The Super Bowl is right around the corner and many viewers, as excited as they are for the game, are often equally excited for the advertisements that play during the game. A recent report from Bank of America revealing a potential boost for consumer stocks. A couple of companies who spent on advertisements include Anheuser-Busch (BUD) and Molson-Coors (TAP).
Yahoo Finance's Josh Schafer, Alexandra Canal, and Pras Subramanian discuss the the impact and return on investment that NFL ads have for companies.
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Editor's note: This article was written by Nicholas Jacobino
Video Transcript
PRAS SUBRAMANIAN: Another thing, with the Super Bowl just around the corner, I've been looking at, which stocks may be a good bet. Well, Bank of America today listing a few big names. They expect to see a boost as consumer stock-- stocks up and start buying.
Well, basically, what they're saying is that a lot of the big brands use the big game as a way to jump start some messaging, show you some new branding. And some of the stocks that these companies really that are really high on was beer companies in particular-- Bud, Molson Coors returning with Coors Light to Super Bowl. But as I think three different ads in Super Bowl. Constellation Brands, not so much there. But they kind of launched their lot of their sports marketing with beer stuff.
So seeing a lot of that staples names, too. Makes sense.
JOSH SCHAFER: To me, it's interesting. They really highlighted beer in that research note from Bank of America. And it makes a lot of sense when you think about the story of Budweiser that we've talked about a lot over the last year and sort of making your pitch back to your general consumer base. We know the Super Bowl has a giant audience. It also has a giant audience of people that drink beer and watch football.
It's sort of-- it's the perfect moment to make your pitch again, whatever their sort of big rebranding pitches are, right, to have a creative ad--
ALEXANDRA CANAL: Those are the ads that stick out to me, too.
JOSH SCHAFER: Yeah. Those are the ads that stand out. And you bring sort of people back, maybe we get the Clydesdales back for Budweiser. Those horses were always a hit. I don't know, but something like that when you have your target market audience all watching.
ALEXANDRA CANAL: Especially when Bud Light and that brand has really been under scrutiny heading into this Super Bowl, so we'll see if that could do anything. But also, I caught my eye on a separate story about how the Taylor Swift effect could perhaps be entering the ad market, with companies like L'Oreal, ELF cosmetics. They've never submitted ads into the Super Bowl. And now they are going to be for the first time.
So perhaps the notion is that with more female viewers watching the Super Bowl, they want to get in on the action. We also saw Dove, they haven't been in a Super Bowl for 18 years. They're coming back for the first time. So beauty brands, health and wellness brands, perhaps, because of the female watcher. That's definitely increased, the NFL has said that. Maybe now's a good time.
PRAS SUBRAMANIAN: You know, I had always thought that there was also kind of a split audience or a lot of women would watch the game. It is a big event to watch, a lot of people.
ALEXANDRA CANAL: It's totally an event.
PRAS SUBRAMANIAN: But I think it's-- I think they mentioned this Gen Z or millennials, right, more millennials might be-- or sorry, Gen Z might be kind of attached to Taylor, and maybe that's what-- they're watching, maybe Gen Z women are seeing-- are going to watch the game for the first time perhaps. And that's why these brands are hopping on.
ALEXANDRA CANAL: And you're getting women to be watching any football game, it is the Super Bowl, right? Like, people want to be part of that cooler moment, that conversation.
JOSH SCHAFER: And how many times have we talked recently about how Gen Z is putting on more makeup and buying more makeup, right? A lot of those companies you just listed were makeup companies. If you're thinking you're going to get the Gen Z audience here, that's your market, that's starting to come in, it feels like a smart play.
The other thing I'm excited for-- I feel like we're just on Super Bowl ads now. And the other thing that I'm always excited for is the brands that you haven't heard of as much or even, I would say, a Dove that you've heard of, but like putting a name to a brand is something a lot of marketers have talked to me about in the past when it comes to sports advertising. It's why you see an insurance company like Acrisure Stadium going out and replacing Heinz Field for the Steelers stadium, right? The value add you get-- or what GoDaddy used to do with Danica Patrick.
But the value add you get when you're a little bit lesser known brand and you tie yourself to the Super Bowl, you tie yourself to something that has Taylor Swift involved, it feels like that's pretty big.
