Super Bowl Sunday, renowned for its thrilling football matchups, isn’t just about touchdowns and tackles; it’s a battleground where advertisers vie for the attention of millions. Traditionally, major brands have turned to social media giants like X (formerly Twitter) for extensive promotions. However, recent trends suggest a significant shift in strategy, with brands reallocating their advertising budgets to platforms like TikTok and Reddit. The latest report from MediaRadar delves into this evolving landscape, highlighting a substantial decrease in spending on X ahead of Super Bowl LVIII.
Decreased Spending on X: A Significant Downturn
MediaRadar’s analysis reveals a noteworthy 55% reduction in advertising spending on X by major brands gearing up for Super Bowl LVIII. The expenditure dropped from a staggering $48.4 million the previous year to $21.1 million. BetMGM played a pivotal role in this decline, with an 87% reduction in spending on X during 2023. Despite the overall cuts, BetMGM and Oreo managed to retain their positions as top spenders for the upcoming Super Bowl.
Reasons Behind the Exodus: Safety Concerns Amidst Musk’s Takeover
The departure from X’s advertising platform is primarily attributed to growing brand safety concerns, exacerbated by Elon Musk’s takeover. Musk’s controversial decisions, including dismantling the safety team and concerns about ads appearing next to pro-Nazi posts, have prompted major brands to seek alternative advertising avenues. Todd Krizelman, CEO and co-founder of MediaRadar, emphasizes that significant brands are increasingly withdrawing due to these safety concerns, with Musk signaling a shift in focus towards smaller advertisers.
Insider Intelligence reports a substantial drop in ad spending on X, generating an estimated $1.89 billion in revenue in the US last year, marking a 54% decrease from 2022. The absence of major advertisers has paved the way for more dubious ads, such as AI “undressing” apps and questionable crypto services, to gain prominence on the platform.
X’s Dominance in Second Screen Viewing: Despite Controversies
Despite the controversies and brand safety concerns, X continues to hold a prominent position for second screen viewing during the Super Bowl. Its ability to offer a scale of real-time conversation that competitors struggle to match is acknowledged by industry experts. X remains the primary second screen, especially during live events like sports.
Diversification Strategy: Navigating a Multifaceted Advertising Landscape
Marketing professionals are advising brands to diversify their approach and work across multiple platforms to reach a broader audience during the Super Bowl. While X retains its status as a primary second screen, the industry is witnessing the emergence of a decentralized second screen as more social media companies enter the scene. Brands are encouraged to embrace a mix of platforms, including X, Instagram, TikTok, Threads, and others, to capture a diverse audience.
TikTok’s Role and Incentives: A Rising Competitor in the Super Bowl Ad Game
TikTok, considered a rising competitor, is positioned as part of a multi-layered approach to Super Bowl advertising. It offers teaser content, paid media campaigns, real-time publishing, and on-the-ground activations for discoverability. Unlike X’s previous incentives, there is uncertainty about TikTok’s offerings this year, adding an element of suspense to the advertising landscape.
Threads as a Potential Contender: Navigating Challenges to Town Square Domination
While Threads positions itself as a direct competitor to X, aiming to become a second screen with improvements in chronological feeds and hashtag functions, industry executives note that it still faces challenges in becoming a true real-time town square.
