Why do companies spend so much on Super Bowl advertising?

While the Super Bowl might be the biggest sporting night for American football, the event is also the biggest night for commercials, hence the quality and standard of commercials broadcast during the event.

The Super Bowl is considered the biggest night for American football annually. The Super Bowl LV, which took place on Sunday, 7 February 2021, is estimated to have drawn a live television and streaming audience of 96.4 million people from around the world. While the intention was to watch the game, both television and streaming platforms earned revenue from the advertisements that aired during the popular sporting event.

As much as the Super Bowl is American football’s biggest sporting event night, it is also the biggest night for commercials on American television. Considering the aforementioned active viewers who tuned in to the game, even a faction that saw any of the companies’ commercials proved worthwhile, compared to any other time of the year. Therefore, companies spend so much money on Super Bowl commercials to make them as memorable as possible, in an attempt to attract or retain its customer base as much as possible.

Additionally, companies are known to spend exorbitant amounts on the actual commercials, with big businesses’ commercials having a budget that can run into tens of millions of dollars. However, even acquiring ad space is costly, due to the high demand. In 2021, it was reported that companies spent an estimated $5.5 million to secure ad space for their commercials to air during the Super Bowl.

While the aforementioned price might sound hefty, it was relatively cheaper than expected, partially because of the impact of the pandemic on most businesses. The ad space price that was paid in 2021 was not increased from that of 2020, due to the uncertainty brought on by the pandemic. Between 2019 and 2020, there was an estimated $200 000 increase from the reported $5.3 million in 2019 to the $5.5 million in 2020.