SUPER ADVERTISING
- My favorite Super Bowl commercial was about the 2012 Volkswagen Beetle. The whole commercial was digitally animated of a Beetle with racing stripes.
- Advertising commercials during the Super Bowl costs an average of $3,000,000 for a 30 second spot. At that cost, Volkswagen will have to sell 120 new Beetles at $25,000 a car to pay for one commercial.
- An estimated 106 million people watch the Superbowl, so it's definitely worth it to advertise during the Superbowl. It's safe to assume that the odds are good that of those 106 million watchers, 120 of them will be tempted to buy a Beetle. Especially on Superbowl Sunday people are writing down mental shopping lists.
- For car salesmen it's a no-brainer to improve sales by advertising during the Superbowl because people are more likely to pay attention to some of the funniest/coolest commercials of the year.
This is great, your the first student to actually "run the numbers" and do some math on this. The question to keep in mind is how much does it cost Volkswaggon to make a car they sell for $25,000? How would that consideration change your numbers?
ReplyDeleteGood point, I didn't take that into consideration. So, if it costs $10,000 to build a Beetle then the net profit would be $15,000. That means instead of selling 120 cars to pay for the commercial, they would actually have to sell 200. Even with this adjustment it was still worth it for Volkswagen to make the commercial.
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