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Playoff payoff: Super Bowl advertising for movies

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  • Ho, Jason Y.C.
  • Dhar, Tirtha
  • Weinberg, Charles B.

Abstract

Marketers are increasingly making use of major TV events, such as the Super Bowl, to advertise their products. However, the economic value of such advertising is highly uncertain. Since an ad during the Super Bowl costs 2.5 times more per viewer reached than an ad during a network TV prime time show, developing methods for evaluating such advertising and for measuring its effects seems particularly important. Using the setting of the movie industry, this paper develops and estimates a model that includes both direct (on potential moviegoers) and indirect effects (on exhibitors) of regular and Super Bowl advertising. The model recognizes the endogeneity of advertising, and in particular develops a discrete choice model to control for the endogeneity of the Super Bowl advertising decision. The results indicate that Super Bowl advertising has a positive effect on box office revenues, but primarily through an indirect effect on exhibitors. In addition, regular TV advertising is more effective than Super Bowl advertising for initial advertising spending; a counterfactual analysis, by contrast, shows that for a movie already spending at our sample's average TV spending level of $13million, Super Bowl advertising has a greater effect on revenues than regular TV advertising.

Suggested Citation

  • Ho, Jason Y.C. & Dhar, Tirtha & Weinberg, Charles B., 2009. "Playoff payoff: Super Bowl advertising for movies," International Journal of Research in Marketing, Elsevier, vol. 26(3), pages 168-179.
    • Handle: RePEc:eee:ijrema:v:26:y:2009:i:3:p:168-179
    DOI: 10.1016/j.ijresmar.2009.06.001
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    7. Darlene Chisholm & Víctor Fernández-Blanco & S. Abraham Ravid & W. David Walls, 2015. "Economics of motion pictures: the state of the art," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 39(1), pages 1-13, February.
    8. Delre, Sebastiano A. & Luffarelli, Jonathan, 2023. "Consumer reviews and product life cycle: On the temporal dynamics of electronic word of mouth on movie box office," Journal of Business Research, Elsevier, vol. 156(C).
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    11. Situmeang, Frederik B.I. & Leenders, Mark A.A.M. & Wijnberg, Nachoem M., 2014. "History matters: The impact of reviews and sales of earlier versions of a product on consumer and expert reviews of new editions," European Management Journal, Elsevier, vol. 32(1), pages 73-83.
    12. Reo Song & Sangkil Moon & Haipeng (Allan) Chen & Mark B. Houston, 2018. "When marketing strategy meets culture: the role of culture in product evaluations," Journal of the Academy of Marketing Science, Springer, vol. 46(3), pages 384-402, May.
    13. Suman Basuroy & S. Abraham Ravid & Richard T. Gretz & B. J. Allen, 2020. "Is everybody an expert? An investigation into the impact of professional versus user reviews on movie revenues," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(1), pages 57-96, March.
    14. Mark B. Houston & Ann-Kristin Kupfer & Thorsten Hennig-Thurau & Martin Spann, 2018. "Pre-release consumer buzz," Journal of the Academy of Marketing Science, Springer, vol. 46(2), pages 338-360, March.
    15. Jordi McKenzie, 2023. "The economics of movies (revisited): A survey of recent literature," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 480-525, April.
    16. Situmeang, Frederik B.I. & Gemser, Gerda & Wijnberg, Nachoem M. & Leenders, Mark A.A.M, 2016. "Risk-taking behavior of technology firms: The role of performance feedback in the video game industry," Technovation, Elsevier, vol. 54(C), pages 22-34.
    17. Hofmann, Julian & Clement, Michel & Völckner, Franziska & Hennig-Thurau, Thorsten, 2017. "Empirical generalizations on the impact of stars on the economic success of movies," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 442-461.
    18. Janée N. Burkhalter & Carolyn Folkman Curasi & Corliss G. Thornton & Naveen Donthu, 2017. "Music and its multitude of meanings: Exploring what makes brand placements in music videos authentic," Journal of Brand Management, Palgrave Macmillan, vol. 24(2), pages 140-160, March.
    19. Björn Bohnenkamp & Ann-Kristin Knapp & Thorsten Hennig-Thurau & Ricarda Schauerte, 2015. "When does it make sense to do it again? An empirical investigation of contingency factors of movie remakes," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 39(1), pages 15-41, February.
    20. Denis Y. Orlov & Evgeniy M. Ozhegov, 2015. "Estimating the Efficiency of Sequels in the Film Industry," HSE Working papers WP BRP 96/EC/2015, National Research University Higher School of Economics.
    21. Kim, Ho & Bruce, Norris I., 2018. "Should sequels differ from original movies in pre-launch advertising schedule? Lessons from consumers' online search activity," International Journal of Research in Marketing, Elsevier, vol. 35(1), pages 116-143.
    22. Thorsten Hennig-Thurau & André Marchand & Barbara Hiller, 2012. "The relationship between reviewer judgments and motion picture success: re-analysis and extension," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 36(3), pages 249-283, August.
    23. Tirtha Dhar & Guanghui Sun & Charles Weinberg, 2012. "The long-term box office performance of sequel movies," Marketing Letters, Springer, vol. 23(1), pages 13-29, March.

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