B U S I N E SS
Sunday, August 9, 2015 | Daily News | Page B7
Super Bowl Advertising:
Is it Recession-Proof?
“Here we go Steelers…
here we go…
Pittsburgh’s goin’
to the Super Bowl.”
“Pittsburgh Steelers
Fight Song”
Original version written by
Roger Wood
bubble in the early 2000s
(2001) experienced only an
eight month duration and
saw a GDP decline of just
0.3 percent. Finally, the
Great Recession
(2007-09), partly caused by
the subprime mortgage
crisis, lasted 18 months
and featured a peak to
A recession is defined
trough GDP
as two consecutive
decline of
quarters of
4.3 percent. It
negative economic
was the deepest
growth as
recession since the
measured by gross
Great Depression.
domestic product.
Meanwhile,
Let’s consider four
high end art sales
recessions, their
are currently
durations and the
Margaret R. down and luxury
accompanying
decline in GDP.
McDowell summer rental and
home sale prices
The downturn
Arbor Outlook are sliding in the
associated with the
Hamptons. These
OPEC Oil Crisis
aren’t scientific
in the early ’70s
leading indicators, but are
(1973-75) lasted 16 months
they a harbinger? Lets
and was accompanied by a
review how Super Bowl
GDP decline of
ad pricing fared during
3.2 percent. Another
the above-mentioned
recession in the early ’80s
downturns. In 1967, a 30(1981-82) lasted 16 months
second commercial cost
and represented a GDP
$40,000. Earlier this year
decline of 2.7 percent. The
that same spot cost
recession associated with
$4.5 million, or $75,000 per
the bursting of the dot.com
rental prices or Super
Bowl ad costs. Economists
utilize leading, lagging
and coincident economic
indicators to predict and
analyze large financial
downturns. For instance,
corporate profits are
an economic indicator,
and they appear to be
unsustainably high.
But what if, because of
outsourcing and robotics,
today’s corporate profit
levels are simply the new
normal? Determining
a country’s economic
future always involves a
complicated combination
of factors and is probably
unrelated to what
Budweiser pays to lead
the ad parade in next
February’s big game.
I do like their
commercials, though.
SAN JUAN, Puerto Rico (AP) — A Puerto Rico senator
filed a resolution Friday that would reassign $94 million
to the island’s Government Development Bank so it can
make a bond payment that the U.S. territory missed
earlier this week.
Sen. Gilberto Rodriguez said the money would come
from a fund slated for other upcoming bond payments.
The resolution has not been debated. The island’s
legislature reconvenes in one week. Puerto Rico’s Public
Finance Corporation missed an Aug. 1 deadline to make
a $58 million payment on moral obligation bonds. It made
a partial payment of $628,000 in interest but did not have
enough money to pay the remainder.
The non-payment prompted OppenheimerFunds Inc.
and Franklin Advisers Inc. to issue a letter addressed to
Puerto Rico’s Government Development Bank demanding that bondholders be paid.
“The path that the current administration has chosen
will steer Puerto Rico towards litigation and create further deterioration in the capital markets’ trust in Puerto
Rico,” the Aug. 5 letter said. “We hereby demand that (the
Public Finance Corporation) take all actions necessary to
collect on the Notes.”
Margaret R. McDowell, ChFC,
AIF, a syndicated economic
columnist, is the founder of
Arbor Wealth Management,
LLC, (850-608-6121~www.
arborwealth.net), a FeeOnly Registered Investment
Advisory Firm located near
Sandestin.
2123761
We
We Deliver!
Deliver!
second. Ad prices inched
steadily upward after ’67,
until there was a $6,000
decline in prices from 1970
to 1971. But through the
impending recession and
the OPEC oil crisis, and
even adjusted for inflation
and considering the growth
of television and the
game’s rising popularity, ad
prices continued to climb.
Similar ad cost
increases occurred
throughout the recession
of the early ’80s. In 1980,
a 30 second spot cost
$275,000. By 1985, the cost
had almost doubled.
Ad prices actually did
slide backwards with the
onset of the tech bubble
recession. In 2000, an ad
cost $2.1 million; in 2002, it
was down to $1.9 million.
But throughout the Great
Recession, from 2007-2009,
ad prices climbed steadily.
From 2011 to this year, ad
prices jumped from
$3 million to $4.5 million.
So it’s difficult to gauge
the health of the economy
through homegrown
methods like summer
Puerto Rico senator seeks
funds for missed payment
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