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Advertising Super Bowl XXII: Domination for
Franchising |
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In
the face of the stiff winds of economic distress for the US
and world economies, for the 21st time in 22 years the
percentage of
Super Bowl ads purchased by franchisors dominated
non-franchised enterprises. 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. |
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According to
American Association of Franchisees and Dealers (AAFD)
Chairman Robert Purvin, who launched the organization’s
Advertising Super Bowl survey 22 years ago, “Super
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?”
Financial markets have been paying close attention to the
willingness of advertisers to embrace the high ticket cost
of advertising on network television’s 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 didn’t 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. “The collective
marketing
power among franchised businesses is formidable,”
adds Purvin.
Among companies that market through franchising, those
companies that manufacture products that are distributed
through independent dealer networks (called ‘product
franchisors’ 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 –
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 Pregame 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 ‘treated’ 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 year’s crop of ads were less striking than past years,
with no candidate seemingly destined for the Super Bowl Ad
Hall of Fame, although
E-Trade’s
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 ‘reincarnation’ 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.
About the AAFD
The American Association of Franchisees and Dealers is the
oldest and largest direct member non-profit trade
association representing the interests of franchisees and
independent dealer networks throughout the United States.
The AAFD was formed in 1992 with a mission to define and
promote collaborative franchise cultures that the AAFD
describes as Total Quality Franchising. Stressing market
solutions and franchisee empowerment through independent
franchisee associations, the AAFD has grown to represent
more than 50,000 franchised businesses nationwide, with
members in all 50 states.
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 free – 610-209-3775 or visit
www.AAFD.org
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