How A Super Bowl Ad Pays For Itself

Publicly traded companies who invest in big ad buys like the Super Bowl see a spike in their common stock being traded, even if they’re not advertising a consumer product, according to professors at Rice University’s Jones Graduate School of Business.
“We’re fairly certain that the publicly traded companies advertising on Sunday’s Super Bowl will see a spike in stock purchases,” said James Weston, an associate professor of management and co-author of the study “Advertising, Breadth of Ownership and Liquidity.”
Weston, along with Rice colleagues Gustavo Grullon and George Kanatas, said the increase in common-stock trading comes from the “everyday” person, not serious investors.
“People buy on impulse and on recognition,” Weston said. “With more and more online trading taking place, companies that spend money on big advertising campaigns see this additional benefit from their advertising investment.”

About David Burn

Co-founder and editor of AdPulp. I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. I worked for seven agencies in five states before launching my own practice in 2009. Today, I am head of brand strategy and creative at Bonehook in Portland, Oregon.