Every year, eye-popping data emerges on the price of TV advertising during the Super Bowl. The figure of USD 7 million for a 30-second spot may seem staggering, dwarfing data from other sporting events. But big money surrounds the NFL every day. This is largely due to the enormous interest shown by fans.
Record viewership drives up prices
According to Nielsen Media Research, more than 113 million viewers in almost 50 million households (mainly American) watched the last NFL final. 2015 was set to be a record year in this regard, with over 114 million viewers.
"At that time, a 30-second commercial during a match break cost about USD 4.25 million. Since then, prices have continued to rise. In 2017, they reached USD 5 million for the first time; two years ago, they broke the USD 6 million barrier and last year, they climbed to the aforementioned USD 7 million. According to Conotoxia exchange rates (as of February 8 2024), this is equivalent to PLN 28 million and approximately EUR 6.5 million. For comparison, on the most watched Polish TV channels, broadcasting a 30-second commercial costs more than PLN 100,000, i.e. approximately USD 24.7 thousand, which would not be enough for even one second of advertising during the Super Bowl," notes Robert Blaszczyk, Head of Strategic Clients Department at Conotoxia.
Millions surround American football
Big money, however, surrounds the NFL on a daily basis, not just during the world-focused Finals. The stars of the league, which consists of 32 teams competing daily in the league's two conferences and eight divisions, not including their advertising revenue, sign annual contracts worth approximately USD 50 million, i.e. approximately PLN 202 million.
"Clubs can afford such salaries because the best of them are highly profitable companies worth USD 6-9 billion. One of the American football clubs - the Dallas Cowboys - holds a record in the world of sports with an annual turnover of USD 1.14 billion", adds the Conotoxia fintech expert.
It is worth noting that in order to equalise opportunities in the league, there is a salary cap for players, which is set at USD 224,800,000. Compared to last season, this is an increase of 16.6 million, or almost 8%, and more than covers inflation, which averaged 4.1% in 2023.
A finale for a fan with a fat wallet
The San Francisco 49ers and the Kansas City Chiefs are set to face off in the Super Bowl in 2024. The game will take place at Allegiant Stadium in Paradise near Las Vegas. The stands of this stadium can accommodate 65,000 viewers. On Sunday, February 11, the seats in the audience will be filled, even though the prices of the most expensive single tickets reached USD 30,000. The cheaper ones cost 5.5 thousand USD, and the average was 9.3 thousand USD.
"How does this relate to ticket prices, for example, for the last UEFA Champions League final? It compares with nothing! Converted into American currency, tickets to the most important Champions League match (held in June in Istanbul) cost from USD 75 to USD 740", comments Robert Blaszczyk from Conotoxia.
A fan from Poland who decides to spend, e.g. USD 10,000 for a match ticket, probably won't even be particularly surprised when they pay USD 12-13 (or nearly PLN 50) for a hot dog at the Super Bowl final at the stadium, or USD 7-8 (PLN 30-35) for a small can of drink, or USD 15 for a beer (PLN 60).
Who reaps the Super Bowl harvest?
For many years, the Super Bowl final has transcended the realm of sporting events. As a spectacular entertainment event that attracts the attention of millions of people around the world, it can generate huge revenues. The NFL alone can expect to make millions of dollars from the sale of television rights, game tickets, official Super Bowl souvenirs and sponsorship payments.
TV stations pay enormous sums for the right to broadcast the final, but after that, the investment is more than paid back thanks to the sale of exorbitantly expensive advertisements. Advertisers do not need to be persuaded or lured with discounts because spots broadcast during the Super Bowl become recognisable worldwide and are also widely commented on in the media and social media.
"The city hosting the Super Bowl can also benefit financially from global advertising, increased tourism, accommodation, restaurant and bar sales and interest in other services", says the Conotoxia expert.
It has become a tradition for the biggest stars of the music scene to perform during the half-time interval. Interestingly, the organisers do not pay stars such as Jennifer Lopez, Rihanna or Shakira for their performances but only cover the considerable costs of organising the concerts. From the artists' point of view, however, it is also a very profitable investment, with the chance to be seen by millions of people and very positive emotions for at least half of the viewers, for whom this evening will end up victorious.