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Definitional Argument "$3 million Ads" - -  By: Nancy Assia and Tracy Assia

Page history last edited by PBworks 11 years, 11 months ago

 

 

  1. Cover Page
  2. Definitional Argument (Draft)
  3. Feedback
  4. Reflection on Feedback
  5. Definitional Argument (Final Draft)
    1. 2009 Super Bowl XLIII Ads
    2. Bibliography
    3. Brinson, Will. "Danica Patrick's Two GoDaddy.com Super Bowl Ads leaked early." AOL sports. 2009. 19 January. 2009 http://nfl.fanhouse.com/2009/01/19/danica-patricks-two-godaddy-com-super-bowl-ads-are-leaked-early/
    4. Calkins, Tim and Rucker D. Derek. "Does a $3M Super Bowl Ad Make Sense in a recession?" 15 January. 2009 http://www.sportsbusinessnews.com/_news/news_389590.php
    5. Chamberlain, Craig. "Super Bowl ads will reflect tough advertising says professor." News Bureau, University of Illinois at Urbana-Champaign. 2009. 28 January.2009 http://news.illinois.edu/news/09/0128superbowl.html
    6. Foxon, Geoff. "Why Super Bowl ads cost so much." Blog. 2008. 5 February.2008 http://www.geofffox.com/MT/archives/2008/02/05/why_super_bowl_ads_cost_s.php
    7. La Monica, R. Paul. "Are Super Bowl ads worth the money?" Cable News Network LP, LLP. 24 January. 2007 http://sportsmarketingnetwork.com/press/CNNMoney012407.pdf
    8. Pitner, Suzanne. "Super Bowl 2009 Commercials."Suzanne Pinter's Advertising Influence. 2009. 1 February. 2009 http://advertising-influence.suite101.com/article.cfm/superbowl_2009_commercials
    9. "Super Bowl ad up 2009: Job and Career." Jobacle.com and The Working Podcast.2009. 1 February.2009 http://www.jobacle.com/blog/2009/2/2/super-bowl-ad-roundup-2009-jobs-careers.html
    10.   Dylan A.- Review** I was one of the people who reviewed your rough draft and you did a great job. You guys really did a great job of utilizing the peer reviews. The paper had a great flow to it. The transistions were well done. I also liked the way it was broken down into chapters, with the before-and-after affect. It shows that you really took the time to improve upon the research you did before the rough draft. I also liked that even though you two in particular are not gamers, were able to still involve a sport and maintaim the theme from class. Also, from a fellow marketing majors standpoint it was really informative. A  

 

 

 

Cover Page

 

The purpose of this argument is to educate viewers and to assist future advertisers in making a smart decision in marketing their product. This argument is not just to inform readers about the cost of a Super Bowl ad but also to help make an intelligent decision on how to further your business in the public eye. Being that every year we look forward to watching the commercials, we thought it would be very informative for us to research how costly they would be. Our research finally answered questions that we had always wondered about. The feedback workshop was extremely helpful in finding the flaws in our argument. For the final feedback, we would like to know if there are any specifics we should add to expand our argument.

 

 

 

Definitional Argument (Draft)

 

Would You Pay $3 Million for a Super Bowl Ad?

By: Nancy Assia and Tracy Assia

 

Do you catch yourself every year watching the Super Bowl and waiting in anticipation to see the commercials? The first thing you ask yourself after they're over is, "Wow! How much does it cost to advertise during the Super Bowl?" You're not the only ones wondering. Americans all over the world spend weeks talking about the creativity of the advertisements which leads big companies to pay top dollar for their thirty second spot. Because it is Super Bowl season, we thought we would give you a sneak peak into the biggest money making event of the year.

 

With America being in a recession, is it worth it for companies to pay $3 million for a Super Bowl ad during a recession? Many big time advertisers such as GM and FedEx are constant advertisers during the Super Bowl. And this year, they have decided to back out of their thirty-second TV spots because of the extreme price increase ($2 million in 2008 and $3 million in 2009). Does it make sense to pay $3 million during a recession for a Super Bowl Ad?

