As the Denver Broncos prepare to face the Carolina Panthers in Super Bowl 50 this weekend, commercial slots are filling up fast.
Pitching products on TV is like real estate; it’s all about location. In the game of Monopoly, the placement of your houses and hotels makes a huge difference. The same goes for commercial advertisements during the big game. Advertisers will be hoping to strategically cash in on the expected large audience.
Last year, the Super Bowl attracted approximately 114.4 million viewers, making it the most-watched program in the history of American television. This year, given significant milestones, the event predicts a record high in audience viewership.
According to Advertising Age, in this year a 30-second commercial will cost an advertiser $5 million. This translates to $166,666 per second. The price of Super Bowl ads has been progressively increasing over the years.
During the first Super Bowl, held in 1967, a 30-second commercial was just $42,000. In contrast, a one-second time slot in this year’s event would buy four 30-second ads back then. This year, advertisers have spent a total of $377 million on commercials in Super Bowl 50. This figure is higher than the cost of ads for the Superbowl in the ‘60s, ‘70s, and ‘80s combined.
In Super Bowl 49, the price of a 30-seconds commercial was $4.5 million. That was an increase of $500,000 from Super Bowl 48. 2016 has also seen a $500,000 increase from the previous 2015 year. The price hike in these two seasons is the largest year-to-year increase in history.
Some companies have already released teaser and full commercials to capitalize on the excitement surrounding the big day. Volkswagen was the pioneer of this trend in 2011. Their mini Darth Vader teaser had drawn 11 million views on YouTube before the game aired; many expect the same pattern this year.