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Super Bowl Ads See Price Drop for Second Time in History Amid Economic Slump

Strategic Insights

— 1 min read

The economic downturn appears to have affected the Super Bowl's most expensive advertising slots, with a 30-second commercial selling for between $2.5 million and $2.8 million, down from last year's record average of $3 million on NBC. This is only the second time in the game's history that prices have dropped. The absence of major advertisers like Pepsi, FedEx, and General Motors, who dropped out last year, has led to newcomers and smaller companies snatching up the available slots.

Key Takeaways:

  • The price of a 30-second commercial during the Super Bowl on CBS is selling for between $2.5 million and $2.8 million, a drop from last year's record average of $3 million on NBC.
  • Pepsi, FedEx, and General Motors, who dropped out last year, will not advertise their products during the Super Bowl for the first time in 23 seasons, 15 years, and 11 years respectively.
  • Newcomers and smaller companies have snatched up the available slots, including HomeAway, a vacation-rental Web site, which is airing its first television commercial during the game.
  • CBS officials said the pace of sales has been better than it was for NBC a year ago, with only four of the 62 commercial slots remaining to be sold as of January 8.
  • The Super Bowl has seen a consistent increase in prices since 1995, with 30-second spots selling for $275,000 in 1981 and jumping to $600,000 just five years later.
  • The Super Bowl has generated $2.17 billion of network sales from 1990 through last year, including 1,400 commercials from 210 advertisers.

Statistics:

  • 30-second commercial during the Super Bowl on CBS: $2.5 million - $2.8 million
  • Last year's average price on NBC: $3 million
  • Number of commercial slots remaining to be sold as of January 8: 4
  • Total network sales from 1990 through last year: $2.17 billion
  • Number of commercials from 210 advertisers: 1,400
  • Average viewership for the 1981 Super Bowl: 68.3 million
  • Average viewership for the 1986 Super Bowl: 87.2 million
  • Record viewership for last year's Super Bowl: 98.7 million

Sources:

  • TNS Media Intelligence
  • The Associated Press
  • Jon Swallen, senior vice president of research for TNS
  • Bob Horowitz, president of Juma Entertainment and executive producer of the television show "Super Bowl's Greatest Commercials"
  • CBS spokesman Dana McClintock
  • HomeAway CEO Brian Sharples
  • Marketing professor Tim Calkins, Kellogg School of Management
  • NBC Universal
  • Nielsen

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