The Super Bowl is always an incredible culmination to the most watched sport in America every year. For a lot of people this is the first and last football game they will watch for the year. According to AS.com, an estimated 117 million people watched the Rams topple the Bengals. How many of these people actually cared that one of the best receivers in the league Cooper Kupp was able to lead the Rams past young golden boy Joe Burrow’s Bengals? Not many out of the 117 million. Lots of people (like my mother) were more interested in the commercials and reliving her youth with the halftime show. With this many realms of viewership, it is no question why companies were paying on average 6.5 million dollars for 30 seconds of air time on Sunday. These companies made a large investment for the biggest stage, how does this investment correlate to their stock price?
There is Certainly a Correlation
A good correlation is always sweet to know, and football being involved is even better. According to Kiplinger, in 2009 and 2010 approximately 60% of companies who had Super Bowl commercials closed out the year incredibly strong. These companies were outperforming the S&P 500 by a wide margin, total gains were more than double the losses. What’s best to know is that research shows that no matter how awful or outstanding the commercial was, the stock is still poised to perform. So even if you weren’t the biggest fan of Larry David’s self-realization, FTX will be quite happy regardless.
What Companies Stood Out?
While relatively bland, the Coinbase commercial stood out because of its simple make up. People love seeing screen loaders touch a corner, and they love an opportunity to make money. The commercial allowed viewers to scan a moving QR code that changed color, and the code signed you up for Coinbase and entered you in a $3 million dollar giveaway. That was it. Simple and to the point, the Coinbase commercial was well received. Coinbase currently sits at its low since IPO, and could be a great buying point if cryptocurrencies can respond well to interest rates rising.
Poking fun at Lindsay Lohan is somewhat of an American pastime, and Planet Fitness took the opportunity. Another well received commercial from one of the best marketers in Planet Fitness was in my opinion effective. The commercial showed wild Lindsay Lohan getting her life together, and utilizing Planet Fitness while doing so. Planet Fitness has been fortunate enough to see a significant rise in share price since the year began, something most stocks have not. History says that with this super bowl ad, Planet Fitness can be headed for a very strong year.
Despite the correlations discovered, this is not a high buying time in the market, or reason in general. Investing heavy just because a company spent millions a Super Bowl commercial is foolish. But, respecting a trend in history and using it as a a number of reasons why you invest is much different. With rising inflation and interest rates, current market investing looks very bleak. But perhaps the NFL could be the reason your portfolio finishes the year green?