With Super Bowl XLVIII among us, the sports world is buzzing. Aside from exacerbated weather talk and the media hanging onto every word that is confidently spoken by Richard Sherman, Super Bowl commercials have the ability to make headlines of their own.
Yes, this is one of the rare occasions when commercials are not an ideal time for visiting the restroom or filling up your plate with hot wings. And because commercials have almost become a staple of the Big Game, this is also one of the rare occasions viewers will be hoping for an all-too-long reviewable play to make a quick beverage-run.
But this year, some of the top names in technology are backing out of their multi-million dollar Super Bowl ads. 30-second ad spots in past years have had some hefty price tags, coming in at around $3.8 million. This year will see a small increase though, with the same placements costing $4 million.
Although, it seems hard to believe that this price increase has deterred such companies as Blackberry, Best Buy, Cars.com, and E-Trade. After all, what is $200,000 more when a large corporation is already spending $3.8 million anyway?
A drop-off in technology company advertisements goes beyond a simple price-tag excuse. By doing a bit of digging, perhaps a very logical explanation can be revealed. As for the debate, there may not be a clear-cut right or wrong decision as far as skipping out on the Super Bowl is concerned.
Why Great Results Last Year Might Deter a Repeat This Year
Year after year, Super Bowl viewers get a look at the newest ad offerings from companies such as GoDaddy.com, which you can expect to see again this year. Yet, after a great return last year, Cars.com will not be returning.
During Super Bowl XLVII, Cars.com ran an ad for its “All Drive, No Drama” marketing campaign. Linda Bartman, Cars.com’s chief marketing officer, told IBD that the advertisement showed “fantastic results”. However, Linda Bartman also explained:
“Given this is the second year of the campaign, we don’t feel that we need the Super Bowl as a platform to launch new creative and are instead going to increase our overall media weight throughout the entire year.”
The return on investment, in many cases, cannot be calculated in just website traffic either. Of course Cars.com is predominantly a web-based company. But the company’s “fantastic results” could not have been based off of this web traffic. Essentially, January traffic to Cars.com dropped from 7 million visitors to 6.9 million in in February.
By looking at Cars.com and their history of Super Bowl advertising, it’s easy to see that perhaps once and done is enough to get a company’s point across. With the main message out to the masses, advertising money can then be spread around to other areas.
Companies Appointing Funds to Other Target Markets
Another possibility concerning tech companies bowing out of Super Bowl advertising could easily be appointed to funding allocation. As previously mentioned, the price tag of an ad spot is not likely the reason for major tech companies ducking out on Super Bowl advertising. But in a similar argument, cost effectiveness could be.
Big-wig companies, such as Coca-Cola, have no problem paying the hefty price that comes along with a Super Bowl ad. In fact, these huge corporations are able to budget in the Big Game ads with the rest of their yearly promotions and marketing campaigns.
In comparison to Coke, companies like E-Trade are spreading out their marketing dollars to go after additional markets. Rich Muhlstock, E-Trade senior vice president of branding and acquisition, explained:
“We are broadening our mix to include other lifestyle environments that are also important to our audience.”
While sports remains a prominent market for many companies, others have decided to expand their horizons. Money is money, and if skipping out on the Big Game means targeting additional markets, then so be it.
Success From a Perspective
It’s important to note that many companies have found success with Super Bowl ads. GoDaddy.com is one of the best examples. Typically, the company runs a risque ad featuring Danica Patrick in little clothing.
While these ads do not relate to GoDaddy’s industry in the slightest, they have worked. Viewers will once again see the company sporting an ad during the game, but may be surprised with the change of pace. It will be GoDaddy’s 10th straight Super Bowl ad and some of the company’s market share can be traced to these promotions.
Jeri Smith, chief executive of Communicus, explained:
“GoDaddy has built their business based on a Super Bowl-focused ad buy, and their commercials are effective. Nobody had ever heard of GoDaddy before they started advertising on the Super Bowl.”
GoDaddy is one of just two major tech companies in the Super Bowl ad lineup this year, with Intuit being the other. While Intuit is new to the Big Game, they are taking a rather different approach than most, rewarding their 30-second spot to a small business. An approach like this is different enough to be interesting, while at the same time, capturing the audience for its generosity.
Overall, it seems plenty of tech companies are dropping their Super Bowl ad dreams and looking elsewhere. Maybe it has to do with targeting more specific markets or doing a better job at spreading around their marketing funds.
With only days to go, there may still be time for technology corporations to sneak their way into an ad placement. But it seems most of them have made up their minds already. In a world full of right and wrong, tech companies are in a somewhat gray area.
To each their own, as the saying goes. These companies are deciding what’s best for them. Maybe non-advertisers, such as Apple, Google, and E-Trade know something that others don’t. Or perhaps GoDaddy and Intuit are capitalizing on the audience that drives the biggest sporting event of the year.
One thing is for sure: If you don’t see a tech company advertising during the Super Bowl, you will likely spot them elsewhere throughout the year, spending major marketing dollars.