Are Super Bowl Ads a Good Investment or a Giant Waste of Money?

SuperBowl Ad ROI

Measuring the effect of advertising has always been a significant challenge for marketers. The Super Bowl presents a particularly interesting opportunity to study individual ads that reach millions of consumers and represent a major investment for brands at $4 million plus production costs.

I will use two sources of data to look at this problem: Un-aided recall by a random sample of consumers and sales results achieved by Go Daddy after their investment in Super Bowl ads.

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10 Marketing Observations from the 2014 Super Bowl Ads

Surprisingly, the Super Bowl is not the most-viewed sports event in the world. At some 150 million viewers, it represents a fraction of the estimated 720 million viewers for the FIFA World Cup final.  Despite this fact, it remains the largest advertising event in the world.

According to an informal survey we ran last week, over 60% of Super Bowl viewers claimed to watch the game just as much, or more for the ads.  Welcome to the Ad Bowl.

Why do people watch the SuperBowl

By now there are probably a couple dozen lists of top Super Bowl ads, and everyone has begun expressing their own opinions. In this post, I will share my observations on the marketing strategies of the brands and the effectiveness of their ads, as well as general advertising trends. Please add your observations in the comments section.

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Content Marketing as an Antidote to Discounting

Flying back from San Francisco, I open the in-flight magazine and a half-page ad by Riedel catches my eye. Riedel a German company and one of the best known manufacturers of high quality wine glasses.

riedelad-275x300

It is a premium brand: a pair of wine glasses especially designed for Cabernet and Merlot retails for about $50. Their customers are either wine enthusiasts or people with a lot of money who don’t mind spending $25 for a wine glass.

It is a nice looking ad, but I was surprised to see the ad’s main message is an offer of  20% discount for a purchase of $100 or more. It does not seem to fit the brand. At the same time, it was not that surprising to see a discount oriented message: it is the easy answer.   ‘What should be the message? I know, let’s offer a 20% discount’

When a marketer’s creativity runs out he defaults back to price discounts.

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