San Diego, CA (PressExposure) February 03, 2009 -- Unlike the exciting cliff hanger football game that is a Mecca for mass-marketers, franchised businesses again dominated in advertising buys in 2009. During Super Bowl XLIII, companies engaged in franchising outspent all other combined enterprises by an estimated $14 million dollars.
These numbers are even more dramatic when 23 NBC network promotional spots and 7.5 NFL spots are added to the mix. Both NBC and the NFL have franchised affiliates, and if the value of these 30+ ads are factored in the amount balloons to more than $100 million. In all, 64% (81.5 ads) of some 128 ads that aired during the 4 hour game broadcast came from businesses engaged in franchising.
According to American Association of Franchisees and Dealers (AAFD) Chairman Robert Purvin, who launched the organizationâs Advertising Super Bowl survey 22 years ago, âSuper Bowl advertising continues to demonstrate the power of franchising. How else can small business owners afford to share their messages with almost 100 million households at one time?â
Financial markets have been paying close attention to the willingness of advertisers to embrace the high ticket cost of advertising on network televisionâs grandest stage, with many concerned the Super Bowl advertising would be yet one more victim of an economic meltdown. If anything, franchisors have seemed to ratchet up marketing efforts to fight back against slowing sales.
NBC reportedly charged a record average price of almost $3 million per 30-second spot ($100,000 per second). The higher cost didnât seem to impact advertiser demand as NBC reported it sold out the available 69 national network spots. (Each local network affiliate franchise sold about 30 local spots). The total number of spots played during the game earned NBC an estimated $270 million dollars.
Yet for a single 30 second spot of $1.5 million, the advertising cost for a ubiquitous franchise such as McDonalds (who aired two ads this year) breaks down to under $100 per store when divided among the approximate 15,000 US restaurants in the chain. âThe collective marketing power among franchised businesses is formidable,â adds Purvin.
Among companies that market through franchising, those companies that manufacture products that are distributed through independent dealer networks (called âproduct franchisorsâ in the trade) easily dominated the ad buys. A robust 37 ads were placed by companies who sell cars, beverages, cosmetics and insurance through independent networks.
Business format franchisors -- those businesses that consumers traditionally associate with franchising â accounted for 21 commercials (double the number from 2008), including spots from McDonalds, Taco Bell, Cars.com, and regional entries (on the West Coast where the survey was conducted) from Jack-in-the Box. The business format segment was even more active in the pre- and post-game markets.
Budweiser again led all advertisers with 4 minutes of air time (about 8 spots), earning it exclusive rights to broadcast during the game and shutting out competitors Miller Brewing and Coors (both of which advertised in the pre-game).
After Anheuser-Busch, only six advertisers ran more than one or two commercial spots. Pepsi was second to Budweiser, buying several minutes of ad time among its franchised soft drink brands and its non-franchised Frito-Lay brands (primarily Doritos). Hyundai ran several spots during the game as well during the Pre-game show. Honda and Toyota each ran multiple spots for various brands.
American car manufacturers were missing from the prime time telecast. For the first time in years, cooperative networks such as the California Cheese Association, Ace Hardware and the Almond Growers Association all stayed away.
Between 2:00 p.m. and 10:00 p.m. Eastern time, consumers were âtreatedâ to almost 2 hours and fifteen minutes of thirty-second ads (approximately 270), 64% of which were placed by companies engaged in franchising. This was about the same ratio as 2007 and 2008.
Entertainment related ads, primarily motion picture promos, led the non-franchised segment with 16 spots. Manufacturers slid to second place with 13 ads, including electronics, food producers and pharmaceuticals. Retailers fell off dramatically, with one ad each from Best Buy and Kay Jewelers, as compared to 9 spots placed in 2008. On the flip side, on-line retailers showed a dramatic increase, with multiple spots run by Monster.com, GoDaddy.com and E-Trade, among several others.
During the game approximately 67 different companies advertised. In addition there were two public service announcements.
This yearâs crop of ads were less striking than past years, with no candidate seemingly destined for the Super Bowl Ad Hall of Fame, although E-Tradeâs infant stock trader was quite clever. Three other memorable ads were delivered by Budweiser (with a Clydesdale pursuing love and the American Dream) and an office mate being thrown out of a third story building for suggesting that his company save money by no longer providing free Bud Light. Coca-Cola offered a clever âreincarnationâ of the famous Mean Joe Green encounter with a young fan, with All Pro defensive back, Troy Polamalu, tackling a Coca-Cola executive to avenge his young fan.
The AAFD's Fair Franchising Standards, Fair Franchising Seal, Trademark Chapters, and emphasis on marketplace solutions led to the Association's recognition as a growing force in franchising. The AAFD's Branded Partner programs add a new dimension to the value of AAFD membership. The AAFD provides a broad range of member services designed to help franchisees build market power, create legislative support of interest to franchisees, provide legal and financial support, and provide a wide range of general member benefits.
For more information about the conference or the AAFD, please call toll freeâ 610-209-3775 or visit http://www.AAFD.org.