In a surprising move, Papaya Global, a late-stage global workforce payment startup, has decided to run a 30-second ad during the Super Bowl. This decision is a significant departure from the norm, as B2B companies rarely invest in such high-profile advertising slots. The ad aims to highlight Papaya’s software, which assists companies in maintaining compliance while running payroll for cross-border teams.
Super Bowl ads are notorious for their high cost, with a 30-second slot this year priced at a whopping $7 million. Bernd Schmitt, a professor at Columbia Business School, explains that while the Super Bowl offers a vast audience, it’s often too broad to be effective for many companies. However, he notes that such a move can flex a company’s financial prowess and help it stand out in a crowded market.
Jessica Malamud, Papaya’s VP of brand and communication, confirms that standing out was a significant reason behind their Super Bowl ad decision. The employee payments space has become more crowded since Papaya’s launch, with startups like Oyster HR and Remote gaining ground. In such a competitive environment, name recognition becomes crucial.
While the Super Bowl ad will introduce Papaya to a new audience, the majority of viewers may not directly benefit from learning about the company. However, as Papaya works with companies across a wide range of sizes and industries, the ad could potentially offer a better ROI than a B2B company with a narrower customer focus.
Tracking the success of such an ad campaign can be challenging, especially in the B2B sector where sales cycles don’t follow the same patterns as B2C. Hila Perl, the director of communications at Papaya, emphasizes that the ad is more about brand building and awareness than direct lead generation.
This bold move by Papaya draws parallels with Squarespace’s strategy during its startup days. Squarespace, which helps small businesses build websites, ran Super Bowl ads for years, resulting in a boost in business and brand recognition. Whether Papaya’s Super Bowl ad will yield similar results remains to be seen.
In conclusion, while the direct ROI from the ad may be hard to track, the overall success of this strategy will be evident if we see another commercial from Papaya during next year’s Super Bowl.