New Stanford research suggests that these Super Bowl ads are mostly effective — but not always. They do not drive new sales when two brands of the same type — soda, for example — are both advertising during the football game.
Show full item record Abstract This dissertation investigates the relationship between Super Bowl advertising and advertisers' market valuation. The first essay identifies several factors that influence the financial rewards of this media-placement strategy.
Specifically, I examine the impact of each ad's featured characters and appeals, and the product benefits promoted, on abnormal stock returns for sponsoring companies that appear in Super Bowl ads.
Event study results show that Super Bowl advertising from to is positively related to abnormal stock returns for advertisers. Cross-sectional regression analyses indicate that market value of Super Bowl advertisers is positively related to likeable characters, emotional appeals, and approach messaging.
The combined use of likeable ad characters with either emotional ad appeals or approach messages is also positively associated with firm valuation.
The most successful Super Bowl ads appear to be approach-oriented with likeable ad characters, or emotionally-based with likeable ad characters.
Leaving out any of these key ingredients can result in a less positive impact. In fact, certain incongruous combinations e. First, stock market reactions to Super Bowl advertising are tracked. Next, the impact of advertising efficiency on the financial rewards of this media-placement strategy is examined.
Four advertising executional factors were considered as DEA inputs: Two types of advertising effectiveness were included as DEA outputs: Cross-sectional regression analyses indicate that advertising efficiency is positively associated with cumulative abnormal stock returns of Super Bowl advertisers.
These findings suggest that efficient conversion of advertising inputs to advertising outputs matters in generating positive abnormal returns. Along with advertising efficiency, brand reputation is found to have positive impact on Super Bowl advertisers' financial performance.
A negative interaction between advertising efficiency and brand reputation is observed contrary to expectation.
Theoretically, this dissertation extends the advertising-finance interface by explaining the relationship between Super Bowl advertising and advertisers' performance. While prior research has explored annual sales, profits, Tobin's Q, and analyst recommendation as indicators of firms' financial performance of advertising, the current study is the first to link advertising characteristics and efficiency to short term abnormal stock returns.
From a practitioner's perspective, advertisers also should think twice about allocating so much money for a single advertising exposure. Simply pouring the large amount of the advertising expenditure cannot guarantee big financial reward.
Therefore, advertisers must consider how to efficiently convert advertising effort and resource to desirable advertising outcome. Poor efficiency in generating positive advertising outcomes discourages most advertisers from being rewarded by stock market. From an investor's perspective, individuals attempt to obtain accurate and appropriate information when making investment decisions, eventually resulting in a sound investment.
However, stock market movement does not always explain the dynamics of shareholder valuations. Given this, considering marketing and financial information simultaneously investors can assort when they make investment decisions. Investors' decision making should be based not only on prior stock market performance but also on a company's advertising characteristics and efficiency.
In this sense, information about the marketing-finance interface offers new investment criteria, leading to more deliberate investment.Super Bowl ads are a brand marketer’s dream. Last year’s Super Bowl set a new record for the most-watched program in television history, bringing in a whopping million viewers across the U.S.
Major brands including Google, Coke, GoDaddy, and several automotive and retail companies bought. In terms of effectiveness, Super Bowl advertising for an established brand is best when it builds on that association between the well-known product and sports in general, according to Hartmann.
The purpose of this study was to examine the effectiveness of Super Bowl advertising using brand search volumes. The results show that after being exposed to brand information in Super Bowl advertisements, consumers will proactively search brand information through online search engines.
Super Bowl advertising: What really works? Introduction. 1. Introduction.
Feb 13, · The average Super Bowl XLVIII television commercial increased the likelihood that a viewer would purchase that brand's products or services %, according to a recent report from BrandAds. The analysis found male consumers' increase in likelihood to purchase was % greater than that of female. Overall, the quality of Super Bowl ads looks to be on the rise given the average score has risen over the past three years. In it was , which rose to last year, before hitting seven this year. Super Bowl advertising needs a few stars to align in order to demonstrate effectiveness against key health measures. Even if, and despite, the creative measuring well on paper, only 70% brands will even be recalled and of those, only 40% will show business-related responsiveness.
Once a year almost the entire U.S. population sits down to watch the same program, the Super Bowl. But they are also watching scores of brand new commercials.
The commercials they are watching are produced by the best. Jan 30, · In contrast to past decades, widespread inclusion of diverse models is now the norm in Super Bowl advertising.
From , more than half of the ads (56%) featured people of . A SECOND ad that airs during this weekend's Super Bowl, viewed by an estimated million Americans, will cost more than $5 million. Does that amount to overpriced entertainment, or.