Super Bowl Snap Stocks
The all-American Super Bowl took place on Groundhog Day yesterday, a final too close to call before kick-off. The Chiefs ultimately came through against the SanFran 49ers, but as always, an intense battle was being fought off the playing field as well. We’re talking about over seventy competing ads!
On top of LeBron’s cut for endorsement, the CGI, and the pyrotechnics, it’s approximately $186,000 per second on the big screen. For that money, brands reach over 100 million people and hopefully get their standout campaigns replayed millions of times before and after the event. In the space of a 30-second banner ad, companies engrain their image into culture, boosting sales, and getting Wall Street excited.
Anheuser Busch is this year’s top spender with a series of eight ads promoting seven drinks, including a new hard seltzer. The Belgian brewer is yet to report its financials during this earnings season, so investors are scanning for Super Bowl virality as a possible forward indicator of outperformance when numbers eventually come due on the 27th.
President Trump and his chaser Mike Bloomberg also “approved” various messages during the commercial breaks. They were keen to preempt rivals before today’s Iowa caucus. The finely poised Midwestern state is considered a national barometer of presidential sentiment before an election, and it’s Bernie Sanders who is the favorite to win the Democratic nomination this year (but only by a whisker!).
Back at the Hard Rock Stadium in Florida, though, the Super Bowl was about more than just adverts for some companies. PepsiCo’s Gatorade was more directly involved in the action, used to bath the winning coach as per tradition. And ever since sports betting was legalized in the United States, the pace of adoption in that market has been eye-opening.
Flutter Entertainment’s FanDuel, an online bookie for fantasy football, was very busy throughout the ‘Big Game’ and has so far dominated the hyper-growth industry. A lucrative Super Bowl ‘handle’ (total bets wagered) will prove a goldmine for state coffers, but potentially for investors as well. One play or another, markets are readying up to score more financial touchdowns!