General Motors and Netflix partnered for a 60-second ad starring actor and comedian Will Ferrell driving GM electric vehicles in popular Netflix shows and movies to promote the streaming service using more EVs in its productions.
Automakers — historically among the largest Super Bowl advertisers — are mostly bypassing this Sunday’s NFL championship game to preserve cash or spend ad dollars elsewhere.
The only automakers expected to advertise during Sunday’s game between the Philadelphia Eagles and Kansas City Chiefs on Fox are General Motors, Kia and Stellantis‘ Ram and Jeep brands. Porsche said it will air a spot shortly before the game in collaboration with Paramount.
The broad resistance is a swift change from a year ago, when the automotive industry represented the largest segment for Super Bowl ads, at $99.3 million, according to Kantar Media’s Vivvix. That total was up by more than $30 million from 2021 when web-based, media and movie companies outspent the industry.
The decline in automotive ads this year comes as companies invest billions of dollars in electric vehicles or attempt to preserve cash in preparation for a potential economic downturn. They also are continuing to battle through supply chain problems.
The average cost of a 30-second commercial during last year’s Super Bowl was $6.5 million, up more than $2 million over 2016 rates. That cost is now approaching $7 million, according to Kantar Media.
“This has less to do with the Super Bowl itself and more to do with individual issues within the automotive industry,” Eric Haggstrom, director of business intelligence for Advertiser Perceptions, told CNBC. “The auto industry has been battered by supply chain issues, inflation eating into consumer budgets, and rising interest rates that have made car payments dramatically more expensive.”
Haggstrom noted several automakers pulled back ad spending in recent years — the result of fewer products to sell due to tight inventories caused by supply chain problems during the coronavirus pandemic. Newer automakers have also traditionally advertised less, or not at all, as they attempt to emulate Tesla’s advertising-free model, Haggstrom said.
Eight auto brands or companies advertised during last year’s Super Bowl, including returning companies GM and Kia. Embattled car retailers Carvana and Vroom, which advertised during last year’s game amid record used vehicle demand, are not returning. And EV startup Polestar, whose ad was a success in the 2022 Super Bowl, said it will also not advertise this year.
For the 10th consecutive year, auto accessory company WeatherTech will air a 30-second ad. The Illinois-based company is the longest-running automotive business to consecutively advertise during the big game.
Those who are advertising say they are taking the opportunity to reach a captive audience that’s expected to be around 100 million viewers. The game is historically one of the most-watched events of the year, offering advertisers an opportunity to capitalize on viewership amid declining television audiences.
GM’s 60-second ad stars actor and comedian Will Ferrell driving GM EVs through popular Netflix shows and movies to promote the streaming service upcoming efforts to include more EVs in its productions.
“It is a big moment,” GM marketing chief Deborah Wahl told reporters during a briefing about its ad. “To do something like this is really different.”
Ferrell also appeared in GM’s Super Bowl ad promoting EVs two years ago.
Those who aren’t returning largely attributed the decision to business priorities or available products and capital. Toyota Motor, one of the top Super Bowl advertisers in recent years, said its product plans didn’t align with this year’s game.
“We look at the Super Bowl very strategically, and we want to make sure that we have a purpose for being in the Super Bowl,” Lisa Materazzo, group vice president of Toyota Marketing, told CNBC at an event this week for the Chicago Auto Show. “We definitely think the Super Bowl has a place. This year it just wasn’t the right time or place for us.”
Hyundai Motor, in an emailed statement, said the decision not to advertise was “based on business priorities and where we felt it was best to allocate our marketing resources.” Audi, which last advertised in 2020, said it’s “focusing on other efforts within our electrification and sustainability commitments.”
Stellantis, formerly known as Fiat Chrysler, has been one of the most prolific advertisers for more than a decade and is returning after a one-year hiatus. The company’s chief marketing officer, Olivier Francois, is well known for attracting standout talent including Bruce Springsteen, Bill Murray, Clint Eastwood and Eminem.
Stellantis has not released its ads, while GM, Kia and WeatherTech released their commercials earlier this week.
