You may have noticed that the Superbowl has become very commercialized. IT’S TRUE!
If you want to read about the ins and outs of the Saints and the Colts, the internet has plenty of places to go.Â Here at SCP, we’re going to focus on the non-football parts of SuperBowl Sunday.Â And to that end, we take a look at the economics of the broadcast with our old friend, Connell McShane of the Fox Business Network.
SCP: This is the second super bowl since the “great recession.” How has that impacted ad revenue and production?Â Have companies backed out completely or are they just scaling back on how much money they put into the actual advertisements?
CM: It has actually been fairly encouraging. CBS sold out its last 30-second spot about a week before the game. Last year, NBC was stuck with some unsold ads just a couple of days before the game. We have seen some big companies, like Pepsico, pull back from spending as much as they have in the past.
SCP: Is CBS going to take a bath on this? Production costs are obviously huge, and ad revenue must make up a huge part of their consideration going in.
CM: Weâ€™re starting to see from many of the media companies reporting earnings that the ad market is getting a little better. Last year was a complete mess. Itâ€™s not great now, but it appears to be getting better.
SCP: Tim Tebow has made headlines by appearing in a pro-life commercial with his mother. If it were a normal year, would CBS, or any network for that matter, accept an ad focused on a contentious issue?
CM: Iâ€™m not sure. They might be less likely to accept controversy if the economy was at full strength but I donâ€™t know that for a fact. Tebow has been consistent in making his religious beliefs public. All you have to do is look at the eye black he wears during games, with passages from the bible displayed. So this is in line with the image heâ€™s presented.
SCP: If the Colts win, is it possible that Peyton Manning will be in even more commercials than he’s already in? I think the only things left for him to endorse are dress shoes or feminine hygiene products.Â And if the Saints win, who will be the big winner? Drew Brees, Reggie Bush or Kim Kardashian?
CM: Peyton is already a huge star on the field and in the endorsement arena. Guys like Brees and Bush probably have more to gain. If the Saints win, Brees becomes the favorite to capitalize if he has a great game. The quarterback always does. Of course, having Kim Kardashian at his side shouldnâ€™t hurt Reggie.
SCP: Off topic… the IPad? That thing seems to be kind of a waste. Doesn’t it?
CM: No. Itâ€™s way too early to say that. It might either flop completely or take a while to catch on. However, most analysts think the concept is the future. Imagine having a device like this hanging around your house that you use to read books, watch movies, play video games and much more. A lot of people think thatâ€™s the future. The question is whether the future is now.