Advertisers drop $2.5M for 30-second ads in Super Bowl

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Daily Nonpareil, Council Bluffs, IA
02/05/06
Advertisers drop $2.5M for 30-second ads in
Super Bowl
PHIL ROONEY, Staff Writer
02/05/2006
Staff photo/Phil Rooney - Dan Rutledge of Council Bluffs-based Rutledge and
Associates says advertising in the Super Bowl is too costly for more local
businesses.
It's become the game within the game or, at the very least, a second major
attraction.
The Super Bowl is the showcase for major advertisers to unveil their latest
creations, this year at an average cost of $2.5 million for 30 seconds. The cost,
even the rates for local availabilities, can be prohibitive for many businesses.
Russell Laczniak, a professor of marketing at Iowa State University, said
Super Bowl advertising is still a big deal, and the hype for the game and the
advertising has created a unique situation. It's something he looks forward to
watching every year.
"You actually have an opportunity to advertise to people that are going to be
watching the ads," he said. "That's kind of a rarity these days."
Laczniak said he's seen a preview of some ads, and viewers can look for a few
basic things.
"Typically humor is a big part of it," he said. "It's always there."
Advertisers also can be expected to unveil new products, with movies a likely
highlight; and there are some Super Bowl regulars.
"Anheuser Busch is there every year," he said. "They feel it's really helping
them."
The American beer maker will have 10 spots in today's game, Laczniak said.
Pepsi is always in the game, but Coke isn't. If companies in heavily competitive
markets can get exclusive sponsorships, it's seen as a good deal, he said.
The history of Super Bowl ads is a mixed bag, and just being in the game doesn't
mean the advertising campaign will be successful.
Laczniak said Careerbuilder.com was in the game last year and is still around, so
they must be doing well.
"They've kind of built off the monkey ad," he said.
One of the most memorable ads was the herding cats ad, Laczniak said. Many
people may not remember it was for EDS, Electronic Data Systems, but
everyone was talking about it the next day. He's not sure how well it worked, but
the company is still around.
Apple's 1984 ad for Macintosh played off the theme of George Orwell's novel,
"1984," and was considered a flop at the time because it was the IBM PCs that
really took off, Laczniak said. But, Apple remains in business, and the ad has
taken on a near icon status in the industry.
"I think that's always cited as one (that wasn't successful) but people are still
talking about it," Laczniak said. He feels that was more of a case where the
product failed to live up to expectations.
While creativity is a part of capturing an audience, Laczniak said being creative
just for creativity's sake is not the main goal.
"You still have to sell," he said.
While a great opportunity for major national advertisers, the Super Bowl is a
different situation for local advertisers, according to one local ad executive.
Dan Rutledge of Council Bluffs-based Rutledge and Associates includes a
number of car dealers among his clients. While local affiliates do have
advertising opportunities within the broadcast - this year's game is on ABC - don't
look for him to push his clients into the game.
"By and large, we stay away. It's expensive," Rutledge said.
Checking a local rate card, he said the cost of a 30-second announcement in the
Super Bowl pre-game show is $5,000, with spots in the game costing up to
$19,000.
"Eats a lot of budget quick," Rutledge said.
That $5,000 to $19,000 compares to about $600 for a 30-second spot in a
regular-season NFL game or $1,800 to $2,000 for a commercial in a popular
prime time series.
The cost to advertise during a Nebraska football game on broadcast television, a
non-cable station, is around $7,000, he said. Ads in Iowa or Iowa State games,
with fewer people in the coverage area east of the Missouri River, usually cost
much less.
Advertisers also must weigh the fact that the game can turn into a blowout. Since
the games are often part of a social event, it easily can move into the background
if the score gets out of hand, and local openings often are near the end of the
game.
There's also the sheer mass of advertising that inundates the viewer.
"What impact is a 30-second spot going to have?" Rutledge said.
The local businesses that advertise in the Super Bowl tend to be large accounts
like Burger King, Subway or automobile dealer associations, not individual auto
dealers, Rutledge said.
He suspects that pre-game and post-game programs may attract some local
advertisers.
"Undisputedly there's a huge audience," Rutledge said. "It's more a matter of how
much money a guy wants to spend in one period."
So, does Rutledge have a client with a spare $2.5 million to drop on an ad in the
game?
"I wish I did," he said.
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