Kia’s 60-second “Binky Dad” ad features a father going viral for racing to retrieve a “binky” for his baby, driving a 2023 Telluride X-Pro SUV. It’s set to “Gonna Fly Now” of 1976, famously known as the “Rocky” movie theme music. Uniquely, the commercial features three alternate endings that will be available exclusively on TikTok.
The ad has drawn some criticism online, as Kia and its parent company Hyundai have come under fire for at least four of its suppliers reportedly violating child labor laws. Both Hyundai and Kia have condemned such practices. Reuters this week reported the parent company is in talks with the U.S. Department of Labor to resolve concerns about child workers in its U.S. supply chain.
The 30-second ad for WeatherTech promotes the company’s U.S.-made products, showing bank executives and others criticizing the company for its American investments and production.
The ad for Porsche is a collaboration with Paramount for this summer’s “Transformers: Rise of the Beasts” film. It is the second year for such a tie-up following a commercial last year for “Top Gun: Maverick.”
Haggstrom said there’s been a general “cautiousness” in the auto industry around advertising.
“They’re really looking at what is the value of advertising today? How does that affect my top line, how does that affect my go-to-market,” he said. “We’ve seen a general trend in accountability in consumer advertising.”
– CNBC’s John Rosevear contributed to this report.
From Cartel to Evangelist: The Inspiring Journey of Juan Reyes, Puerto Rico’s Entrepreneur and Author
In the realm of entrepreneurship, few stories are as captivating and inspiring as that of Juan Reyes, a self-made entrepreneur and author hailing from Juncos, Puerto Rico. Despite being born into a low-income family, Reyes defied the odds and carved his path to success through sheer determination, hard work, and an unwavering commitment to his goals. From establishing thriving businesses to becoming a renowned author, Reyes’s journey exemplifies the transformative power of entrepreneurship and the indomitable spirit of an individual driven by faith and dedication.
A Journey Born out of Necessity
Growing up in Juncos, Puerto Rico, Juan Reyes faced significant challenges stemming from his family’s financial limitations. To support himself and contribute to his family’s well-being, Reyes began working from a young age. However, he never allowed his circumstances to dampen his dreams or extinguish his ambition. Determined to change his destiny, Reyes embarked on a path that would not only uplift his own life but also inspire countless others.
A Multifaceted Entrepreneur
Reyes’s entrepreneurial acumen led him to establish several successful ventures that have made a profound impact. Among his notable accomplishments are King of Credit Repair LLC, KCL Clothing Inc, and Shalom Renovation LLC. These enterprises not only generated substantial revenue but also provided employment opportunities for others. Reyes’s astute understanding of business markets, coupled with his expertise in real estate, notary services, modeling, and preaching, contributed to his ability to transform businesses from scratch into multi-million dollar ventures.
Authorship and Beyond
In addition to his entrepreneurial pursuits, Juan Reyes is also a respected author. His debut book, “From the Cartel to the Evangelist,” has garnered significant attention and acclaim. This captivating literary work chronicles Reyes’s personal journey, from overcoming adversity to finding redemption and purpose through his faith. The book serves as a testament to Reyes’s resilience and unwavering determination, inspiring readers to believe in their own potential and navigate their own paths to success.
Sponsored by Christian Faith Publishing
Reyes’s literary endeavors have received a significant boost through the sponsorship of Christian Faith Publishing. This collaboration has allowed Reyes to reach a wider audience with his powerful message of transformation, faith, and the pursuit of entrepreneurship. The partnership between Reyes and Christian Faith Publishing (visit the website here) has opened doors for him to inspire and motivate aspiring entrepreneurs and individuals seeking personal growth.
Recognizing the significance of his own journey, Juan Reyes has made it his mission to give back to society and uplift others. Through speaking engagements and mentoring programs, Reyes shares his knowledge, unique ideas, and experiences with business leaders and young individuals alike. His teachings have become a beacon of hope for those who have faced similar challenges and made similar mistakes, demonstrating that even a fallen business can rise to great heights.
The Pride of Juncos, Puerto Rico
Juan Reyes remains deeply connected to his roots in Juncos, Puerto Rico. His success story has not only become a source of pride for the local community but also an inspiration for the youth in the neighborhood. Reyes’s achievements serve as a testament to the transformative power of entrepreneurship, instilling hope and motivating aspiring entrepreneurs to strive for greatness despite their circumstances.
