Are Super Bowl Commercials a Predictor of Failure?
Well, it is Super Bowl time! Bring on the parties, the football, the pizza, and the commercials. I remember back in 1999; Super Bowl commercials were dominated by companies with .com following their names. Probably the most memorable ad was driven by a sock puppet sponsored by pets.com.
This was a big boom for the Internet companies during the.com craze. Internet companies were all the rage. It seemed only appropriate for the next big thing to spend millions of dollars on 30-second ads.
Fast forward one year later, and the dot com mania looked like a city that had a category 5 hurricane rip through it. The temporary darlings of Wall Street were faded memories as .com companies went through bankruptcy and failed.
You see, the .com craze was a mania and an unsustainable investment bubble that was billed as the next big get-rich-quick idea, destined to make investors rich. History is riddled with examples of investment bubble casualties that were moneymakers on paper one minute and significant failures the next.
Fast forward to today and the Super Bowl commercial lineup, the next big investment craze – crypto-currencies. Crypto companies will be spending millions of dollars promoting the idea of the next big get-rich idea.
An executive from one of these firms had this to say about the opportunity. He said
“cryptocurrency will also feature prominently this year. The ad continues our marketable theme of trying to make crypto more accessible and approachable. We believe this technology is a big and growing part of the future and we want everyone to be invited to take part. Every ad we do is a new invitation, and this one is no different.”
Crypto is the newest and latest investment craze/bubble that has made investors rich and extends that invitation to new investors. In reality, crypto looks like the .com companies and nothing more than a wild speculative investment idea that has grown into one big investment bubble.
Fast forward to 2023...
Will these crypto companies still be around, or will they go the way of the Super Bowl glamor days destined for failure as all investment bubbles have ultimately experienced?
I do not wish failure on any of these companies. It is just that history seems to repeat itself, especially when it comes to investment bubbles.