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    Why Superbowl Ads Are Underpriced | Speaking On A Panel At Knotch

    enFebruary 13, 2019

    Podcast Summary

    • Looking forward to Super Bowl adsThe Super Bowl offers increased memorability for brands and 3 out of 4 people eagerly anticipate the ads. Brands like Amazon and Gillette resonated with audiences by tapping into cultural trends.

      The Super Bowl continues to be a valuable platform for advertisers, with 3 out of 4 people looking forward to the ads and memorability for brands being 54% higher than regular television norms. Despite some controversies, most ads had positive impact on viewers. Amazon and Gillette were among the top-ranked ads due to their ability to tap into cultural trends and resonate with audiences. Brands are increasingly playing it safe with their advertising during the Super Bowl, avoiding bold statements that may spark backlash on social media. However, it's important for brands to consider their specific goals and follow-up strategies when investing in Super Bowl ads, whether it's for brand awareness or reach. Data and measurement may not be the most popular topics for brands, but understanding what works and for whom can help maximize the impact of Super Bowl advertising.

    • Maximizing the Impact of Super Bowl Ads with Social MediaUse social media to build hype, engage audience before, during, and after the Super Bowl, and prepare for increased foot traffic to ensure a positive customer experience.

      Creating a successful Super Bowl ad is not just about the moment during the game, but also about how marketers use social media to extend the life and impact of their investment. The Denny's example illustrates this well, as they saw a significant increase in foot traffic after their Super Bowl ad, but failed to deliver a positive experience for customers when they returned due to lack of preparation. Today, social media provides a powerful tool for brands to engage with audiences before, during, and after the Super Bowl. The avocado growers from Mexico are a great example, as they used social media to build hype around their product before the game, resulting in the sale of 58 million avocados. Brands should embrace this cultural event and have a robust strategy for creative and media amplification on the dominant mobile platforms to reach and engage with their audience effectively. Creative still matters, but it's just one piece of the puzzle. The Super Bowl is a unique opportunity for businesses to drive growth, and social media is a valuable tool to maximize the return on investment.

    • Creative is key to advertising successTwo-thirds of ROI and sales come from creative effectiveness. High-quality creative content builds brand awareness and generates long-term success.

      Creative is the key driver of success in advertising, as it inspires consumers and influences their purchasing decisions more than any other factor, including media placement or celebrity endorsements. According to industry data, up to two-thirds of ROI and sales come from creative effectiveness. During the Super Bowl, for instance, PepsiCo's Bubly commercial, which used humor instead of a celebrity, was a huge success due to its creative execution. The brand, which had low awareness at the time, used the Super Bowl as a launch platform, and the commercial's positive sentiment was evident in the overwhelmingly positive response on social media. The success of the Bubly campaign demonstrates that investing in high-quality creative content is crucial for building brand awareness and generating long-term success.

    • Impact of viewer engagement on Super Bowl adsViewer engagement during the Super Bowl game influences the effectiveness of ads, with higher emotional intensity and attention leading to better results. Brands should consider various factors, like messaging and celebrity use, but ultimately aim for ads that resonate and drive business results.

      The lack of excitement during the Super Bowl game this year may have impacted the effectiveness of the advertising during the event. The research shows that emotional intensity and attention levels are higher when viewers are invested in the game and the commercials. Additionally, the trend towards more socially conscious advertising may have led some brands to play it safe with their messaging, potentially limiting their ability to cater to specific audiences. From a marketing standpoint, it's important to consider various factors when creating Super Bowl ads, such as the use of celebrities or animals, messaging, and length of logo display. However, it's crucial to remember that engagement and enjoyment are still key metrics, but it's also essential to consider the potential for viral potential and talk value. The success of a Super Bowl ad campaign ultimately depends on its ability to resonate with viewers and drive business results.

    • Effective Super Bowl ads depend on brand and audienceUnderstanding audience interests and tailoring messages is key to successful advertising, whether during the Super Bowl or through targeted digital campaigns.

