How a blackout at the Superbowl became a goldmine for advertisers

A silver lining lined with actual silver.

Like many in the UK, I followed last night’s Superbowl in the dark, via twitter, on a glowing matchbox-sized screen.

Despite an American wife and many patient explanations from my father-in-law, an instinctive understanding of American Football continues to elude me – and yet I still love watching it.

Strangely, this is the case even when the spectacle is transmuted from an extravaganza of vast men, cheerleaders and fireworks to a torrent of 140 character outbursts.

The reason why became clear at the opening of the game’s third quarter, when incessant chatter about Beyonce’s half-time show was cut off by an onslaught of tweets about blackouts, organisational chaos and pissed-off advertisers.

In the end, the 34-minute stoppage, during which half the lights in New Orleans’ 73,000-seat Superdome were off and broadcasts were severely disrupted, made for the most interesting part of the game – from a cultural standpoint at least.

Oddly enough, I’d seen the exact same thing happen before from the other side of the screen. In 2007, I was watching the Oklahoma State Cowboys annihilate Florida Atlantic at the Boone Pickens stadium in Stillwater, OK, when half the stadium lights went out at the start of the third quarter.

During the sixteen minute outage that followed, the sea of orange-shirted fans turned introspective, discussing the opening action of the second half and reflecting on the general cultural artillery backing up the home team; the grotesque foam mascots, the confetti cannons, the US infantrymen improvising a press-up competition in the centre of the field to keep people pumped up.

Last night’s half-hour twitterval had the same atmosphere, amplified by the global pool of participants. People who hadn’t even planned to care about the Superbowl were getting sucked in, contributing to a growing discussion of the event that had increasingly little to do with football.

While advertisers paying up to $4m each for 30 second slots may have been incensed at the disruption to begin with, those keeping an eye on twitter (which we can assume to be all of them, given the preponderance of hashtags in this year’s superbowl ads), would have very quickly spotted a sliver lining to the organisational cloud hanging over the stadium.

For in the absence of any actual sport, bored fans and football-agnostic twitter browsers alike were turning, amongst other subjects, to discussion of the year’s ads.

The advertisement hashtags, which might otherwise have lingered in the sidelines of the Ravens/49ers confrontation, were being traded thick and fast alongside Beyonce lyric puns, New Orleans jokes and references to every film ever containing a power outage as plot element. Savvy advertisers, like Audi and Oreo, jumped straight in and started making their own wisecracks.

In the end, this half-hour break to talk about the cultural architecture underpinning the football ended up giving marketers more bang for their buck than an uninterrupted game would have done.

I wouldn’t be surprised to find a blackout in the programme for Superbowl 48 – with its own sponsor, of course. Any takers?

By day, Fred Crawley is editor of Credit Today and Insolvency Today. By night, he reviews graphic novels for the New Statesman.

Getty
Show Hide image

Let's turn RBS into a bank for the public interest

A tarnished symbol of global finance could be remade as a network of local banks. 

The Royal Bank of Scotland has now been losing money for nine consecutive years. Today’s announcement of a further £7bn yearly loss at the publicly-owned bank is just the latest evidence that RBS is essentially unsellable. The difference this time is that the Government seems finally to have accepted that fact.

Up until now, the government had been reluctant to intervene in the running of the business, instead insisting that it will be sold back to the private sector when the time is right. But these losses come just a week after the government announced that it is abandoning plans to sell Williams & Glynn – an RBS subsidiary which has over 300 branches and £22bn of customer deposits.

After a series of expensive delays and a lack of buyer interest, the government now plans to retain Williams & Glynn within the RBS group and instead attempt to boost competition in the business lending market by granting smaller "challenger banks" access to RBS’s branch infrastructure. It also plans to provide funding to encourage small businesses to switch their accounts away from RBS.

As a major public asset, RBS should be used to help achieve wider objectives. Improving how the banking sector serves small businesses should be the top priority, and it is good to see the government start to move in this direction. But to make the most of RBS, they should be going much further.

The public stake in RBS gives us a unique opportunity to create new banking institutions that will genuinely put the interests of the UK’s small businesses first. The New Economics Foundation has proposed turning RBS into a network of local banks with a public interest mandate to serve their local area, lend to small businesses and provide universal access to banking services. If the government is serious about rebalancing the economy and meeting the needs of those who feel left behind, this is the path they should take with RBS.

Small and medium sized enterprises are the lifeblood of the UK economy, and they depend on banking services to fund investment and provide a safe place to store money. For centuries a healthy relationship between businesses and banks has been a cornerstone of UK prosperity.

However, in recent decades this relationship has broken down. Small businesses have repeatedly fallen victim to exploitative practice by the big banks, including the the mis-selling of loans and instances of deliberate asset stripping. Affected business owners have not only lost their livelihoods due to the stress of their treatment at the hands of these banks, but have also experienced family break-ups and deteriorating physical and mental health. Others have been made homeless or bankrupt.

Meanwhile, many businesses struggle to get access to the finance they need to grow and expand. Small firms have always had trouble accessing finance, but in recent decades this problem has intensified as the UK banking sector has come to be dominated by a handful of large, universal, shareholder-owned banks.

Without a focus on specific geographical areas or social objectives, these banks choose to lend to the most profitable activities, and lending to local businesses tends to be less profitable than other activities such as mortgage lending and lending to other financial institutions.

The result is that since the mid-1980s the share of lending going to non-financial businesses has been falling rapidly. Today, lending to small and medium sized businesses accounts for just 4 per cent of bank lending.

Of the relatively small amount of business lending that does occur in the UK, most is heavily concentrated in London and surrounding areas. The UK’s homogenous and highly concentrated banking sector is therefore hampering economic development, starving communities of investment and making regional imbalances worse.

The government’s plans to encourage business customers to switch away from RBS to another bank will not do much to solve this problem. With the market dominated by a small number of large shareholder-owned banks who all behave in similar ways (and who have been hit by repeated scandals), businesses do not have any real choice.

If the government were to go further and turn RBS into a network of local banks, it would be a vital first step in regenerating disenfranchised communities, rebalancing the UK’s economy and staving off any economic downturn that may be on the horizon. Evidence shows that geographically limited stakeholder banks direct a much greater proportion of their capital towards lending in the real economy. By only investing in their local area, these banks help create and retain wealth regionally rather than making existing geographic imbalances worce.

Big, deep challenges require big, deep solutions. It’s time for the government to make banking work for small businesses once again.

Laurie Macfarlane is an economist at the New Economics Foundation