The stock of these Super Bowl advertisers didn’t do so well.

New England Patriots fans explode when a pass from Seattle Seahawks’ Russell Wilson is intercepted at the goal line to secure a Super W 49 win for the New England Patriots.

Bob Berg | Moment Mobile | Getty Images

In a fragmented media landscape, events like the Super Bowl are valued by advertisers for offering ads.

More than 100 million people are expected to tune in this Sunday when the Philadelphia Eagles take on the Kansas City Chiefs. Many who watch the game will be as attentive to advertising as they are to the action on the field. These commercials are an institution in their own right, with ads that spark conversations weeks ahead and days after the big game. Consumers may recall well-crafted Super Bowl ads years after their debut.

But capturing those eyeballs comes at a cost. This year, companies are paying about $7 million for a 30-second spot — and that’s just for airtime. Add to that the cost of hiring the talent needed to create the ads, and the costs become even higher.

Advertisers come and go

The value of these expenses can be the subject of fierce debate. For companies that sell beer, chips or cars, the game often becomes an annual ritual. But other advertisers may come and go.

This is certainly true of the crypto companies that bought airtime last year. Cryptocurrency exchange FTX has received praise for its ad, which starred comedian Larry David as a time-traveling skeptic poking fun at inventions from the wheel to the light bulb. The video urged viewers not to doubt the cryptocurrency. “Don’t be like Larry,” he said.

Months later, it seems that some of the skepticism was justified. FTX, now bankrupt, collapsed in a scandal that is being investigated by federal prosecutors.

So does participating in the Super Bowl really help business? Judging by the stock prices of companies, 2022 was not the best year for most of them.

Take Coinbase, another cryptocurrency exchange. His bouncing QR code commercial was considered hugely successful. This drew so many viewers to the Coinbase app that it crashed on Super Bowl night.

Since that evening, Coinbase shares have fallen 64%. And the company has said it won’t be returning to the game this year.

The Curse of Super Bowl Advertising

Universal Screening FactSet
Symbol Name Stock Exchange Sector/Industry Market price Price change from 02.14.2022 $ lost/earned if $10,000 invested Upside potential compared to average PT (%) (%) Buy Rating
CVNA Karvana, class A NYSE Consumer cyclical 2645.8 -90.0 -9,000.0 -23.4 11.1
JKD vroom NASDAQ Consumer cyclical 163.0 -82.9 -8 290.0 13.7 0.0
COIN Coinbase Global Grade A NASDAQ Finance 15,760.5 -64.4 -6,440.0 -5.0 26.7
AMSH AMC networks, class A NASDAQ Consumer Services 775.4 -57.4 -5,740.0 7.4 0.0
FRRR Fiverr International NYSE Technologies 1599.6 -47.6 -4760.0 -8.4 60.0
EXPERIENCE Expedia Group NASDAQ Consumer Services 18,598.2 -39.6 -3960.0 5.1 46.7
MNDY NASDAQ Technologies 6423.8 -37.1 -3710.0 1.4 88.2
PAIR Paramount global class B NASDAQ Consumer Services 14,696.1 -36.0 -3600.0 -14.9 24.1
AMZN NASDAQ Consumer non-cyclic products 1,025,238.0 -35.5 -3,550.0 32.3 76.8
google Alphabet, grade A NASDAQ Technologies 1,276,392.0 -26.7 -2670.0 29.2 74.0
DKNG DraftKings Class A NASDAQ Consumer Services 14,875.7 -20.4 -2040.0 13.9 48.4
INTU intuit NASDAQ Technologies 118 477.5 -20.3 -2030.0 10.7 71.4
CRM sales department NYSE Technologies 169 630.0 -17.8 -1780.0 6.7 66.7
META Meta platforms, class A NASDAQ Technologies 475 590.5 -15.7 -1,570.0 8.8 56.9
grandmaster General Motors NYSE Consumer cyclical 57,975.1 -14.1 -1410.0 11.2 54.2
ISFT Microsoft NASDAQ Technologies 1,985,486.0 -9.6 -960.0 5.1 72.5
zloty Planet Fitness, class A NYSE Consumer Services 7456.9 -9.6 -960.0 11.6 88.2
NFLKS Netflix NASDAQ Technologies 163 366.5 -7.5 -750.0 -3.5 42.2
BKNG Booking Holdings NASDAQ Consumer Services 94,067.4 -4.7 -470.0 -2.0 50.0
PKP PepsiCo NASDAQ Consumer non-cyclic products 235 808.7 2.7 270.0 10.0 34.8
TO Kellogg NYSE Consumer non-cyclic products 22,934.1 3.8 380.0 7.6 9.5
TDC walmart NYSE Consumer non-cyclic products 378 145.3 4.7 470.0 13.9 54.8
YUM Yum! Brands NYSE Consumer Services 37,019.4 8.3 830.0 7.2 33.3
TMUS T-Mobile USA NASDAQ Telecommunications 178 921.8 14.6 1460.0 22.9 75.8
Holkes Hologic NASDAQ healthcare 21,107.5 21.8 2180.0 3.3 38.1

Source: CNNBC; Fact set

Shares of online car sellers Karvana And vroom things were even worse. Their shares fell by 90% and nearly 83%, respectively. None of them will advertise during this year’s games.

Of course, the sharp decline in some advertisers last year speaks to a broader market downturn last year, with a number of tech names on the list hitting the worst.

“Not a very good view”

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