How the Super Bowl has Become Big Business

Super Bowl 56 was a thrilling encounter between the Los Angeles Rams and the Cincinnati Bengals. It was the Rams who came out on top, in a close-fought game that ended 23-20 and saw the Rams walk away with the Lombardi trophy for the first time in 22 years.

The event has come a long way since the very first Super Bowl back in 1967, which took place between the Green Bay Packers and the Kansas City Chiefs. The Packers beat the Chiefs 35-10. Today, it's possible to bet on games over the internet by placing your wager with online sportsbooks. Of course, it varies state by state, but this long list of New Jersey betting promotions at OLBG will help you know who you should place your bet with. Gambling has become a huge part of the Super Bowl and looks like to continue into the future.

Below is a look at advertising during the NFL and the revenue it generates.

Advertising during the Super Bowl

As you can imagine, advertising during the biggest event in the US sporting calendar costs more than just a few dollars. Millions are watching the game, so the broadcast offers companies a huge opportunity to make a lot of people aware of their products.

The cost of TV slots during the Super Bowl broadcast has risen a lot throughout the decades. In 2002, the average cost of a 30 second TV advert slot was around $2.2 million; in 2022, the average cost was approximately $6.5 million, according to data published on the website of consumer and market data company Statista. Some news sites have reported the figure to be around $7 million, however. Either way, some heavy cheques are being written.

The biggest advertisers

Such a big opportunity is hard to resist for those companies that can afford to pay for a commercial slot during the game. In 2021, PepsiCo and T-Mobile were two of the largest advertisers. Anheuser-Busch trumped them all, however, by spending $52 million on the game.

Sponsorship and the Super Bowl

Sponsorship of the Super Bowl is a huge money spinner for the NFL. The halftime show is especially important in this regard. Since 2012, Pepsi have held the rights to the halftime show since 2012, which has been part of a larger marketing deal reported to be worth more than $2 billion.

Before this, auto parts manufacturer Bridgestone had owned the show's rights. Each year, they'd paid up to $10 million. However, experts have estimated that the value of the show could range from $25 million to $50 million.

Now speculation exists as to who will own the rights to the show, as the Pepsi deal expires in 2022. Some news sites have reported it's still possible for Pepsi to renew their deal. Experts have pointed out, however, that the NFL might be considering removing the halftime show from future deals and selling it as a separate asset.

Revenue through fans viewing

Sponsorship may generate staggering sums, but the Super Bowl generates huge figures in other ways, too. Ticket sales are one, creating millions of dollars of income for the NFL. Tickets for the 2022 Super Bowl ranged between $950 and $6,200, not including the five-figure luxury boxes, according to figures reported from other sources on The Street website.

TV rights, however, generate even more. Collectively, CBS, Fox and NBC pay the NFL $3 billion for the rights to broadcast the Super Bowl. In 2021, the league signed an 11-year-deal media rights deal, reported to be worth $110 billion, with CBS, NBC, Fox, Amazon and ESPN amongst other companies. The deal is set to begin in 2023.

Leading up to the game and during, it the NFL will also make tens of millions of dollars in merchandising sales.

Outside of Los Angeles

Of course, even if fans aren't splashing out on tickets to attend the game, they're still getting excited about the biggest clash in the NFL calendar.

The National Retail Federation, before the 2022 Super Bowl, had expected fans to spend around $79 on average to celebrate the game in the form of drinks, food, decorations or other merchandise. The event was expected to generate $14.6 billion nationwide in spending. Super Bowl parties were one potential contribution to this figure.

The factor of Super Bowls is perhaps one of the reasons the Super Bowl generates so much income. Watching the Super Bowl is a shared experience. Some people are interested in the game, whereas others are interested in the halftime show. Even the advertising itself has become a phenomenon of the Super Bowl, with people tuning in just to see the ads or following all things Super Bowl, including the marketing, on social media.

The Super Bowl is one of the greatest sporting events on Earth and is a major opportunity for companies to promote their products. Everyone wants to be a part of it, whether they're holding a Super Bowl party, attending the game or just buying some merchandise, so it's a good opportunity for the NFL too.