Source: CNBC 2021, Sports Media Watch 2021
How many people watched the Super Bowl 2021?
There were 96.4 million people who watched Super Bowl 2021 (CNBC, 2021). This was lower than last year’s 100.45 million (Sports Media Watch, 2021). Moreover, it doesn’t compare well to 2015’s 114.44 million and even the 111 million recorded in both 2016 and 2017. Also, during the overall 11-year span from 2010 to 2019, the median is 111.3 and the mean is about 108 million. Viewership in the last two years is still far less in comparison. Furthermore, both still rank lowest in that range. The slump is real—but how bad is it?
The numbers are just for television. Keep in mind that there are many alternative viewing channels such as streaming services that carry the NFL and the Super Bowl; many of course are illegal. With this in mind, the recent decline in TV viewership is not as alarming.
To wit, there are also other reasons for such a slump. One major catalyst was Colin Kaepernick’s infamous knee during the national anthem in 2017.
His protest was, arguably, for a good cause. It was against police brutality against people of color. However, the way he went about it did not go well for many people. It caused a big divide. One such offended was former US President Donald Trump, who called for an NFL boycott in 2017 (New York Times, 2017) after the incident. So, that gives it context.
But, football is still a big sport, and Super Bowl, its Everest, is still the biggest sporting event in the land. In 2020, about 69% of US homes with televisions were tuned in to the game (Nielsen, 2021).
Also, Super Bowl remains to be very popular on social media. Super Bowl 54 (2020) generated 43.9 million social media interactions (Forbes, 2021). There is no denying the supremacy of football in America.
Super Bowl TV Viewers Table of Contents
Football Supremacy? NFL’s Declining Numbers
It is not news to sports fans that the football season is shorter and with fewer games than other major sports. Even so, football is still supreme in America, and the NFL is where the most exciting action, the biggest stars, and the most money is. Thus, even with its declining numbers on different fronts, it is still very lucrative. It is even more lucrative than any other popular sports league in America as the league claimed $15 billion in revenues in 2020 (Chicago Tribune, 2020).
Source: Chicago Tribune 2020, ESPN 2020, Forbes 2020, Bleacher Nation 2020,
Furthermore, the NFL extends its dominance in regard to TV ads, with the 2021 edition of the Super Bowl raking in a record $545 million in ad revenues (Deadline, 2021). Interestingly, this occurred when the Super Bowl also set its lowest TV rating since 1969 (Sports Media Watch, 2021). The NFL’s lucrative TV deals have kept the league’s profitability staggeringly high to this day, contrary to what some critics believe.
Source: CBS 2021, Kantar 2021
COVID-19 has virtually wiped out attendance in arenas not just for the NFL, but for all of sports. As a result, after drawing 16.67 million people in the 2019 regular season, the league only managed to attract 2.37 million people to attend games in 2020 (ESPN, 2021). Beyond the pandemic, however, is a small yet consistent decline in game attendance. In response, the NFL has been pushing for increased online mileage.
Source: ESPN 2021
Similar to game attendance, the number of TV viewers slid in 2020. Upon drawing 16.8 million people in 2019, it only drew 14.9 million viewers in 2020 (Variety, 2021). This does not mean, however, that the general interest in the NFL is on the decline. If we take a look at the streaming numbers of the Super Bowl, only 2.6 million viewers streamed the game in 2019, much lower than the 3.4 million in 2020 and 5.7 million in 2021 (Sports Media Watch, 2021), pointing to a shift in preferred means of viewing the game.
Source: Variety 2021
What warrants a positive outlook for the NFL?
Again, declining TV viewership does not really indicate a short-term or long-term slump given the streaming services available already. It is, therefore, expected for people to move towards newer and more convenient channels, and the NFL makes money from these too. Amazon paid the NFL (Observer, 2019) in 2018 around $65 million per year for the simulcast of the next two seasons of Thursday Night Football. The other broadcasting partner is Fox Sports that pays $660 million per year until 2022. More channels mean more reach for the NFL.
