the stores to spend money on their spreads for their parties. They’ll buy their teams jerseys and other memorabilia. With all this spending, the day of the Super Bowl has been called “rescission proof.” The economy is given a major boost in the right direction with all the extra money being spent. Suppliers must produce more to keep up with the demand for all the goods being sold leading up to the Super Bowl. This leads to overtime for the workers and over time benefits ensue. With that extra money, employees then will go out and spend, completing the cycle that makes the Super Bowl a cash cow for businesses.
The shirts and caps that are produced in advance for the Super Bowl should make the loosing team feel better about their loss. The shirts and caps of the losing team go to the needy families around the world that are unable to afford clothing on their on. Although this is an economics loss for the companies that make the shirts and caps, it is still nice that they are able to do something nice for others who need it. If your lucky enough (or a big enough fan), you are able to get the shirts and caps as part of you memorabilia collection.
I think it was a good decision to spend $2.6 million on advertising for the super bowl. So many people watch the super bowl and the advertisements are always talked about the next day so the companies name is getting publicity. More potential consumers are being exposed to their product because of their 30 second commercial. It is important for these companies to get a time slot to ensure more exposure of their product and potential sales. Almost half the country watches the super bowl and will be exposed to the advertising which is geared to get consumers to buy their product. The super bowl generates a lot of money for the economy. The day after the super bowl is bad for businesses because a lot of people don’t show up for work or show up late. Though the economy seems to be heading for a recession, yesterday it would seem to be “recession-proof,” due to the large amount of money spent on tickets, food, TV’s, plane tickets, and super bowl clothing. The NFL clothing of the loosing team is either destroyed or sent to poor countries where people don’t have enough money to buy clothes.
1. Contrary to popular opposition, Super Bowl ads are actually worth the money invested in their production. According to statistics, fifty-two percent of households in America were tuned in to channel five last night to watch the fourth quarter of the big game, and that number excludes bars, restaurants, pubs, and the like who were all broadcasting the Super Bowl for their customers’ viewing pleasure. One hundred forty million Americans (about half of the nation) caught at least a few seconds of the game, and many even turned on the television solely for the purpose of seeing these extravagantly pricey commercials.
2. The Super Bowl, although a seemingly trivial event, does have a significant impact on our economy. Although reports say that our economy is heading towards a recession, the Super Bowl gives Americans a chance to “forget the gloom.” People are encouraged to purchase “football” foods, such as potato chips, pretzels, dip, salsa, beer, soda, and the like. (As an employee at Walgreen’s, working last night I saw firsthand that this is certainly true.) Not only do people’s expenses include food and drinks for their parties, but many also purchase new technologies in the form of high definition televisions, surround sound speakers, cables boxes, and satellite dishes to enhance their viewing experience. Some even go as far as to employ private jets to fly them to see the game live, as well as purchasing highly priced tickets to sit in the stadium for the big show.
3. At the end of the Super Bowl, after a winner is declared, many are left to wonder- what becomes of the shirts, caps, banners, etc. that are printed with the logo of the losing team? The NFL orders those products never to appear on American soil. The items are shipped Monday morning to a warehouse in Sewickly, Pennsylvania, where they are then sent off by an organization known as World Vision to developing countries usually in Africa. This way, the National Football League contributes to a charity without traumatizing one of its teams. The country that the items arrive in is a place without electricity, running water, and certain without cable, and are unaware that they are sporting merchandise printed for a losing team.
