Soda

by David Klemt David Klemt No Comments

Do Super Bowl Ads Work on Consumers?

Do Super Bowl Ads Work on Consumers?

by David Klemt

Pepsi Zero Sugar bottle

One of the biggest Super Bowl ad winners is Pepsi Zero Sugar.

Brands spent hundreds of millions of dollars to advertise during Super Bowl LVII, but do their ads actually translate to demand for their products?

A week ago we shared our ten favorite beverage-focused Big Game ads. Along with those ads we shared some numbers.

One of those numbers was $7 million, the cost of a 30-second Super Bowl ad on Fox. Other numbers? $500 million and $700 million, the range of revenue it’s estimated that Fox generated this year from Super Bowl ads.

At this point, these ads and the Halftime Show have essentially become their own entities. Some people watch the Big Game for the ads, some for the show halfway through. It stands to reason that brands are well aware of this development. So, they try to create the most impactful ad possible in the hopes of generating consumer demand.

In other words, these brands aren’t spending all this money just so they’re commercial can be deemed cool. Sure, brands want that buzz. But they also want an ROI on the millions they spend.

The big question is, then, are they seeing a return? Well, it just so happens that behavioral insight platform Veylinx has a data-driven answer to that question.

In short, the answer is yes. Of course, it’s a nuanced yes. For example, it appears Gen Z doesn’t care much about Super Bowl ads, as you’ll see below. Also, non-advertisers in the same categories as Super Bowl advertisers appear to see a benefit from the ads.

You’ll learn more from the Veylinx press release below. It’s an interesting read with valuable data for restaurant, bar, and hotel operators.

NEW YORK, Feb. 22, 2023 — A new study from behavioral research company Veylinx determined whether or not Super Bowl commercials boost consumer demand for the products advertised. The results show that 2023 Super Bowl advertising fueled a 6.4% increase in demand among viewers.

The overall increase in consumer demand was driven by women, who accounted for a 21% increase in demand growth. The commercials had minimal impact on men, yielding just 1% demand growth for the brands tested. Gen Z viewers were largely unimpressed by the Super Bowl ads, with demand among 18 to 25 year olds actually shrinking by 1%.

2023 Veylinx impact of Super Bowl ads on consumers chart

“It’s not really a surprise to see that Super Bowl ads improve sales, but the short term bump alone may not be enough to justify the $7 million price tag,” said Veylinx founder and CEO Anouar El Haji. 

Using Veylinx’s proprietary methodology—which measures actual demand rather than intent—the study tested purchase behavior during the week before the Super Bowl and again the week after. The research focused on measuring the change in consumer demand for eight brands with Super Bowl ads: Michelob Ultra, Heineken 0.0%, Hellmann’s Mayo, Downy Unstopables, Crown Royal Whisky, Frito-Lay PopCorners, Pringles and Pepsi Zero Sugar. 

Super Bowl Advertising Winners Overall

Michelob Ultra – 19% increase in demand

Pepsi Zero Sugar – 18% increase in demand

Frito-Lay PopCorners – 12% increase in demand

Heineken 0.0% – 11% increase in demand

Super Bowl Advertising Winners Among Women

Pepsi Zero Sugar – 45% increase in demand

Michelob Ultra – 40% increase in demand

Heineken 0.0% – 40% increase in demand

Crown Royal Whisky – 26% increase in demand

Veylinx, top performing brands during 2023 Super Bowl

Halo Effect for Non-Advertisers

The biggest winners were arguably brands in the same product categories as Super Bowl advertisers. Non-advertisers in those categories appeared to benefit nearly as much as the advertisers: demand grew by 4.2% percent for the study’s control group of non-advertising competitors. Corona Extra, Kraft Mayo and Lay’s STAX were the greatest beneficiaries in a control group that also included Budweiser Zero, Arm & Hammer Clean Scentsations, Canadian Club Whisky, Popchips, and Coke Zero Sugar. Notably, every non-advertiser saw at least a slight increase in post-Super Bowl demand.

