Ray Katz on the ROI of Super Bowl Ads

On Bloomberg Business, Sports Management instructor Ray Katz discussed whether airing one’s ad during the Super Bowl is worth the cost.

For a thirty-second TV spot during the biggest American football event of the year, brands will pay around $4.5 million. What does the advertiser get in return? “One [source] stated that more than a third of the country will see this commercial. But in reality, when you look at viewers per household, you're definitely over half,” says Katz. “Then when you start factoring in the other viewing that goes on before and after the Super Bowl, I believe it's one of the best, if not the best, media buy that there is.”

Katz goes on to say that, even among comparable sports advertising and sponsorship opportunities, the Super Bowl spot triumphs. “I've been involved in a number of research studies that demonstrate that being part of the Super Bowl is almost [as valuable], if not as valuable, as being a National Football League sponsor in terms of driving that brand recognition, driving your brand KPIs (key performance indicators).”

Super Bowl XLIX between the New England Patriots and the Seattle Seahawks will air on Sunday, February 1st. Brands hope that you’ll be watching.