Do Super Bowl commercials benefit from the cost of it?

Super Bowl 2020 ads, clockwise, from top left: Sabra, Snickers, TurboTax and Bud Light Seltzer.

This year’s Super Bowl between San Francisco 49ers and Kansas City Chiefs was estimated to cost more than $5 million on average.

It’s a huge cost for a 30-second commercial. Companies spending this much advertising money seem crazy but has it been worth it?

Last year, the New England Patriots and the LA Rams had the highest ratings with ticket sales rising after movie commercials came out in those cities, says the report. During the survey, the cost of advertising movie trailers averaged about $3 million, but ticket sales grew to $8.3 million, with investment returns of about 277 percent.

The results showed that there was a 250 percent return on investment. There was a similar halo effect for companies that ran ads during the frenzy of NCAA March every year.

Before seeing this data, many people would have been skeptical about Super Bowl ads. Why would companies pay astronomical costs for such single-shot ads? The obvious answer is that hundreds of millions of people watch the Super Bowl games, and companies have the opportunity to advertise them. Companies pay that much for advertising, and they benefit more due to the high amount of people actually seeing the ads. Another thing to notice is that special events deserve to spend that much on advertising. People will criticize why companies do these ads every year but the effect of advertising is much greater than most people think. Some people may be confident that they are not influenced by the advertisements, but most people probably aren’t. Those who make these ads understand human nature better than anyone else.

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