There are also key performance areas that are doing pretty well, as mentioned. For example, the Super Bowl TV ad revenue is actually pretty healthy despite the short-term slump; indeed, in the long run, it was really increasing. And a sports league is a long-term investment game. It has everything sports fans want: sports action, divisive figures, and narratives surrounding teams, cities, and players.
COVID-19, however, threw a wrench in the league’s plans by practically eliminating game attendance. Despite this, the National Retail Federation reports that over 186 million people planned to watch Super Bowl 25 (National Retail Federation, 2021). There also was an estimated $13.9 billion in nationwide Super-Bowl-related spending for the game, with the largest chunk of the expenses coming from food and beverages, at 77%. Meanwhile, the average amount spent by each viewer was $74.55.
This further lends credence to the idea that interest in the NFL continues to be high even though some of the numbers are on a downslope.
Source: NRF 2021
The Super Bowl of Advertising is the Super Bowl
There is only one far second when it comes to having the largest TV audience in the US: the Academy Awards show. NFL’s Super Bowl remains not only as the largest sporting TV spectacle but also the largest TV spectacle in the country. As such, both of these giant events draw many companies and brands to spread the word about their products and services on their platforms.
Even with the apparent decline in a few key performance areas in the NFL, brands still consider the Super Bowl to be prime advertising real estate bar none.
Source: Newsweek 2021
The average price of a 30-second ad spot is an all-time high of $5.6 million this 2021 (Newsweek, 2021), identical to the amount in 2020. This upward trend of increasing ad value has been going on since 2010. Top brands continue this tradition of investing in Super Bowl ads, and Super Bowl 55 drew in some big spenders.
Source: Kantar Media 2021
Anheuser-Busch InBev remains the top spender this Super Bowl—the same as last year (Kantar Media, 2021). For Super Bowl 55, the company acquired four 60-second spots for four different brands: Bud Light, Michelob Ultra, Michelob Ultra Pure Gold, and Budweiser.
PepsiCo, in second, also invested in four spots with three 30-second spots and one long-form one. These are for Pepsi Zero Sugar, Mountain Dew Zero Sugar, SodaStream and Cheetos, and Doritos (60 seconds). Tied for second place is Proctor and Gamble with a total time of 2:55 for five Tide ads and one 30-second Olay ad.
Also, in the third spot is Amazon, spending about 26 million for a total time of 2:30. Lastly, Hyundai ranked fifth, spending approximately 22.4 million for three 60-second spots for its Hyundai namesake and the Genesis line. Kia, its affiliate, also placed ads.
Furthermore, here are the top 10 ads and their TV ad impressions.
Source: Ad Age 2021
The total TV ad impressions reached a total of 6.3 billion (Ad Age, 2021). In 2019, this took up a monstrous 37.6% share of the total spending of about $400 million at $150.4 million.
Source: Adweek
The $400 million ad revenue will likely sweeten future NFL broadcast deals. Today, the league reportedly earns about $5.5 billion a year from broadcasting rights. This is a very lucrative revenue stream for the NFL.
Source: Forbes
Digital Reach of Super Bowl Ads
One great thing about advertising on the Super Bowl is that your reach isn’t just contained on television. Your advertisements spill over to digital media as well. For Super Bowl 55, it reached over 63 billion social media impressions (Ad Age, 2021). Here are the top 10 ads and the digital reach they gained.
Source: Ad Age 2021
Interestingly, the top 10 ads had more than half of the total share of voice with 62.05% as well (Ad Age, 2021).
Super Bowl 2021 Top 10 Ads Digital Share of Voice
Mountain Dew: Major Melon Bottle Count: 21.78
Mountain Dew: Major Melon Bottle Count
%Amazon Echo: Alexa's Body: 13.95
Amazon Echo: Alexa's Body
%Jeep: The Middle [T1]: 10.64
Jeep: The Middle [T1]
%Cadillac: ScissorHandsFree [T1]: 4.47
Cadillac: ScissorHandsFree [T1]
%State Farm: Drake From State Farm: 3.31
State Farm: Drake From State Farm
%Doritos: Flat Matthew: 2.20
Doritos: Flat Matthew
%Uber Eats: Wayne's World & Cardi B's Shameless Manipulation: 1.78
Uber Eats: Wayne's World & Cardi B's Shameless Manipulation
%Cheetos: It Wasn't Me: 1.56
Cheetos: It Wasn't Me
%Tide: The Jason Alexander Hoodie: 1.27
Tide: The Jason Alexander Hoodie
%Verizon: Can't Blame the Lag: 1.09
Verizon: Can't Blame the Lag
%Source: Ad Age 2021
Designed byWhat’s also great about spilling over to social media is that you’d get more evergreen content. This is in the way of many sites covering Super Bowl TV advertisements. But, let’s get into hypotheticals for a moment: what if you spend $5.6 million purely on social media? Do you wonder how much reach your budget could afford? Here’s an idea.
Source: Digiday 2019, FinancesOnline projections
And, if you go for influencer marketing, you’d get these figures.
Source: Digiday, 2019; FinancesOnline projections
This surely gets you more impressions. However, without the fanfare behind the Super Bowl, it wouldn’t come close to the impact that TV ads have. Also, influencer marketing and even digital ad spending are best done in a calculated and targeted manner. The Super Bowl cuts through different demographics—sports can truly bring people together and big sporting events are a good placement for ads.
The Economic Impact of the Super Bowl
It is not only brands, the NFL, and broadcast partners that spend on the Super Bowl. Cities and citizens also join in on the fanfare all around the country. It is a reason to go out (or stay in) and have fun. Super Bowl 2021 showed a sharp increase in those who don’t plan to attend to throw or attend a party due to COVID-19 (National Retail Federation, 2021). Here are the percentages of people who planned to throw or join the Super Bowl party from 2013 to 2021.
Source National Retail Federation 2021
Also, there are many planned purchases whenever the Super Bowl is coming up. This includes expenditures for food, beverages, and decorations. Here are the data from 2013 to 2021.
Source: National Retail Federation 2021
In 2021, the National Retail Federation also did a survey of people who planned to watch Super Bowl 55. The total average spending for a person is $74.55 (National Retail Federation, 2021). This is down from 2020’s total average spending of $88.65. Also, the total expected Super Bowl spending for fans would be $13.9 billion this year. That’s $3.3 billion down from last year’s thanks to COVID-19.
Source: National Retail Federation 2021
Sports boosters also claim that hosting a Super Bowl brings much value to the city. In fact, this is part of the pitch of the NFL. You may already know that the NFL doesn’t pay a dime for Super-Bowl-worthy stadiums to be built, it is a public effort to do so, and Americans seem to be happy to bring the biggest sports spectacle to their cities.
Source: NFL 2021
Of course, this has costs (New York Times, 2018). Taxpayers contribute an average of $250 million to build NFL-worthy stadiums. It is also touted that hosting the Super Bowl would generate about $350 to $400 million for the surrounding areas. In 2017, Super Bowl 52 was pegged by sports boosters to contribute about $343 million to the region, which includes $29 million in tax revenue.
However, this is not a sure thing if you ask sports economists. Some say that the Super Bowl only generates about $30 to $130 million in economic activity. This is far from $350 million. In fact, experts suggest that the event can cost cities more than they can gain. For example, Glendale spent $1 million (Business Insider, 2021) more for hosting Super Bowl 42. Moreover, San Francisco had to shell out extra money for a deficit of almost $5 million to cover extra public service for the event.
Source: The NY Times 2018; Business Insider 2019
The Super Bowl: Is it Good for the Local Economy?
Sports economists found evidence that hosting the Super Bowl may have little to no effect on the economic activity of the host city (Matheson, 2007). Some suggest that sports boosters don’t distinguish between money spent during the event and money spent because of the event. They just throw out optimistic projects and explain away economic activity using the Super Bowl as the primary reason.
Economists found three sources of sports boosters’ biases that “cloud” their estimations. These are (1) leakages, (2) crowding out, and the (3) substitution effect.
