🏈 Big game, big dollars

Junk fees “add up to hundreds of dollars a month,” President Joe Biden said in his State of the Union address Tuesday.

A Junk Fee Prevention Act would ban or reduce several of them — but what are they?

Oh, you know ‘em

Ever book a hotel at what seems like a decent price, only to realize there’s also a “resort fee”? That’s a junk fee — an added cost that pops up when it’s time to pay.

Some other examples:

• Service fees when buying event tickets; one review found that sports tickets can rack up service, delivery, and other fees that amount to 50% of their face value.
• Fees airlines charge for families to sit together.
• Early termination fees for TV, internet, and phone services, which can exceed $200.
• Hotel resort fees, which average ~$42 per night, cover amenities like WiFi, gyms, and pools — even if you don’t use them

It’s often hard to avoid these fees because they’re not included in the upfront price, and in some cases — like when buying event tickets — buyers have few alternatives.

What’s the impact?

A 2019 Consumer Reports survey found 85%+ of Americans have experienced junk fees. And while you might not notice them on a daily basis, they do add up.

US hotels raked in an estimated $2.9B in resort fees in 2018. Airlines made $8.6B in seat change and baggage fees in 2019. (Notably, several airlines ditched change fees amid the pandemic; in 2022, US airlines made ~$5B in baggage fees and just $697k in change fees).

As inflation drives the cost of everyday things higher, added fees could be the difference between a family vacation and staying home.

Every year, it feels like the goal posts for how much a network can charge for a 30-second Super Bowl ad slot grow taller and taller.

Even so, Fox sold 95% of the ad inventory for Sunday’s big game by September, and this week declared a sellout, per Variety.

In 2022, NBC’s broadcast of Super Bowl LVI generated $578m+ just from in-game commercials. Take pre- and postgame ad revenue into account, and you’re looking at $636m.

This year, Fox charged $6m-$7m+ for 30-second ad slots, which the company says sold better than usual throughout the day.

• For instance, a 30-second ad during early pregame programming can cost $100k, and one before kickoff can sell for ~$3m.

But the journey to a sellout wasn’t without unexpected late hits, with some companies pulling back on ad spend last year as the economy soured.

In particular, crypto companies, which made waves for their Super Bowl ads last year featuring Larry David and a QR code, will be absent from this year’s lineup.

In case you missed ‘em, here’s this week’s best…

• Tweet: What you look like interviewing versus two years on the job.
• Blog: Six social media strategies to help you drive revenue in 2023.
• Chart: How the global market for food coloring could look in 2033.
• Story: Mark’s deep dive into why athletes (and some remote workers) owe a “jock tax” wherever they go.
• Video: Our latest “Hustlenomics” episode about all-you-can-eat buffets.