 

Considering the Super Bowl draws the largest national audience, it does make sense. Last year 97.5 million viewers tuned in. The Super Bowl remains a venue for which the audience, a captive on at that, shows a genuine interest in the advertising (Calkins, Tim and Rucker D. Derek; Does a $3M Super Bowl Ad Make Sense In a Recession).

 

Big-name advertisers don’t just advertise for that thirty-second TV spot. They also advertise for the buzz online and between peers. This is why most advertisers would pay the $3 million because it is hard to find another event better suited for advertising.

 

But advertisers face a unique set of challenges this year—challenges that make deciding on a Super Bowl ad buy all the more difficult.

 

The biggest issue, of course, is the economy and its impact on companies’ financial results. With credit scarce and demand shrinking across virtually every category, companies need to focus intently on preserving cash. This is not the time for discretionary spending; every dollar of spending needs to drive the business.

 

Another issue is the. Traditionally, Super Bowl advertisers battle to stand out by being funny and entertaining—for example, last year’s Bud Light, FedEx and Tide o Go spots—or dramatic and impressive, such as last year’s Coke, Audi, and Under Armour spots. In an economy where people are deeply concerned about the future, it is unclear if either approach will resonate.

 

Finally, a Super Bowl ad buy might send the wrong signal to employees, customers and other stakeholders. For a company laying off employees and making difficult spending cuts, this sort of investment might create a negative backlash if the message isn’t right. (Calkin, Tim and Rucker D. Derek).

 

Should companies buy a $3 million TV spot this Super Bowl? Will the ad help brand new companies? Will it help cater to older businesses? It would not be a smart investment for new companies. Very rarely, if ever, are advertisers able to justify a Super Bowl buy based on a short-term sales jump (Calkin, Tim and Rucker D. Derek).

 

Older companies need to their target audiences. Typically, upscale consumers seek premium brands ad products. In contrast, both upscale and downscale consumers use everyday products and services. Even a CEO or investment banker delights in an occasional jaunt to McDonald’s (Calkin, Tim and Rucker D. Derek). Because of these hard economic times, downscale consumers not likely to trade up but upscale consumers are more likely to trade down.

 

Another thing advertisers have to consconsider ider is what kind of message they want to relay; either news or bravado. News focuses on something of note: product launch or a new benefit. Bravado messages focus on entertainment and creative impact. When facing a recession, bravado is a risky approach because the link to the product tends to be weak. Indeed, managers who focus on bravado messages are likely to find themselves walking tightropes of scrutiny, where observers benter about whether the brand is signaling economic strength or financial foolishness (Calkin, Tim and Rucker D. Derek).

 

This Super Bowl is not the year for new advertisers. This Super Bowl is the year for big-name advertisers to premier their new products. Some big-name advertisers that will be taking advantage of the recession are: Hyundai who is going to premier their new high-end vehicles, Monster, who is going to premier their new website, and Bud Light will emphasize “drinkability.”

 

The cost of the thirty-second TV spot is always something that should always make brand managers hesitate in the purchase. For the right brand it could be the right choice. If they are advertising for the wrong brand it could be a big financial mistake.

 

TiVo video recorder services help in making $3 million advertisements worth it for the big-name advertisers. The Super Bowl is the only time of the year where people watch commercials. Because of the rewinding feature, viewers repeatedly watch the ads.

 

This year brand managers are pulling out the stops. SoBe is going 3D and asking fans to pick up 3D glasses from their local supermarkets.

 

 

 

Feedback

Please list any corrections you may find in our argument. Thank you!

 

  • Grammatical errors
  • Some paragraphs don't flow with others
  • Examples from other articles
  • Clean up set up of paper

 

 

 

Reflection on Feedback

 

Many people had left comments on changed that should be made towards our argument but didn't leave any names. We also agreed with the majority of the feedback. Thank you.

 

 

 

Definitional Argument (Final Draft)

 

Would You Pay $3 Million for a Super Bowl Ad?

