Monday, January 24, 2005

Super Bowl XXXIX Awaits . . . As Do Its Advertisers



With the Super Bowl match-up set between the defending champs, the New England Patriots, and the underdogs, the Philadelphia Eagles, we can either read endless (and often obscure) commentary about the game's match-ups, or we can turn to what many people not living in New England or Philadelphia will care most about: The Ads!



This year, Fox, which is broadcasting the February 6 game, is commanding $2.4 million for each half-minute ad, up $100,000 from last year. The network has already sold 95 percent of the ad space. Fortunately or unfortunately (depending on how you look at it), the ads this year are expected to be toned down dramatically.



Among the new companies to advertise during the game will be Go Daddy Group Inc., a leading vendor of Internet names. I'm not sure what Greg charges for advertising on Sports Law Blog, but I'm going to provide a link to the company's website -- for free. I figure, if their $2.4 million investment doesn't pan out on February 6, at least they received some attention here.



Despite the seemingly excessive cost of Super Bowl advertising, however, research suggests it often proves a worthwhile investment, at least for certain industries. For instance, according to Journal of Advertising Research, upcoming films promoted during the Super Bowl earn twice the ticket receipts for the first weekend, first week, and total U.S. box office revenue than do upcoming films not promoted during the Super Bowl. This finding is true even when controlling for release dates and budget size.



Moreover, this upcoming match-up should draw plenty of viewers. Bill Belichick's Patriots are already considered one of the best teams in NFL history, and if they win their third Super Bowl in four seasons, would have to be considered one of the top sports dynasties in the modern sports era. Despite the presence of a hard NFL salary-cap, and despite drafting near (or at) the bottom of each NFL Draft round, the Patriots have remained spectacular over the last four seasons. They feature an appealing and unlikely mix of confidence, humility, and talent, and--as advertisers know quite well--are a pleasure to watch. The Eagles are appealing in their own right, but for different reasons. Much like the pre-2004 Red Sox and its hardcore fanbase, many diehard Eagles' fans believe their team is somehow cursed, but, like every prior year, they remain hopeful that this is--finally--"The Year". We'll see. If nothing else, it's a fun narrative: The indomitable Patriots versus the cursed Eagles. Although I (and probably most of you) predict the Pats to win fairly easily, people will tune in as long as there exists an aura of a competitive match-up.



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