Super Bowl Commercials - Essay Example

A Mexican Company, Avocado also runs its commercials during Super Bowl events. Last year, the firm advertised a warm-weather fruit during the middle of winter. In a press release, the firm reported that it sold more than 70 million avocados in the United States.  Avocado Mexico spends about $70,000 to create ads (O'Reilly & Lutz, 2015). McDonald’s has recently undergone huge marketing refresh bids to turn around its sales. The firm has created a one-minute spot in order to promote its new ‘Pay with Loving Promotion.’ It cost the firm $130,000 to create the ad. The company would be selecting participants for the ‘Pay with Loving’ at some of its stores. The firm aims at increasing its sales. To that effect, during the Super Bowl match pitting Seahawks and New England Patriots an estimated 110 million people watched the game (LeBeau, 2015). Therefore, the advertisers expected their products to be known to the more than 100 million people who were watching the match. An increase in product awareness may result in increased sales. However, the Super Bowl ads are only limited to American broadcasts.

All the three firms: Avocado Mexico, Coca-Cola, and McDonald’s created 60-second. The cost of creating a 30-minute advert is about $37,500 in Super Bowl and $4.5 million in Super Bowl XLIX. It implies that the cost of a one-minute commercial is between $76,000 and $9 million in Super Bowl and Super Bowl XLIX, respectively. Coca-Cola used $740,000, Macdonald’s $240,000, and Avocado Mexico $100,000 (O'Reilly & Lutz, 2015).

Considering the huge crowds that follow Super Bowl, most firms expect the huge viewership to translate into sales due to an expanded customer base. In 2015, the game’s viewership was at a record 114.4 million. The companies expect to recoup their costs from the resulting revenue. However, the high cost of purchasing advertising time as well as producing the commercial itself has resulted in some firms not being able to recoup the cost of buying the ad time. Therefore, most of them skip the Super Bowl.