By: Nancy Assia and Tracy Assia
 
Chapter 1: Before the Big Game.
Do you catch yourself every year watching the Super Bowl and waiting in anticipation to see the commercials? The first thing you ask yourself after they're over is, "Wow! How much does it cost to advertise during the Super Bowl?" Well…you're not the only one who’s wondering. Because it is Super Bowl season, we thought we would give you a sneak peak into the biggest money making event of the year and its effect on the big companies which participate in the annual hype.
With America in a recession, is it worth companies to shell out $3 million for a thirty second ad during the Super Bowl? This has many companies rethinking their annual purchase. The advertising budget for companies is usually determined by percentage of sales profit. If a company has taken a plunge in sales this past year, can they afford to pay $3 million on a campaign? More importantly, can they afford not to?
Many big time advertisers such as GM and FedEx are constant advertisers during the Super Bowl and this year has decided to back out of their thirty-second TV spot. Companies have been struggling as is to keep their businesses a float and don’t think it is very practical to pay $3 million for and ad when in 2008 they were $2 million. Are GM and FedEx, being the big time advertisers that they are, making the right decision to withdraw from the line up in 2009? Some marketing experts would disagree with their decision.
Considering the Super Bowl draws the largest national audience, it does make sense to pay top dollar. Last year 97.5 million viewers tuned in. The Super Bowl is the only event that the audience shows a genuine interest in the ads and continues to stay captivated at that. The big-name advertisers don’t just advertise for that thirty-second TV spot. They also advertise for the buzz online and between peers. The aftermath! Americans all over the world spend weeks talking about the creativity of the advertisements which leads these companies to make the ultimate decision in purchasing a $3 million TV spot. The companies know that no other event would be best suited to sell their products.
But advertisers face a unique set of challenges this year—challenges that make deciding on a Super Bowl ad buy all the more difficult. The biggest issue, of course, is the economy and its impact on companies’ financial results. With credit scarce and demand shrinking across virtually every category, companies need to focus intently on preserving cash. This is not the time for discretionary spending; every dollar of spending needs to drive the business. Another issue is the. Traditionally, Super Bowl advertisers battle to stand out by being funny and entertaining—for example, last year’s Bud Light, FedEx and Tide o Go spots—or dramatic and impressive, such as last year’s Coke, Audi, and Under Armour spots. In an economy where people are deeply concerned about the future, it is unclear if either approach will resonate. Finally, a Super Bowl ad buy might send the wrong signal to employees, customers and other stakeholders. For a company laying off employees and making difficult spending cuts, this sort of investment might create a negative backlash if the message isn’t right. (Calkin, Tim and Rucker D. Derek).
Will the ad help brand new companies? Will it help cater to older businesses? It would not be a smart investment for new companies. It is very rare for newer companies to justify such a big expense. Older companies have the upper hand. They have already built a cliental and not to mention an audience that looks forward to the veteran’s commercials. For instance, Budweiser has built a fan base based on their highly entertaining commercials which keep the viewers talking all year-round. With Anheuser-Busch’s takeover by InBev (a Belgian company), it is very business savvy to continue advertising at the Super Bowl so that the company could keep their all-American image. If Anheuser-Busch was to pull out of the Super Bowl this year, it would have hurt the brand because the company has been through a lot in the past year and consumers need reassurance in their product. This Super Bowl is the year for older big-name advertisers to premier their new products. Some big-name advertisers that will be taking advantage of the recession are: Hyundai who is going to premier their new high-end vehicles, Monster, who is going to premier their new website, and Bud Light will emphasize “drinkability.” Hyundai premiering a new high-end vehicle is a risk taking into account people’s unwillingness to spend a massive amount of money.
Another thing that these companies planning on advertising should consider is who their target audience is. It is typical for upscale consumers to seek out the premium brands but both upscale and downscale consumers bother purchase everyday products and services. A CEO making millions of dollars also has an occasional craving for McDonald’s. Because we are in this recession, downscale consumers are not likely to trade up but upscale consumers are very likely to trade down. Should companies advertising luxury products be marketing their product this season? They probably would not if they are going to consider these circumstances.
Advertisers also have to consider what kind of message they want to relay; either news or bravado. News focuses on something of note: product launch or a new benefit. Bravado messages focus on entertainment and creative impact. When facing a recession, bravado is a risky approach because the link to the product tends to be weak. Indeed, managers who focus on bravado messages are likely to find themselves walking tightropes of scrutiny, where observers benter about whether the brand is signaling economic strength or financial foolishness (Calkin, Tim and Rucker D. Derek). This year viewers should be looking for ads that say “we understand you’re hurting” and “we understand it’s a hard time”. Hyundai, which was mentioned earlier, is one of the very few car advertisers this year. Their ads are portraying a “news focus” method by reaching out to costumers with financial troubles in which can not afford their cars anymore. They are promoting their new program which helps people who have lost their jobs to return their cars. Companies that are being seen as “bravado” are website advertisers such as: Monster.com and Careerbuiler.com. Branding experts from the University of Illinois are wondering if people will being seeing those ads as unsuitable considering the state in finding employment during these unhappy times.
The advance in technology is working in advertisers favor. For instance the sudden frenzy of a TiVo video recorder service helps in making $3 million commercial worth it. The Super Bowl is the only time of the year where people watch commercials. Because of the rewinding feature, viewers repeatedly watch the ads and stay engrossed in the originality of them. This year brand managers are pulling out the stops. SoBe is going 3D and asking fans to pick up 3D glasses from their local supermarkets. Doritos is planning on stepping it up a notch in 2009 with their “2009 Doritos Crash the Super Bowl” contest which allows the contestant to submit a thirty-second ad which would premier on the big night. Since the usually frivolous advertisers have dropped out of their spots, Doritos is said to have this years most interesting ads. Doritos being the most highly anticipated commercials of 2009 have made the right decision in staying in their regular TV spot.
The cost of the thirty-second TV spot is always something that should always make brand managers hesitate in the purchase. For the right brand it could be the right choice. If they are advertising for the wrong brand it could be a big financial mistake. Advertisers are working in a competitive market and will continue to strive to sell their brand in or out of a recession. It is left up to the company to make that $3 million decision.

