Nearly half of this year’s 29 host sponsors tapped for America‘s biggest sporting spectacle are publicly traded companies. Here are the top four stocks likely to score a touchdown come Super Bowl Sunday…
Is it any surprise that the 48th installment of the Super Bowl on February 2, 2014 in New York/New Jersey will be the costliest ever?
The estimated $60 million that’s required to put on a massive 2-week block party in and around MetLife Stadium in New Jersey easily trumps the previous record of $30 million that was spent in Dallas-Arlington for 2011’s event.
Neither operating costs nor real estate is ever cheap in the northeast, and keeping an 82,500-seat, open-air stadium as comfortable as possible in sub-freezing temperatures is bound to be a pricy endeavor.
By comparison, last year’s Super Bowl in cozy New Orleans only cost a quarter of what’s being spent in 2014. According to the Sports Business Journal, here are the costs for recent Super Bowl’s…
New York/New Jersey
So who’s expected to foot a big chunk of this $60 million tab? Sponsors, of course.
And for this year’s event, there was no shortage of companies eager to align themselves with the most valuable sports league on the entire planet.
Being conveniently situated in the vicinity of the Big Apple, getting big firms to cough up a million dollars or more to snag a private suite and some company signage at the stadium should’ve been a relatively easy sell, and it was.
After all, where else in the world can you get this type of exposure for your company?
Though some of the Fortune 500s are content to simply have prime seating at the big game for their top clients and executives, others will be using the event as a major promotional push.
Here are our top four winning picks that are taking full advantage of this year’s Super Bowl advertising juggernaut.
1) Anheuser-Busch InBev (NYSE:BUD)
When it comes to the NFL, BUD spares no expenses.
A long-time and popular staple of the Super Bowl, Budweiser has been the major beer advertiser and sponsor for the last quarter century.
In 2012, BUD replaced Molson-Coors (NYSE:TAP) as the official beer of the NFL, with a deal worth approximately $1 billion over six years.
Its flagship Bud Light brand of lager beer will once again take center stage both on and off the field, so expect another highly anticipated campaign of creative 30-second TV spots, along with a slew of Super Bowl-related products, contests, concerts, and memorabilia.
Oh, and did we mention that the Company will be converting a brand new Norwegian cruise ship docked at the Hudson River into a Bud Light Hotel for four nights?
2) Pepsico (NYSE:PEP)
While the airwaves during Super Bowl week will likely see a major presence from rival Coca-Cola (NYSE:KO), Pepsi is far from throwing its sponsorship dollars down the drain.
Not only is it collaborating with Bud Light to co-host concerts on said Hotel, but also Pepsi will once again be sponsoring the Super Bowl halftime show which will be headlined this year by pop superstar, Bruno Mars.
Pepsi has begun rolling out some TV commercials, and is busy plastering ads and billboards throughout New York city streets and subways…and for good reason.
“It’s the biggest game of the year, and this year it’s in the biggest city,” said Lou Arbetter, Senior Director of Trademark at Pepsi.
Also expect to see a lot of people munching on Frito-Lay products at the game.
3) Bank of America (NYSE:BAC)
Being in the business capital of the world, major banks and financial institutions step up to the Super Bowl plate in a big way, much like how oil and gas companies usually pony up for luxury boxes whenever the game goes to Texas (most recently 2011 and 2004).
According to ticket consultant SpotlightTMS, financial firms typically buy up about 1/4 of all sporting tickets in the US, so the opportunity for BAC to splurge on such a colossal event was simply too good to pass up.
In the past, BAC spent millions in large scale, family-related events adjacent to the Super Bowl venue featuring games and attractions. It also partnered with Visa on various Super Bowl sweepstakes.
Though BAC has so far kept mum on what it plans to do for this year’s Super Bowl festivities, the fact that the league has allowed more than one financial institution to be a Host Sponsor this year will likely motivate the banking giant to reach even deeper into its war chest to try and stand out from the likes of JPMorgan Chase, CITI and Goldman Sachs.
4) Verizon (NYSE:VZ)
The nation’s second largest telecom company is synonymous with the NFL as the official sponsor of the halftime show for every NFL regular season game broadcast on CBS.
Now Verizon will be going a step further by taking the Super Bowl experience mobile.
For the first time ever, all NFL playoff games, including Wild Card matchups and the Super Bowl itself, can be streamed live off Verizon devices through the NFL Mobile app.
Legions of loyal football fans who are unable to tune into the big game will no doubt consider becoming Verizon subscribers if they haven’t already. At least that’s what the Company’s hoping for with the multi-billion streaming deal with the NFL.
With more and more people getting their media fix on the go nowadays, Verizon’s pricy marketing strategy has an excellent chance of paying off.
The Locker Room Speech
In 2012, a pre-game survey by Visa (NYSE:V) reported that Americans holding Super Bowl parties were planning to spend an average of $118.
In a similar survey, the National Retail Federation found that Americans were expected to spend some $11 billion to celebrate the game, with the average fan forking out $64 on various food and retail items.
Needless to say, successful execution of marketing campaigns is crucial for these companies in the next few weeks.
But if they pull it off and capture even a small portion of those football fan dollars, we’ll know who the true Super Bowl champs really are.
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