Streaming-Only Super Bowl Ads Help Small Brands Compete

Streaming-only Super Bowl ads give small brands a shot at the big game

Streaming-only Super Bowl ads give small brands a shot at the big gameImage Credit: CNBC Top News

Key Points

  • The Cost Breakdown: According to Mark Marshall, NBC's chairman of global advertising and partnerships, these streaming-only spots cost roughly half of their traditional broadcast counterparts. While still a significant investment, this price point opens the door for companies that were previously priced out.
  • Inventory and Demand: Streaming-only ads constitute about 10% of the total ad inventory for the game. "I think people caught on to this trick over the past couple years, and it's done really well in streaming," Marshall said. "As a result, a lot of people are lining up and wanting to do that."
  • How It Works: The streaming-only ads, which still appear nationally to the digital audience, are strategically placed in slots that would typically be filled by regional or local affiliate commercials during the traditional television broadcast.
  • Tecovas' Deliberate Choice: Krista Dalton, the company's Chief Marketing Officer, described the move as a way to achieve the cultural impact of the Super Bowl within "a highly engaged environment while staying disciplined with our investment."
  • Life360's Strategic Test: CMO Mike Zeman noted the value of the digital-only buy. "Streaming is a great way for us to test what being integrated into such a monumental cultural moment can deliver to our brand and business," he said. It provides access to a massive audience with an investment that "doesn't break the bank or occupy too large a percentage of our overall marketing budget."

Streaming-only Super Bowl ads give small brands a shot at the big game

As the cost for a traditional 30-second Super Bowl commercial soars to a record-breaking average of $8 million, a new, more accessible advertising playbook is emerging. A growing number of challenger brands are leveraging a more affordable, digital-only path to the nation's biggest media event, buying ad slots that run exclusively on the game's streaming simulcast.

This strategy allows burgeoning companies to tap into the massive, highly engaged Super Bowl audience without shouldering the astronomical costs of a national broadcast spot, creating a new entry point into what has historically been the most exclusive advertising real estate in the world.

The Digital Sideline

While the Super Bowl remains a broadcast television behemoth, the digital simulcast is rapidly gaining viewers and advertiser interest. For Super Bowl 60, which will air on Comcast's NBC and stream on Peacock, a specific subset of ad inventory has been reserved for the streaming-only audience.

These digital-first commercials are a strategic alternative for brands looking to make a big impact on a smaller budget.

  • The Cost Breakdown: According to Mark Marshall, NBC's chairman of global advertising and partnerships, these streaming-only spots cost roughly half of their traditional broadcast counterparts. While still a significant investment, this price point opens the door for companies that were previously priced out.

  • Inventory and Demand: Streaming-only ads constitute about 10% of the total ad inventory for the game. "I think people caught on to this trick over the past couple years, and it's done really well in streaming," Marshall said. "As a result, a lot of people are lining up and wanting to do that."

  • How It Works: The streaming-only ads, which still appear nationally to the digital audience, are strategically placed in slots that would typically be filled by regional or local affiliate commercials during the traditional television broadcast.

A New Roster of Advertisers

This digital strategy is successfully attracting a fresh wave of advertisers, diversifying the commercial breaks beyond mainstays like Budweiser and Lay's. According to Marshall, 100% of the advertisers in NBC's Peacock-only slots for this year's game are new to the Super Bowl.

Two such brands, cowboy boot maker Tecovas and family safety app Life360, have embraced the streaming-only approach for their Super Bowl debut.

  • Tecovas' Deliberate Choice: Krista Dalton, the company's Chief Marketing Officer, described the move as a way to achieve the cultural impact of the Super Bowl within "a highly engaged environment while staying disciplined with our investment."

  • Life360's Strategic Test: CMO Mike Zeman noted the value of the digital-only buy. "Streaming is a great way for us to test what being integrated into such a monumental cultural moment can deliver to our brand and business," he said. It provides access to a massive audience with an investment that "doesn't break the bank or occupy too large a percentage of our overall marketing budget."

The Peacock Effect: Driven by Live Sports

The growing appeal of streaming-only Super Bowl ads is directly tied to the explosive growth of the streaming platforms themselves, particularly NBC's Peacock. The service has seen its subscriber base swell to 44 million, a surge largely credited to its aggressive push into live sports.

NBC is leveraging a "Legendary February," featuring the Super Bowl, the Winter Olympics, and the NBA All-Star game, to further solidify Peacock as a destination for live events. This has made its ad inventory, especially during major games, more valuable than ever.

"It's obviously a huge year for NBC, and Peacock is more sold out than usual. We're seeing a lot of brands leaning in with Peacock," said Doug Paladino of ad agency PMG.

Paladino also highlighted a key technical advantage of streaming advertising: superior audience targeting. Unlike the broad reach of a broadcast commercial, digital platforms allow advertisers to target viewers based on more specific demographic and behavioral data, potentially increasing the efficiency of their ad spend.

The "On-Ramp" to the Big Game

For many brands, a streaming-only ad is not just a one-time play but a strategic stepping stone. The experience serves as an "on-ramp" to potentially larger commitments in the future, allowing companies to test creative messaging and measure ROI in a Super Bowl environment.

The journey of direct-to-consumer health startup Ro exemplifies this path.

  • The First Step: Last year, Ro purchased its first Super Bowl ad on Fox's streaming service, Tubi. Philip Inghelbrecht, CEO of ad tech firm Tatari, which worked with Ro, noted the powerful results. "The results that they got out of the Super Bowl for what they paid were an order of magnitude above what the traditional spot is," he said.

  • Graduating to Broadcast: After dipping its toes in the water, Ro validated the strategy. "It was a really attractive chance for us to really understand how our brand and our creative performed in that environment," said Will Flaherty, Ro's SVP of Growth.

  • The Full Investment: This year, Ro has ramped up its commitment, purchasing a full national broadcast spot on NBC for an ad featuring tennis legend Serena Williams.

What's Next

The rise of the streaming-only Super Bowl ad signals a significant evolution in media buying for TV's biggest night. As viewership continues to fragment between linear and digital, this hybrid model offers a glimpse into the future of event advertising.

While the prestige and massive reach of a traditional broadcast spot remain unparalleled—with some advertisers paying over $10 million for 30 seconds of airtime—the digital doorway provides critical access and data-driven insights for a new class of ambitious brands. This trend is poised to grow, further blurring the lines between television and streaming and redefining what it means to win on Super Bowl Sunday.