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Marketing expert Laura Ries, sportscaster Jim Gray and money manager Jonathan Hoenig on the big spending for commercial time during the Super Bowl.
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Sports on whether this sellout means -- be oddly better than expected economic numbers.
The other is joining us Johnny -- joining us and a guy knows all things sports.
Sportscaster Jim grant Ginnie first.
Up every year they sell -- these -- I guess right now are on these -- eye popping numbers I guess every year our topic I guess what surprises me Jim is.
This is a Dicey economy and I -- what do you make it.
Well they are eye popping bus or the rights fees if you saw that the NFL negotiated these tea has -- that they got a labor agreement a couple of years ago -- You're well aware.
The rights fees for these games are so exorbitant they have to make up the money on the Super Bowl in the playoffs in each network.
Is in the rotation every third year fox CBS and NBC.
Get these Super Bowl so they've got to make it -- -- so that -- I don't know how to do my you don't advertisers all -- but it.
You know the advertisers don't have to sign up for this why did agent.
Because they wanna get in front of -- 130 -- -- 150 million people in those eyeballs.
And everybody talks about it they score the advertisements they're talking about it over the water cooler for several days.
They have a life of their own they go on the Internet.
People want to see this allow people who are very casual fans don't know a heck of a lot about football but they wanna join the party and a lot of both casual fans just wanna see the commercials so it's becoming.
At an event in and of itself when you write about that Laura I another Super Bowl indicators on the light.
But it's there -- indicator for.
All the big spending ahead of inseparable.
Well the indicator is every year it's gonna be bigger that -- last year at this super -- overtime is only getting more important.
More people are watching it and up prices going -- Each and every year at this is selling important for advertisers that's why they're in it you know why they have nowhere else to go there are no.
Big must watch T television events like the super ball anymore it's far exceed any other that during the -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I is -- and what are -- -- -- all of this of these eye popping numbers and eight.
The fact too that it's a very eclectic bunch of advertisers normally we geared toward the beer makers then.
And the food guys but this is pretty spread across a large number groups.
It -- -- I mean it's bullish there's just no other way to look at it -- bullish has been only three times.
At the cost of that 32 ad has gone down once was in 1991 after that recession once was in 2001 after the dot com explosion.
And once was in 2010 after that economic collapse so the fact that -- only -- ads are sold out but that as you you have more pointed out.
Now they're getting four million bucks for thirty seconds is actually a bullish sign.
Don't -- the market economies has been essentially stagnant for five years so socks is stronger not overvalued or not over own.
And I think the Super Bowl indicator in this sense is actually pretty bullish sign for the economy moving forward -- -- Jim.
I mean I know new guises -- -- -- doing you're among the greatest look at this then and I dated if I paid that amount of money.
And mighty commercials going to be -- -- say sometime in the fourth quarter.
And and and the stores like 48 and -- I have just wastes a lot of money.
Well yeah but what happens if you pay in the fourth quarter and we get the first overtime game and everybody's paying attention the out -- -- earlier -- -- -- -- -- on the -- to -- -- that.
Well it sure -- but you know they've shown and -- audience research indicates that people stay through the trophy presentation.
That's not necessarily the case for the end of the game and the post game interviews people wanna see the champions crowd they wanna be part of the celebration.
They want to see how they behave what happens and they want to be able to talk about it so.
Yes it does decline if it's a 48 nothing -- we've had some bad Super -- in the past but.
These advertisers know what they're doing and just in terms of the economy I'm not an economist and I don't know business and everything but it seems to me.
That people go on vacation.
Even when they're not doing well there -- certain things that advertisers won't give up just like there are certain things that people won't give up and advertisers I feel that they feel that they have to be in this.
-- religion not a room goes a big case in my in laws for example just come debate.
Tom cook so far away then looking at here it this is an anomaly in -- that is Jim said.
Odd -- as you gotta be there you you stake your claim you've got a lot of eyeball the a lot of attention.
And it's just a one event.
It doesn't mean much warm.
Well you gotta hope you got a lot of attention just paying for Italian -- thirty seconds eight million -- Holden and it doesn't mean that people are gonna remember those ads that it a couple of them Lincoln is spending eight million dollars for a minute and EO.
It's using -- that the Internet -- to try to make linking cool again -- that eight -- -- -- pay up.
I I wouldn't bet -- that one that's gonna be very get bought back the brand hard to turn around our.
This actually are not using side make pistachios school not think that's gonna pay up a lot of these marketers are gonna -- money down a whole lot in this game.
But it's a chance there willing to take because there's no big TV events like this anymore but for that big guys but why -- Coca-Cola.
They scoring here factory area -- bad it sure is a place to be.
Well I don't know you're gonna get -- I don't know -- -- -- hadn't.
-- -- everybody reluctant to Super Bowl as an Academy Award both those 2000 members of the academy.
Maybe that's in their appealing to and then maybe that eight million dollars is money very very well spent because it reminds them he -- them right before they have to send in the ballot.
-- -- and India are really I didn't hasn't nened.
Wells that I mean doesn't mean that they watch it remember and our -- and that they just see it with that.
Alright John with -- it -- this deal with skill of the audience feel as -- point out we're talking about a hundred plus million people.
Four million dollars for a company like Coke which master had a marketing budget of eleven.
Billion dollars is a relative pittance it comes up about three cents per -- an -- to grand scheme of making is that I think that media landscape.
Sometimes yeah some companies put their entire budget all -- money on that wants to promote a hundred go didn't I didn't believe.
-- -- -- -- -- -- -- -- -- -- -- -- You're right lord I don't get half the but I think the -- -- they have they didn't go to -- they're coming back again but -- they don't get the bang for the buck.
My gala yeah apologized added so tell you that's -- -- -- guys I want to thank you all very very much.
Forward Jim is saying I -- -- doing this again.
Guys spending all I just wanna sign up to come to your house for vacation.
Done you where it's an analyst at limited looked the cars.