Juan Reyes’s journey from a humble upbringing in Juncos, Puerto Rico, to becoming a renowned entrepreneur and author is a testament to the triumph of resilience, determination, and faith. Through his businesses, writing, and mentorship, Reyes exemplifies the boundless potential that lies within every individual. He reminds us that with unwavering dedication and a strong belief in oneself, anyone can rise above adversity and create a life of purpose and success. Juan Reyes is an inspiration, not only to entrepreneurs but to all those who dare to dream big and overcome the odds.
Disney CEO Bob Iger rips Ron DeSantis over ‘anti-Florida’ retaliation
Bob Iger, CEO, Disney, during CNBC interview, Feb. 9, 2023.
Randy Shropshire | CNBC
Bob Iger on Monday called Florida Gov. Ron DeSantis’ actions against The Walt Disney Co. retaliatory, “anti-business” and “anti-Florida.”
The feud between DeSantis and the company escalated earlier Monday, when the governor asked the state’s inspector general to determine whether the House of Mouse’s sly move to retain control over the outer limits of Orange and Osceola counties is legal – and whether any of the company’s executives were involved in the scheme.
During the company’s annual shareholder meeting Monday, Disney CEO Iger addressed investor inquiries about the ongoing dispute between the company and Florida legislators. He noted that Disney has more than 75,000 employees in the state, and has created thousands of indirect jobs, as well as brings around 50 million visitors to Florida every year and is the state’s largest taxpayer
“A year ago, the company took a position on pending Florida legislation,” Iger said, apparently referring to what critics called the “Don’t Say Gay” bill. “And while the company may have not handled the position that it took very well, a company has a right to freedom of speech just like individuals do.”
He added: “The governor got very angry about the position Disney took and seems like he’s decided to retaliate against us, including the naming of a new board to oversee the property and the business. In effect, to seek to punish a company for its exercise of a constitutional right. And that just seems really wrong to me.”
Iger said Disney plans to spend more than $17 billion in investments at Walt Disney World over the next decade, which would create around 13,000 jobs at the company and generate even more taxes for Florida.
“Our point on this is that any action that supports those efforts simply to retaliate for a position the company took sounds not just anti-business, but it sounds anti-Florida,” he said. “And I’ll just leave it at that.”
Last week, DeSantis’ newly appointed board of the Reedy Creek district, now named the Central Florida Tourism Oversight District, revealed that the previous Disney-allied board signed a long-lasting agreement that drastically limits the control that can be exercised over the company and its district.
Florida Governor Ron DeSantis speaks during ‘The Florida Blueprint’ event on Long Island, New York, United States on April 1, 2023. Ron DeSantis made comments on the Grand Jury’s indictment of Donald J. Trump, 45th President of the United States in Manhattan, New York.
Kyle Mazza | Anadolu Agency | Getty Images
The agreement was signed on Feb. 8, the day before the Florida House voted to put DeSantis in charge. DeSantis replaced all of the Disney-allied board members with five Republicans on Feb. 27. It was only then that Disney’s new binding agreement was discovered.
The agreement includes a clause that dates back to 1692 in Britain. The “Declaration shall continue in effect until 21 years after the death of the last survivor of the descendants of King Charles III, King of England, living as of the date of this declaration,” the document said.
The governor’s letter calls the board’s agreement an attempt to “usurp the authority of the CFTOD board” and “nullify the recently passed legislation, undercut Florida’s legislative process, and defy the will of Floridians.”
He said at the agreement also has “legal infirmities” including inadequate notice, improper delegation of authority and ethical violations.
Disney, however, has said that all of the board’s maneuvers were completely legal — the agreement was discussed and approved in open, noticed public forums, in compliance with Florida’s Sunshine law.
The development in DeSantis’ conflict with Disney marks just the latest move in one of several partisan battles being waged by the Republican governor.
DeSantis is widely believed to be laying the groundwork to launch a 2024 presidential campaign. That move is expected to come not long after the current Florida legislative session ends in early May. Polls show that DeSantis is the most competitive of the potential opponents for former President Donald Trump in a GOP primary.
