Super Bowl 2016: A Review of the Advertising, Pricing, and Promotional Activity Prior to the Big Game © 2016 Market Track. Private and Confidential 1 Super Bowl 2016 A look from the consumer’s perspective (Budweiser) Market Track monitors all advertising, promotions, and pricing that impacts a consumer’s awareness of, preference for, and decision to purchase a particular brand, product, or service. In this MT360 Series, we will review the advertising, promotions, and pricing that influenced consumers both as they prepared for, and while watching the big game. © 2016 Market Track. Private and Confidential 2 Source: Market Track Advertising and Promotional Data Market Track Advertising Influence Model The media landscape is changing— there is opportunity to influence shoppers throughout the entire purchase journey through message amplification or targeted segmentation based on media type usage. Online Video Online Display Radio Social Media Web Promos Opt-In Email Mobile Ads FSIs/Coupons Print Circulars Television © 2016 Market Track. Private and Confidential 3 Methodology Section 1: Overview of Super Bowl TV Commercials Review of all TV advertisements that aired nationally during the Super Bowl broadcast Showcase best-in-class use of Social Media in support of Super Bowl TV advertisements Section 2: TV Pricing Analysis Super Bowl vs. Black Friday TV Price Comparison Super Bowl TV size comparisons TV online price trend for hot TV models Section 3: Key takeaways Planning recommendations for Super Bowl 2017 and all events inbetween For more information on which advertisers, manufacturers, brands, and retailers were included in this analysis, feel free to reach us with any questions at [email protected] © 2016 Market Track. Private and Confidential 4 Section 1 Overview of Super Bowl TV Commercials © 2016 Market Track. Private and Confidential 5 By the Numbers… 72% of Super Bowl commercials linked to social or digital media this year via an advertised hashtag, URL, or other social tie, drawing consumers into the viewing experience 2,640* total seconds—or about 45 minutes—of TV commercial air time during Super Bowl 50 $440,000,000* of total estimated Super Bowl TV ad spend 57* different brands advertised across 35 different categories 49.0 average overnight TV rating, down 1.4% from last year (various sources citing Nielsen) 69* total unique TV commercials aired during the game (*excl. CBS, CBS Sister Networks, and NFL promos) © 2016 Market Track. Private and Confidential 6 Super Bowl advertisers targeted the “always-connected” consumer 72% of Super Bowl commercials this year linked to digital media, either through a hashtag, a URL, or another call to action for consumers. According to Market Track’s Shopper Insight Series survey from January 2016, a large segment of consumers are connected to other devices while watching TV, and have sought more information on a TV commercial online through those devices © 2016 Market Track. Private and Confidential When watching TV, what other devices are you typically using? 46% 46% 30% 23% 4% Smartphone Laptop Tablet Desktop Smartwatch In the past 12 months, have you looked for more information on something you saw in a TV commercial on your smartphone, tablet, laptop, or other device? 65% 35% Yes No Source: Market Track Shopper Insight Series Survey Data 7 Super Bowl advertisers used social media to capture consumer attention early An unprecedented number of brands teased their Super Bowl ads in social media to build excitement around the big game, and to support the TV investment they made through other media channels February 4 February 1 February 1 February 3 © 2016 Market Track. Private and Confidential Source: Market Track Social Data 8 Top Super Bowl Advertisers TV Commercials (During Game Only) Top Ten Super Bowl TV Advertisers (Various Metrics) Estimated TV Ad Spend Brand Hyundai Jeep LG Electronics Budweiser T-Mobile Toyota Estimated Spend Brand $20,000,000Hyundai $20,000,000Jeep $20,000,000LG Electronics $15,000,000Budweiser $15,000,000T-Mobile $15,000,000Toyota 17 advertisers tied at $10,000,000 Besides CBS, Hyundai was the only company to run three TV spots during the Super Bowl broadcast—they ran two 30-second spots and one 60-second spot. Total Time On-Air Air Time (seconds) 120 120 120 90 90 90 17 advertisers tied at 60 seconds of air time Three of the top six advertisers during the Super Bowl were automobile manufacturers in Hyundai, Jeep, and Toyota. Both Budweiser ads ran in the second half, yet Anheuser-Busch also had Shock Top and Bud Light ads in the first half. Combined, Anheuser-Busch spent more on TV ads across their brands than any other company. • *Spend estimates for TV