Superbowl Advertising

The average price for a 30 second commercial in the Super Bowl is $2.4 million. That is a 6 percent increase from 2004 and more than double the cost from a decade ago. At press time, Fox had sold 90 percent of the 59 slots available, putting the network on track to haul in more than $140 million from the broadcast.

The Super Bowl, the most widely watched sport event in the US, has long commanded the highest ad rates of any television program. By way of comparison, 30-second ads on prime time typically run about $400,000, though it's worth noting that last year's NBC 'Friends' finale cost advertisers $2 million a slot.

I wonder if people get back their $2.4million in sales/profit by the end of the year or better yet I wonder if they get it back before then. I believe it to be a big risk to take by putting that much of your money on the line for a 30 second commercial.

Something we talked about in class the other day was if Pepsi puts on a sale right before super bowl that says by 1 Pepsi get 2 free and lets say Coke buys a commercial during the Super Bowl. People are not going to need Coke by then because they have loaded up on Pepsi and this could be appalling for Cokes profit after Super Bowl.