The Florida governor took aim at Disney after the company publicly balked at Florida’s HB 1557 law early last year. HB 1557, which critics called the “Don’t Say Gay” bill, limits early education teachings on sexual orientation or gender identity.
Republican state Rep. Randy Fine told CNBC’s “Squawk Box” last April that the bill dissolving Reedy Creek wasn’t retaliatory, but then said “when Disney kicked the hornet’s nest, we looked at special districts.”
Until recently, there had been no major public discussion about dissolving Disney’s long-established special district, which it’s occupied for 55 years, leading DeSantis’ critics to question its timing and the speed at which the governor acted against the company.
The fight between DeSantis and Disney shows no signs of slowing down. During a book tour stop in Georgia last week, DeSantis told attendees “You ain’t seen nothing yet.”
WWE near deal to be sold to UFC parent Endeavor, sources say
World Wrestling Entertainment Inc. Chairman Vince McMahon appears in the ring during the WWE Monday Night Raw show at the Thomas & Mack Center August 24, 2009 in Las Vegas, Nevada.
Ethan Miller | Getty Images
A deal could be announced as soon as Monday. UFC and WWE are expected to form a new publicly traded company as part of the agreement, according to the people, who declined to be named due to the confidential nature of the discussions.
Endeavor is slated to own 51% of the new combat sports and entertainment company, while WWE shareholders would get 49%, according to the people. The Endeavor deal gives WWE an enterprise value of $9.3 billion, they said.
Emanuel is expected to act as chief executive of both Endeavor and the new company. McMahon, likewise, is expected to be executive chairman, while Endeavor President Mark Shapiro will also work in the same role at the new company. Dana White will remain as president of UFC, while WWE CEO Nick Khan will serve as president of the wrestling business.
The development comes during the same weekend WWE hosts its flagship live event, WrestleMania, in California. The company has spent the past several months looking for a buyer. McMahon returned to the company as chairman in January to oversee the process. Shares of WWE are up more than 33% so far this year, giving it a market value of more than $6.79 billion.
The deal will effectively end WWE’s decades-old status as a family-run business. McMahon’s father founded WWE in its original incarnation during the middle of the 20th century, and McMahon is the controlling shareholder in the company. McMahon bought the company from his father in 1982. Since then, the company has grown into a global phenomenon, spawing stars suck as Hulk Hogan, Dwayne “The Rock” Johnson, Dave Bautista and John Cena.
McMahon, 77, retired from the company in July following a string of revelations that he paid several women millions of dollars over the years to keep them quiet about alleged affairs and misconduct. His daughter, Stephanie McMahon, became co-CEO alongside Khan. Paul Levesque, who’s both Stephanie McMahon’s husband and the wrestler known as Triple H, took over creative duties from Vince McMahon.
When Vince McMahon came back in January, Stephanie McMahon stepped down and Khan fully assumed the CEO role. The elder McMahon recently locked in a two-year employment contract, according to a securities filing.
Khan in recent weeks has been making the media rounds to discuss the potential sale. He told CNBC’s Morgan Brennan on Thursday that it’s been a robust sale process, drawing many interested buyers.
WWE brings with it a robust media and live events business, along with its decades worth of intellectual property. The company generated $1.29 billion in revenue last year, driven mainly by its $1 billion media unit.
UFC has paid off for Endeavor. Last year, the MMA league helped Endeavor’s sports business make $1.3 billion in revenue. Endeavor’s market cap stood at about $10.53 billion as of Friday’s close. The Endeavor-WWE deal values UFC at more than $12 billion.
WWE, at least at a glance, would also fit well with the cultures at Endeavor and UFC. McMahon has a brash public persona, making him an apparently good match for Emanuel and White, who are also known for their outsized personalities.
White, like McMahon, is no stranger to scandal, either. Earlier this year, video emerged showing the UFC boss slapping his wife during a public argument at a New Year’s Eve party in Mexico. White apologized.
Disclosure: Peacock, the streaming service owned by CNBC parent NBCUniversal, carries WWE events such as WrestleMania.
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