TNS Media Intelligence Reports Super Bowl Spending Reached $2.17 Billion over the Past 20 Years

Historical Advertising Data Showcases Super Bowl’s Leading Spenders, Quadrupled Ad Rates and More Cluttered Air Time

NEW YORK – The escalating chatter surrounding Super Bowl XLIV is not just about the teams competing for the 2010 championship. The TV commercials that will appear during the game are also the subject of discussion and speculation. And participating advertisers will once again be confronted with the difficult question of whether the Super Bowl is a smart marketing investment or a wasted use of the budget.

TNS Media Intelligence has again combed through its extensive database to report on the past 20 years of Super Bowl advertising. From 1990 thru 2009, the Super Bowl game has generated $2.17 billion of network sales from a total of 210 different advertisers and more than 1,400 commercial messages.

“The Super Bowl remains a singular event for engaging the broadest number of consumers at one time,” said Mark Nesbitt, President, TNS Media Intelligence. “Because it is viewed live and experienced by a majority of the country at the same time, a commercial presence on the broadcast has great significance and impact for a brand, making each not so much a brand message as a brand event. It is why a presence on the broadcast lends itself so effectively to an integrated marketing effort.”

“As an advertising event, the Super Bowl has evolved beyond a vehicle for presenting expensive, stand-alone commercial spots that seek to entertain viewers and generate awareness,” said Jon Swallen, SVP Research for TNS Media Intelligence. “Increasingly, in-game spots are being supplemented by elaborate integrated communications programs that attempt to drive traffic online or in-store, generate positive social media discussion, incorporate public relations effort and ultimately achieve a strong ROI.”

Top Five Super Bowl Advertisers

The top five Super Bowl advertisers of the past 20 years have spent $783 million on advertising during the game, accounting for 36 percent of total advertising revenue. Anheuser-Busch and PepsiCo, which have appeared in every game during this period, lead the pack, followed by General Motors, Walt Disney and Time Warner.

TOP 5 SUPER BOWL ADVERTISERS
1990-2009

Rank Advertiser # of Years With
Ads In Game
Ad Spend
($ millions)
1 Anheuser-Busch 20 $ 311.8
2 PepsiCo 20 $ 254.2
3 General Motors 15 $ 80.5
4 Walt Disney 10 $ 71.6
5 Time Warner 12 $ 64.8
Top 5 Total $ 783.0

Although Pepsi soft drinks will not be advertised in this year’s game, ending a 23-year streak, the PepsiCo parent company will still be represented by its Frito-Lay snack food division. General Motors will be absent from the game for the second year in a row. Prior to dropping out in 2009, GM had advertised in 11 of the previous 12 Super Bowls.


The Price of Advertising

The cost of a 30-second advertisement in the Super Bowl has more than quadrupled in the past 20 years and reached $3 million in 2009. The recessionary environment is expected to yield lower pricing for the 2010 game, with CBS reportedly selling 30-second units for between $2.5 and $2.8 million.

The amount paid by individual marketers will vary depending on where the ad runs in the game, how much commercial time is purchased and whether the advertiser opts for a larger package that includes spots in the pre-game and/or post-game coverage.

SUPER BOWL ADVERTISING:
RATES AND REVENUE 1990-2009

Cost :30 Unit
($000)
Total Ad Revenue
($ millions)
1990 700 39.0
1995 1,150 69.7
2000 2,100 135.1
2005 2,400 159.2
2006 2,500 162.5
2007 2,385 153.7
2008 2,700 186.3
2009 3,000 213.0

Source: TNS Media Intelligence

First Time Advertisers

Since 2005, the annual Super Bowl ad lineup has had between 30 and 35 different companies. First-time advertisers are accounting for 20-25 percent of the ad roster. The ad time vacated by such long-time sponsors as FedEx, General Motors and Pepsi is being taken over by other companies eager for the recognition and brand-building opportunity of the Super Bowl stage.

The first-time advertisers in the 2009 game were Cash4Gold.com, Castrol, Denny’s, Teleflora and Vizio. For the 2010 contest, the rookie lineup is expected to include Electronic Arts and HomeAway, among others.

