Does the Super Bowl Help Boost Advertisers' Stock Prices?

Investing in the shares of advertisers works because companies shelling out big bucks for air time are generally confident about their futures.

Ah, Super Bowl Sunday. The ferocious competition, the cheap shots, the wretched excess -- and that's just the commercials. Not only are ads sometimes the spectacle’s best part, but you can bank on the stocks of companies that buy them.

Research shows that the effect isn't like the brief buzz you get from a bellyful of Coke and Doritos (watch for their commercials during the game), though that effect does occur. On average, companies that advertise during the Super Bowl outperform Standard & Poor's 500-stock index by more than one percentage point in the ten trading days from the Monday before the big game to the Friday afterward. This is according to marketing professors Chuck Tomkovick and Rama Yelkur, at the University of Wisconsin-Eau Claire.

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Jennifer Schonberger
Staff Writer, Kiplinger's Personal Finance