As the national holiday known as Super Bowl Sunday fast approaches, retailers and marketers have ramped up efforts to compete for consumers’ spending. Last year’s game was the most watched television program of all time, attracting an average audience of 106.5 million U.S. viewers and viewed in 51.7 million households. This year, viewership is expected to surpass that level and attendance at the game is projected to hit 105,000 fans, also a record.
The game is not only perennially the most-watched television event of the year and a gold mine for advertisers, but also a bonanza for food, electronics and apparel retailers as consumers typically spend as much during Super Bowl weekend as they do for Father’s Day.
According to the Retail Advertising and Marketing Association’s (RAMA) 2011 Super Bowl survey, conducted by BIGresearch, the average consumer will ramp up their spending from $52.63 to $59.33 this year, while total spending on game-related merchandise, apparel and snacks is expected to increase to $10.145 billion from $8.868 billion a year ago.
| Average Spend per Viewer | Total Spend (millions) | |
|---|---|---|
| 2011 | $ 59.33 | $10,145 |
| 2010 | $ 52.63 | $ 8,868 |
| 2009 | $ 57.27 | $ 9,563 |
| 2008 | $ 59.90 | $ 9,467 |
| 2007 | $ 56.04 | $ 8,708 |
| 2006 | $ 49.39 | $ 5,300 |
| 2005 | $ 49.27 | $ 5,600 |
The survey suggests about 171 million Americans will watch at least part of the game and nearly 34.9 million are planning to throw their own party, with another 61.2 million planning to attend a party. After a disappointing holiday season for electronics retailers, the big game represents a huge opportunity as 4.5 million people will take advantage of retailers’ promotions and buy a new television, compared to the 3.6 million who said they would last year and 2.7 million in 2009.
The vast majority of spending (69.5%) will go towards food and beverages, so it’s no surprise Super Bowl Sunday is the most important snack-purchasing day of the entire year according to Nielsen, followed by the day before the big game. The company said viewers stocked their at home parties with nearly 166 million pounds of snacks last year, led by 44 million pounds of potato chips. Believe it or not, the most popular food consumed in homes on game day is vegetables according to NPD Group.
And of course, football and beer go hand in hand – though Super Bowl is ranked just seventh on the list of highest beer-selling occasions for the year, consumption is increasing as over 49 million cases were sold during the two-week period surrounding the 2009 Super Bowl. All of this represents a huge opportunity for grocery and convenience stores:
“At-home viewing of the Super Bowl is predominantly more of an opportunity for grocery stores, rather than other CPG retailers,” said Nick Lake, vice president, group client director, Beverage Alcohol at Nielsen. “Today’s consumers want value but also want convenience. While picking up snacks and soda, they’re adding beer to their grocery baskets. In the week leading up to the Super Bowl, look for heavy promotions at grocery stores, encouraging consumers to take advantage of the one-stop-shop for their Super Bowl party needs.”
Earlier this month, Kantar Media reported that from 2001 through 2010, the Super Bowl game has accounted for 425 minutes – over seven full hours – of commercial time representing more than 850 announcements and $1.62 billion of network advertising sales.
However, the exponential growth in the cost of advertising has plateaued, as the expected cost of a 30-second spot will be around $3.0 million for the third year in a row.
Based on the RAMA/bigResearch survey, football fans tune in for the action, with 47.0% of viewers saying the game is the most important part. However, over one-quarter (25.8%) watch for the commercials, with nearly three-quarters (74.9%) of viewers say they see the commercials as entertainment.
“With millions of people getting together to watch the game every year, advertisers plan and prepare meticulously for this annual opportunity to reach and engage viewers with bolder and more effective ways,” said Phil Rist, Executive Vice President, Strategic Initiatives, BIGresearch. “With over a quarter of viewers saying the commercials are the most important part, it’s clear the Super Bowl isn’t just about football.”
The bottom line is this year’s Super Bowl will be one of the most, if not the most-watched television events in U.S. history, and will represent the best opportunity for advertisers and marketers to reach a receptive target audience. After several years of restrained spending, consumers are finally starting to gain some confidence and are more willing to make discretionary purchases.
And besides, how many other times this year will the Monday morning water-cooler talk center around tv commercials?
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