Top of the mornin! This is GPTEA, the email helping you get smarter in AI.

If you're recovering from the Super Bowl, no worries, grab your pop-tarts. We'll wait.

In Today’s Email:

• Super Bowl Ads are still the best user acquisition strategy in 2023

• Tidbit News: World's First AI Pizza, Bing vs ChatGPT, Indian men use ChatGPT for Valentines

• 3 Tools To Spice Up Your Day

P.S. welcome to all the first time readers. Reply to this email to let me know if you love it, or hate it. If you liked the newsletter, please do us a solid and share it on Twitter or forward this email to your buddy.

SUPER BOWL ADS ARE STILL THE GOAT

First off, Congrats to the Kansas City Chiefs and Patrick Mahomes for winning Superbowl LVII (57).

But forget about the football game and the halftime show!

Let's talk about why Super Bowl ads are still the best user acquisition strategy in 2023.

For decades, Super Bowl ads have been the pinnacle of mainstream marketing.

It's the only time of the year where people actually want to watch ads.

They're begging to be sold to.

It's the same mentality as when people want to buy iPhone and tune into every Apple event.

This year it costs $7M for a 30 sec commercial spot. 

Here's a graph of how much costs have risen over the last 5 years.

Not to mention, production costs usually run about $1M.

So we're looking at about $8M conservatively.

This past Sunday ~115M Americans tuned in to watch the game.

That's 1 in 3 Americans.

So for every $1 ad spend, that's 12.5 people that view your ad.

And, since people want to be sold to, they are much more likely to buy or download your products.

Here's some past Super Bowl Ad successes :

• Coinbase jumped 309% in App Downloads

• DraftKings jumped 197% in App Downloads

• Caesars jumped 147% in App Downloads

In 2022, Coinbase added 19M verified users. That’s 1.6M users/month in revenue.

And since the Super Bowl is in February, we can assume that was a record month netting out 3-5M new users.

They spent $14M on the ad so their Customer Acquisition Cost (CAC) = $2.8-$4.67.

That’s pretty insane.

Now let’s look at some alternatives to demonstrate how superior these numbers are:

1 - YouTube Ads

Average Cost Per View (CPV) = $0.026 in US (2022)

That means you’ll need to spend $2.6M to reach 100M eyeballs.

Average view rate is 31.9%.

So 31.9M ppl will watch it.

Average Click-Through-Rate (CTR) on YouTube Ads: 0.514%

That means 163,966 will click on your ad.

Average website conversion 2-5%.

So 8,198 new users will sign-up!

That’s a CAC of $317.15. Compared to $2.80... Not even close!!

2 - Google Ads Search

Average Cost Per Click (CPC) = $2.30

To obtain a similar results as the Super Bowl, you’ll need a 5% website conversion.

Which means you need 100M to click on the ad.

So you would need to spend $230M to obtain the same result as Coinbase...

3 - TikTok

Average Cost Per Thousand (CPM) = $10.

So you need to spend $1M to get in front of 100M people.

If you spend $14M similar to Coinbase, you would be put Infront of 1.4B people.

The top CTRs for in-feed video is between 12-16%.

So that's 168M ppl on your site.

At a 2% website conversion, 3.36M new users.

So you're theoretically netting out a similar result to Coinbase, but saturating a social feed will definitely not deliver the results since people will get tired of seeing your ads.

This could hurt your brand image.

Also, the demographic of TikTok is much younger so it might not be the right audience for every company.

Now, of course, these are all averages. But I think you get the point.

So in conclusion, Super Bowl Ads are still the GOAT for user acquisition in 2023.

🧋 GPTEA Super Bowl Ads

Now let’s say I buy a Super Bowl slot for $7M, how should I come up with an ad?

Typically major brands will contract out creative agencies that bill you at $250 to $350/hr.

It takes months for them to come up with the right ad. Let's say it takes 3 months.

They might need a team of 5 people minimum to complete the project.

So you're looking at about $840K for an ad.

I actually spoke with a company who outsourced their ad to an agency. They spent over $2.5M.

Of course, GPTEA is all about AI so we decided to throw our hats in the ring and create our own Super Bowl Ads.

P.S. it didn't take us 3 months to make these.

ChatGPT

Nike

Chick-Fil-A

Tesla

STEEPED MEMES

🤣🤣

TIDBIT NEWS

World's First AI Pizza Dubai's Dodo Pizza launched a line of curated pizzas inspired by AI generated recipes.

Bing Chilling Analysis on the responses to 20 different questions on Bing and ChatGPT.

Love is in the AI.r Over 60% of Indian men will turn to ChatGPT to write love letters for Valentine's Day.

3 TOOLS TO SPICE UP YOUR DAY

1/ Supermeme - If you want to be half as funny as us, you can use this to create memes. :p

2/ Aimi - Create music with AI. Listen to a never ending Lo-Fi playlist. Join the beta.

3/ Colossyan - Generate videos with AI actors.

Join the AI gang, rep the bunny. All you need to do is ask your friends to join the newsletter. (:

And that's the tea for today! Cheerio till tomorrow, Nick (Mr. Mount Everest), Ty (Mr. Kilimanjaro).