The stocks of these Super Bowl advertisers didn’t fare so well


New England Patriots fans erupt as the Seattle Seahawks Russell Wilson’s pass is intercepted at the goal line to ensure the victory for the New England Patriots in Super W 49.

Bob Berg | Moment Mobile | Getty Images

In a fragmented media landscape, events like the Super Bowl are prized by advertisers for the exposure they offer.

More than 100 million people are expected to tune in this Sunday when the Philadelphia Eagles take on the Kansas City Chiefs. Many watching the game will be just as attentive to the commercials as they are to the action on the field. These commercials are an institution in and of themselves, with the ads generating conversation for weeks ahead and days after the Big Game. Well-crafted Super Bowl ads may be recalled by consumers years after their debut.

But capturing those eyeballs comes at a steep cost. This year companies are paying about $7 million for a 30-second spot — and that’s just for the air time. Layer on top of that, the cost of hiring the talent needed to produce the ad, and the costs spiral even higher.

Advertisers come and go

The value of that spending can be fiercely debated. For companies that sell beer, chips or cars, the game is often an annual ritual. But other advertisers may come and go.

This certainly is true for the crypto companies that bought up airtime last year. Cryptocurrency exchange FTX had received accolades for its ad, which starred comedian Larry David as a time-traveling skeptic, pooh-poohing inventions from the wheel to the light bulb. The commercial encouraged viewers not to doubt cryptocurrency. “Don’t be like Larry,” it said.

Months later, it seems some skepticism was warranted. FTX, now bankrupt, has collapsed in a scandal that is being investigated by federal prosecutors.

So does Super Bowl exposure truly help boost business? Going by the companies’ share prices, most didn’t have a great 2022.

Take Coinbase, another cryptocurrency exchange. Its bouncing QR-code commercial was hailed as wildly successful. It drove so many viewers to Coinbase’s app that it crashed on the night of the Super Bowl.

Coinbase’s stock is down 64% since that evening. And the company said it won’t be back for this year’s game.

The Super Bowl ad curse

FactSet Universal Screening
Symbol Name Stock Exchange Sector/Industry Market Value Price change since 14/2/2022 $ lost/made if invested $10,000 Upside to avg PT (%) (%) Buy Rating
CVNA Carvana, Class A NYSE Consumer Cyclicals 2,645.8 -90.0 -9,000.0 -23.4 11.1
VRM Vroom NASDAQ Consumer Cyclicals 163.0 -82.9 -8,290.0 13.7 0.0
COIN Coinbase Global, Class A NASDAQ Finance 15,760.5 -64.4 -6,440.0 -5.0 26.7
AMCX AMC Networks, Class A NASDAQ Consumer Services 775.4 -57.4 -5,740.0 7.4 0.0
FVRR Fiverr International NYSE Technology 1,599.6 -47.6 -4,760.0 -8.4 60.0
EXPE Expedia Group NASDAQ Consumer Services 18,598.2 -39.6 -3,960.0 5.1 46.7
MNDY NASDAQ Technology 6,423.8 -37.1 -3,710.0 1.4 88.2
PARA Paramount Global Class B NASDAQ Consumer Services 14,696.1 -36.0 -3,600.0 -14.9 24.1
AMZN NASDAQ Consumer Non-Cyclicals 1,025,238.0 -35.5 -3,550.0 32.3 76.8
GOOGL Alphabet, Class A NASDAQ Technology 1,276,392.0 -26.7 -2,670.0 29.2 74.0
DKNG DraftKings, Class A NASDAQ Consumer Services 14,875.7 -20.4 -2,040.0 13.9 48.4
INTU Intuit NASDAQ Technology 118,477.5 -20.3 -2,030.0 10.7 71.4
CRM Salesforce NYSE Technology 169,630.0 -17.8 -1,780.0 6.7 66.7
META Meta Platforms, Class A NASDAQ Technology 475,590.5 -15.7 -1,570.0 8.8 56.9
GM General Motors NYSE Consumer Cyclicals 57,975.1 -14.1 -1,410.0 11.2 54.2
MSFT Microsoft NASDAQ Technology 1,985,486.0 -9.6 -960.0 5.1 72.5
PLNT Planet Fitness, Class A NYSE Consumer Services 7,456.9 -9.6 -960.0 11.6 88.2
NFLX Netflix NASDAQ Technology 163,366.5 -7.5 -750.0 -3.5 42.2
BKNG Booking Holdings NASDAQ Consumer Services 94,067.4 -4.7 -470.0 -2.0 50.0
PEP PepsiCo NASDAQ Consumer Non-Cyclicals 235,808.7 2.7 270.0 10.0 34.8
K Kellogg NYSE Consumer Non-Cyclicals 22,934.1 3.8 380.0 7.6 9.5
WMT Walmart NYSE Consumer Non-Cyclicals 378,145.3 4.7 470.0 13.9 54.8
YUM Yum! Brands NYSE Consumer Services 37,019.4 8.3 830.0 7.2 33.3
TMUS T-Mobile US NASDAQ Telecommunications 178,921.8 14.6 1,460.0 22.9 75.8
HOLX Hologic NASDAQ Healthcare 21,107.5 21.8 2,180.0 3.3 38.1

Source: CNBC; FactSet

Shares of online auto sellers Carvana and Vroom have fared even worse. Their stocks are down 90% and nearly 83%, respectively. Neither will advertise during the game this year.

Of course, the steep declines of some of last year’s advertisers speak to broader declines in the market last year, with a number of tech names on the list faring the worst.

‘Not a good look’

Source link

Denial of responsibility! Planetconcerns is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment