2000: The Year the Startup Super Bowl Ads Failed
20 years ago, 11 different startups spent millions of dollars to run 30-second ads during the Super Bowl, reports the Hustle. Within one year 8 of the 11 companies "had either gone bankrupt or been sold in fire sales." The how-to platform Computer.com spent $3m of its $5.8m in seed funding on an ad featuring its 2 founders holding a poster board sign. The site hadn't even launched yet. Not all the ads were quite as homespun. Another startup, Pets.com, spared no expense...to produce its 30-second ad for pet products that featured... a homemade sock puppet... The 11 startups that bought ads for 2000's Big Game were hoping to replicate the success of 2 tech companies that came before them. HotJobs.com and Monster.com paid for ads in the 1999 Super Bowl, and both reported surges in web traffic during the game... [But in 2000] many advertisers' websites proved poorly equipped to handle the increased traffic... One startup's site slowed from 8 to 53 seconds; another's altogether crashed. "Everything was held together with glue and rubber bands," Hanlon, of LifeMinders, said... Pets.com, whose $17m in marketing resulted in just $8.8m in revenue, declared bankruptcy less than 10 months after the game. Several months later, Pets.com sold off the branding rights to its celebrity sock puppet for $125k. LifeMinders.com, which had once been valued at $2.3B, had to sell for $68.1m in cash and stock. Computers.com also sold for an undisclosed amount... [I]n this year's game, there aren't expected to be any startups advertising... According to the professors, modern startups are right not to focus on Super Bowl ads these days: For all but a few, it wouldn't be worth it.... The marketing professors looked back at Super Bowl XXXIV's defunct startups and saw something else: A lot of startups that fell victim to their own egos. Although when it was all over, the Pets.com sock puppet ended up being interviewed on CNNfn.
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