Advertising Costs A Risk?

This past weekend the National Football League hosted the Superbowl in Miami, Florida. The game showcased the league's top two teams, the Indianapolis Colts and the New Orleans Saints. Fans tune in to the game to watch some of the sports greatest athletes perform on a huge national stage, to witness a spectacular halftime show, and to view commercials. Over the years commercials have become as entertaining as the actual games.

For this year's game it was estimated that companies would be paying an average of 2.5 to 3 million dollars for a 30 second commercial. The question I am asking is, are these advertising costs worth the large sums of money?

As I watched Sunday's game I was curious to see what companies were going to take the risk of advertising during commercial breaks. What kind of benefits does Superbowl advertising bring to a company? Advertising increases value for consumers. When companies are able to "differentiate themselves and highlight their unique selling points, advertising stimulates competition in the marketplace." Advertising can also stimulate economic growth.

With only 30 seconds to catch the eye of consumers companies have to be clever in their approach to commercials. They want to have something that makes consumers want their product and be willing to pay money to get it. After watching some of the commercials I was impressed with some of the advertising. I like Doritos already but after seeing some of their commercials I will more than likely buy Doritos next time I go get groceries. It appears to me that advertising is very beneficial for companies. Advertising expenses are worth the costs.