Leakages, Crowding Out, and the Substitution Effect
Leakages happen when the money spent because of the game does not stay in the local economy but gets leaked out to national companies. One example involves national fast-food chains. Take for instance a hike in sales during the lead-up and the game day itself. The national company gets more sales, sure; however, the workers get paid the same.
Crowding out is said to occur when locals leave their city to avoid traffic and stress. Also, potential vacationers may also avoid visiting the city. Thus, potential money spent in the local economy is lost.
The substitution effect happens when locals spend their money on the game instead of local shops. This is a loss to the local economy of the host city.
How does the Super Bowl impact local tourism and hospitality?
The Super Bowl is more than a major sporting event; it also brings substantial tourism and boosts the hospitality sector in the host city. Here are some of the ways the Super Bowl impacts local tourism and hospitality:
- Hotel Bookings: The Super Bowl drives significant demand for accommodations, with fans, media, and team personnel flocking to the host city. Hotels often reach full occupancy, allowing them to charge premium rates. For instance, hotels frequently raise prices up to three times their usual rates during Super Bowl weekend.
- Dining and Entertainment: Restaurants, bars, and entertainment venues experience increased foot traffic as tourists seek out local dining and nightlife options. Many establishments create Super Bowl-themed promotions to attract fans, resulting in substantial revenue increases for these businesses.
- Event-Related Services: Local businesses providing event services, such as catering, transportation, and security, also see increased demand. Car rental companies, for example, report higher bookings and elevated rates, while rideshare and taxi services experience a significant uptick as visitors navigate the city.
- Tourism Beyond Game Day: The visibility brought by hosting the Super Bowl can also boost tourism in the longer term. Visitors who experience the city may be inclined to return, and the international media coverage provides free advertising for the host city’s attractions.
- Revenue for Local Government: Increased sales tax revenue from hotel, restaurant, and event spending provides additional funds for local government. This boost is often used to support infrastructure or fund public projects in the city.
The Sports Boosters Arguments
It may be true that these three phenomena cloud the judgment of sports boosters and fans. However, it is not about the immediate economic activity that is the most important for some. NFL Stadiums could be used for many other events that could attract more tourists in the future. It can hold other sporting events like combat sports or even comedy specials and concerts.
Moreover, many feel that this just adds to their city’s prestige, heritage, and a place in sporting history. Some would even contend that economists simply follow the trail of money but forget to observe the happiness that the Super Bowl brings.
Key Insights
- Declining TV Viewership: The Super Bowl has experienced a decline in TV viewership in recent years, with 2021 recording 96.4 million viewers, down from 100.45 million in 2020. This decline is more pronounced when compared to the viewership highs of 2015 and 2016.
- Shift to Digital Platforms: Despite the decline in TV viewership, the number of viewers streaming the Super Bowl has increased significantly, with 5.7 million streaming the game in 2021 compared to 3.4 million in 2020.
- Revenue Resilience: The NFL remains highly lucrative, generating $15 billion in revenue in 2020 and maintaining strong ad revenues during the Super Bowl. In 2021, the Super Bowl raked in $545 million in ad revenues despite lower TV ratings.
- Economic Impact: Hosting the Super Bowl can generate significant economic activity, but the actual benefits are debated. Estimates of economic impact range from $30 million to $400 million, with some cities experiencing financial deficits after hosting.
- Social Media Engagement: Super Bowl ads extend their reach through digital media, with Super Bowl 55 generating over 63 billion social media impressions. This digital engagement complements the traditional TV audience.
- Advertising Costs: The cost of a 30-second Super Bowl ad spot reached an all-time high of $5.6 million in 2021. Despite the high cost, major brands continue to invest heavily in Super Bowl advertising.
- Consumer Spending: The Super Bowl drives significant consumer spending on food, beverages, and other items, with an estimated $13.9 billion spent by viewers in 2021, although this was lower than the $17.2 billion spent in 2020.
FAQ
- Why has Super Bowl TV viewership declined in recent years? The decline in Super Bowl TV viewership can be attributed to various factors, including the availability of alternative viewing channels such as streaming services and changing viewer habits. Additionally, events like the Colin Kaepernick protest and calls for NFL boycotts have also impacted viewership.
