Apart from being a noteworthy event, the 57th Super Bowl was a powerful economic force. Attracting viewers from every corner of the globe, there were 113 million viewers in the US alone, and it was streamed in 180 countries. Companies strive to create memorable advertisements, and the city that hosts the Super Bowl reaps substantial amounts in profits. And let’s not forget the impact on Rihanna herself, this year’s halftime performer.
When it comes to hosting the Super Bowl, the benefits are more than just financial gains. It can draw many eyes to the city, attracting visitors and driving tourism long after the game. Local businesses like hotels, restaurants, and attractions all share the influx of visitor spending. In anticipation of the big day, certain companies even offer additional employment opportunities. Once the Super Bowl is over, these jobs are no longer needed, but now people have money in their pockets. However, this responsibility does come with its costs. The host spends approximately 100 million dollars. You may be thinking, why would a city want to host when expenditures are so high? According to the National Football League (NFL), the game brings in a lot of revenue - we're talking $300-500 million, which exceeds the cost by a great margin. There is also a prestige factor involved: it is a grand honor and can be a source of pride for both the city and its residents. And with the potential for a great economic return in the long run, it's no surprise that cities are eager for the chance to hold this iconic event.
It was not just the 2023 host city, Glendale, Arizona, that profit, but the two cities of the teams playing also benefited. Hotels and bars throughout Philadelphia and Kansas City were filled as fans who were unable to make it to the game crowded with fellow fans to watch the game.
During the Super Bowl, the ads are a big deal, both from an economic and business standpoint. The costs of airing a single ad are notoriously high. As of this year, it took around $7 million to broadcast a 30-second-long advertisement during the live show. That’s $233,333 per second! And that amount is just for the airtime. The cost will easily pile up to produce the ad itself. Despite the high costs, companies are still willing to invest money into the process as they would be able to reach a massive audience base.
From an economic perspective, Super Bowl ads can tremendously promote the company's name. A well-executed ad has the potential to drive up sales, brand awareness, and product buzz. This would then translate into higher revenue and growth for the company in question. The Super Bowl is often seen as an"advertising Olympics," where companies compete to create the most talked-about ad of the night. Personally, the Doritos ad caught my eye. It was the perfect example of a celebrity feature, Jack Harlow, and humor, both strategies to draw in viewers.
The ads themselves are big business. Companies create intricate campaigns that go beyond just a 30-second video. They try to incorporate social media, influencer marketing, and other tactics to get people to remember their brand in the little time they have on the screen. Some companies have even seen their Super Bowl ads go viral, generating plenty of social media support and revenue from more customers and partnerships. Matthew McGranaghan, a professor of marketing at the University of Delaware, says that typically, viewers would try to skip ads or direct their attention towards other things, except during the Super Bowl. Some people even watch the game just to see the ads. People feel delighted viewing something for the first time and companies take advantage of the anticipation of the enormous audience.
Believe it or not, Super Bowl halftime performers do not get paid. The halftime show is more of an opportunity for artists to put themselves out there rather than the artist serving the NFL. In other words, the NFL helps promote the performer, not the other way around. However, the NFL covers most of the performance costs. And besides, Rihanna will end up making the money in other ways. Her 13-minute performance gave her the chance to showcase her work on a huge platform. Additionally, artists’ streams usually boost after the show is over. Rihanna had a 211% increase in on-demand streams and a 390% increase in digital song sales. This year's sponsor was Apple Music, and with their talent and technology, Rihanna’s first live show in the last seven years was a one-of-a-kind experience. With the help of Apple Music and the NFL, Rihanna was able to “cram in 17 years of work into 13 minutes” according to the star of the show herself.
The Super Bowl plays into business in a variety of ways. While hosting the event requires a significant investment, the potential long-term economic benefits and prestige make it an envied opportunity across the United States. The game surely excites the most die-hard football fans, but that is only one part of a long, economic story.
References: