E*Trade Wants to Be Super on Sunday

What do Tom Brady, Eli Manning, and E*Trade (Nasdaq: ETFC  ) have in common? Well, they'll all be playing in the Super Bowl over the weekend.

Yes, E*Trade is back on the ad warpath, paying as much as $6 million for a pair of ads that will appear in the Super Bowl. It's a gutsy move, but an important one. E*Trade needs to reach mainstream audiences to let them know that its retail brokerage business is still alive and kicking, despite the steep writedowns and fire sales within its troubled home-loan assets.

Remember when you weren't an Internet darling unless you bellied up to the bar with a Super Bowl ad? The E*Trade chimpanzee wasn't the only star to emerge before the dot-com bubble burst. Monster (Nasdaq: MNST  ) and Yahoo!'s (Nasdaq: YHOO  ) HotJobs.com once memorably battled it out on Super Bowl Sunday.

According to Advertising Age, neither is committing to an ad this time around, though rival CareerBuilder.com is on board for a pair of 30-second spots. Other Web upstarts that will grace your television screen throughout the game include Sales Genie, domain registrar GoDaddy.com, and Cars.com.

However, E*Trade has the most to gain with its timely ad purchase. Last week's quarterly report confirmed that there's a big retail-brokerage heart beating inside this cracked shell of a company.

E*Trade followed the healthy showings at rivals TD AMERITRADE (Nasdaq: AMTD  ) and Charles Schwab (Nasdaq: SCHW  ) with its own growth spurt on the brokerage side. Daily average revenue trades at E*Trade clocked in 38% higher year over year. There may have been some defections from worried investors early in the period, but E*Trade still wound up adding more accounts than it lost during the quarter.

Reaching out to the largest viewing audience of the year is critical to E*Trade. Even if most beer-swigging, nacho-dipping gridiron buffs wouldn't know a call from a put, E*Trade's presence will be comforting to those who do. E*Trade will have the biggest broadcasting stage from which to pitch its international investing and high-yielding income-generating products, but the exposure will also give E*Trade a chance to pitch itself as a survivor.

The company still has challenges. The Citadel bailout comes with a lofty 12.5% interest rate. The quality of its banking assets is still iffy. Most analysts expect losses to continue until next year. However, for a pair of 30-second spots during the second half of the game come Sunday night, E*Trade will get a chance to tell the better side of its story.

Brady's going to score. Manning's going to score. Why not E*Trade?


Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 565965, ~/Articles/ArticleHandler.aspx, 10/20/2014 7:24:09 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 16,399.67 19.26 0.12%
S&P 500 1,904.01 17.25 0.91%
NASD 4,316.07 57.64 1.35%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/20/2014 3:59 PM
ETFC $20.44 Up +0.32 +1.59%
E*TRADE Financial… CAPS Rating: ***
AMTD $30.09 Up +0.06 +0.20%
TD Ameritrade CAPS Rating: ****
MNST.DL2 $95.25 Down -0.67 -0.70%
Monster Worldwide CAPS Rating: ***
SCHW $25.72 Down -0.12 -0.46%
Charles Schwab CAPS Rating: ***
YHOO $39.28 Up +0.83 +2.16%
Yahoo CAPS Rating: ***

Advertisement