Companies may take a pass on pricey Super Bowl ads

With advertising rates for the Super Bowl running as high as $3 million for a 30-second spot, some marketers are wondering whether during these tough economic times they can afford the big game.

FedEx, a loyal Super Bowl advertiser, still hasn't decided if it will buy in. FedEx is concerned that shelling out big bucks - at a time when it's "asking employees to do more with less" - will look "wrong," says a person close to the company.

"Companies have to be mindful that jumping into the game can open them up to criticism," this person says.

FedEx's hesitation is raising eyebrows on Madison Avenue because it has advertised in 12 of the past National Football League Championship games.

The company is also one of those that get extra mileage out of the game because its spots tend to be entertaining, and are widely anticipated. During the last Super Bowl, one FedEx ad featured an enormous carrier pigeon wreaking havoc in a city.

Advertisers taking a pass on Super Bowl XLIII altogether include beleaguered General Motors, which has been in 16 games, and Garmin Ltd., the maker of GPS devices, which had advertised in the past two games. A company spokesman for Garmin says its decision to sit out was "unrelated to the economy."

Jumping into high-priced media deals can raise lots of image questions, say ad executives.

"With this much money on the line it can be a negative reflection on a company, especially if they are cutting back staff or getting a government bailout," says Steve Lanzano, chief operating officer at MPG North America, a media-buying unit owned by Havas.

NBC had sold most of its Super Bowl ad inventory by early September, before the meltdown on Wall Street. The network, however, seems to have experienced some slowing of demand over the past few weeks. It now has about eight ad slots left to fill, roughly the same number that were left in September.

Advertisers on next year's broadcast include Anheuser-Busch, CareerBuilder.com, Hyundai Motor, PepsiCo, Viacom's Paramount Pictures, Cars.com and Coca-Cola. The peacock network has also lured some new marketers to the Feb. 1 game in Tampa, including Pedigree, the dog-food brand.

"Companies realize that it's even more important in a challenging economy to deliver their message in front of the largest audience they'll see all year," says a spokesman for NBC.