To get your company's advertisment on TV during the Super Bowl is ridiculously expensive, averaging at about $90K per second of air time and $2.7 million per commercial. The price to make the commericals is always huge as well, for the competition fostered by other companies exists. While this amount of money for 30 seconds of air time may seem foolish, one must consider this as a major investment. The amount of people that watch the Super Bowl is massive, and being that it is one of the most watched television events in America, companies know that it is prime time to advertise. Normally, one must assume that people are watching t.v. when they air their commercials, but during the Super Bowl, it is guarenteed that their product is being endorsed in front of hundreds of millions of viewers. Being that the commericals are usually funny and memorable, the products are in the eyes and minds of exponentially more people than normal conditions would allow. On top of the actual airtime, Monday morning discussion of the ads and internet video uploads make the products reach even more viewers and potential buyers. By mere exposure, people are much more likely to choose said product. All companies can hope for is that people are paying attention to their commercial when it is aired, and also that, if they are a new company, people will remember their name instead of the overwhlemingly popular (and well-funded) annual Pepsi and GMC commercials.
The economy is automatically boosted during the Super Bowl, especially concerning the price of tickets, tranpsortation, televisions, furniture and food and drink consumption. People paid almost one thousand dollars to even enter the stadium at the University of Phoenix this year. People rent and buy big screen high definition televisions to host parties, and buy new couches to go along with the new found desire for luxury. More pizza and chicken wings are ordered than any other day of the year, and many people actually vacationed in Arizona during their time that was not taken up by the game itself. Even in fear of recession, our country can rest assured that the GDP will be boosted by this All-American event. In addition, this rise in consumer spending will work wonders for our suffering economy as an automatic expansionary event. The only real downside is the huge amount of productivity loss on the next day, as many Americans will be too shot (or hungover) to come to work having partied (or drank their shame away) all night.
So much money is spent on the Super Bowl, including on merchandise for the winning teams. The problem is that not every team can win and the "winning" merchandise of the losing teawm is unplanned investment for the NFL. But, the NFL has enough money to be able to make good of this "waste," by sending it to refugee camps for people who need clothes and evidently don't know or care about whether that team actually won. To me, this is a saving grace for the losers and for the needy. Imagine Tom Brady's face upon walking into Walmart and seeing his "championship" jersey on the discount rack.
Well this is a classic case of supply and demand. Because there are so many companies willing to pay mad cash for a limited amount of space FOX can drive up the price of just thirty seconds of airtime. Think about it, according to ESPN, this last superbowl was the most watched tv event after the MASH finale. There are millions of people who are watching these commercials, it would be foolish not to want a commercial during the superbowl. You might think one of the commercials are stupid but just by saying their company name they already have it in your head.
People in the US have one of the highest MPC's in the world so when there's a big event they want to do it big. Get the big screen the snacks and the drinks.
When it's all said and done all of those shirts and hats go to a good cause. The losers apparel goes out to Africa along with other supplies to help those who are less fortunate. The NFL can pay for it plus it's a good deed to do with now worthless patriots clothes.
1. Super Bowl ads are not worth the money because although many people watch the game, advertisers have no way of knowing how many people are really paying attention to the commercials. Also, with the growing popularity of the Internet, advertisers are not as willing to spend such large amounts of money on advertising on television. Paul LaMonica, of CNNMoney.com says, “What's more, 94 percent of the respondents said that, assuming the budget was the same, they would rather launch a product via a new media campaign.” Television is not as popular as it once was for spreading information. The Internet is becoming increasingly more popular and is very accessible for most people. As the years go on, the prices for the advertising spots have dramatically gone up. When is it enough? For many companies, spending such exorbitant amounts of money on one commercial may not be worth it. Companies could advertise on a smaller scale, more frequently, for less money, and possible have the same effect on consumers. Even though Superbowl advertisements may not be completely worth it, the widespread recognition for a particular company with an ad in the Superbowl is unarguable. So many people watch these ads, and whether they buy the product right away, they are likely to remember the company name if the commercial is memorable. This could eventually lead to success.
