Nissan is planning to run an ad during the Super Bowl broadcast, but they won’t buy it from Fox. AdAge reports that Nissan is considering a large buy with local Fox affiliate stations across the country. These local affiliates are allotted a certain amount of time per hour by the networks to run their own ads and promotions.
Obviously, Nissan is doing this to got in the game without paying the $2.7 to $3 million premium for the time. But, how much will this save them, and will avoiding the network get them as much bang (as in media coverage and water cooler discussion) for their buck? To address these questions, I asked an expert. Jon Swallen, the SVP of Research here at TNS, was kind enough to spend a few minutes with me to discuss this.
What is Nissan’s strategy here?
“By purchasing time on local Fox stations, Nissan has the opportunity to be associated with the Super Bowl while at same time limiting the geographic distribution of its ad message to a select list of high-value markets. Nissan has much smaller sales volume than Detroit Big 3 or Toyota or Honda and its sales, I suspect, have a strong geographic skew. Spot TV allows Nissan to reduce waste - an important consideration when the price tag for a network spot is in the $2.5-$3 million range.”
How much money will they save?
“Well, the sum of purchasing time on EVERY Fox station would exceed the cost of purchasing a spot on the network. By controlling the list of markets where they buy time, Nissan can ensure that the total out-of-pocket cost of its spot market buys would be less than the price of a network spot.”
Can they build a comparable audience by piecing together individual markets?
“Of course not. The network's audience is the sum of every local Fox affilliate carrying the game and with a spot market buy, Nissan would only get a fraction of the total. But if Nissan believes that a viewer in Market X is more valuable than a viewer in Market Y, they'll willingly forgo paying (wasted) money to reach all the Market Ys, even if it means paying a higher CPM to reach just the Market Xs. “
Nissan is taking a Moneyball approach here. Forego the inefficient mass market with premium costs driven upward by competitors with deeper pockets, and invest in a series of niche buys targeting only their most desirable markets. They benefit from the high-profile association with the Super Bowl while gaining efficiencies by only paying for the audiences that are valuable to them.
Only time will tell if this can drive the all-important word of mouth that can be gained by a Super Bowl ad. Watch for our reports throughout January and after the game to see how they rate.
By the way, Nissan’s ad is expected to be for the Murano crossover SUV.