The New York Giants won the Super Bowl, but who won the ad game? After the show there will be many reviews of the ads and which ones got the viewers attention. It turns out there is a big dividend paid to those Super Bowl ads that score high, literally. University of Buffalo doctoral student Jing Jiang and Cornell professor Charles Chang studied the relationship between company stock price and Super Bowl advertising for the last 17 Super Bowls and discovered that the top 10 Super Bowl ads significantly moved the stock price right after the game for advertisers.
According to the study, "The stocks of companies running ads that ranked in the top 10 outperformed the Standard & Poor’s 500 index by 26 basis points the day after the game and by 1.6 percentage points over the following week.
After four weeks, the shares did almost 3 percentage points better than the S&P 500, although Kim says the link between the Super Bowl ads and the performance of the stock weakens over time because other news and events could influence the price of the shares."
Curiously, there was also consistent minor positive movement on stock price of companies whose ads scored lowest. It seems the most dangerous place to be as far as stock price goes is in the middle.
As you chat with advertisers today, the day after Super Bowl Sunday, mentioning this curious study is a great way to reinforce the effectiveness of advertising and of the importance of having great creative that connects with an audience.
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