The Super Bowl Ads: A High-Stakes Gamble for Brands
With America’s biggest sporting event approaching, the Super Bowl is not just a showdown on the field; it is also a lucrative opportunity for advertisers. Companies invest millions of dollars in extravagant commercials, aiming to enhance brand recognition, drive sales, and possibly elevate their stock prices.
Is an $8 Million Ad Worth the Investment?
This year’s cost for a 30-second Super Bowl ad has reached $8 million, up from $7 million last year. This hefty price raises an important question: Do these ads deliver results? Fans often enjoy the commercials as much as the game itself. However, achieving a solid return on investment is crucial for advertisers. Market research by Cint indicates a favorable trend; a survey of 300 adults revealed that 61% are likely to alter their perception of a brand based on its Super Bowl ad, while 41% view brands that advertise during the game positively.
AI Becomes a Central Theme in Super Bowl Ads
Although food and drink brands will still take center stage, this year’s Super Bowl will showcase a surge in AI-driven commercials from major technology players. OpenAI (privately held), Alphabet GOOGL, Meta META, Salesforce CRM, GoDaddy GDDY, and Booking Holdings BKNG are heavily investing in AI advertising. The presence of AI in the Super Bowl will manifest in two distinct forms: advertisements discussing AI and those generated using AI technologies.
OpenAI’s Bold Entry as Google Attempts a Comeback
OpenAI, known for its ChatGPT technology, is stepping into the Super Bowl advertising arena this year. ChatGPT ignited a revolution in AI, but the company now faces stiff competition. Notably, the Chinese startup DeepSeek AI has shown that innovation doesn’t always require substantial funding. Despite facing global security concerns, DeepSeek’s AI assistant app has surged to the top of the Apple App Store charts, outperforming ChatGPT in downloads.
Sensor Tower data shows that DeepSeek’s app racked up 16 million downloads within its first 18 days, while ChatGPT garnered 9 million during the same timeframe. Additionally, DeepSeek boasts the title of the most downloaded app on the Google Play Store.
OpenAI’s decision to advertise during the Super Bowl represents a significant move to solidify its brand in a competitive field and attract more users.
Meanwhile, Google is promoting its new AI model, Gemini 2.0, through Super Bowl ads. An initial promotional clip about a Wisconsin cheese market gained attention for the wrong reasons, as it misrepresented Gouda consumption. Following the backlash, Google had to adjust its advertisement strategy.
Major Brands Embrace AI-Enhanced Advertising Strategies
The interest in AI-powered ads extends beyond OpenAI and Google. Companies such as Meta, Salesforce, Booking.com, and GoDaddy are also stepping up their game.
Meta aims to highlight its AI-driven Ray-Ban smart glasses in a lively ad featuring Chris Pratt and Chris Hemsworth. Set in an art gallery, the two stars discover they have stumbled into Kris Jenner’s private collection, leading to a fun and energetic advertisement that aligns with Meta’s brand tone.
Salesforce is also attempting to catch viewers’ attention with a commercial featuring Matthew McConaughey. The ad showcases its AI assistant, Agentforce, demonstrating how AI can manage customer service challenges and ensure a smooth dining experience.
Booking.com’s advertisement adopts a more subtle approach, featuring The Muppets. In the ad, Miss Piggy enjoys luxury accommodation, Kermit relaxes on a beach, and Animal wreaks harmless havoc. The underlying message emphasizes how AI can help travelers find ideal vacations effortlessly.
GoDaddy’s “Act Like You Know” ad features Walton Goggins and promotes its AI-powered website builder, GoDaddy Airo. The clever concept compares the functions of AI business tools to an actor effortlessly slipping into various roles.
The Bottom Line
These Super Bowl ads are poised to enhance brand visibility. However, whether the striking costs of these advertisements will result in significant revenue growth remains uncertain. One thing is clear: AI is now an integral part of our lives, and these cutting-edge commercials may represent the future of marketing. Regardless of their direct impact on financial results, it appears that AI’s prevalence in advertising will only continue to expand, with many brands likely to embrace it in upcoming years.
Unlock the Potential of Nuclear Energy in Today’s Market
Rising electricity demand is pressing us to move away from fossil fuels like oil and natural gas. Nuclear energy presents an effective alternative.
Leaders from the US and 21 additional countries recently pledged to TRIPLE global nuclear energy capacities. This ambitious shift could result in substantial gains for nuclear-associated stocks — especially for investors who act early.
Our urgent report, Atomic Opportunity: Nuclear Energy’s Comeback, delves into key players and technologies shaping this market opportunity, featuring three standout stocks poised for potential growth.
Download Atomic Opportunity: Nuclear Energy’s Comeback free today.
Interested in the latest insights from Zacks Investment Research? Today, you can access a report on the 7 Best Stocks for the Next 30 Days for free.
Salesforce Inc. (CRM): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
GoDaddy Inc. (GDDY): Free Stock Analysis Report
Booking Holdings Inc. (BKNG): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
To read this article on Zacks.com, click here.
Zacks Investment Research
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.