“The goal of our study was to look specifically at how consumer demand is affected by running a commercial during the Super Bowl,” El Haji said. “It’s possible that the non-advertisers deployed other marketing efforts to offset or take advantage of the Super Bowl advertising—or they simply benefited from increased exposure for their categories.” 

Additional Findings

Study participants also answered a series of follow-up questions about their preferences, perceptions and how they watched the Super Bowl. More than three-quarters watched at home through various platforms, the most popular being the live cable/satellite broadcast (38%), followed by YouTube TV (15%) and Hulu (10%). When asked why they watched, it’s no surprise that participants were all about the game (64%)—but the commercials were the next most popular reason for watching (39%), followed by halftime (35%), the social aspect (26%) and fear of missing out (13%). 

About the Research

Veylinx studied the behavior of 1,610 U.S. consumers pre- and post- Super Bowl LVII. Unlike typical surveys where consumers are simply asked about their purchase intent, Veylinx measures whether consumers will pay for a product through a real bidding process. Consumers reveal their true willingness to pay by placing sealed bids on products and then answering follow-up questions.

For more information about the study and the Veylinx methodology, visit info.veylinx.com/super-bowl

About Veylinx

Veylinx is the most realistic behavioral insights platform for confidently answering critical business questions during all stages of product innovation. To reliably predict demand, Veylinx captures insights through a Nobel Prize-winning approach in which consumers have real skin in the game. This is a major advance from traditional market research practices that rely on what consumers say they would hypothetically buy. Veylinx’s unique research methodology is trusted by the world’s largest and most innovative consumer goods companies.

Main article image: PepsiCo / Article body images: Veylinx

KRG Hospitality Bars & Lounges, 2023 icon

by David Klemt David Klemt No Comments

Top X Super Bowl LVII Beverage Ads

Top X Super Bowl LVII Beverage Ads

by David Klemt

Vintage red television set

As everyone knows by now, the commercials that air during the Super Bowl are nearly as big a draw as the game itself and its famous Halftime Show.

But before we get into the ads, congratulations to the 2023 Super Bowl champions, the Kansas City Chiefs!

Of course, we can’t help but feel a bit of a sting. With an office in the great city of Philadelphia, we were cheering on the Eagles.

However, I think Super Bowl LVII featured one of the best matchups in the championships recent history. Also, I feel confident in saying that I expect Jalen Hurts and the Philadelphia Eagles to fight there way to another Super Bowl in the near future.

Super Bowl Ads

Big Game ads are famous—perhaps infamous—in part because of the cost for a 30-second commercial.

Per reporting, the price of a Super Bowl LVII ad was set at $7 million. That’s double the cost in comparison to 2012. A 30-second commercial cost $3.5 million during Super Bowl 46.

In other words, brands spend huge dollars on Big Game commercials, with the price increasing each year. After doing some digging, I found that anywhere from 70 to 100 ads will run during the Super Bowl. Assuming $7 million per ad, that’s just shy of $500 million to $700 million in ad revenue.

Companies wouldn’t spend that kind of money if they didn’t expect a healthy ROI. In fact, if you sell any of the items below you may see a sales bump.

And if you don’t sell some of the products below, you may want to consider doing so. That’s why knowing your guests, collecting data, and listening to what guests would like to see on your menu are so important.

Sure, some guests are brand loyal and don’t want to try new products. But there are plenty who are easily influenced by ads and seek out the products they see on their screens.

Bud Light: “Hold: Easy to Drink, Easy to Enjoy”

This would be my favorite Super Bowl ad if Crown Royal’s “Thank You, Canada” commercial didn’t exist.

The ad below is a worthy runner up.

Busch Light: “Cold + Smooth Survival Skills”

Crown Royal: “Thank You, Canada”

Personally, this is my favorite of the Super Bowl LVII beverage ads. Given that KRG Hospitality’s global headquarters is located in Toronto, Ontario, this shouldn’t come as a surprise.

I have to wonder how many people’s heads exploded when Dave Grohl thanked Canada for basketball and football as North Americans know it.