 

 

Chapter 2: The Aftermath

February 1, 2009 has come and gone. The Steelers weren’t the only ones who were victorious. Big-name advertisers such as Doritos had their best year yet. With the light and fluffy humor, viewers voted Doritos’ commercials to be their favorite ones of the year.
Being in a recession didn’t stop the advertisers this year. The Super Bowl pulled in $261 million in ad revenue which is said to be its highest income ever. Very impressive considering our economy is spiraling downward. Thirty two advertisers took the risk of showcasing their ad and it paid off. These companies on Super Bowl Sunday were marketing to over one-hundred million viewers. Did all companies follow protocol in portraying their companies in the right light during the recession? Well many viewers thought one ad in particular was tasteless.
As mentioned in chapter 1, advertisers had to be careful in what message they were trying to relay to their consumer during the recession. Careerbuilder.com completely missed protocol and caused a great deal of controversy. With people losing their jobs and/or finding it hard to get a job, Careerbuilder.com portrayed it to be very easy which caused offense to many viewers because people are grateful to even have a job at a time like this. Could this have been a bad choice for Careerbuilder.com? Was paying the $3 million and offending people worth it for that thirty-second TV spot? Does “all publicity is good publicity” apply when one hundred million people are tuned in? Unfortunately the only companies that might be regretting their Super Bowl advertisement ads are the job websites such as: Monster.com and Careerbuilder.com. People are searching for advice on keeping their current job rather than searching for new jobs.
SuperBowl commercials while expensive pay off for advertisers by driving traffic to websites, leading to better branding and product placement. The week following the SuperBowl is a test of the enduring quality of the ad, based on orders placed, online traffic, and consumer purchases. (Pitner, Suzanne).

 

 

Here is a breakdown of what audiences thought were the best and the worst of Super Bowl Ads 2009.

