Do you know which event has the most expensive advertising in the world? None other than the annual championship game of the US National Football League, famously known as the Super Bowl. As the biggest single-game sports event in the world, the Super Bowl charges a unit price of $7 million for its advertising spots in 2023, according to estimates by Ad Age.
Then, what would be the most spectacular celebration stage? The Super Bowl halftime show, of course. Headlined by the biggest names in contemporary music, the halftime show never fails to draw global attention. Despite its 15-minute run time, the show is executed with the same care and precision as a full-fledged concert.
If you are wondering why the entertainment industry puts so much effort into sporting events in the US, the viewership figure of 100 million might be a good hint. In fact, fans from countries outside of the US are usually more interested in ads, halftime shows, and gossip than in the game itself. As a result, the Super Bowl has become a mecca for the fandom businesses of people worldwide. Let's find out why the Super Bowl, a brand in its own right, has captured the attention of global fans and companies beyond the US.
Americans’ enormous passion for football captures the attention of fans and businesses all over the world
■ The American football championship is highly anticipated in the US.
It makes no difference whether the game is played in high school, college, or the professional league - Americans adore American football. The Super Bowl is the final playoff game that determines the league champion of the National Football League (NFL). Held on the second Sunday in February, it has also been referred to as “Super Bowl Sunday”. As the most-watched single-game sports event in the world, the Super Bowl is attracting the attention of global viewers.
■ With an average of more than 40% of US audiences and 100 million viewers, the Super Bowl is also a huge event in the advertising world.
The stadium where the Super Bowl is held accommodates up to 100,000 people. But, the number of viewers increases dramatically if you count people watching the broadcast. As the game is watched by one-third of the US population, the publicity effect is huge—you can reach 100 million people with a brief ad on a screen. Sold-out ticket sales and solid viewership figures have made companies want to pay up for ad spots in the expectation of significant marketing effects. Both the price and the content of Super Bowl ads are hot topics. Each ad costs millions of dollars, and the price of a 30-second ad spot increases every year(Refer to image).
The Super Bowl advertisements last from a minimum of 15 seconds to a maximum of 90 seconds. Each ad costs 3.5 to 20 million USD (around 225.000 USD per second in 2023). Despite the steep price, the companies that buy Super Bowl ads consider the impact on brand awareness worth the investment.
According to Conviva, a market research firm specializing in streaming media, around 60 Super Bowl commercials (including trailers and teasers) have received about 600 million views on social media.
A survey by Forbes found that paying 5 million USD for Super Bowl advertisements brings in twice that amount (10 million USD) in brand awareness.
■ The Super Bowl halftime show is a time to excite fans, not rest
The Super Bowl is played in four 15-minute quarters. The halftime show takes place in the 20-minute break between the first and second half, and only the biggest stars in contemporary music are invited to perform.
However, The halftime show did not always have such a big-name lineup. Cheerleading teams, marching bands, and performance groups had performed since the early days of the halftime show, which started in 1967. It wasn't until the 25th Super Bowl in 1991 that idols started appearing on stage, with the performance of New Kids on the Block, the most popular boy band at the time. The Super Bowl halftime show truly became a hot topic two years later, when Michael Jackson performed. Jackson's performance went down in history as one of the most legendary halftime shows of all time. This was also the first time the ratings of the halftime show actually exceeded those of the game itself.
The love for American football, the huge advertisement reach, and high-quality concert performances that cater to fans' interests have come together to make the Super Bowl more than just a sports final. It is a mega brand. Now, other industries also use the arena as a place to compete with fandom businesses all over the world.
Fandom business starts where fans gather
Companies seek business opportunities in the spaces that bring people together
■ The Super Bowl has a big impact on the music industry
The Super Bowl makes an astronomical amount of money every year. Yet, they don't pay their headliners. Michael Jackson was the only artist who got paid to perform at the Super Bowl, with the purpose of donating the entire sum to charity. Instead, you could say the artists are paid in publicity. From the moment an artist appears on the halftime stage, their lifetime revenue potential is hard even to estimate. Katy Perry delivered the most-watched halftime show of all time in 2015, with 118.5 million viewers. The show, lasting only 15 minutes, is a hot topic in the time before and after the event–but it will also be forever talked about in the history of the Super Bowl.
The impact of the Super Bowl event, starting with the sports fandom, has spread to the entertainment industry. It stands as an example of how the fandom business is expanding into many different industries.
■ Increasing fan engagement/participation through live streaming
As you would expect, the number of spectators on-site dramatically decreased during COVID-19, but the interest in the event was as big as ever. Rather, the number of channels where you could watch the Super Bowl live broadcast increased, and viewership figures stayed at the same level. Apart from 2019, the number of Super Bowl viewers has not dropped below 100 million in 12 years. Traditional TV viewership may have declined, but online live-streaming viewers are rising, with 3.4 million in 2020 and 5.7 million in 2021.
A number of factors can explain this trend, including Generation Z's preference for short-form videos, the decline in traditional TV viewing, and the shift to watching streaming videos. The live-streaming format is becoming more popular in places where people gather, attracting fan engagement and discussion on hot topics. If this keeps up, live streaming will be a big part of the Super Bowl fandom in the future.
The Super Bowl is a huge event that breaks down business boundaries and causes a stir in other industries. It is also a day where food consumption is as high as at Thanksgiving in the United States. People love to watch the game while comfortably sharing food, snacks, and drinks. As you can see, the Super Bowl goes beyond the fandom business, even impacting the food and beverage industry.
Fandom business starts where fans gather.
Companies' efforts to attract business through fan engagement will start in the spaces that bring fans together. This has turned the Super Bowl halftime show into the greatest event on earth, bringing joy to American football fans. Fans' interest has brought huge advertisement revenue to sports games. The Super Bowl has evolved into a brand and fandom business that attracts participation from fans and businesses outside of sports. In turn, this has a tremendous commercial effect on each industry. It all goes down in history as a butterfly effect caused by the passion of fandom.
Everyone is a fan of something. Fans who like football, fans who like artists, and fans who like brands. When fans gather, you get the power of fandom. The Super Bowl is a good example of how businesses can arise from the spaces that bring fans together.
American football originated during the Civil War in the United States. Ever since then, the Super Bowl has grown in influence to have a ripple effect on advertising, culture, society, and politics. Let's look forward to the business opportunities coming from the Super Bowl in 2023–which is just around the corner!
Reference
美, 멈출 줄 모르는 ‘슈퍼볼’의 거대한 영향력 | KOTRA 해외시장뉴스
By the numbers: Super Bowl LVI | MARKETINGDIVE
지구 최고의 무대: 슈퍼볼 하프타임쇼 이모저모 | 멜론매거진
슈퍼볼 시청률 9% 급락, 스트리밍은 65% 상승 | 매드타임스
슈퍼 볼 LIV는 거의 100 만 TV 시청자, 44 백만 소셜 미디어 상호 작용을 그립니다 | Nielsen
올해 미국 슈퍼볼 시청자 1억 1,230만 명 돌파 기록 | 글로벌이코노믹
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