NUMBER OF SUPER BOWL ADVERTISERS BY YEAR

2005 2006 2007 2008 2009
All Advertisers 34 32 30 32 30
First-Timers 9 8 7 7 5

Source: TNS Media Intelligence

More Advertising, More Clutter

Over the past ten years, the volume of commercial time in the game has been edging upwards even as the price of advertising has become more expensive. The NBC telecast of the 2009 Super Bowl contained a record 45 minutes, 5 seconds of network ads. This included paying sponsors, commercial messages from the NFL, plus “house ads” aired by CBS to promote its own shows.

Source: TNS Media Intelligence

Top Super Bowl Advertising Categories

What kinds of products are most frequently advertised on the Super Bowl? The popular perception is that beer, soft drinks and autos are the prime ad categories, given their annual presence in the game.

Actually, the leader by dollar value is promotional advertising from the network itself. In a typical Super Bowl, 15-20 percent of all commercial time is a plug by the network for its own programming. In 2009, the value of this air time exceeded $42 million.

Network Promotions In The Super Bowl

Time
(mm:ss)
% of All Ad
Time
Value
($ millions)
2006 7:20 16.6% $36.7
2007 9:35 22.2% $46.7
2008 7:55 18.2% $42.8
2009 7:05 15.7% $42.5

Source: TNS Media Intelligence

“The Super Bowl offers the host network an attractive platform to promote its upcoming programming and try to build an audience,” added Swallen. “In deciding how much ad time to keep for itself, the network has to assess the trade-off between giving up current revenue in the game versus building future revenue from its other programming.”

Over the past decade, the Super Bowl has attracted a bevy of different movie studio, automotive and dot-com companies, making them the most populous and competitive ad categories.

Number of Super Bowl Advertisers By Category

Number of Super Bowl Advertisers By Category
Category 2000 2005 2006 2007 2008 2009
Auto Manufacturers 2 5 4 3 4 3
Dot-com 14 3 4 5 5 9
Motion Pictures 4 6 4 3 6 4

Source: TNS Media Intelligence

How Big is the Super Bowl Versus Other Sport Franchises?

The Major League Baseball’s World Series and the NCAA Men’s Basketball Championship are two other high profile sporting events that attract significant interest from TV advertisers. But how do these compare to the Super Bowl in terms of ad spend?

The World Series is four to seven games. March Madness peaks with the semi-finals and championship on its final weekend, a total of three games. The Super Bowl, of course, is a single telecast. In recent years, the Super Bowl and World Series have been running neck and neck in total ad spending. In 2009, baseball pulled slightly ahead as the Fall Classic went to a sixth game for the first time since 2003.

MAJOR SPORTING CHAMPIONSHIPS
NETWORK TV AD REVENUE ($ MILLIONS)

MAJOR SPORTING CHAMPIONSHIPSNETWORK TV AD REVENUE ($ MILLIONS)
Super Bowl
Game
World Series
(# games)
NCAA Basketball
Men’s Final Four
(# games)
2005 $158.4 $146.9 (4) $142.2 (3)
2006 $162.5 $160.8 (5) $154.7 (3)
2007 $151.5 $156.6 (4) $168.4 (3)
2008 $182.3 $176.2 (5) $177.9 (3)
2009 $213.0 $223.6 (6) $163.2 (3)

Source: TNS Media Intelligence

About TNS Media

Established in more than 30 countries, TNS Media explores all media – print, radio, TV, Internet, social media, cinema and outdoor worldwide, 24 hours a day, seven days a week, and offers a full range of insights, analyses and audience measurement services.

TNS Media combines the deepest expertise in the industry to provide media and marketing intelligence including advertising expenditure monitoring, advertising creation monitoring, audience measurement, market influence analytics, online consumer behavior tracking, news monitoring, sports sponsorship evaluation and more. The TNS Media companies track more than 3 million brands and provide vital market intelligence to 16,000 customers around the world. For further information, please visit www.tnsmediagroup.com.

About Kantar

Kantar is one of the world’s largest insight, information and consultancy networks. By uniting the diverse talents of its 13 specialist companies, the group aims to become the pre-eminent provider of compelling and inspirational insights for the global business community. Its 26,500 employees work across 95 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group’s services are employed by over half of the Fortune Top 500 companies.

For further information, please visit us at www.kantar.com.