Question: 1. Under what conditions do you think it would be worth a brand spending the kind of premium that a super bowl ad generates? 2.

1. Under what conditions do you think it would be worth a brand spending the kind of premium that a super bowl ad generates?

2. When would it be worth buying a lot of ads on a top-rated show or even a show with cheaper ad rates?

Impact vs. Efficiency Overview This chapter presents information on impact (like reach and ratings) and efficiency (like CPMs). It has been established that top-rated shows can command a cost upward of $300,000 for an ad that will reach approximately 12-17 million people overall, depending on the week. (Lets call it 15 million for easy math.)

An ad in the 2018 Super Bowl cost $5 million. The audience who watched the game live totaled 103 million; 150 million watched it within seven days of air. So, the Super Bowl delivered about 10 times the audience of a top-rated television show. But its CPM was much higher:

TOP-RATED SHOW CPM

[$300,000/15,000,000 impressions] X 1000 = $20 per thousand

SUPER BOWL CPM

[$5,000,000/150,000,000 impressions] X 1000 = $33.33 per thousand

Thats a hefty 66 percent premium over one of the most expensive ad placements on television. Is it worth it? That depends on your strategy of course.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!