Monday, September 01, 2014 02:37pm
North Adams, MA now: 82 °   
Send news, tips, press releases and questions to info@iBerkshires.com
The Berkshires online guide to events, news and Berkshire County community information.
SIGN IN | REGISTER NOW   

Home About Archives RSS Feed
The Independent Investor: The Business of the Super Bowl
By Bill Schmick On: 01:07PM / Saturday February 02, 2013
Important
0
Interesting
0
Funny
0
Awesome
0
Infuriating
0
Ridiculous
0

It is one of the few businesses that continues to grow year after year. Whether one looks at the ads, the attendance or the number of television viewers, the Super Bowl has survived where others of its species have died off. It is truly one of the last mass-audience live television events of our society.

Super Bowl XLVII will be played on Sunday, Feb. 3, in the Mercedes-Benz Superdome in New Orleans. It will mark the 10th time the "Big Easy" hosted the event. The last one was in 2002. It could mean as much as $450 million in business for the city.

Now, that would only be half as much as New Orleans has spent preparing for the game. The city spent more than $1 billion on infrastructure improvements, including renovations at the airport, a new streetcar line, and enhancements to the Superdome itself. After the devastation of Katrina, New Orleans needed to rebuild and have used a number of major sporting events, including the NCAA men's basketball Final Four in 2012, a couple of BCS National Championship Games and the NBA All-Star Game in 2008 to do just that. But the Super Bowl is the big jambalaya in the menu of possible events.

Experts say that for every $100 spent in the city, about 50-70 percent remains there, while the rest leaks out into other surrounding locales. New Orleans, like other cities who have hosted the event, is hoping that by putting their best foot forward, they will convince some of the attendees to remain and even establish businesses in the areas.

Given that the attendance at the Super Bowl is largely a corporate event, businesses get first choice of rooms, flights, special events and just about everything else involved in the Super Bowl and the days surrounding it. The chance to shine cannot be underestimated and the city fathers know it.

For those of us unable to attend the live event, all is not lost. We can look forward to countless parties (either at home or your favorite bar or cafe), root for your favorite team, dance to the half-time show (Beyonce will man the stage this year) and, of course, watch the commercials.

Americans continue to watch the Super Bowl in record numbers. More than 46 percent of TV households watched last year's game, according to Nielsen, which makes it just about the most watched broadcast in U.S. history. And the wealthier you are, the more likely you are to tune in. For advertisers, who strive to reach the age demographic of 18-49 years old, the Super Bowl is the best game in town.

It is probably why Super Bowl ads keep climbing in cost. Ad slots for this year's game sold out at the asking price of $3.5 million per 30-second spot by December. That is up from $3 million/spot last year. But corporations will pay it because there is a gold mine for those who can come up with the right ad.

This year, viewers will see some big names populating the ads. Singer Beyonce, hip-hopper Jay-Z, supermodels Catrinel Menghia, Bar Refaeli and Kate Upton. And that is only a taste of the lineup. Personally, I will be looking forward to the return of the French bull dog, Mr. Quiggly, (which replaced Kim Kardashian in a Skechers' ad). Last year he captured the hearts, minds and pocketbooks of many of us.   

There will also be a number of new ad sponsors this year including Oreos. For me, the day after the event will be as much about my favorite commercial than it is the game. That's why the Super Bowl has become such a business generator for corporations.

Given that the ads are 58 percent more memorable than your average TV commercial, I can see why. If you doubt that, just recall the ad with the little boy dressed as Darth Vader. I bet you can even remember what auto manufacturer sponsored it. That company reaped a cool $100 million in free publicity from the spot, which is not bad for $3.5 million investment. When it comes to the Super Bowl, what is good for business, is also good for America, so let the games begin and the cashier register ring!

Bill Schmick is registered as an investment adviser representative with Berkshire Money Management. Bill’s forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquires to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.


 



0 Comments
     
News Headlines
Larabee, Giorgi Honored With 'Frankie' Awards
Former Finance Director Returns to Williamstown as Pastor
Armory Takes Lead in Torchia Softball League Final
Legislative Q&A: State Rep. William 'Smitty' Pignatelli
MCLA Women's Soccer Ties; Tennis, Volleyball, Men's Soccer Win
Holiday Hours: Labor Day
Clarksburg Weighing Bridge Plans, Preparing Special Town Meeting
MCLA Men's Soccer Rolls in Opener
'Sin City: A Dame to Kill For': Graphic, Indeed
Register now for Ys Superhero 5K Challenge on Sept. 13
Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com Visit www.afewdollarsmore.com for more of Bill’s insights.