2. The Superbowl has a positive affect on the economy. Presently, the country is in a recession. With the Super Bowl, these economic woes are often forgotten. The Financial Post reports, “Consumer spending on "hard" goods such as flat-screen TVs, entertainment centres and comfy chairs is expected to hit as much as US$10-billion. That figure doesn't include the many millions more Americans are forking out for pricey scalped tickets, private jets to the game, chicken wings and beer.” Consumer spending in so many different areas, such as travel, home goods, food, team paraphernalia, and media, adds to the economic surge. The only thing that counters the often excessive spending is the fact that many people don’t worry about work the next day. On a larger scale, the fact that people go crazy buying so many goods prior to the big game makes up for the fact that some people don’t really work the next day. For News Broadcasting companies, radio, and Internet, especially Fox Sports, which broadcasted the Super Bowl, the Big Game greatly enhances their economy. Advertisers spend ridiculous amounts of money for one simple commercial during the Super Bowl. The Super Bowl greatly aids all aspects the economy, because it sparks excessive consumer spending across the charts.
3. The caps & shirts printed for the team that loses the Super Bowl are shipped to poverty stricken towns, usually in Africa. According to the Sports Economist, “where these items go, the people don’t have electricity or running water…they wouldn’t know who won the Super Bowl. They wouldn’t even know about football.” Although this is very expensive, the NFL can afford it. They work with the relief organization World Vision to transfer these clothes and hats, along with medical and school supplies. The NFL is very careful to not embarrass the losers of the Super Bowl, and they do not want anything in the hands of the public.
1. For airtime at 90,000 dollars a second many people question whether a super bowl ad is a wise purchase. There is a reason for all of this hullabaloo though, if you want to get your product known quickly across the nation then the super bowl is the perfect venue for your company. No show or event is watched by a greater number of Americans and no other sports event is more talked about. One third of the people watching the super bowl admit to watching it, at least in part, for the commercials. Also, the investment is important because the commercials that are featured in the super bowl are often widely talked about afterwards. Not only are the commercials seen by about 90 million viewers during airtime but then they are posted online and inserted into the newspaper, bringing more attention to them. So even at 2.7 million dollars for a thirty second segment, an effective commercial will bring a profit to the company.
2. The super bowl fuels spending within the United States. Businesses spend money on advertisements to get their products on the national or global scale, with the hope of generating higher sales. Consumers in turn spend money buying food and entertainment systems. Many people throw super bowl parties and spend large sums of money to insure their guests’ happiness. The super bowl then is a nice circulator of money that might otherwise have been held in disproportionately in wealthier people’s savings accounts.
3. All of the merchandise that was produced by companies for the team that lost in the championship game is collected and sent overseas to needy people in other countries. The merchandise, including hats and shirts is meant to be left unseen on American soil, so as not to offend the losing team and its fan. Though this in turn costs the NFL money they can certainly afford it and it is a worthy venture. My friends are here so I gotta peace. BYE MR.KARMIN.
1. Superbowl ads are not really worth the money for companies such as Pepsi and Coke. It makes no sense for them to advertise their product because they are so well known. The big well known companies are just wasting their money on the ads. Most people know about Pepsi, Coke, and other large market products and the audience that you might reach that hasn’t heard of them, is very small and most likely not going to be watching the Superbowl anyway. There is also no real competition besides Pepsi and Coke in the soft drink world. Car companies may feel the need to advertise their newest car because there are so many manufacturers out there with new cars coming out everyday. The money might be worth it for someone like them or for smaller companies trying to get their name into the public eye. The Superbowl reaches close to 100 million people and may be useful to help such companies grab people’s attention. The cost is still something to take into thought because there are many other markets, such as the internet, that will reach just as many viewers and generate the same amount of revenue.
2. The Superbowl is very helpful in increasing spending in the economy. Even with the fear of a recession and increased savings, people spent thousands upon thousands of dollars on tickets, airfare, food, merchandise, and other related items. The game also increased sales of HDTV’s and other electronic equipment. The Superbowl also helps to increase the economy of the city in which it is help by creating jobs and attention. The city of Phoenix is expecting an economic impact of $400 to $500 million. This spending is important because people spend like there is no tomorrow and help the economy out of a recession.
