With Super Bowl LVIII just days away, companies are considering costly advertising strategies to reach the event's 115 million-plus estimated viewers. A 30-second commercial slot costs around $7 million this year. Perion CEO Tal Jacobson joins Yahoo Finance Live to discuss the marketing dynamics around Sunday's Big Game.

Jacobson says the $7 million price tag "pushes a lot of advertising budgets." Companies not accustomed to Super Bowl ads are now "thinking about the bigger picture" given the exposure they could gain. However, he notes there are opportunities beyond just TV ads, like social media and CTV streaming ads.

As demographics shift, Jacobson expects a wider array of companies to run Super Bowl ads this year.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Angel Smith

Video Transcript

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AKIKO FUJITA: Companies are investing big in advertising ahead of the big game this Sunday. The average cost for a 30-second Super Bowl commercial is reaching $7 million for the second consecutive year. And brands are looking to get their money's worth, with Forbes forecasting viewership will exceed the record 115 million.

For more on this, we are joined by Tal Jacobson from Perion, CEO. Tal, it's good to talk to you. $7 million is a lot of money. How significant is that return still? Is this the broadest audience that brands can reach?

TAL JACOBSON: I think it's absolutely amazing that it went up to $7 million, but look at the Sphere at Vegas. It now went up to $1 million for a spot. $1 million for a spot on the Sphere? I think, obviously, Taylor Swift did an amazing job getting a lot of new audience to see the Super Bowl. More females, more Gen Z, more Millennials. But absolutely, I think this pushes a lot of advertising budgets.

We at Perion are constantly looking at how do we get those promotions across all channels. That's what we actually focus on with our technology. And specifically with the Super Bowl, companies-- e.l.f. Cosmetics, NYX cosmetics-- would never think about advertising in the Super Bowl.

20 years ago, it was mainly Budweiser, right? But they're shifting into that. And they're constantly thinking about the bigger picture. So they're going to do TV ads, CTVs. They're going to do out-of-home like the Sphere or other programmatic home, but also a lot of social.

And this is where actually our company gets into play. How do we connect all those channels? How do we actually make sense out of all those channels so the advertiser actually makes sense.