Super Bowl Race for Consumers, Ad Dollars Continues Online
Just as CBS victorious proclaimed its telecast of Super Bowl XLIV the most-watched program in TV history with 106.5 million viewers, Forrester Research reported 62 percent of advertisers it surveyed find TV less effective and exploring alternatives to 30-second commercials as they shift dollars to social media and online search.
Such is the dichotomy that taunts the broadcast networks and advertisers as they straddle television and online media.
CBS charged up to $3 million per spot to reap more than $200 million in revenues because the Super Bowl is the mass audience live event television still does so well. TV ratings continue to be based on Nielsen sampling estimates that generally find CBS attracting a mere fraction of those viewers (and advertising dollars) on Sunday night. (CBS owns BNET.)
This year's Super Bowl gained considerable traction online, as a streaming video, related Facebook conversations and millions voting for their favorites game commercials on Hulu's AdZone or on YouTube's AdBlitz. Nielsen reported 12 percent of Super Bowl viewers used the web during the game-mostly on Facebook and Google search.
Since advertisers generally follow consumers, it is not surprising that the Forrester survey conducted with the Association of National Advertisers found marketers plan to hold their TV spending to 41 percent of their ad budgets - the same as last year but far less than 58 percent two years ago. A fifth of the 104 domestic advertisers queried (representing $14 billion in measured media budgets) guessed the survival rate for TV's 30-second spot staple is not more than 10 years. Three-quarters of the respondents say interactive TV advertising will be an effective lead generator - someday.
What that means is that broadcasters must intensify their move to the online and mobile media spaces where consumers are flocking - even to watch their favorite TV shows and commercials. The occasional live big event isn't going to cut it, and even some of those are no longer profitable. NBC Universal expects to lose about $200 million on its exclusive carriage on TV and online of next week's Vancouver Winter Olympics.
Three-quarters of Super Bowl viewers visited advertisers websites before, during and after the game, according to data from Akamai, a platform facilitator that gets Internet content from provides to consumers. Internet traffic to Super Bowl advertiser averaged 275,000 visitors per minute during the game but spiked to an average 1.17 million visitors per minute after the game.
Such data reinforces the notion that consumers increasingly view and respond to television programs online. Visiting their interactive websites provides advertisers with initial contact and rapport on which to continuously draw for market research, social media participation, and transactions. What could be better?
Some 77 percent of the advertisers surveyed by Forrester and the ANA said they will move dollars to social media this year, 73 percent will shift to online marketing and 59 percent will spend more on search engines.
Little wonder that Nielsen this week announced it is hastening its move to provide data about commercials regardless of the medium where they are viewed - on TV or online. The ratings will only apply to commercials that appear in the context of a TV program the same way online as on TV. That's a questionable strategy since most TV programs now appear online with far fewer commercials intact which are better suited to the short attention spans of online viewers.
Whether Nielsen is ready or not, CBS and its three broadcast network rivals (ABC, NBC and Fox) will package even more of their television time during the spring's annual upfront market with online and mobile exposure demanded by advertisers.
Although live sporting events and award shows remain among the only places on television where advertisers can realize a hefty return on their premium priced investments, even Super Bowl XLIV is not considered the be all and end all, as pointed out by Ad Age's Brian Steinberg. It's just the starting point for content providers and marketers who know how to aggressively leverage their products across the entire digital media spectrum.