3. The unused shirts and hats that were made for the Patriots are sent to a warehouse in Pennsylvania. From there they are sent to third world countries in which they don’t care who won the Superbowl. Although it would have saved the NFL a lot of money if they had just made Giants apparel, the NFL can easily afford this and it is a good public relations move on their part. I’ll have to agree with MichaelS on this one and say that it is a good deed to do with all the worthless Patriot stuff.
1. Although $2.7 million seems like a lot for a few seconds of commercial time, the demand is obviously there since the time sells out regardless. Companies can’t be sure of the result of their advertising, especially since the Super Bowl is already known as a time of increased spending. In addition, the audience of the game is predominately sports fans, which limits the variety of products and services that can be successfully advertised. Traditional competition for creative commercials leads to even higher costs for each commercial aired, which makes one wonder whether the increase in consumption caused by the advertising even overtakes the cost of producing and airing the commercial.
2. The Super Bowl gives many Americans an excuse to increase spending, whether it is on TV’s, game tickets, private jets, chicken wings, or team apparel. Although some individuals spend money they don’t have for the occasion, which leads to problems with debt, the overall effect is a large boost despite the looming recession. The spending increase even outweighs the reduction of productivity the day after the game.
3. Ok so maybe they don’t have low wage workers furiously sewing hats and shirts at the end of the game...That means they have to have the stuff already made. In reality the hats and shirts made for the losing team go to needy countries that wouldn’t whose inhabitants wouldn’t know the outcome of the game anyway. This donation is done to both help charity and prevent the humiliation of the losing team (well, further humiliation) by removing any possibility of the merchandise being sold.
Arguably the most widely televised sporting event in the United States, the Super Bowl has a significant impact on the economy of the most powerful nation in the world. During this major event, businesses and companies spend over $2 million for 30 second ads during the commercials. Whether or not these ads have the desired effect is under question especially because only a handful of companies benefit whereas the majority of companies stagnate in productivity. According to a survey recently conducted by the Retail Advertising & Marketing Assn., 36.3% of consumers will tune in primarily to watch the commercials, which shows that people express interest in these $2 million ads. However, the commercials tend to be conducive to entertainment rather than expressing interest in a particular company. Thus, these expensive ads may not actually be worth it for most companies considering that even the companies who do relatively well will most likely not experience and dramatic increase in sales and productivity. Aside from the efficacy of ads in commercials, the Super Bowl in general has a gargantuan impact on the US economy. According to past economic records, sales for HDTVs, snacks, and Super Bowl merchandise always leap prior to the Super Bowl. The momentum building up to the actually event causes and immediate surge in ticket prices and sales, Super Bowl merchandise, etc. The sales record for such merchandise was set in 1997, at around $125 million, and sales have hovered just below that amount in the years since. In addition, the NFL also reaps a majority of the proceeds from ticket sales, which will amount to around $57.6 million this year, given a sellout crowd of 72,000 and an average ticket price of $800. Regarding the HDTVs, 48% of high-definition TV owners who call themselves sports fans purchased their set to watch a specific sporting event. Not surprisingly, the Super Bowl was cited most frequently. Last year, CEA estimates the Super Bowl drove some $2.2 billion in sales of HDTVs. Also, in the week leading up to the big game last year, 73 popular categories of food and beverage saw a combined $261 million boost in sales over an average week, according to research by ACNielsen. Tortilla chips were the single most popular snack among party-throwers, receiving a boost of 29%, or $13.4 million, over a normal week of sales. Thus, sales skyrocket benefiting companies, and causing a healthy circulation of money through the economy. Having taken into account the sales of food, merchandise, and high definition televisions, etc, one cannot forget the impact of the Super Bowl on the local economy of the venue. Looking back, when Tempe, Ariz., hosted the Super Bowl in 1996, economists at the Arizona State University College of Business estimated the game to have an economic impact of $306 million spread across local industries, from food and beverage to hotels and outdoor recreation. The event generated 6,100 jobs for local staff, and state and local tax revenues were up $27 million. Overall, not only does the Super Bowl boost sales but it also provides jobs and further increase revenue providing for a stronger, healthier economy. After the Super Bowl is over, the shirts and caps printed for the losing team go to charity. World Vision collects these unwanted articles of clothing and give them to people in need in poverty-stricken areas of the world such as Africa. To the native people of Africa, these caps and shirts have no meaning, other than that they provide covering. This is a win-win situation for the losing team because although they lost, their donating the shirts and caps earns them a good reputation and makes it known that the NFL can be beneficiaries to charities around the world.
