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 | Monday.com | 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 | Amazon.com | NASDAQ | Consumer non-cyclic products | 1,025,238.0 | -35.5 | -3,550.0 | 32.3 | 76.8 |
| 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”
Deb Gabor, CEO and founder of Sol Marketing, said that given the high cost of in-game advertising, companies need to keep the broader economy in mind. For the most part, they are, she said, referring to Toyota for example, as the automaker is missing the game for the first time since 2017.
This year’s list of advertisers is filled with snack and drink companies, she said. “People will need comfort,” she said. “And snacks and booze is one of the places they’re going to find them.”
Gabor oversees Bay Area tech company Working day close. The HR software creator doesn’t seem like a natural fit for a flashy Super Bowl ad, but he’s spending big money on a 60-second ad that highlights how companies often call their best employees rock stars. His ads are filled with music legends, from Ozzy Osbourne to Joan Jett and Kiss frontman Paul Stanley.
Gabor said she’s not sure how Workday will use the multi-million dollar spot after the Super Bowl. However, the company drew backlash in the press, according to her, as around the same time that plans were announced to cut about 3% of its staff, the ad came to light.
“It’s not pretty,” Gabor said.
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