Heineken 0.0: “Ant-Man and the Wasp: Quantumania”

Michelob Ultra: “New Members Day”

Michelob Ultra: “Full Swing Gossip”

Miller Lite vs. Coors Lite vs. Blue Moon: “The High Stakes Beer Ad (Extended Version)”

If John Wick weren’t a loyal bourbon drinker, he’d probably appreciate this commercial the most. Of course, that would require John Wick to be a real person…

Still, excellent fight choreography, and you have to love Blue Moon’s strategy.

Pepsi Zero Sugar: “Great Acting or Great Taste feat. Ben Stiller”

Pepsi Zero Sugar: “Great Acting or Great Taste feat. Steve Martin”

There you have ’em! Which ad is your favorite?

Image: Dave Weatherall on Unsplash

KRG Hospitality Beverage Programming

by David Klemt David Klemt No Comments

Booze Brands Spent Buckets on Big Game

Booze Brands Spent Buckets on Big Game

by David Klemt

Brown Wilson football on a football field

Super Bowl LVI commanded ad prices of $7 million for just 30 seconds, and several brands scrambled to snap up these record-setting spots up.

But before we get into some of the brands that purchased ads, congratulations to the Los Angeles! And condolences to Cincinnati Bengals fans—that was a heartbreaker.

Personally, I had no skin in the game. However, I was eleven years old when the Bengals last made it to the Big Game in 1989. I wanted to see them win last night.

Speaking of the Big Game, a 30-second ad spot reportedly cost $675,000 during the 23rd championship. In today’s money, that would be $1,530,442.

So, who in the beverage alcohol world splashed out $7 million for ads during the Big Game yesterday? And why do we still have to play this name game when referring to “that” game?

More importantly, what does it matter to you who spent so much on commercials on Sunday? Well, with so many eyes glued to TVs yesterday, it stands to reason that some consumers will be influenced to seek out brands and new products.

In other words, you may find that guests are ordering or asking if you carry certain products. For example, the products below.

Budweiser

Would it be a…Big Game…without a Budweiser commercial? Technically, yes. But I think we all know it would feel weird.

Yesterday’s spot was sparse when it comes to beer. However, it featured a horse and dog best friend duo, and that’s just as good as beer. Perhaps it’s even better, because dogs are dogs and horses are huge dogs.

Bud Light Hard Seltzer Soda

When Guy Fieri shows up you can bet whatever he’s endorsing is big on flavor. So, since the Mayor of Flavortown (who I’m now crowning Lord of the Land of Loud Flavors) showed up in yesterday’s Bud Light Hard Seltzer Soda, operators should count on some guests asking for these five-percent ABV RTDs.

Bud Light NEXT

Oh, you thought Hard Seltzer Soda was Bud Light’s big reveal? Nope!

The brand purchased two spots and one revealed Bud Light NEXT, the brand’s new zero-carb beer. The compelling ad asks people to consider the benefits of eschewing norms

Busch Light

Ya gotta love a brand that leans into having fun in their marketing. Busch Light knows who they are as a brand and, more just as importantly, knows their audience.

I’m not gonna lie, their ad made me want to kick back, pop a top, and listen to the soothing sounds of Kenny G. Outdoors. By a river. At the foot of a mountain.

Cutwater Spirits

People love the “Here’s to the crazy ones” quote from Steve Jobs. Well, Cutwater Spirits is raising a can to the lazy ones.

Just watch it below, trust me. Of the alcohol commercials, this was my favorite.

Michelob Ultra

The sheer number of celebrity athletes that showed up in Michelob Ultra‘s ad spot was breathtaking. Just as impressive is the fact that their spot came in at one minute. So, Michelob likely spent $14 million on their ad.

Of course, as a The Big Lebowski fan, the biggest feature for me was Steve Buscemi’s appearance in a bowling alley. Donny lives!

Samuel Adams

Well, your cousin from Boston got a security gig at Boston Dynamics. In Samuel Adams’ “Your Cousin from Boston (Dynamics)” spot, your cousin introduces the robots to the new Wicked IPA Party Pack. Whaddya wanna bet shenanigans ensue?

There are four beers in the pack: Wicked Hazy, Wicked Easy, Wicked Double, and the brand-new Wicked Tropical.

Image: Dave Adamson on Unsplash

Top