      What works for one brand may not work for another when it comes to creating effective Super Bowl ads. Personal preferences and brand awareness play a significant role in ad success. While constant brand mention is essential for lesser-known brands, platforms like Facebook, Google, YouTube, and Twitter offer targeted advertising based on individuals' interests, making ad resonance more likely. Television advertising, however, can struggle with this level of specificity. The Super Bowl, with its massive audience, is ideal for launching new products or changing brand perception. For established brands, the cost-effectiveness of targeted digital advertising may be more worthwhile. Ultimately, understanding your audience and tailoring your message to their interests is crucial for successful advertising, whether during the Super Bowl or through targeted digital campaigns.

    • Context matters as much as content in advertisingEffective ads resonate with audience needs and tap into long-term value, but understanding context is crucial to creating successful campaigns.

      While content is important in advertising, context is often overlooked. The success of an advertisement is not solely determined by the quality of the content, but also by the ability of the product or service to deliver value to the audience in the long term. For instance, Denny's has had successful Super Bowl ads in the past, but their product did not allow them to retain customers, leading to a lack of long-term value. On the other hand, ads that resonate with their audience and tap into their needs, such as the NFL's 100-year anniversary ad, can help change perceptions and re-engage viewers. However, changing perceptions with one advertisement during a major event can be challenging, and it often requires a consistent and strategic approach throughout the year to make a lasting impact. Additionally, there is a significant gap between what people say and what they do, and understanding the context of the audience's beliefs and values is crucial to creating effective advertising campaigns.

    • Balancing Emotion and Clarity in Super Bowl AdsCreate emotionally powerful ads that clearly convey product or service to viewers in limited time.

      Effective advertising during the Super Bowl requires a balance between emotional connection and clear product messaging. The Verizon ad discussed, which highlighted their support for first responders and linked it to the NFL, was emotionally powerful but may not have clearly conveyed the product being advertised. On the other hand, simpler ads, like Microsoft's heartstring-pulling video game commercial, may leave viewers feeling good but unsure of the product being sold. The key is to create an emotional connection while still making the product or service clear to viewers in the brief time they have to engage with the ad. Additionally, consistency and repetition can help reinforce the brand message and make it more memorable for viewers.

    • Super Bowl vs Long Sales Cycle ProductsSuper Bowl may not be ideal for high consideration, long sales cycle products due to high cost and limited educational value. Targeted content and other media platforms might be more effective.

      While low consideration products can benefit from the high viewership and awareness potential of the Super Bowl, high consideration products with longer sales cycles may not be the best fit due to the high cost and limited educational value of a 30-second commercial. Instead, targeted content and other media platforms might be more effective for building awareness and changing brand perception, especially for millennial audiences. The choice between investing in celebrity, music, or CGI for a Super Bowl commercial depends on the brand's objectives and creative development process. Ultimately, a strong creative idea should be the foundation, with additional elements enhancing rather than overshadowing it.

    • The Super Bowl offers underpriced attention for brandsBrands can benefit from the massive reach and engagement of the Super Bowl audience, even outside traditional consumer goods. However, effective use is crucial.

      The Super Bowl offers underpriced attention for brands, despite the high cost. While creativity and context are important, the speaker believes that the value of awareness gained during the Super Bowl is worth the investment for many businesses, even those outside traditional consumer goods. They argue that many brands are wasting money on other advertising channels and could benefit from the massive reach and engagement of the Super Bowl audience. The speaker's personal experience attempting to buy a Super Bowl ad and the potential for using it as a first-party data collector further emphasizes their belief in the Super Bowl's value. However, they acknowledge that not every brand may benefit directly from the Super Bowl and that understanding how to effectively use the platform is crucial.

    • Maximizing ROI through effective media spending on TVEffective TV advertising, integrations, and partnerships can increase engagement and reach consumers during major events. Understand goals and consumer behavior for optimal results.

      Effective media spending, particularly on television, can significantly impact a brand's ROI. Research shows that television advertising is far from obsolete, and integrations and partnerships can increase engagement and reach consumers in a more powerful way. The Super Bowl and other major events remain valuable platforms for driving awareness around passion points. However, it's crucial for marketers to understand their goals and align their strategies with consumer behavior, including social media usage during live events. Ultimately, creative quality and strategic planning are key to successful advertising campaigns.

    • Building a strong brand through the Super BowlEffectively reach a large audience during the Super Bowl, but drive them back to your owned properties for direct sales conversations. Authenticity is crucial when making statements in social discussions, and actions should back up bold statements.

