Does the Super Bowl Help Boost Advertisers' Stock Prices?
Jennifer Schonberger submits:Ah, Super Bowl Sunday. The ferocious competition, the cheap shots, the wretched excess -- and that's just the commercials. Not only are ads sometimes the spectacle’s best part, but you can bank on the stocks of companies that buy them. Research shows that the effect isn't like the brief buzz you get from a bellyful of Coke and Doritos (watch for their commercials during the game), though that effect does occur. On average, companies that advertise during the Super Bowl outperform Standard & Poor's 500-stock index by more than one percentage point in the ten trading days from the Monday before the big game to the Friday afterward. This is according to marketing professors Chuck Tomkovick and Rama Yelkur, at the University of Wisconsin-Eau Claire. Click here for a chart of how shares of Super Bowl advertisers performed last year. And quality doesn't count. Tomkovick and Yelkur, who studied 15 years' worth of Super Bowl ads and the corresponding share-price performance, say the stock effect holds irrespective of how well the ad scored on USA Today's ad meter or how well the ad was executed. Even the overall performance of the industry in which the company operates doesn't dampen the boost. The long-term effects are more interesting. In 2009 and 2010, nearly two-thirds of the Super Bowl stocks (41 out of 62) were still outperforming the S&P 500 at the midyear mark (June 30 for 2009 and 2010), with the gains more than double the size of the losses, accordingComplete Story »
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