The Best SuperBowl Commercials

  • Teleflora’s shocking talking flowers leaves the viewer with exactly the idea they want: flowers in a vase are best, and show you have nothing to hideThe 3D commercials for DreamWorks and Sobe Lifewater were the big winners for their originality, creativity, and incredible 3D graphics.
  • The Talking Baby for E-Trade stole the spotlight for the second year in a row, and now he’s joined by a singing baby. It’s possible that baby’s new word, “shankopotamus” may sweep American lingo.
  • Anheuser Busch came through on top with the commercial where the employee is thrown out the window for suggesting they stop buying Bud Light for each meeting. Likewise, the ad picturing Conan O’Brien in a Swedish commercial leaves the viewer with a memorable, although not necessarily desirable, image. The Clydesdale commercials continue to be popular as well.
     

 

Not the Best Game Day Commercials

  • Go Daddy lost out on it’s commercial with the three college students watching the woman and the Dean take a shower. It was too stalker-ish.
  • Castrol GX made light of grease monkeys using several bad puns, putting it at the bottom of the pack.
  • Pedigree had some funny moments, with unusual pets, but it wasn’t funny enough to put it in the top commercial moments.
  • Bridgestone Tires’ use of the Potato Heads was juvenile, with the tired old scenario of a nagging woman getting retribution, and giving the man some relief from her harping.

 

(Pitner, Suzanna: Super Bowl 2009 Commercials)

 

 

So it seems that the only thing that isn’t effected by the recession in a major way is the Super Bowl. Knowing what you know now, how would you lead your company in the advertising world? The real question is… Would you pay the $3 million?

 

 

 

2009 Super Bowl XLIII Ads

3D promo ad "Monsters Vs Aliens"

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CareerBuilder.com

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Monster.com

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Hyundai

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Doritos

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Bibliography

 

Associated Press. "NBC earning Super ad revenue." Reed Elsevier Inc. 2009. 1 January.2009

http://www.variety.com/article/VR1117999395.html?categoryid=14&cs=1&nid=2562

Brinson, Will. "Danica Patrick's Two GoDaddy.com Super Bowl Ads leaked early." AOL sports. 2009. 19 January. 2009

http://nfl.fanhouse.com/2009/01/19/danica-patricks-two-godaddy-com-super-bowl-ads-are-leaked-early/

Calkins, Tim and Rucker D. Derek. "Does a $3M Super Bowl Ad Make Sense in a recession?" 15 January. 2009

http://www.sportsbusinessnews.com/_news/news_389590.php

Chamberlain, Craig. "Super Bowl ads will reflect tough advertising says professor." News Bureau, University of Illinois at Urbana-Champaign. 2009. 28 January.2009

http://news.illinois.edu/news/09/0128superbowl.html

Foxon, Geoff. "Why Super Bowl ads cost so much." Blog. 2008. 5 February.2008

http://www.geofffox.com/MT/archives/2008/02/05/why_super_bowl_ads_cost_s.php

La Monica, R. Paul. "Are Super Bowl ads worth the money?" Cable News Network LP, LLP. 24 January. 2007

http://sportsmarketingnetwork.com/press/CNNMoney012407.pdf

Pitner, Suzanne. "Super Bowl 2009 Commercials."Suzanne Pinter's Advertising Influence. 2009. 1 February. 2009

http://advertising-influence.suite101.com/article.cfm/superbowl_2009_commercials

"Super Bowl ad up 2009: Job and Career." Jobacle.com and The Working Podcast.2009. 1 February.2009

http://www.jobacle.com/blog/2009/2/2/super-bowl-ad-roundup-2009-jobs-careers.html

 

 


 

    • Dylan A.- Review**

I was one of the people who reviewed your rough draft and you did a great job. You guys really did a great job of utilizing the peer reviews. The paper had a great flow to it. The transistions were well done. I also liked the way it was broken down into chapters, with the before-and-after affect. It shows that you really took the time to improve upon the research you did before the rough draft. I also liked that even though you two in particular are not gamers, were able to still involve a sport and maintaim the theme from class. Also, from a fellow marketing majors standpoint it was really informative. A

 

 

P.S. Not sure why the font got changed in the middle of it....

 

 

Dylan K - Review

 

Jillian's feedback/grade

 

Comments (1)

Anonymous said

at 10:20 pm on Feb 25, 2009

we are having MAJOR trouble controlling the table of contents of this paper. excuse the mess.

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