The Super Bowl is the most watched televised event and every year companies shell out millions for a 30 second commercial spot during the big game. But is this worth it for companies? Mark Douglas, CEO, MNTN, joined TheStreet to discuss.

Full Video Transcript Below:

J.D. DURKIN: We’re talking that there’s a big football game coming up here. Of course, we got the Super Bowl. I believe last year it was $7 million for a 30 second ad buy. Yeah, that sounds like a ton of money to the rest of us. 

MARK DOUGLAS: A ton of people. It’s a ton of people watching. 

J.D. DURKIN: So let’s talk about that then. Is that dollar, that price point worth it, do you think, for these big advertisers say, hey, it’s only 30s, but then again, it’s also the whole world who’s watching, right.

MARK DOUGLAS: So the ads cost about in advertising is what’s called a CPM, you know, a cost per thousand ads. And the price of a Super Bowl ad is about twice the price of everything else. So that in and of itself doesn’t make it too bad. I mean, you’re paying twice the price. What really makes it expensive is it’s so many people watching. So if you have a need to movie premieres, you often see those on the Super Bowl or you see, you know, kind of a cool new product or something like that, if that makes sense. You want, you know, 80 million people in the U.S. make upwards of a billion people worldwide, you know, for the ads that appear there to see your brand, this is the only place it’s one of few places you can do it. And you pay a premium for getting your ad in front of all those people at the same time.

J.D. DURKIN: How do advertisers know if it’s worth it?

MARK DOUGLAS: Well, for the Super Bowl, they measure website traffic. Whether that increased for more of the digital advertising we were talking about earlier, where it’s like commerce brands, they can just literally measure how many visits do they get to the brand, how many people purchase. But for the Super bowl, often I also it’s like, are people talking about my brand, the next day? I mean, they’re trying to hit a cultural moment.