Super Bowl Ads Are Still a Touchdown in Slow Economy

The economic downturn has taken its toll on the advertising markets, but still, big events are managing to be stronger than ever. The Olympics attracted unprecedented ad dollars, and now the 2009 Super Bowl has as well.

CNBC's parent company, NBC (owned by GE (GE)) has already sold about 75 percent of the big event's commercial time, whereas in past years only 50 or 60 percent would be sold by now. These faster sales are particularly impressive considering the fact that prices are up some 10 percent this year to as much as $3 million for just a 30 second spot.

The Super Bowl has always been the best way to reach a broad American audience, and especially men. Why the big excitement this year? For one thing, there's the fact that this past year's game drew an unprecedented audience. And then there's the reality of the ad market these days.

Advertisers are devoting more of their ad spending to Internet ads, but it seems like when they want that broad audience they aren't willing to take risks, and the Super Bowl is a rare time when people are guaranteed to watch in real time.

And let's not forget, overall television viewing is increasingly fragmented--the broadcast networks are losing viewers to cable, and the entertainment landscape as a while is more and more interested in targeting niche audiences. So the Super Bowl remains a national event, unlike many others.

Comments

[Ownsalot:]

Everything about GE is great except the stock performance. Why?

2008 Sep 14 08:18 AM

[Walt17:]

Ownsalot, many people only see the financial side of GE. Thus the stock price is unlikely to make a major move up until that duststorm clears.

2008 Sep 14 10:36 AM

[nukldrager:]

It remains to be seen weather this fb season will have the same or comparable interest as last years Brady driven magnet effect. Maybe that was a bubble of it's own.

2008 Sep 14 11:33 AM

[Pessimistic...:]

I own GE for its infusion into the Asian markets. Wind energy to be more direct. Kudos to GE for that.
Also, I believe that the influx of female viewers is increasing to a higher number which will add to the total home ratings. As Julia states the isolation/targeting is becoming more female oriented in it's direction. That is not a bad thing. I love watching the games with my beautiful bride saddled up next to me cheering for our favorite teams together.
Now, add to that the commercials themselves. As I heard recently on Fast Money by J. Najerian, fans love to drink beer when their team is winning and require it when they are losing. With that said, what are the majority of commercials touting? Fast food snackies and of course beer. Good ol belgain/spanish beer.. complete with a few horsies. It's all good

2008 Sep 14 06:31 PM

[Pessimistic...:]

And wouldn't you know it as I hit ther enter button, here is another Belgian beer commercial with a cell phone /xbox kicker. Gotta love it.
BTW, keep your eye on those Seinfeld,gates commercials.. I predioct they are gonna be the craze come superbowl!! They are funny now.. wait until they gather a bit of steam.

2008 Sep 14 06:35 PM