Few Tech Companies In Post-Bubble Days Play Super Ad Game
Wed Jan 28,10:16 AM ET
By Pete Barlas
And then there were three.
Related Quotes
YHOO
DJIA
NASDAQ
^SPC
46.19
10468.37
2077.37
1128.48
-0.85
-141.55
-38.67
-15.57
delayed 20 mins - disclaimer
Quote Data provided by Reuters
Missed Tech Tuesday?
Technology is changing sports-- for better or worse. Plus, tech tools for athletes and sports fans alike.
The Super Bowl is in Houston this year, but most tech companies will stay away.
So far, Sunday's big football game - which every year attracts the biggest TV audience of any single show - has lined up just three tech advertisers. They are America Online, the world's largest Internet access provider and a unit of Time Warner Inc.; online recruiter Monster.com, part of Monster Worldwide Inc.; and online travel company Expedia Inc., a unit of InterActiveCorp.
The Super Bowl is expected to be seen by up to 130 million TV viewers in the U.S. and 1 billion worldwide. That's the good side for advertisers. The other side is that a 30-second commercial spot is going for an average of $2.25 million.
Monster and AOL advertised last year, as did three other tech firms: Sony Computer Entertainment America, AT&T Wireless Inc. and online recruiter Yahoo HotJobs, owned by Web portal Yahoo Inc. (Nasdaq:YHOO - news)
Four years ago, during the bubble era, tech and Internet-related companies accounted for 17 of the 36 companies that advertised during the Super Bowl's TV broadcast.
Many Internet and tech sectors rebounded in 2003, but not enough to justify spending millions for one TV ad, says Ross Rubin, an analyst for research firm eMarketer Inc.
"Part of the focus on getting to profitability was a focus on cutting marketing expenses," he said. "Investors don't want to see companies shelling out millions of dollars on advertising."
Some tech companies say they simply are less excited about the game.
Autobytel Inc., a service that helps sell cars online, moved into the fast ad lane for the Super Bowl in 1997 and 1998.
Though costly - Autobytel's total revenue those years was $15 million and $24 million - the ads paid off for the firm, says Jeffrey Schwartz, Autobytel's chief executive.
"It was a bold move . . . designed to communicate that the Internet was a real business sector and to put Autobytel on the consumer map in one fell swoop - and it worked," he said.
After 1998, the idea of a Super Bowl ad seemed less novel, he said, because "the playing field became cluttered with dot-com advertisers."
Wireless Firm Opts For 'Idol'
As for last year's tech advertisers, AT&T Wireless last week said it's up for sale, with Cingular Wireless seen as the most likely buyer. AT&T Wireless sponsored last year's halftime show. Earlier this month, AT&T Wireless signed on as a sponsor of the "American Idol" TV show.
And the Sony and Yahoo units remain on the sidelines.
HotJobs ran ads in each of the last five Super Bowl telecasts.
Traffic to the HotJobs site has jumped since Yahoo bought the company in 2002. And the firm just started an ad campaign on Jan. 5, which it says has boosted the number of resumes on the site by 30%.
The Super Bowl provided a lot of exposure to HotJobs, but it might not need that any longer, says Marc Karasu, vice president of advertising for Yahoo HotJobs.
"The Super Bowl served us well for five years, (but) our traffic numbers are so huge that we must question whether we even need to do the Super Bowl this year," he said.
Price is an issue, he says.
HotJobs' new campaign includes ads on 12 TV networks that will be far less expensive than a Super Bowl promotion, and likely a better value, says Karasu.
"That kind of promotion is pennies on the dollar compared to the Super Bowl," he said.
But HotJobs rival Monster is back in the Super Bowl ad game. It will run two ads, one in each of the first two quarters. It also will run an ad during the pregame show.
Like HotJobs, Monster advertised in the last five Super Bowl telecasts.
Last year, consumers posted more than 50,000 new resumes on Monster on each of the first two days following the Super Bowl. That's a company record.
Monster makes money by helping companies hire employees.
Many Super Bowl viewers are looking to change jobs or careers early in the year, says Monster founder Jeff Taylor, whose title is chief Monster.
"We are trying to reach people about managing their career or finding a job," he said. "This audience is perfect for us."
Five years ago, two Super Bowl ads amounted to most of Monster's ad budget. Now, Monster spends $125 million a year on ads.
The Super Bowl is still important, but the larger budget means one or two Super Bowl ads aren't make or break, says Taylor. "Those ads are required to do less of a yeoman's duty than in past years," he said.
Millions Likely Will Respond
Other companies also want the fast bang a Super Bowl can bring.
Last year, AOL bought one 15-second spot in the fourth quarter. It also put the video of the Super Bowl ad, and other ads, on its Web site.
Consumers flocked to AOL, says Len Short, executive vice president of brand marketing for AOL.
"The next day, 5.5 million people went online to look at that spot," he said. "It was a tremendous traffic driver for us."
The Super Bowl is bigger than the game, Short points out. Since companies pay such a price, they especially jazz up their ads. So many people watch just to see the commercials.
"Americans are a diverse crowd, and they do different stuff," he said. "But on Super Bowl Sunday, everybody is watching the game. (Advertising) is an opportunity for a company to be a part of that fabric."
This year, AOL is going even more on the offensive. It's sponsoring the game's halftime show. It's also running three 30-second ads, one in each of the first three quarters. The ads will promote the company's new TopSpeed feature, which helps speed up AOL's Internet service.
AOL has also paid for teasers during the game to promote a "free weekend" of service.
Non-AOL subscribers will be able to visit AOL to review video of ads shown during the game, as well as commercials from previous Super Bowls. They can also watch the halftime show on AOL. All programming will be available free to non-members through Feb. 3.
AOL is prepared to handle up to 60 million added unique visitors following the game. Even just half that number would be big win for AOL, says Short.
"I can't imagine," he said, "that we are not going to blow the doors off of the 5.5 million unique visitors we got last year." |
