There were a number of articles floating around before and after the Super Bowl contrasting the cost of a single 30-sec spot with other ways in which that $4.5 million could be spent. I’m sure some of those alternatives would make better sense for some advertisers. But a $39 CPM ain’t bad for an instantaneous unduplicated reach of 114.4 million and the kind of engagement that leaves people talking about your ad for days, weeks, and maybe years.
Recent news about initiatives to bring automated and programmatic/data-driven access to TV advertising has brought out the typical buzz-kills, with the not-unexpected bogeyman: programmatic buying combined with the proliferation of IP-connected viewing devices will turn the TV advertising business into a revenue wasteland. Such doomsday predictions are based upon the flawed assumption that the adoption and integration of digital advertising technologies will trigger the same collapse of CPMs seen with online video. The assumption is flawed because it doesn’t take into account the nature and relative scarcity of TV content; YouTube videos and entertainment-grade shows such as Breaking Bad are at opposite ends of both the audience involvement and cost-to-produce spectra. Read More