      Building a strong brand is key to successful product sales, rather than being overtly sales-focused. The Super Bowl provides an opportunity to reach a large audience and establish brand awareness. However, it's essential to drive people back to your owned and operated properties to have a direct conversation with your audience and ultimately make sales. Authenticity is crucial when making statements in social discussions. Consumers want to see actions backing up bold statements. Brands like Procter & Gamble, who are leading change and putting their money where their mouth is, can effectively bridge the gap between statement and action. Hypocrisy is not appreciated, and consumers will do their research to verify a brand's authenticity.

    • Authenticity Matters: Be True to Your BrandBrands should strive for authenticity, transparency, and consumer-centricity to build trust and connect with audiences. Authentic attacks and timely advertising can turn potential negatives into opportunities.

      Authenticity is crucial for businesses in today's world. Pretending to be something you're not or not backing up your statements with actions can lead to negative judgments. Consumers value transparency and hate being fooled. Brands need to decide if aligning themselves with hot social issues is worth the potential backlash. Authentic attacks, like Miller's response to Bud Light, can be effective in gaining attention and winning consumers over. Brands should strive to be consumer-centric and prepare for potential controversies or challenges to their brand. The Super Bowl provides a valuable platform for relevant and timely advertising. Coke and Pepsi's similarities and the common question of "is Pepsi okay?" are examples of how brands can turn potential negatives into opportunities. In summary, authenticity, transparency, and being consumer-centric are essential for businesses looking to make a positive impact and connect with their audience.

    • New players in the advertising landscapeThe Super Bowl advertising landscape is changing with the emergence of streaming services like Netflix and Amazon, bringing new approaches and challenges for traditional players and brands.

      The traditional advertising landscape, particularly during high-profile events like the Super Bowl, is complex and fragmented, with different players having varying interests and priorities. This is why some brands may not be able to execute holistic campaigns, as certain aspects, like digital marketing or content creation, can be undervalued or overlooked. However, with the rise of streaming services like Netflix and Amazon, the advertising landscape is evolving. These companies, as non-traditional players, could bring new approaches to the Super Bowl, such as personalized content or wide net campaigns. Ultimately, it's essential for the industry to collaborate and adapt to these changes to provide consumers with engaging and effective advertising experiences. As for brands, they may want to consider in-house marketing efforts to have more control and potentially save costs, but they should be mindful of their financial interests and the industry realities.

    • Leverage of First-Party Data by Companies like AmazonAmazon's extensive first-party data and control over consumer experience give them significant market leverage, with Prime members valuing convenience and benefits beyond cost. Brands and networks must adapt to this shift by integrating ads into content and finding new ways to capture attention.

      Companies with extensive first-party data and control over various aspects of consumer experience, like Amazon, hold significant leverage in the market. Prime members value the convenience and benefits of Amazon's service beyond just the cost of the subscription, making them willing to pay more. Brands and networks need to adapt to this shift by integrating advertising into the content itself and finding new ways to capture consumers' attention. Amazon's unique offerings, such as voice ordering during live events, create frictionless purchasing experiences and generate revenue in innovative ways. As consumers become more vigilant about data privacy, companies like Amazon will need to navigate ethical considerations. The evolution of platforms like Facebook and Instagram, which have faced data privacy concerns, may provide insights into how these issues will play out. Ultimately, businesses must continue to adapt and innovate to stay competitive in an ever-changing media landscape.

    • Personalized Advertising during Major EventsThe future of advertising is heading towards more personalized and data-driven experiences during major events, but concerns about privacy and consumer preferences must be considered.

      The future of advertising, particularly during major events like the Super Bowl, is heading towards more personalized and data-driven experiences. However, there are concerns about privacy and the potential for intrusion. Some consumers may find personalized ads appealing and special, while others may find it creepy. The technology for addressable linear television is now catching up with consumer behavior, allowing for more targeted advertising. Amazon Prime's success in using fear as a sales tactic is also noteworthy. Despite differing opinions, it's important to respect consumer privacy and deliver on ideologies that historically humans haven't. Overall, it's an exciting time for the advertising industry, but it's crucial to navigate these changes responsibly.

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