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Economic Effects of the Super Bowl

Posted on April 6, 2016 by Andrew Chae

Super Bowl
People watched Super Bowl 50 not only for the football game, but also for the TV commercials, such as the one for Mountain Dew soda. [PepsiCo]
Super Bowl 50 has recently taken place.  The Super Bowl is not only a source of entertainment for millions but also serves to change our lifestyles, the economy, and businesses.

According to Dalton Pell, a freshman and football enthusiast, the Super Bowl is like a holiday in his family. To prepare for the Super Bowl, “we just go to the store and get a bunch of snacks. And even though my sister doesn’t really watch football, she comes out to watch it, too.”

The Super Bowl also impacts the economy by bringing in a new source of income. Advertisers who pay for an ad spot during the Super Bowl can generate $10 million dollars in ad value.

The impact is also greater due to the amount of jobs the Super Bowl creates. Examples include working to help at the home stadium by collecting tickets, working as food vendors, or just helping with cleanup. Robert Half International, a large recruiting firm, was adding 50+ people as event staff during Super Bowl 50, as reported by their website. The Houston Chronicle reported that 2,736 jobs were created due to the Super Bowl being held in 1994. The extra jobs helped boost the local economy as well as help the macroeconomy by lowering the unemployment rate in that region.

Businesses during the Super Bowl are split into three categories: Local, Non-Local, and Advertisers. Victor Madison, a professor at the University of the Holy Cross, estimated that $30 million to $90 million went directly into local businesses during Super Bowl XLI. Non-local businesses that benefit include restaurants, sports bars, and other public places that encourage time being spent with friends and/or  family while also providing coverage of the Super Bowl.

Advertisers, according to Time magazine, often do not benefit from spending all of that money for a few seconds of advertisements during the Super Bowl. Sixty percent of commercials during the Super Bowl did not significantly boost their profit. However, they did get awareness of their company, which is useful for companies that are not well-known to go onto the radar and become well known.

The Super Bowl may impact other aspects like family, businesses, and the economy, but the main purpose is for entertainment. Even though some benefits seem small and are often short-lived, the Super Bowl still comes every year. And every year, people from all walks of life still feel the same anticipation and excitement as they have last year.

Andrew Chae

Andrew Chae

Andrew Chae, Grade 9 La Canada High School La Canada, Calif.

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