http://www.forbes.com/sites/chrissmith/2015/01/16/could-a-super-bowl-commercial-really-be-worth-10-million/
Earlier this week NBC executive announced that NBC has sold 95% of its advertisement inventory for the Super Bowl. A 30 second commercial will cost a company around 4.5 million dollars. This is a 12% increase from what Fox charged last year. NBC said the true value of a 30 second slot is around 10 million dollars; however, that is not the asking price. With 112 million people watching the Super Bowl each year a price tag of 4.5 million dollars is an absolute steal. Social media also helps make these ads more valuable. if someone really like a commercial they can look it up on YouTube and watch it.
10 million dollars is a lot of money to us, but to huge companies that have huge revenues, it is not. If I was in charge of NBC my asking price would be 10 million dollars, because that's the real estimated value. I think companies would pay that too because to them it is barely anything, and they will be getting a huge return from all of the people who watched the commercial.
For the amount of people that gather around the television and watch the Super Bowl, I would say it is definitely worth it. It is the best advertising a company can possibly get. With social media now, people talk about the commercials all over the internet. You are really paying for what you get in return here.
ReplyDeleteIt is insane that a tv commercial can cost 10 million dollars. I understand that the advertising during the game is great but that seems a bit ridiculous.
ReplyDeleteI agree with Emma, that is an insane amount of money even for large corporations. I really don't see how companies get a return on that kind of investment when most of the companies are huge names that everyone already knows.
ReplyDeleteI suppose for the amount of views and attention the commercials will be getting large companies are willing to pay up. And I agree, even if the asking price was $10 million the companies would still pay for it.
ReplyDeleteI would say yes. A commercial is worth $10 million dollars. For the amount of viewers that are watch the super bowl each year, your company will get a lot of publicity. I think it's a fair price considering every company would want that publicity.
ReplyDeleteI though that the price per commercials would be a lot more. 10 million dollars is just a drop in the bucket for a lot of these companies.
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