Some people watch the Super Bowl because of the actual football game. Many people watch this event for the halftime show or as an excuse to eat wings and other game day snacks. Some people watch this to find a better software solution for their company. probably?
Papaya Global hopes so. The late-stage global employee payments startup is running his 30-second ad on Sunday. The ad aims to highlight the company's software that helps other companies comply with payroll for cross-border teams. The commercial takes place inside an office and is a relatively lackluster Super Bowl ad compared to Super Bowl heavyweights like Budweiser and McDonald's, which use humor, celebrity, and high production values to grab attention every year. is.
However, considering Papaya is a B2B software company, it's not surprising that Papaya's advertising isn't all that flashy. It's not uncommon for B2B startups to advertise through traditional consumer strategies, but advertising during the Super Bowl is a lot different than buying up ads on a New York City subway or a San Francisco freeway billboard. it's different. This year's Super Bowl ad spend is $7 million for a 30-second slot.
Bernd Schmidt, a professor at Columbia Business School who specializes in branding and advertising, said he doesn't see many B2B companies advertising during the Super Bowl, but that's because the audience is large and the reach is wide. He said this is because it is too effective for many companies. But he said there may be at least one reason to do so. It's a show of courage and a show that the company has the money. This helps businesses stand out in a crowded category.
“It gives you bragging rights,” Schmidt said. “Now you can say, 'Oh, there was an ad in the Super Bowl.' The image changes. You look like a major player, a serious player.”
A big reason Papaya decided to do a Super Bowl ad was to stand out, said Jessica Malamud, the company's vice president of brand and communications. Malamud said the employee pay space has become more crowded since the company was founded. Start-ups like Oyster HR and Remote are emerging. Additionally, name recognition is extremely important even in categories like payroll providers.
“We are in an environment. It is no longer a green field,” Malamud said. “We grew and became a hyper-growth company and had great success, but it was all green. Now we have to fight harder.”
This exposure means that many new people can learn about papaya, but the vast majority of people who see Super Bowl ads don't need to know about papaya, and knowing about papaya will benefit papaya. Not at all. But because Papaya works with companies of a wide range of sizes and industries, Schmidt says the ads may have a better return on investment (ROI) for his business than his B2B companies, which have a more targeted audience. says Mr.
“If you have the money, it doesn't seem crazy at all,” Schmidt said. “It seems like a stupid idea for his B2B company, where some companies are selling to big companies. More diverse targets, very small targets, all these long tails for his B2B company. If so, it may not be a problem.”
Tracking whether an advertising campaign is successful is difficult. If McDonald's advertises hamburgers during the game, they can look at hamburger sales before and after the game. It's pretty cut and dry. B2B sales cycles don't work that way, making ROI difficult to quantify. A business becomes interested in Papaya from an ad, but may be locked into a contract with another payroll provider for months or years, for example, to track which sales were driven by that ad. becomes difficult.
Hira Pearl, Papaya's director of communications, said the company doesn't see the advertising as a direct lead generation strategy.
“It's not about selling more,” Pearl said. “Obviously, we want to see a very direct ROI, but we all understand that this is a brand-building, brand-awareness effort. It's about lead generation. It's not a play. In my mind, I've always thought it's more of a marathon than a sprint. If you want to plan ahead to see how your vision is reflected, Some require large-scale investments.”
In fact, not many B2B startups have tried this marketing route. But you could also draw a line between Papaya's strategy and Squarespace's. Squarespace is no longer a startup and has more of a B2B flavor than pure B2B, helping small businesses build their websites, but it did run Super Bowl ads for years during its startup days. I was there.
David Lee, Squarespace's chief creative officer, told TechCrunch that he decided to run these ads because he felt the company had a great product that no one had heard of before. Squarespace was already profitable and had money to spend. While this may not be the right strategy for every startup, Lee said it has improved business and brand awareness.
“You're trying to make sure you're relevant. It's the silver bullet that instantly puts you on the map,” Lee said. “Everyone has to decide [whether it will] It's worth the investment. The point I'd like to make is that it's really hard to get noticed today. ”
While it may be difficult for Papaya to track ROI directly from its ads, watching the company's commercials during next year's Super Bowl will tell you whether the company felt it was an overall success.