Supply And Demand

Supply And Demand On January 30, millions of televisions will be tuned in to the American Broadcast Company’s live coverage of the Super Bowl. The three hour-plus event draws as many as 130 million viewers at one time. According to NFL Research, sixty eight percent of Super Bowl viewers say they pay attention to the commercials and fifty two percent said they discussed the ads the next day. With so many people watching the event, businesses see the Super Bowl as a golden opportunity to lure in profits by utilizing the commercial air time available. Due to the unlimited wants and limited resources, an economic condition called scarcity results.

Another economic principle, called investment, is exemplified in this article. Scarcity is a condition that exists because society has unlimited wants and needs, but there are limited resources for their satisfaction. During the three hour-plus football game, there will be opportunities for large businesses (and even some small businesses who have gambled on this form of advertising) to display their product or service to over a hundred million people. At an even greater expense, some companies are sponsoring pre-game, half-time, and post-game shows. Why does it cost so much money? Commercials during the Super Bowl are very powerful means of advertising. Companies can appeal to a larger audience by advertising during an event that is widely watched among all different groups.

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The commercials are also quite expensive because of the limited quantity. Advertising during the Super Bowl is a very smart investment. Investment is defined by the sacrifice of current benefits to pursue an activity with expectations of greater future benefits or rewards. Does this apply to the Super Bowl? Yes. Companies will dish out millions of dollars for 30-second blocks of air time.

Some companies may even purchase more than that. The short term result is a loss of millions. That money invested in advertising, however, should return much more than that which was invested. The commercial air time during the Super Bowl is such a valuable commodity, that although it costs millions of dollars, those who invest in this form of advertising believe they will make a much greater profit in return. 380 Words Bibliography Catherine Valenti, (January 16,2000), War of the Web Sites,, ews/superbowl netads 000113.html.