Super bowl style---Su (fast)
Advertising
Interview: Horizon Media---Adgate, Brad---Director of Research
we’re back, folks. peoplesoft has said that it sees, i’m quoting here, substantial likelihood of oracle’s bids being blocked. the company also says that it is going to hold its annual meeting on march 25. but the headline is substantial likelihood of oracle bids being blocked. that coming from peoplesoft and that just crossing. in other news, a big focus, of course, this weekend here in the u.s. is going to be the super bowl. and for corporate america, this isn’t just a sporting event, it is a unique branding and marketing event. bloomberg’s―well, our own unique su keenan has been tracking this and gets us up to date on advertising super bowl style.
>> matt, as you well know, this is one of the few annual broadcasts where people are just as excited about the multimillion dollar commercials that run as they are about the game. this year, the nfl is projecting that there will be a global audience of one billion people watching. now there are 60 advertising spots, all of them sold, and this year those spots cost advertisers, such as staples, the office supply company, an average of 2k4rr.25 million. that is a record rate. now while some company, such as the internet travel agent expeeds i can’t will stick with their normal ads campaign, others are spending upwards of $1 million on special effects. for instance, cadillac is only allowing uses to see the first 10 seconds of its super bowl ad so as not to give away its strategy, which has a lot to do with turbulence. the name of this ad, and general motors and also plays its suspense. it is initially difficult to tell what they’re advertising. industry experts say the return on super bowl ads can be well worth the cost. the cbs network, owned by viacom, also stands to benefit. federated investments’ angela kohler says the payoff is higher ratings, a higher profile and this year’s records advertising rates.
>> the advertiser is back this year. this should be a year of rebound for advertising the growth for viacom and other media conglomerates and it is very reassuringing as an investor to see this kind of strength and interest in advertising in 2004.
>> let’s get back to those specific adses. every year there are hits and misses and new trenlses. this year, the super bowl is the first to feature a commercial for eli lilly’s erectile diss function drug. now some industry experts think the romantic scenes and slow music may be out of place and lose sports fans’ attention. we shall see. meanwhile, apple computer and pepsi-cola north america plan to get the attention of younger viewers with teens, music, and a legal twist.
>> hi, i’m one of the kids who’s prosecuted for downloading the music for free off the internet and i’m here to announces in front of 100 million people who are still going to download music off the internet.
>> now this commercial set for sunday features a group of teenagers actually charged with illegally downloading music on the web. readses will run in the first three quarters of the game for a total of three minutes, promoting apple’s i-tune music store. the message? if you buy pepsi, you could win an access codes that allows mac and windows p.c. users to download 100 songs free illegal. this is pepsi’s 19th year using the super bowl to promote its brands.
>> excellent stuff. thank you very much, su. keeping with the theme, cable and other forums of entertainment taking viewers from broadcast television, the super bowl proves that network tv can still deliver a huge audience for advertisers. the super bowl is estimated to generate $140 million in revenue for cbs. brad addgate is director of research at horizon media, media services company and joins me now here in the studio. talk about the importance of these numbers as it pertains to network television verses their new―i say “new” in a relative sense―their new competitors that are continually stealing their market share.
>> cable has grown tremendously. i mean, the s.e.c just put out a report this week that says 339 national cable networks and 10 years ago there was 106. that speaks a fractionalization. this year, the networks were really taking a hit with viewers, especially young viewers, a lack of a break out hit. some of the older shows are eroding. but the super bowl is just immune from that. it is appointment viewing. it will deliver a 40 rating, regardless of what teams are playing. it is the highest rated kids show on network tv. not that it will be kids advertisements, but it is appointment viewing and the commercials are more important because there’s so much clutsdzers on tv. 58% of people who watch the super bowl say they may more attention to the commercials than they do during regular tv and another 30% say they watch the super bowls just for the commercials.
>> we have 30 sex, unfortunately. people say it’s worth the money, $2.25 million. that’s a record.
>> yeah, it is a record. the first super bowl went for $42,000. it is above the inflation rate. but it gives an opportunity for branding. there is a spin on it. if it is a great creative advertisement, people will talk about it for years. the am spot was 20 years ago, they’re still talk about it. morning disc jockey, water cooler shows, did you see this commercial or that commercial? there is a lot of upside if it’s done right.
>> sorry about the tight time, folks. still more to come, the ultimate football contest gets underway in two days from houston. we’ll talk about the business of sports and the super bowl contest off the field. that’s ahead.
