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Game Time: Sector Spending on Super Bowl Advertising
Despite increased prices, companies continue to invest in Super Bowl advertisements
In 2016, 111.9 million people tuned in to witness the Denver Broncos defeat the Carolina Panthers in the
historic Super Bowl 50. However, the milestone faceoff was especially significant in terms of advertising,
as costs for a 30-second midgame commercial averaged $5.0 million. This record is anticipated to be
exceeded in 2017 as, despite consistent price hikes, many companies continue to invest in midgame
advertisements in hopes of leaving a lasting impression on the millions of game viewers. IBISWorld has
broken down the five sectors expected to benefit most off Super Bowl advertisements in 2017.
The automotive sector
Companies in the automotive sector typically spend the most on Super Bowl advertisements. Operators
in the industry spent $86.4 million in 2016 alone, as seven automakers across the Car and Automobile
Manufacturing and SUV and Light Truck Manufacturing industries (IBISWorld reports 33611a and
33611b), including Fiat Chrysler Automobile and Toyota, purchased commercial spots. Additionally,
foreign automakers, which dominate the US auto market, have increasingly invested in Super Bowl
advertising, accounting for more than three-fourths of auto ads in 2016.
Moving forward, despite improving economic conditions, Car and Automobile Manufacturing industry
operators have recently experienced volatile sales, driving many of which to reevaluate their spending.
As a result, many automakers have purchased shorter Super Bowl commercials or in some cases, passed
on advertising altogether. Nevertheless, increases in disposable income and consumer confidence are
expected to benefit the automotive sector, allowing it to maintain its top rank in 2017.
The food and beverage sector
In 2016, the food and beverage sector spent $67.2 million on Super Bowl advertising as demand
increased for snack foods and soft drinks due to increased disposable income. Additionally, increased
digital advertising has encouraged companies in the Soda Production and Snack Food Production
industries (IBISWorld reports 31211a and 31191) to spend more on Super Bowl advertising (accounting
for 18.1% of total ad spending in 2016). For example, in 2016, PepsiCo spent $19.2 million on Super
Bowl ads, 40.0% of which was spent on digital platforms, such as Snapchat and other social media.
Beer is also included in this sector. Over the past five years, Anheuser-Bush, which comprises nearly
50.0% of the Breweries industry (31212), has spent the most on Super Bowl beer advertisements,
shelling out $33.6 million for three and a half minutes of ad time in 2016 alone. Due to a multiyear
contract with the NFL, which extends through 2022, Anheuser-Busch is the only beer advertiser
permitted to use the Super Bowl logo and the logos of NFL teams on its products. As a result, all
Anheuser-Busch brands, including Budweiser, Bud Light, Busch and Michelob Ultra, will maintain
prominent Super Bowl commercial slots in the next five years. However, increased craft beer popularity
could threaten Anheuser-Busch’s dominance in both the Breweries industry and in Super Bowl
advertising following 2022.
The technology sector
In the past five years, IBISWorld estimates that the number of US broadband connections has risen
10.0%, which in turn drives demand for technology sector services, such as online tax software, website
and domain development software and mobile service providers. Consequently, companies in the
Website Creation Software Developers (IBISWorld report OD5816) and Tax Preparation Software
Developers industries (OD4549), such as Wix.com and TurboTax, have increased Super Bowl ad
spending. Additionally, the number of mobile device-related advertisements has also grown. For
example, in 2016, Deutsche Telekom (T-Mobile’s parent company) spent $14.4 million on ad time, up
from $8.8 million in 2015. Over the next five years, IBISWorld anticipates the percentage of services
conducted online, as well as the number of mobile internet services to rise significantly. As a result, the
technology sector’s share of Super Bowl advertising is expected to continue to grow.
The media sector
During Super Bowl 50, the media sector, which includes the Movie and Video Production industry
(IBISWorld report 51211a), spent $28.8 million on advertising. However, spending by industry operators
has been volatile in the past five years as more people have opted to watch movies at home, negatively
affecting industry demand. Additionally, industry operators typically only purchase Super Bowl
advertisements when they have a movie with strong box office potential to promote. Nevertheless, the
media sector remains a top Super Bowl advertiser due to video equipment innovation, which enables
production studios to make bigger, more sophisticated films, thus requiring more promotion.
The financial sector
The financial sector includes companies in industries such as Credit Card Issuing (IBISWorld report
52221), Commercial Banking (52211) and Life Insurance & Annuities (IBISWorld report 52411). Over the
past five years, companies in this sector have significantly increased their advertising spending;
purchasing 3:45 minutes of ad time in 2016 alone. This is due to recent increases in disposable income
and consumer confidence, which encouraged consumers to purchase more big-ticket items, such as new
houses and cars, which often require insurance. This bolstered insurance sales, encouraging insurance
companies to spend more on advertisements for large events such as the Super Bowl.
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research,
IBISWorld offers a comprehensive database of unique information and analysis on every US industry.
With an extensive online portfolio valued for its depth and scope, the company equips clients with the
insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a
range of business, professional service and government organizations through more than 10 locations
worldwide. For more information, visit www.ibisworld.com or call 1-800-330-3772.