Why do brands pay $7M for a 30 sec Super Bowl TV ad?

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47-second explainer on how brands make money from Super Bowl ads. 

Let's dive into this. Brands pay $7 million for a 30-second Super Bowl TV ad. $7 million! But what do they get in return for this? 

They get to advertise to one of the largest TV audiences in the world. In fact, last Sunday's Super Bowl had an average of 123 + million viewers. 

You may be wondering, 'All this sounds great, but how does a company know if $7 million for a 30-second ad was worth it?'

It really depends on what the company hopes to achieve with that ad. Let me share a simple example of how a company wishing to increase its sales (sell more of whatever it sells) through the Super Bowl ad may measure if $7 million was worth it.

Imagine the company is selling an average of $200 million of their products monthly. If, during the month of the Super Bowl ad, the company sells $250 million worth of products, The extra $50 million ($250M-$200M) can be considered additional sales that happened due to the Super Bowl ad (assuming they did nothing else differently). 

This imaginary company achieved $50 million in sales by spending $7M. That's a win! 

 Now you know why brands spend a ton on these Super Bowl Ads! 

Note: This is our first sponsored post, and we're excited about it. Every time you click on a link below, we make money! 

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