Advertisers who are still debating whether to purchase a Super Bowl LVII commercial will need to wait until next season. Fox just announced that all spots have been sold by Fox for Sunday’s broadcast of the Philadelphia Eagles vs. the Kansas City Chiefs game.
The uncertain economic climate will mean that Big Game advertisers will see a significant shakeup this year.
Denise Ocasio (US investment lead at WPP media agency Mindshare) stated that “the players have changed from the what we’ve been used too over the past 50 years.”
Each year brings a new breed of advertisers. Last year’s Super Bowl was dominated last year by electric vehicles and crypto advertisers. This year, they’ve pulled out this due to the recent cryptocurrency crash and bankruptcy at FTX.
This year’s surprise is that some of the longest-running advertising brands have either pulled out or reduced their presence.
In the face of a decline in US car sales, automakers such as BMW and Nissan, Polestar, and Toyota confirmed that they are out.
“Every year, we evaluate this advertising opportunity in support of upcoming product launches and key Toyota moments. Toyota stated in a statement that this year’s timing was not right for their brand.
Anheuser-Busch, the brewing giant, will continue to advertise brands such as Bud Light and Michelob Ultra. However, it has ended its 33-year-old agreement with the NFL to be Super Bowl’s exclusive alcohol advertiser. This allows rivals like RemyMartin, Molson Coors and Diageo to take over. Ivan Menezes, CEO of Diageo, stated during January’s earnings call that Crown Royal would run its first Super Bowl commercial.
Anheuser-Busch’s decision is a sign that companies are finding it increasingly difficult to justify the high cost of running a Super Bowl advertisement. USA Today spoke with Daniel Blake, an executive at AB InBev. He said that the company had pulled out of its Super Bowl deal due to the increase in digital activations and regional ads by other spirits brands.
It’s a decision-making exercise that must be made quickly, and it can only be done during economic turmoil.
Mark DiMassimo founder of DiGo, stated that in order to get a Super Bowl spot, you must be aware of your intentions and start early.
Advertisers are often unable to predict the economic impact of the game’s February airing, as the time it takes to buy an advertisement is months before it airs. The average in-game commercial cost $6 million to $7million, and the actual production and digital activations surrounding it cost millions. According to one agency executive, bookings are usually made in May. He’s seen many Super Bowl ads and has purchased them for clients. According to a second agency executive who has worked on Super Bowl ads in the past, but not this year, shooting those ads typically takes place in December and January.
In six months, a lot can happen. Google planned a Super Bowl spot that would air while news that it laid 12,000 employees is still fresh.
This second executive stated, “Over the past couple of years, we’ve realized that it’s quite difficult for us to see into the future.” “You first commit media money, then production money. Before Christmas everyone could see these winds of change coming,” he said.
Margaret Johnson, chief creative officer, and partner at Goodby Silverstein & Partner has created Super Bowl ads for Doritos and Pepsi as well as regional ads for Sam Adams. According to Johnson, advertisers will be relying on tried-and-true messaging from the past this year.
Pringles’ commercial shows people sticking their fingers in the cans of chips. This is a message Pringles has used for years to promote its packaging.
She said that there is not much risk taking — people are returning to territories they have been in before. It’s something they have done before, and it’s proven to be a good investment.
E-Trade’s CMO Andrea Zaretsky of Morgan Stanley Wealth Management, said that the brand will run its 19th Super Bowl commercial this year. The ad will feature the E-Trade baby for the tenth consecutive time. E-Trade’s ad focuses on how to save money for weddings, an industry that she believes saw a boom after the pandemic.
She said, “We felt it was a good moment to focus on that theme.”
Brands could be at greater risk if they don’t take advantage of the unique branding opportunities that the Super Bowl offers, even in bad economic times. Mindshare’s Ocasio stated that no other broadcast can reach the same audience as the Super Bowl, which is significant considering how fragmented the viewing market is.
Jason DeLand, founder partner of Anomaly, said that “I don’t believe the data suggests one would cut back at this point: It would be a strategic advantage.” He also spoke out about the Super Bowl ads for Bud Light, Crown Royal and Dunkin’.
One source from an ad agency believes there may be a slowdown in the buying of ads for next year’s Super Bowl. This broadcast will be carried by CBS. Super Bowl ad slot sales were strong for both Fox and NBC this year.
According to Mark Evans, head of Fox Sports advertising sales, Fox sold 95% of its inventory before the NFL season began in September. However, the company didn’t sell all of their inventory until the week of February 23. A few business types, such as crypto, had to withdraw from their purchases, which left Fox with more inventory.
Evans stated that “as October’s economic climate changed, the enthusiasm to spend $7million dollars for 30-seconds decreased a little.”
According to an ad agency source, advertisers may delay making a decision to buy from CBS in May.
This person stated, “I believe it will be very different” It’s going to hard because of the economy.