Question

I am a Niners fan, so needless to state that I am more than sad to see my favorite team not win this pas t Sunday. However, fan or not, you enjoy the game for more than the game itself. And, I was not referring to the half time show, either. I am referring to the ads during the game.

For those of you who watched the game, what was your favorite ad? Provide an analysis using economic terms (Marginal cost, demand, supply, marginal revenue) to describe the intent and the outcome of the ad.

For those of you who did not watch the game, please review the article below

Answer 1

The Chipotle mexican grill ad was one of the most frequently broadcasted ad on different channels in different countries.

The rationalse was to place an ad at very first for 10second slot which costed 1.5 million dollars while at 30 second it went to 5.25 million dollars.

Here the marginal cost equalled marginal revenues to maximise profit.

Looking at supply demand dynamics, almost 33 million impressions were gathered while the ad slots available in entire match were 20 for Chipotle.

The total reach came about to 113 million population worldwide while the marginal revenues almost equalled marginal costs. Since no official data on marginal costs is available it is difficult to calculate or predict.

The intention of ad was to maximise top of mind recall, increasing customer loyalty and brand awareness. Outcomes achieved were higher ad impressions, low customer acquisition costs, higher footfalls at stores post advertising.