Navigating the High-Stakes World of Super Bowl® Advertising
The Super Bowl® is not just a game; it’s a cultural phenomenon that captivates millions across the globe. And with great attention comes great responsibility—especially for brands looking to make their mark with unforgettable television commercials. At APR, we live by the “Six Ps”: “Proper Prior Planning Prevents Poor Production.”
In the bustling world of advertising, here’s how you can keep your cool and ace those high-profile ad campaigns.
Beyond the Game
Super Bowl® audience increased an average of 1.4% per year between 2000 and 2024. During that same period, the (inflation adjusted) average cost of a Super Bowl® commercial spot increased 2.8% per year.
So, what does it all mean?
A spot in 2000 cost 4¢ ‘per person’ and now? That same spot is 6¢. So, while advertisers are reaching a larger (global!) audience than ever before, the cost of producing a Super Bowl® ads continues to rise at a higher rate than inflation.
Whether you’re eyeing a spot during the Olympics, the World Cup, or the Super Bowl®, understanding the intricacies is key. Think of it this way—these events are not only broadcast but streamed to audiences worldwide. With media placement rates soaring to $7 million per 30-second spot in 2024, the pressure to maximize ROI is real.
The Budget Breakdown
Creating a standout ad isn’t just about the creative—it’s about understanding the budget dynamics too. It’s worth noting that this year will mark the third year wherein the cost to place a 30-second commercial ad tops out at $7M — no increase expected for the big game in 2025, which is in contrast from 2019 through 2022 when there was significant increases year over year to place a 30 second television ad. Along with costs for a media buy, brands must also consider the cost of production, post-production, talent (often celebrity), music, and the cost for ideation from a creative agency for a Super Bowl ad. Total costs to be in the big game could easily run at $10 million or more.
So, here’s what you need to consider:
- Spot Length: Ads typically come in 30-second slots, but longer spots can add impact (and cost). Plan wisely.
- Additional Content: Extend the life of your campaign with teasers and follow-up ads. These should be part of your brief and budget from day one.
- Stakeholder Alignment: More eyes, more opinions. Ensure ample review time and clear communication to avoid costly last-minute changes.
- Compressed Timelines: With a fixed deadline of February 9, 2025, it’s crunch time. Start early to avoid industry bottlenecks and elevated costs.
- VFX & Talent: Big-name talent and cutting-edge effects can drive costs. Plan for glam squads, travel, and director fees. (In 2024 38% of spots featured celebrities, and 21% included multiple celebrities.)
- Music Licensing: Music is often an important component of video advertising production and also demands the 6 Ps. Costs for music can vary and be as high as into the millions, so plan wisely.
Super Bowl Ad length Breakdown in 2024
Strategic Moves to Level Up
But don’t be daunted by the budget. Here are some smart strategies to balance costs:
- Plan Early: Begin planning several months prior. This allows flexibility and a better chance of snagging top talent.
- Leverage State Incentives: Film in states offering tax rebates, which can range from 10-30%.
- Go Virtual: Shooting on a Virtual Stage can cut costs and simplify logistics, especially for tight post schedules, but it takes a lot of upfront planning.
- Repurpose Content: Adapt your ads for other big events like March Madness® to extend their lifecycle and value.
- An efficient approval process. High stakes may require senior stakeholders’ approval, so plan accordingly to manage the approval process.
Stay Ahead of the Curve
The stakes may be high, but the rewards can be monumental. With strategic execution, proactive planning, and risk mitigation your brand can truly shine on the world’s biggest stage and get the greatest value for your investment.
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