 

 

 



Categories:
@theMarket (143)
Independent Investor (194)
Archives:
August 2014 (7)
July 2014 (2)
June 2014 (6)
May 2014 (9)
April 2014 (8)
March 2014 (6)
February 2014 (6)
January 2014 (7)
December 2013 (8)
November 2013 (7)
October 2013 (6)
September 2013 (6)
Tags:
Commodities Federal Reserve Taxes Metals Pullback Jobs Currency Europe Stimulus Fiscal Cliff Japan Interest Rates Debt Ceiling Fed Bailout Europe Oil Stock Market Housing Selloff Retirement Election Euro Economy Greece Deficit Congress Recession Rally Debt Banks Markets Stocks Energy Crisis
Popular Entries:
The Independent Investor: Understanding the Foreclosure Scandal
The Independent Investor: Don't Fight the Fed
The Independent Investor: Does Cash Mean Currencies?
@theMarket: QE II Supports the Markets
@theMarket: Markets Are Going Higher
The Independent Investor: General Motors — Back to the Future
The Independent Investor: How Will Wall Street II Play on Main Street?
The Independent Investor: Will the Municipal Bond Massacre Continue?
@theMarket: Economy Sputters, Stocks Stutter
The Independent Investor: Why Are Interest Rates Rising?
Recent Entries:
@theMarket: What's Up With Bonds?
The Independent Investor: Baby Boomers and Retiremen
@theMarket: Labor on Their Mind
The Independent Investor: Financing ISIS
@theMarket: Geopolitical Risk Trumps Economic Growth
The Independent Investor: Beware the Russian Bear
The Independent Investor: Why Some Corporations Are Leaving America
The Independent Investor: How Much Is Too Much to Spend in Retirement?
The Independent Investor: The Fed Turns Off the Spigot
The Independent Investor: Should You Pay Off Mortgage Before Retiring?


View All
Friday Soccer Scrimfest
Friday afternoon girls soccer 'Scrimfest' at Drury High...
Pignatelli Campaign Kickoff...
State Rep. William "Smitty" Pignatelli held a kick off...
Down Street Art
People flooded main street to see the new art installations...
Western Mass Beer Fest 2014
Hundreds turned out for the 9th annual Western Mass Beer...
High School Soccer
High School soccer practice got under way on Thursday.
Motorama
Hundreds of cars, trucks, motorcycles, snowmobiles and...
Chamber Nite @MountainOne
A who's who was at the MountainOne-hosted Berkshire Chamber...
Third Thursday Aug. 21, 2014
The August Third Thursday event in Pittsfield included a...
High School Football
High School football practice got under way on Monday.
Giorgi League Semis: B&B vs...
Burr and Burton held a steady lead over Bennington, Vt.'s,...
Giorgi League Semis: Drury vs...
Alex Heck scored 19 points to lead the Drury boys...
Mill Children Opening
The 5 Hoosac Street Gallery held its grand opening Friday...
Downtown Celebration 2014
North Adams held its annual street fair on Main Street on...
Worcester Bravehearts vs...
Key at bat helps the Worcester Bravehearts defeat the...
9th Annual Rock, Rattle &...
This year's theme is "Living in Harmony, Fulfilling Our...
Softball Series: Berkshire...
Friday Soccer Scrimfest
Friday afternoon girls soccer 'Scrimfest' at Drury High...
Pignatelli Campaign Kickoff...
State Rep. William "Smitty" Pignatelli held a kick off...
Down Street Art
People flooded main street to see the new art installations...
Western Mass Beer Fest 2014
Hundreds turned out for the 9th annual Western Mass Beer...
High School Soccer
High School soccer practice got under way on Thursday.
| Home | A & E | Business | Community News | Dining | Real Estate | Schools | Sports & Outdoors | Berkshires Weather | Weddings
Advertise | Recommend This Page | Help Contact Us | Privacy Policy| User Agreement
iBerkshires.com is owned and operated by: Boxcar Media 102 Main Street, North Adams, MA 01247 -- T. 413-663-3384 F.413-664-4251
© 2000 Boxcar Media LLC - All rights reserved