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Advertisers Bet Big on Superbowl Ads

This weekend sports fans around the world will crowd in front of their television sets to watch the San Francisco 49ers and Baltimore Ravens battle head to head in the biggest sporting event of the year… the Superbowl.

Understanding just how big the viewership of the Superbowl is, marketing companies put long hours coming up with the best Superbowl ads possible for their clients. Each year companies try to outdo themselves, and over time commercials have become an integral part of the overall Superbowl experience.

A few companies that always have great commercials during the Superbowl include Pepsi (PEP) and Coke (KO), and Anheuser Busch (BUD) never fails to bring something original as well.

One of the most successful companies in recent years to capitalize on the mania surrounding the Superbowl has been E-Trade (ETFC). No one can forget their catch commercials featuring a baby executing trades from the comfort of his crib. This will be the sixth consecutive year that E-Trade will have a commercial, and as in years past it will lead to a huge jump in site traffic, and help strengthen the company’s already strong brand recognition.

For big companies such as these, dropping a few million dollars for an ad is not that big of deal, but for smaller companies it becomes more of a gamble. We all remember how strong the dot-com industry was back in 2000, and that year we saw a lot of internet companies drop big bucks to advertise during the Superbowl. Of all those internet companies, 42 percent went bankrupt over the following twelve months. Granted, the bursting of the internet bubble played a major factor in these results, but it does show that advertising during the Superbowl does not guarantee a company’s future success.

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.