Advertising are derived by first performing a hands-on review of advertising as it runs, and then leveraging a variety of resources to apply reasonable cost estimates to the advertising activity observed. • **Estimated spend for CBS, CBS Sister Networks, and the NFL were omitted as they were the Super Bowl presenting organizations. © 2016 Market Track. Private and Confidential Source: Market Track Broadcast Data 9 Social brings Super Bowl viewers into the Advertisement “Bud Light Party Post” Super Bowl TV Commercial Bud Light built awareness around their “The Bud Light Party” campaign through multiple social media outlets in the two weeks leading up to the Big Game. 2/7 “The Bud Light Party Is Coming” Online Video - YouTube 1/20 © 2016 Market Track. Private and Confidential “The Bud Light Party Teaser 2” Online Video - Facebook “Bud Light Party Post” Online Display - Facebook 1/31 2/3 10 Source: Market Track Advertising Data Super Bowl Commercial Timeline 1st Quarter Acura Advil Apartments.com Audi Buick Disney Dollar Shave Club Doritos Epic War (Mobile Strike) Esurance Hass Avocados Hyundai (2) Intel Marmot McDonald's Michelob Ultra Mountain Dew Kickstart Paramount PayPal Quicken Loans Shock Top Snickers Social Finance (SoFi) Squarespace Taco Bell Universal 2nd Quarter 20th Century Fox AstraZeneca Bud Light Coca-Cola Hyundai Paramount Persil Skittles T-Mobile Toyota Weathertech Halftime Amazon Jeep Live Nation Pepsi The No More Project Legend Commercial presence in >1 quarter Commercial presence in 1 quarter **Source: Market Track Broadcast Data **Ads for CBS, CBS Sister Networks, and the NFL were omitted as they were the Super Bowl presenting organizations © 2016 Market Track. Private and Confidential 3rd Quarter 20th Century Fox Budweiser Doritos Fitbit Heinz Honda Intuit (2) LG Electronics MINI Cooper Nestle Pokemon Wix.com Xifaxan 550 4th Quarter Axe Budweiser Colgate Esurance Jeep Jublia Kia LG Electronics Schick SunTrust Banks T-Mobile Universal Anheuser-Busch advertised at least one of their brands in every quarter of Super Bowl 50. An estimated $175,000,000 was spent on ads airing during the first quarter—>60% more than any other quarter. Source: Market Track Broadcast Data11 Top Advertised Categories Automotive Automotive companies spent more on TV advertising for the Super Bowl than any other industry at an estimated $100 million Toyota, Jeep, and Kia were the three auto companies that remained on the Super Bowl ad slate from last year. Hyundai, Audi, Honda, Acura, Buick, and MINI did not advertise in 2015 Super Bowl 2015 - $99 million Brand Toyota Jeep Nissan BMW Dodge Fiat Kia Lexus Mercedes Benz Estimated TV Ad Spend $18,000,000 $13,500,000 $13,500,000 $9,000,000 $9,000,000 $9,000,000 $9,000,000 $9,000,000 $9,000,000 **Source: Market Track Broadcast Data Super Bowl 2016 - $100 million Brand Hyundai Jeep Toyota Audi Honda Kia Acura Buick MINI Cooper Estimated TV Ad Spend $20,000,000 $20,000,000 $15,000,000 $10,000,000 $10,000,000 $10,000,000 $5,000,000 $5,000,000 $5,000,000 = did not advertise during Super Bowl last year **Estimated spend for CBS, CBS Sister Networks, and the NFL were omitted as they were the Super Bowl presenting organizations © 2016 Market Track. Private and Confidential Source: Market Track Broadcast Data 12 Social Brings Super Bowl Viewers into the Advertisement “Ryanville” Super Bowl TV Commercial Hyundai’s “Ryanville” campaign started teasing out on January 26th on Twitter and Facebook, followed by an early release on February 1st. 2/7 “Ryanville” Teaser - Facebook 1/26 © 2016 Market Track. Private and Confidential “Ryanville” Teaser - Twitter “Ryanville” Released - YouTube 2/1 2/1 13 Source: Market Track Advertising Data Section 2 Review of TV promotions and pricing for Super Bowl 50 © 2016 Market Track. Private and Confidential 14 By the Numbers… Online prices for TVs were 5% higher, on average, than on Black Friday (among 86 TV models promoted in circulars the week before Super Bowl 50) Retailers offered 16% more promotional offers on TVs the week before Super Bowl than on Black Friday 2015 The average circular discount for TVs the week before Super Bowl was 31%, only slightly lower than the 37% average on Black Friday $1,083.64, the average promoted price for TVs in circulars the week prior to Super Bowl, was over $400 more than the average promoted price of TVs on Black Friday The difference in price was attributed to the promotion of larger TVs for the Super Bowl—retailers promoted 49 more TVs 50” or larger for the Super Bowl than for Black Friday © 2016 Market Track. Private and Confidential 15 Black Friday online prices lower than Super Bowl…but not by much Online Pricing Index Trend for TVs Average