Benzinga - by Chris Katje, Benzinga Staff Writer.
Super Bowl LVIII will cost companies around $7 million for 30-second TV commercials.
That’s a 185x jump from the original cost of $37,500 for an ad-spot during Super Bowl I in 1967m according to Bank of America chief strategist Michael Hartnett.
To highlight how significant this price increase is, Hartnett looked at several other products and determined how much they would be today if they were trading at the same rate of increase as Super Bowl commercials.
- Chicken Wings: $43 per pound
- Six Pack of Beer: $340
- Gallon of Gasoline: $61
- U.S. Home (average): $4.2 million
- S&P 500: $16,374
Companies continue to bet on the big game and the strong viewership and stage it brings to highlight new products and increase brand awareness.
NFL games continue to dominate the ratings. In 2023, 93 of the top 100 most-watched programs were NFL games, according to data from Nielsen. A report from Variety showed that 45 of the top 100 most-watched primetime broadcasts in 2023 were NFL games.
Super Bowl LVII in 2023 was watched by an average of 113 million viewers, setting a new six-year high for the NFL championship game. The viewership figure also ranks third all-time in television history, trailing only two other Super Bowls (2015, 2017).
With the Taylor Swift factor, viewership could break records in 2024. New fans are likely tune in to see the game, commercials, Usher's halftime performance and Swift watching her boyfriend Travis Kelce.
Other Winners: Speaking of Swift, sportsbooks could see increased betting activity thanks to prop bets involving the singer and Chiefs' tight end Kelce, according to a note from Bank of America analyst Shaun C. Kelley.
"We think the combination of being played in Las Vegas and the storylines of Taylor Swift and Travis Kelce are elevating this game to a higher level," Kelley said.
Calling Super Bowl LVIII "taylor made for sports betting," Kelley said $1.5 billion in wagers are expected on the NFL championship game. This figure is 35% higher than the record set last year.
Kelley points to BetMGM, a joint venture from MGM Resorts International (NYSE:MGM) and Entain, as a potential winner of the big game.
"New player promotions from tier two operators look rational, but BetMGM is launching new ads incl. Tom Brady and Wayne Gretzky to re-accelerate their brand following recent app upgrades."
BetMGM's launch of a new app in Nevada and MGM Resorts physical presence in Las Vegas could stand out for the game, Kelley said.
Kelley also highlights the Caesars Sportsbook from Caesars Entertainment (NASDAQ:CZR) as a potential winner given the Las Vegas location and the company's strong online sports betting market share in the state of Nevada.
With increase in prop bets around Swift, Kelley also thinks ESPN Bet from PENN Entertainment (NASDAQ:PENN) could be a winner with a potential higher proportion of female bettors.
The analyst also highlights online sports betting market share leaders DraftKings Inc (NASDAQ:DKNG) and Flutter Entertainment (NYSE:FLUT) subsidiary FanDuel as being big beneficiaries from increased wagering this year.
Outside of sports betting, Kelley also highlights Wynn Resorts (NASDAQ:WYNN) as a company that could benefit from the Super Bowl being played in Las Vegas.
"On the brick & mortar side, we think WYNN will benefit from the high-end clientele and outperform the rest of the Strip."
Now Read: Taylor Swift, Travis Kelce Offered Cannabis-Themed Wedding Over Super Bowl LVIII Weekend
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