USA TODAY International Edition
Super ads ‘ virtually’ sold out despite demand dip
The commercial lineup for Super Bowl 55 is now, finally, all but set.
ViacomCBS confirmed Wednesday to USA TODAY Sports that it has “virtually sold out” its national advertising inventory for the broadcast despite an apparent decline in demand for spots due to COVID- 19.
Ad Age, which first reported the news Wednesday morning, noted that CBS could still make room for a few more spots if it received attractive financial offers for the time.
Several brands that have traditionally been Super Bowl advertising juggernauts – including Budweiser and Pepsi – announced in recent weeks they are skipping this year’s event. Budweiser said it will reallocate its media investment toward vaccine awareness efforts; Pepsi said it is doubling down on its halftime show. The parent companies of both brands, Anheuser- Busch and PepsiCo, are running ads for other products, including Bud Light and Mountain Dew.
According to analysis by research firm Kantar, the two companies were among the three largest spenders during last year’s Super Bowl, spending $ 73 million on ads between them.
Hyundai and Olay are among the other Super Bowl regulars who will be absent, with first- timers like DoorDash, Mercari and Vroom stepping in.
CBS has sought roughly $ 5.5 million for a 30- second spot.
“There’s no question that the demand for Super Bowl ads is down, compared to last year – and compared to recent years,” said Tim Calkins, a clinical professor of marketing at Northwestern University’s Kellogg School of Management. “It’s not the right time for some advertisers, given the state of the economy. So for example, the whole travel industry is not set up to be advertising on the Super Bowl. … Restaurants and hospitality, certainly, they’re not going to step up to advertise in the Super Bowl.”
The pandemic has also led to job losses and budget cuts more broadly across industries – making it difficult, in some instances, for even financially secure brands to justify spending $ 5.5 million for a 30- second spot.
Coca- Cola laid off roughly 17% of its global workforce – about 2,200 employees – last month. It is also declining to run a Super Bowl commercial after spending $ 10 million on such ads last year, according to Kantar.
While Super Bowl advertising is inherently risky, experts say the uncertainty of the past year has made this year’s task particularly daunting for brands.