Eagles or Chiefs? The 2025 Superbowl was one for the books, not to mention Kendrick Lamar’s viral halftime performance starring the one and only, tennis superstar, Serena Williams. According to Variety, the 2025 Superbowl currently holds the title of the “biggest TV audience of all time” hitting a jaw dropping 127.7 million viewer count. In between touchdowns, you may have noticed short ads lasting a minute or less, but did you know that one of those 30 second ads cost around $8 million dollars just to air it? How can someone willingly spend such an excessive amount for such a short airtime? How could it possibly cost that much? Time to dive in a bit deeper on the economics of a Superbowl ad.
Firstly, as we have established, the Superbowl is one of the most watched TV events in the US, guaranteeing a massive nationwide audience, giving brands an unparalleled platform to promote their products. Additionally, since it is a live event, viewers don’t have the option to skip the ads like I know we often do on Youtube, meaning that more people will end up watching the ads, increasing their effectiveness.
Secondly, the scarcity of space also plays a fundamental role in the pricing of each slot. A superbowl game lasts around 4 hours, with over 70-80 ad slots available. Although this seems like a lot, there are hundreds of companies fighting for a spot on the big screen, driving prices up. Furthermore, due to the immense demand, your ability to pay higher prices is often the deciding factor of who gets the slot. This means that companies with fat wallets end up driving the price up.
Lastly, Superbowl ads have evolved to become cultural phenomenons. These ads won’t simply enter one ear and out the other, Superbowl ads are often something that is talked about even after the event. If your ad is memorable, it might just spark a viral sensation, leading to word of mouth promotion. Furthermore, these ads often trend on social media such as TikTok, Instagram, etc. For example, in 2011, Volkswagen’s “The Force” revolutionized the Superbowl ads with its Star Wars themed commercial, advertising the new Passat. They decided to post their ad online prior to the game, which went against the belief that holding it until the game day built the highest value. However, what was predicted to be a fluke, turned into a viral sensation, with The Force gaining over 17 million views on YouTube before the game even started. “It paid for itself before it even ran,” says Mike Sheldon, CEO of Deutsch North America. Until today, ‘The Force’ is still widely referenced as one of the greatest Superbowl ads of all time, obtaining 61 million views on Youtube, as of January 2015 according to TIME magazine. This just goes to show the buzz that can be built from a short 30-second clip.
Yes, the ads cost $8 million dollars, and while some may think this is a ridiculous amount, after factoring in the cultural impact, the limited slots available and the millions of viewers nationwide, it doesn’t seem that ridiculous anymore does it?
