Less than a year after becoming the smallest company in history to purchase Super Bowl airtime, online job recruiter HotJobs.com (Nasdaq: HOTJ) announced plans to air two 30-second commercials during the 2000 Super Bowl. One commercial is slated for the pre-game show, and the other will air during the game.
For the 1999 airtime, Hotjobs.com spent more than $2 million — or nearly half its annual revenue — on one 30-second commercial. The costly move ended up being a publicity coup for HotJobs.com, which received extensive print and broadcast coverage before the commercial even aired.
“Last year, everyone thought we were crazy for spending so much money on a Super Bowl ad,” said Richard Johnson, President and CEO of HotJobs.com. “In hindsight, everyone agrees that the commercial paid for itself by an order of magnitude. Since airing the spot, our member companies and job seekers have doubled in number, and our revenues have increased by 82 percent.”
What’s more, the company raised $24 million in an initial public offering last month. While that amount was not as much as the company had originally hoped for, it will certainly help pay for the upcoming Super Bowl ads.
HotJobs.com Taps McCann-Erickson Detroit Again
Advertising firm McCann-Erickson Detroit, which created last year’s commercial, will also work on HotJobs.com’s upcoming Super Bowl ads. The stakes are even higher this time around. According to the Super Bowl host committee, the economic impact of the next Super Bowl is expected to exceed $250 million.
Last year’s commercial featured a bored security guard dreaming of a better career.
“As the first Super Bowl of the new millennium, we will have to be even more breakthrough and more cutting edge to repeat and surpass HotJobs.com’s previous success,” said Kevin Moehlenkamp, executive creative director for McCann-Erickson Detroit.
After a disappointing IPO, shares of HotJobs.com have been on a tear. On Tuesday, the stock climbed 4-15/16 to 34-15/16. The stock benefited from four buy ratings that were issued on Tuesday. Three of the buy ratings came from underwriters of HotJobs.com’s IPO: Deutsche Banc Alex. Brown, BancBoston Robertson Stephens and SG Cowen. HotJobs.com also received a buy rating from Thomas Weisel Partners.
HotJobs.com went public on August 10th, when the Internet IPO market was shaky. The company offered three million shares at $8, down from a proposed offering of 4.7 million shares at a price range of $12 to $14. The price range was lowered to $9 to $11 before being lowered again.
Shares of HotJobs.com closed down 1 to 7 in their first day of trading. However, the stock is up nearly 400 percent since then.