Q:

Why are commercials so expensive during the Super Bowl?

A:

Quick Answer

Purchasing Super Bowl ad space is, in part, a prestige statement by the advertising company that can bolster that company's public image and even cause its stock price to climb. Super Bowl ads are less about the products themselves and more about the statement that a company can afford such exorbitant ad space.

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Full Answer

Advertising relies on repetition and recurrence to deliver its message. A Super Bowl ad plays only once during the game and could cost millions of dollars in slot fees, which is stacked on top of production cost. This means that the ad must succeed on its own merits and improve the company's image without the benefit of multiple airings.

Forbes Magazine states that Super Bowl ads function as ersatz stock tips by showing that a company has the funds to manage an ad placement in such lucrative space. Both the company and the purchasing agency can expect a boost in their stock prices as Wall Street reassesses their value.

The placement depends on exposure to generate buzz. It can actually be more important to build up the purchase than the ad itself, as the purchase is what generates speculation as to a company's apparent growth and increased purchasing power.

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