Do Advertising Efficiency and Brand Reputation Matter: Evidence from Super Bowl Advertising

Document Type


Publication Date

Spring 2013

Publication Title

Marketing Management Journal


This study investigates the relationship between firm capabilities and the market valuation of Super Bowl advertisers. First, we track the stock market reactions to Super Bowl advertising. Event study results show that Super Bowl advertising from 2005 to 2010 is positively related to abnormal stock returns for advertisers. Then, we examine the impact of advertising efficiency and brand value on the financial rewards of this media-placement strategy using multivariate regression. Cross-sectional regression analyses indicate that advertising efficiency is positively associated with cumulative abnormal stock returns of Super Bowl advertisers. These findings suggest that efficient conversion of advertising inputs generates positive abnormal stock returns. Further, brand value has a positive impact on Super Bowl advertisers’ financial performance, indicating that investors, as predicted, appear to be sensitive to brand value when they make investment decisions immediately following Super Bowl events.