Super Bowl LVIII: The Big Business Of The Big Game

Super Bowl Snacks

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Super Bowl Sunday is a sacred day in many US households, and it is estimated that 113 million people will be tuned in when Kansas City Chiefs and the San Francisco 49ers kick off in Las Vegas on Feb 11th. The Superbowl has a huge impact on businesses not just in the United States, but around the world.

The Big Business of a Super Bowl Advert

People watch the game for different reasons – some for the game, some for the half-time show, and some for the adverts.

However, this year, the demographic of who watches the game will be influenced by a singular superstar, one that will not even on the field of play. In fact, it’s not even a man. It is Taylor Swift, who is expected to be jetting back from Japan to see her boyfriend, Travis Kelce, take the field for the Chiefs.

This affects which companies will spend the estimated $7 million to place a 30 second ad – and that doesn’t include production costs or the celebrity endorsement that’s usually involved. This year, there are a lot more companies targeting a younger, female demographic than in previous years. A larger female audience could have an increased impact on the return on advertising investment if 2023 numbers hold true.

A study from behavioral research company Veylinx showed that 2023 Super Bowl advertising fueled a 6.4% increase in demand among viewers. However, the numbers of some of the big winners were much higher amongst female viewers where for example the demand for Pepsi Zero Sugar increased 45% compared to a 19% increase amongst all views.

A successful ad can make or break a company’s revenue targets, and gauging the inventory required to manage the demand over the next days, weeks, and months is equally important. If you have the trending advert, the demand could go through the roof, and equally a ‘dud’ could leave you with millions of dollars of inventory sitting in warehouses and distribution centers.

All this puts a premium on demand planning and analytics applications, as well as on the agility needed to cope with unexpected outcomes.

The Pre-game Supply Chain

Aside from the action on the field, seasoned and casual football fans alike will attend Super Bowl parties across the nation and consume vast quantities of traditional finger foods including buffalo wings, pizza, nachos and dips. In fact, figures show that chips are the snack of choice with 75%, followed by dips/salsa/guacamole (67%), pizza (47%), chicken wings (42%), and nachos (22%).

An estimated 12.5 million pizzas will be ordered on Super Bowl Sunday, which is a 40% increase over “any given Sunday” during the year.

Planning for that surge in demand means a huge increase in [often fresh] ingredients if you get the balance of toppings wrong and you could have very disappointed and hungry football fans (and ‘Swifties’) on your hands.

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But there is another aspect to the Super Bowl that should factor into our thinking. Super Bowl Sunday is the second highest in food wastage, just behind Thanksgiving. We should think more sustainably this year, work out how to not over prepare, and use more products sourced locally whenever possible. This helps reduce the carbon footprint associated long distance shipping.

We should also have a plan in place for donating or at least recycling as much as possible if demand lags supply at our Super Bowl Party. We don’t want to be a sustainability “Anti-Hero”.

Wherever you watch the Super Bowl and for whatever reason, have a great time.