Category
Theoretical Proposal
Description
This proposed study aims to examine the return on investment (ROI) of Super Bowl advertisements for individual companies utilizing a comparison of six-month periods before and after the commercials are originally aired at the game. The Super Bowl is a highly favored social event where millions of people gather both in person on location and around television screens. Whether it is the teams, the half-time show, or the commercials, there is clearly something about this event that brings people together, and the publicity does not go unnoticed. Companies pay millions of dollars for a 30-second advertisement. This begs the question of whether or not the cost outweighs the following revenue trends. Thus, this study is designed to examine the following hypothesis: The ROI from sales revenue in a period of six months after a Super Bowl commercial is greater than zero. In a study in 2010, Eastman et al. conducted research on the correlation between advertisement success identified by online reviews and advertisement effectiveness determined by stock market prices. This research proposal aims to examine advertisement effectiveness from a financial perspective by linking the ideas of ROI and cost-benefit analyses. According to Kapucu (2007), cost-benefit analyses are useful tools in weighing the costs and benefits of a particular decision or group of decisions. Traditionally, cost-benefit analyses examine many factors that contribute to decision-making, but this research proposal takes a purely financial approach. While some studies compare ROI purely as a financial ratio (e.g., Smith et al., 2024), this proposal uses the formula “[(Revenue Increase – Advertisement Cost) ÷ Advertisement Cost] x 100” to determine ROI as a percentage. If the percentage is greater than zero, then the profit (Revenue Increase – Advertisement Cost) has outweighed the cost. The research method plan is to collect revenue information from ten selected companies and to perform ROI calculations with their records. The design will also analyze revenue from six months prior to the Super Bowl in order to establish a comparison between pre- and post-Super Bowl advertisements. This study is focused on future applications. Ideally, the research will be used by large corporate companies to inform their decisions on whether or not to advertise during the Super Bowl. Using the research on this topic, financial analysts and marketing agents can continue to make informed decisions on options for their companies’ success.
Financial Return on Investment of Super Bowl Advertising: A Six-Month Post-Air Sales Analysis
Theoretical Proposal
This proposed study aims to examine the return on investment (ROI) of Super Bowl advertisements for individual companies utilizing a comparison of six-month periods before and after the commercials are originally aired at the game. The Super Bowl is a highly favored social event where millions of people gather both in person on location and around television screens. Whether it is the teams, the half-time show, or the commercials, there is clearly something about this event that brings people together, and the publicity does not go unnoticed. Companies pay millions of dollars for a 30-second advertisement. This begs the question of whether or not the cost outweighs the following revenue trends. Thus, this study is designed to examine the following hypothesis: The ROI from sales revenue in a period of six months after a Super Bowl commercial is greater than zero. In a study in 2010, Eastman et al. conducted research on the correlation between advertisement success identified by online reviews and advertisement effectiveness determined by stock market prices. This research proposal aims to examine advertisement effectiveness from a financial perspective by linking the ideas of ROI and cost-benefit analyses. According to Kapucu (2007), cost-benefit analyses are useful tools in weighing the costs and benefits of a particular decision or group of decisions. Traditionally, cost-benefit analyses examine many factors that contribute to decision-making, but this research proposal takes a purely financial approach. While some studies compare ROI purely as a financial ratio (e.g., Smith et al., 2024), this proposal uses the formula “[(Revenue Increase – Advertisement Cost) ÷ Advertisement Cost] x 100” to determine ROI as a percentage. If the percentage is greater than zero, then the profit (Revenue Increase – Advertisement Cost) has outweighed the cost. The research method plan is to collect revenue information from ten selected companies and to perform ROI calculations with their records. The design will also analyze revenue from six months prior to the Super Bowl in order to establish a comparison between pre- and post-Super Bowl advertisements. This study is focused on future applications. Ideally, the research will be used by large corporate companies to inform their decisions on whether or not to advertise during the Super Bowl. Using the research on this topic, financial analysts and marketing agents can continue to make informed decisions on options for their companies’ success.