Online Price = 100% on 10/1 100% After Black Friday, however, the best prices on TVs could be found before the Super Bowl—better prices on average than Cyber Week or pre-Christmas 98% 96% 94% 92% 90% 88% 86% 84% 82% Online prices reached their lowest on Black Friday for 86 TV models promoted in circulars the week before Super Bowl 80% © 2016 Market Track. Private and Confidential Source: Market Track eCommerce Pricing Data 16 …but, better prices could be found before Super Bowl on certain high-end TV models Many LG, Sony, and Samsung high-end 60”+ TVs could be found at or lower than Black Friday online prices in the week before Super Bowl Online Price Trend Index – Select LG, Sony, and Samsung models Average Online Price = 100% on 10/1 120% 110% 100% LG 60UF7700 90% LG 65UF9500 Sony XBR65X900B Sony XBR65X930C 80% Samsung UN60JU6500 Samsung UN65JS8500 70% 60% © 2016 Market Track. Private and Confidential 17 Source: Market Track eCommerce Pricing Data Lower price tags and deeper discounts on TVs during Black Friday Circular Promoted Prices for TVs Black Friday vs. Sunday Prior to Super Bowl 2016 Average Depth of Discount Averaged Promoted Price Black Friday (11/27/2015) 37% $631.19 Super Bowl (1/31/2016) 31% $1,083.64 Event Best Buy promoted three TVs on their Super Bowl circular front page priced at least $200 higher than their highest priced TV on their Black Friday circular cover. 11/26/2015 1/31/20165 © 2016 Market Track. Private and Confidential The average promoted price for TVs during the Super Bowl was much higher than Black Friday due to the promotion of larger, higher quality TVs to meet the gameviewing needs of consumers. 18 Source: Market Track Promotional Data Retailers promoted larger TVs for Super Bowl than for Black Friday Circular Promotions for TVs by Screen Size Black Friday vs. Sunday Prior to Super Bowl 2016 TV Sizes (in) 20 24 28 32 39 40 42 43 48 49 50 55 58 60 65 70 75 Black Friday Super Bowl (11/27/15) (1/31/2016) 1 4 3 20 1 22 0 13 10 8 17 32 0 11 18 1 3 0 0 2 16 3 14 1 9 10 5 18 49 1 16 38 2 7 Difference -1 -4 -1 -4 2 -8 1 -4 0 -3 1 17 1 5 20 1 4 Summary 22 FEWER TV promotions for TVs smaller than 50" Retailers skew heavily towards promoting larger screen sizes before Super Bowl compared to Black Friday 49 MORE TV promotions for TVs 50" or larger Source: Market Track Promotional Data © 2016 Market Track. Private and Confidential 19 …and like online, select large TV models saw better discounts before Super Bowl TV manufacturers should be prepared to offer some of their best discounts of the YEAR leading up to the Super Bowl, particularly on larger, higher-quality models. Source: Market Track Promotional Data © 2016 Market Track. Private and Confidential Both LG and Samsung saw some of their highend models promoted at a better average discount for the Super Bowl than for Black Friday (highlighted green in the table). 20 Section 3 Key takeaways from the advertising, promotions, and pricing leading up to and during Super Bowl 50 © 2016 Market Track. Private and Confidential 21 Taking Action Below are the key observations from the advertising, promotions, and pricing for Super Bowl 2016, and what it means for advertising strategy in 2016: Social media was used more than ever by Super Bowl advertisers to build awareness and excitement for their in-game TV commercials What it means: For key events throughout 2016, advertisers need visibility into competitive advertising in the fast-moving social and digital channels to understand the full view of activity that may affect the impact of their own advertising. Advertisers used more interactive advertising tactics in Super Bowl TV ads this year What it means: Differentiating ad messaging is difficult to do in an environment that is continuously growing more competitive. Nearly 75% of Super Bowl TV ads included an interactive element—a hashtag, a link to Facebook, or a URL—that enabled connected consumers to expand their exposure to ads they enjoyed during the game. For retailers, lowest price isn’t always the central focus around key events. Promoted prices for TVs were much higher leading up to the Super Bowl than leading up to Black Friday What it means: Know your audience. Super Bowl TV shoppers will be much more likely to consider product quality and screen size than would a Black Friday shopper, who is out to get the deal of a lifetime. © 2016 Market Track. Private and Confidential 22 Thank You! For more information on receiving post-event reports tailored to your business, reach out to your Market Track account representative, or reach us at: [email protected] © 2016 Market Track. Private and Confidential 23
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