- Is the decline in TV viewership a sign of decreased interest in the NFL? Not necessarily. While TV viewership has declined, the NFL remains highly popular. Streaming numbers have increased, indicating a shift in how audiences consume content. The NFL continues to generate substantial revenue from broadcasting deals and advertising.
- How do streaming numbers compare to traditional TV viewership for the Super Bowl? Streaming numbers for the Super Bowl have been steadily increasing. In 2021, 5.7 million viewers streamed the game, up from 3.4 million in 2020. While these numbers are still lower than traditional TV viewership, they show a growing trend towards digital consumption.
- What economic impact does hosting the Super Bowl have on a city? The economic impact of hosting the Super Bowl varies. Estimates range from $30 million to $400 million in economic activity. However, some cities have experienced financial deficits after hosting the event due to high costs and limited economic benefits.
- How much do companies spend on Super Bowl ads? In 2021, the average cost of a 30-second Super Bowl ad spot was $5.6 million. Despite the high cost, major brands continue to invest heavily in Super Bowl advertising due to the event’s large audience and significant reach.
- What are the most popular purchases made by Super Bowl viewers? The most popular purchases made by Super Bowl viewers include food and beverages, team apparel and accessories, TVs, decorations, and furniture. In 2021, 77% of viewers’ spending was on food and beverages.
- How do Super Bowl ads perform on social media? Super Bowl ads perform exceptionally well on social media, generating significant impressions and engagement. For Super Bowl 55, the ads reached over 63 billion social media impressions, showcasing the extended reach beyond traditional TV.
- What factors contribute to the high cost of Super Bowl ads? The high cost of Super Bowl ads is driven by the event’s large and diverse audience, the prestige associated with advertising during the Super Bowl, and the potential for significant brand exposure and engagement.
- How does the NFL generate revenue despite declining viewership? The NFL generates revenue through various channels, including lucrative broadcasting deals, sponsorships, merchandising, and ticket sales. Even with declining viewership, the league’s diverse revenue streams ensure its financial stability.
- What impact did COVID-19 have on Super Bowl 2021? COVID-19 impacted Super Bowl 2021 by reducing the number of in-person attendees and influencing consumer behavior. Despite these challenges, the event still generated significant viewer engagement and consumer spending, albeit lower than previous years.
References:
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- Cameron, S. & Kim, G. (2021, February). Why hosting the Super Bowl isn’t worth it, according to an economist. Retrieved from Business Insider
- Davis, J.H. (2017). Trump Calls for Boycott if N.F.L. Doesn’t Crack Down on Anthem Protests. Retrieved from The New York Times
- Dixon, S. (2020). The NFL — with or without fans this season — is on decent financial footing because of its lucrative TV contracts. Retrieved from Chicago Tribune
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- ESPN (2021). National Football League total attendance at regular season games 2008 to 2020. Retrieved from Statista
- Hayes, D. (2021). CBS Set Super Bowl Record With $545M In Ad Revenue, Research Firm Estimates. Retrieved from Deadline
- Kantar Media (2021, January). Advertising spending of largest Super Bowl advertisers in 2020. Retrieved from Statista
- Katz, B. (2019). How Much Longer Will Amazon Be Streaming NFL Games?. Retrieved from Observer
- Matheson, V. A. (2007). Padding Required: Assessing the Economic Impact of the Super Bowl. Retrieved from Taylor & Francis Online
- National Retail Federation (2021). Holiday and Seasonal Trends: Super Bowl. Retrieved from National Retail Federation
- National Retail Federation (2021). Do you plan to throw or attend a Super Bowl party?. Retrieved from Statista
- Nielsen (2021). Super Bowl LV Draws Nearly 92 Million TV Viewers. Retrieved from Nielsen
- Sports Media Watch (2021). Super Bowl Ratings History (1967-present). Retrieved from Sports Media Watch
- Variety (2021, February). Average television viewership of the NFL regular season from 2010 to 2020. Retrieved from Statista
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