This past Sunday, Tom Brady secured his 10ths Super Bowl appearance, beating his own record as the player who has been in the most NFL championships. Now that the football part is out of the way, we can get to the part we really care about: the commercials. I mean, who doesn’t love seeing weird genetic mutated puppy-monkey-baby hybrids dance around to sell Mountain Dew?
Today we’re going to take a look at 4 companies that are going to be first-time advertisers in the big game this year, and what it means for their stocks in 2021.
📰 In the Headlines
😷 COVID Corner
The world still struggles to contain the virus while mitigating the economic impact
- Yesterday, California lifted its stay-at-home order as ICU projections improve, allowing restaurants and personal services to re-open with precautions.
- Three novel variants of the coronavirus have been identified, two of witch have already appeared in the US.
- President Biden has signed an executive order extending travel restrictions on most of Europe, Brazil, and South Africa, hoping to curb the spread
🧐 Earnings We're Watching
Four of the six most valuable U.S.-listed companies release earnings next week
- Markets continue to break records as earnings surpass expectations
- Earnings we're watching: Apple, Microsoft, Facebook, Tesla, General Electric
🏀 Remembering a Legend
Today marks one year from when Kobe Bryant and 8 others perished in a helicopter crash outside of Los Angeles, CA
- Last nights Nets, Heat game contained some touching tributes to the legend
- What we know about the crash, a year later
- Bryant's skills weren't limited to the court— Looking back at his legacy as an incredible investor
📺 The Real Show
The Super Bowl isn't just a big deal for football fans. In the world of advertising, the Super Bowl is like the Oscars, Grammys, and Olympics all in one. Since shutdowns first started back in March, many have been speculating about what companies will pay the premium to reach the Super Bowl’s outsize audience. The 2020 Super Bowl drew over 102 million viewers, but when 30-second commercial spots cost $6 million, its not a decision you make lightly.
Super Bowl ads are a great way for a company to have its 'we have arrived' moment. Advertising for the first time this Super Bowl signals that you can be trusted and expect to be around for a while. As an investor, it shows us what industries will likely grow in the next year, and gives us the opportunity to follow along.
The newly IPO'd food delivery company will have their first Super Bowl ad this year, featuring crowd favorites Daveed Diggs and “Sesame Street” Muppets. DoorDash saw its business grow dramatically last year as the pandemic caused people to stay at home and order more deliveries and takeout. Now they are trying to secure their spot in Americans minds as the go-to food delivery option, to maintain their position ahead of competitors like Uber Eats and GrubHub.
Vroom has already released their game day ad in full: “Dealership Pain,” a humorous take on the pains of buying a car at a dealership compared with how simple it is to buy a car online. Since the pandemic hit, car buying has undergone some long-overdue updates. The old system of endless test drives and hard-sell negotiating do not fit with our new digital-first shopping experience. Vroom’s ecommerce unit sales were up 59% in its third quarter, while its ecommerce gross profit rose by 120%. The company is aiming to raise national awareness of the service and build a world where “consumers never have to set foot in a dealership again.
🌿 Scotts Miracle Gro
Between homeowners having more time to spend on their yard and marujana legalizations, it has been a great year to be in the soil industry. In 2020, Scotts Miracle Gro saw revenue for its U.S. consumer segment grow 24% to $2.82 billion, as more people took up gardening, lawn care and sprucing up their homes with indoor plants.Now they are focused on continuing that growth by promoting our appreciation of the outdoors, and especially the backyard.
This website is a marketplace that connects freelancers to buyers of their services, saw its business expand rapidly during the pandemic. In the third quarter of 2020, their revenue was up to $52.3 million, up 88% year over year, the company reported. Fiverr is hoping this trend continues, and is using this ad to reassure gig workers that platforms like theirs will make the transition to being a contractor simple and easy.
🔍 Who’s Missing?
While we have some exciting newcomers, it's also worthwhile to take a look at what brands are sitting out. Some notable consumer brands like Budwiser, Coca-Cola, and Avocados from Mexico are breaking a long running streak of advertising. Facebook, who made their Super Bowl ad debut last year, is also taking a step back, opting to focus their marketing budget on entertainment industry events, like the Grammys, instead.
Word of the Day
(n.) The dollar value of putting a particular brand label on a product.
Example: I am a bit of a peanut butter snob, and am willing to pay the extra $4 for a jar of Skippy instead of getting whatever generic brand I could get at the supermarket. That extra $4 is the Brand Equity, or additional value a product has when it's under an established brand.
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