The typical 30-second commercial for Super Bowl 54 in 2020 was: $5.6 million to purchase the ad
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Question:
The typical 30-second commercial for Super Bowl 54 in 2020 was:
$5.6 million to purchase the ad slot
$250,000 to produce the ad which will only be aired during Superbowl
$10,000 in server fees to maintain the website for the brand during January
a. Which costs of the costs above should NOT be included when considering the ROI of the Superbowl ad?
b. How much incremental sales do you need to get from the ad to make the ROI equal to zero?
c. extra credit] What does this tell you about what types of advertisers should buy Superbowl ads?
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