1. The majority of Super Bowl ads are definitely not worth the $90,000 per second of airtime. It is true that the Super Bowl provides mass exposure, but the effectiveness of the advertising is questionable. Talking about Justin Timberlake and Will Ferrell isn’t going to set off any light bulbs as to the greatness of Pepsi or Bud Light. These companies always advertise, and their products are nothing new to viewers. Other commercials that are seen and talked about typically do not drive the viewer to purchase that product. Most people will laugh about the fire breathing man and screaming squirrel, but they probably won’t remember the company, and definitely aren’t all going to run to buy their product. I feel that the effectiveness of the advertising doesn’t compensate for the insane amount of money spent.
2. The Super Bowl definitely gives the economy a temporary boost for obvious reasons. The demand for things like wings, chips, beer, crazy TVs, tickets, and memorabilia shoots up, and the economy reaps the benefits. It is also true that the day after the Super Bowl is a day of decreased production, but the economic surge from the day before definitely outweighs it. It’s like those tiny 5-hour energy drinks that claim to not have a crash (there will always be a tiny bit of a crash, but nothing too bad)
3. The hats and shirts of the losing team are immediately shipped out to needy foreign areas in which the game and the outcome are meaningless. This helps those less fortunate as well as saves the losing team humiliation. I think this is a great thing to do, and it basically kills two birds with one stone. Football, food, beer, commercials, AND helping people with the losing team’s useless stuff? Go America.
The Super bowl on Sunday was a record breaker for the economy. It cost companies an average of $90,000 per second of airing time. This amounts to about $2.7 million dollars for the average 30 second commercial. People may either see this as stupid or as a great investment. I think that it is a great investment for companies such as Anheuser-Busch, Pepsico, Coca-Cola and General Motors who will probably make a killing in the end. Why will these companies make off in the end? Well seeing as so many people watch the Super bowl it is easy to see why. In 2007 there were 91 million people who watched the Super bowl. This year there is an estimated 140 million who watched it. That is about one half of the United States population. Subliminal messaging will encourage people to buy various items that were advertised on TV for even just a couple of seconds.
Well how else does the Super bowl affect the economy? The goods people buy for the Super bowl is exponential. Statistics show that people spend about $10 billion on hard goods such as Flat Screen TVs’, entertainment centers and comfy chairs. However this dosen’t count the food and tickets they bought. On the verge of a recession people are wary to spend their money, but when the Super bowl comes around it brings people together. It makes them happy and joyous and they want to spend. This spending increases the consumer spending of GDP which will help out the economy. There are some crazy people out there who spend great amounts of money for an event that may just last 6 or 7 hours. One man in Massachusetts spent $192,000 to get a pair of club-section seats on the 50-yard line. This week StubHub announced that in its eight year history, it is the highest grosing year.
It’s actually quite funny how the loosing teams caps and shirts are never seen be anyone. They go to developing nations who are in need of clothing. Countries such as those throughout Africa are able to receive this, and it only makes the NFL seem really generous.
ohh and MR. Karmin..i did not post this late because im lazy or stupid or anything like that.i just had work at 3 after school and was busy the entire night.
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