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.
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