Brands are ‘WASTING their money’ rolling ads during this event, says media CEO

Super Bowl Advertising & Shifting Media Landscape - A Discussion with Gary Vaynerchuk

Key Concepts:

• Super Bowl Advertising Value: The perceived and actual value of advertising during the Super Bowl, including rising costs and ROI considerations.
• Celebrity Endorsement Shift: Changes in the pricing and effectiveness of celebrity endorsements due to the rise of social media influencers.
• Fragmented Fame: The increasing fragmentation of fame and the emergence of new celebrity figures primarily known through digital platforms.
• Platform-Specific Advertising: The need to tailor advertising strategies for different platforms (traditional TV vs. streaming) and the challenges of cross-pollination.
• Event-Driven Advertising ROI: Comparing the return on investment for advertising during different high-profile sporting events (Super Bowl, Olympics, World Cup, NBA All-Star Game).
• MrBeast (Jimmy Donaldson): A highly popular YouTuber and philanthropist, representing the new generation of digital celebrities.

1. Rising Costs & Continued Demand for Super Bowl Ads

The discussion begins with the observation that Super Bowl ad spots are becoming increasingly expensive. A 30-second ad is now reaching $10 million, particularly for those booking late. Despite the high cost, demand remains strong, suggesting companies believe the investment is worthwhile. This is attributed to the cultural significance of the Super Bowl and the perceived underpricing of ad space. Five healthcare and pharma companies – Novartis, Novo Nordisk, Hims & Hers – are slated to advertise during the game, with a notable rivalry existing between Hims & Hers. The expected viewership in 2026 is further driving up prices after a record 2024.

2. The Impact of Streaming & Platform-Specific Strategies

The shift in consumer viewing habits towards streaming platforms like Peacock and NBC raises questions about the relevance of traditional Super Bowl ads. While acknowledging that streaming audiences tend to be younger, Gary Vaynerchuk argues that the core advertising message doesn’t necessarily need to be drastically different across platforms. He notes that streaming services are primarily attracting “local buys” – ads targeted to specific markets – while the Super Bowl remains a largely “omni” event reaching a broad audience. However, he emphasizes the importance of supporting the Super Bowl spot with complementary content on social media.

3. The Changing Landscape of Celebrity Endorsements

A significant trend discussed is the decline in the value of traditional A-list celebrities for advertising. Companies are becoming more budget-conscious, willing to pay celebrities less (e.g., offering $3 million instead of $10 million) due to the proliferation of fame through social media. Vaynerchuk states, “Good celebrities are getting paid less. They aren’t as valuable as they used to be because now everybody is a celebrity because of social media.” He contrasts the value of fame in 1989/1997 with the current landscape, where numerous individuals achieve notoriety through the internet.

4. The Rise of Digital Influencers & Fragmented Fame

This point is exemplified by Salesforce’s use of Jimmy Donaldson, known as “MrBeast,” a popular YouTuber. The interviewer’s unfamiliarity with MrBeast highlights the fragmentation of fame. Vaynerchuk explains that while MrBeast is incredibly famous online, he may not be known to those primarily consuming traditional media. He emphasizes that fame is no longer concentrated in a few channels, leading to different pricing structures for celebrity endorsements. He contrasts MrBeast with established celebrities like Kendall Jenner and Sabrina Carpenter, who are also featured in Super Bowl commercials.

5. The Kellogg’s Raisin Bran & Will Shatner Commercial

The conversation features a clip of the Kellogg’s Raisin Bran commercial starring Will Shatner. Vaynerchuk’s campaign uses Shatner to playfully promote fiber intake with the slogan “Will Shat bring fiber to the masses.” This example illustrates the use of a well-known figure to create a memorable and humorous ad.

6. Comparative ROI of Major Sporting Events

Vaynerchuk argues that the Super Bowl offers the best return on investment for advertising because people actively want to watch the commercials. He contrasts this with events like the NBA All-Star Game, the Olympics, and the World Cup, where viewers are primarily focused on the sporting events themselves and less interested in the advertisements. He states, “Super Bowl is the best because people want to watch the commercials. At NBA All-Star and the Olympics and World Cup, nobody wants to watch commercials.” He advises clients to be strategic with their spending, particularly in a tightening market. He acknowledges the World Cup’s global reach but reiterates that viewers are not tuning in to see the commercials.

7. Market Correction & Strategic Spending

Vaynerchuk emphasizes the importance of a market-driven approach to advertising. He believes the market will correct itself, and companies need to make every penny work hard, especially in the current economic climate. He reiterates the iconic status of the Super Bowl commercial and suggests that advertising dollars may be better spent elsewhere during other major sporting events.

Notable Quotes:

• Gary Vaynerchuk: “Companies are realizing Super Bowl ads are actually underpriced in my opinion.”
• Gary Vaynerchuk: “Good celebrities are getting paid less. They aren’t as valuable as they used to be because now everybody is a celebrity because of social media.”
• Gary Vaynerchuk: “The market is the market is the market and it will correct itself.”
• Gary Vaynerchuk: “Super Bowl is the best because people want to watch the commercials. At NBA All-Star and the Olympics and World Cup, nobody wants to watch commercials.”

Technical Terms:

• Omni-Channel Advertising: A marketing approach that uses a combination of channels to reach customers, aiming for a seamless and integrated experience.
• Local Buys: Advertising purchases targeted to specific geographic markets rather than a national audience.
• Cross-Pollination (of audiences): The overlap between audiences consuming content on different platforms (e.g., network TV and streaming).
• ROI (Return on Investment): A measure of the profitability of an investment, in this case, advertising spend.

Logical Connections:

The conversation flows logically from the initial observation of rising Super Bowl ad costs to a broader discussion of the changing media landscape and the evolving value of celebrity endorsements. The examples of MrBeast and Will Shatner serve to illustrate the points about fragmented fame and the need for creative advertising strategies. The comparison of different sporting events highlights the importance of understanding audience motivations and maximizing ROI.

Data & Statistics:

• Super Bowl Ad Cost (2024): $10 million for a 30-second spot.

Conclusion:

The discussion highlights a significant shift in the advertising landscape. While the Super Bowl remains a highly valuable advertising platform due to its cultural significance and engaged audience, companies must adapt their strategies to account for the rise of streaming, the fragmentation of fame, and the changing value of celebrity endorsements. Strategic spending, platform-specific messaging, and a focus on ROI are crucial for success in this evolving environment. The emphasis on the Super Bowl as an event where people want to watch the commercials underscores its unique position in the advertising world.