Without a doubt, the Super Bowl hosted by the National Football League is one of the largest sporting events worldwide. The amount of revenue the NFL receives over just a couple of hours of gameplay is staggering, to say the least. It is no secret that Super Bowl advertisements are always a huge topic of discussion. This is especially relevant when talking about the prices companies pay to have their brand recognized in the commercials of this event.
As of 2023 Super Bowl advertisements have been sold at a record-breaking price by Fox Media Company. Television networks are looking to pay over 100 billion dollars over the next decade just to broadcast NFL games. Therefore, media companies such as Fox, are looking to make some of that money back through their advertisements. Front Office Sports is claiming that Fox has set their advertisement price for this year's game at approximately 7 million dollars. This is astonishing when you realize these advertisements are only running thirty seconds long.
Now, the high-priced ads are news to nobody, although it should be pointed out that these advertisements are increasingly getting pricer. It makes it hard for smaller companies to purchase this commercial time, especially when the broadcasters know that companies will pay that large sum of money. Companies like Apple are paying the NFL 50 million dollars yearly in new sponsorship deals. The market for these advertisements is on a consistent uprise, therefore I wonder when these prices will begin to plateau.
Source:
profile.php?id=100014173501641. (2023, January 30). The cost of a Super Bowl LVII ad cost has been revealed. Sportsnaut. Retrieved January 30, 2023, from https://sportsnaut.com/super-bowl-ads-cost-2023/
I always thought that it was so crazy that companies pay so much for ads but it makes sense because of how many people are watching. It is very unfortunate though that smaller companies can't get their ads in and that big companies will probably forever rule superbowl ads.
ReplyDeleteCrazy how much money is in this game right now. Teams being bought with several billion dollars, companies paying hundreds of billions for broadcast rights, the NFL increased the salary cap to $224 million from $208 million, and it's only growing.
ReplyDeleteIts sad to see some smaller companies not be able to compete financially for these spots when in reality they could use the exposure the most. I wonder if they will shift their attention to other big stages in sports such as the World Series while the price is not as high.
ReplyDeleteIt is true that Super Bowl advertisements and commercials can create discussion about a company and sometimes even an increase in sales. However, I am curious to know if the benefit is really worth the large cost. I also wonder if the popularity of Super Bowl commercials will ever fade out.
ReplyDeleteAlways the big companies on top financially being able to afford for an expensive super bowl ad. I bet prices will begin to plateau when more and more companies catch up to financially. As soon as this happens the prices will start to increase again.
ReplyDeleteIt is going to be interesting to see how much companies will be willing to pay for their thirty second spotlight and if smaller companies will have a chance of a spot in future commercials.
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