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    Consumer Price Index - Super Bowl Ad Analysis

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    Ch. 18, exercise 56 p. 647-648 (Lind, D. A., Marchal, W. G., & Wathen, S. A., 2005).

    The Super Bowl is usually the TV program with the largest viewing audience each year;

    therefore, many companies use the Super Bowl to launch major advertising campaigns.

    The cost for a 30-second spot, as reported below, has increased dramatically since the

    first game in 1967. Also shown is the face value of a ticket to the game for the selected

    years.

    COST FOR A 30-SECOND TV SPOT AND FACE VALUE OF A TICKET TO THE SUPER BOWL

    Year
    TV Commercial
    Game Ticket

    1967
    $42,000
    $8.00

    1988
    525,000
    100.00

    1999
    1,600,000
    325.00

    2001
    2,100,000
    325.00

    2002
    1,900,000
    400.00

    Data source: Ch. 18, p. 648 (Lind, D. A., Marchal, W. G., & Wathen, S. A., 2005)

    Go to the Bureau of Labor Statistics website www.bls.gov/data.htm, click on Most Requested Series, and find the Consumer Price Index-All Urban Consumers. Select the base as 1967, and find the CPI for the above years. Compare the rate of change in the Consumer Price Index to the cost of TV commercials and the cost of a game ticket. Write a brief report summarizing your findings.

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    ANSWERS
    ** Please see attached file for answers and details. **

    From 1988 to 2002, the cost of 30-second TV spot has been increasing at a rate lower than the increases in the Customer Price Index - All Urban Consumers. For example, the cost of 30-second TV spot in 1988 increased by 20 per cent relative to the 1967 level ...

    Solution Summary

    The solution analyzes consumer price indexes for super bowl ads. The cost for a 30 second ad is determined.

    $2.19

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