These 3 stocks won the Super Bowl ad game
Super Bowl LV is on the books.
Tom Brady won his seventh championship title in walkaway mode. In the business world, the real game didn’t happen on the grill, but during the commercial breaks between the action. Brands big and small paid around $5.5 million for a 30-second ad spot on Sunday night to get their message across to one of the biggest television audiences of the year.
Which advertisements won the day? There are different ways to measure the response. Data from Semrush shows which publicly traded companies saw the biggest boost in web searches from their Super Bowl ads, which could indicate the effectiveness of the ads. Let’s take a look at the top three.
3. Scotts Miracle-Gro
Scotts Miracle-Gro (GMS -6.22%) was a first-time announcer in the Super Bowl. The fertilizer and lawn care maker has been a pandemic winner as Americans spend more time at home during the crisis and have invested in home improvement products, including exterior maintenance.
In its most recent quarter, sales more than doubled to $748.6 million, and the company reported its first-ever first-quarter profit, during what is typically the slowest seasonal period in the industry. society. However, management believes it will be difficult to generate growth beyond a blockbuster in 2020, and the company is forecasting a slight decline in sales for the fiscal year, which means a significant decline for the next three quarters.
This may explain why the company chose to advertise in the Super Bowl, as the platform gave the company a chance to capture the momentum it has gained over the past year. In a spot featuring celebrities such as Martha Stewart and John Travolta, Scotts announced a competition for 42 people to win the lawn and garden of their dreams. Scotts is also using the ad to kick off its spring marketing campaign, pushing spending ahead of what is usually its biggest seasonal time of the year.
According to data from Semrush, the announcement appears to have paid off: searches for the company were up 2,716% on Sunday evening compared to the previous day.
2. Fiverr International
Like Scott, Fiver International (FVRR -8.56%) was a winner of the pandemic. The platform connects gig workers with employers. Its stock price has jumped 600% in the past year, and the company posted 88% year-over-year revenue growth in its most recent quarter. It is also now profitable on an adjusted basis EBITDA base.
As a scalable platform currently enjoying significant tailwinds, Fiverr likely saw huge upside potential in a Super Bowl ad, as it’s an easy way for the company to increase brand awareness and to reach a wide and diverse audience. The ad, titled “Opportunity Knocks,” featured the owner of Four Seasons Total Landscaping (who rose to some notoriety in 2020 as part of a rather notorious press conference involving Rudy Giuliani). It showed the owner traveling through an imaginary world of possibilities, highlighting how Fiverr can open doors by making it easier for small businesses to hire.
Searches for Fiverr also jumped after the ad aired: Semrush reported that searches for Fiverr were up 7,845% from the previous day. With millions of Americans still out of work due to the pandemic, the announcement was timely.
Used car dealer online vroom (VRM -12.80%) has had mixed results during the pandemic. The company went public through an IPO last June, shortly after a deep lull in car sales as consumers cut spending during the coronavirus-related lockdown and as society in turn suspended car purchases. However, when the economy reopened, demand for used cars increased, and Vroom rushed to catch up. It acquired low-cost cars to meet demand, but sales growth on the platform in the third quarter was still slower than before the pandemic. E-commerce unit sales, the growth component of the business, rose 59% in the third quarter, while e-commerce dollar sales rose only 25%, down from growth triple digits earlier in the year.
In an ad that attacked the traditional dealership experience head-on, Vroom’s Super Bowl spot told viewers they could have their new used car delivered for just $600, avoiding the hassle of the dealership. His decision to stream on the Super Bowl stage seems to indicate he’s ready to boost sales after last year’s lull. Vroom’s announcement also appeared to be a hit as searches for the company jumped 9,108% on Sunday night, according to Semrush.
Investors also seemed to like the announcement, with the stock price jumping 6.2% on Monday without further news.
Is the investment worth it?
It’s worth noting that these three stocks gained Monday, by 1.3% or better, outperforming the broader market. The $5.5 million price tag can be pricey for a 30-second ad. Fiverr spent a total of $67 million on sales and marketing in the first three months of the year. However, it’s a sign of strength that these three companies were confident enough to buy Super Bowl ads, especially since they’re all new to the big game.
Based on the research data, all three seem to have made the right choice. It is now up to everyone to convert the increased brand awareness into new business.