The pandemic has forced the experience of alcohol brands to be transferred to their Online channels Alcohol brands are not usually allowed to directly encourage extra consumption. In any case, alcohol consumption is deeply ingrained in the culture of each country and is not subject to rapid change. However, Brands have grown through a process of premiumization – getting consumers to drink better rather than more. This is something that spirits brands have been more successful at than beer brands. Consumption of both beer and spirits remained basically static between 2016 and 2019, according to Euro monitor International, however beer sales grew 3% per year, while sales of spirits grew 7%. Premiumization means convincing to drinkers to switch to higher-value products that provide better experiences, building brand image and experience through mass-reach communication. For this reason, brands of alcoholic beverages rely heavily on television and outdoor advertising, investing twice as much in television as the average brand and almost four times more in outdoor advertising.
Alcoholic beverage brands allocated 49% of their budgets to television in 2020, compared Turks and Caicos Islands Email List to 24% for the average brand, and 19% abroad, compared to 5%. However, this tactic has become less effective as audiences migrate to digital media, particularly young consumers more likely to visit a new bar and try a new drink. Historically, spirits brands have been slow to rely on digital advertising, spending less than half of their budgets on it compared to the median brand in 2020. Now this is changing rapidly. The closure of the hospitality industry made brands need new market avenues. Breweries, distilleries, Bars and restaurants diversified their businesses through direct-to-consumer shipments and take-out beverages, facilitated by e-commerce and advertised largely on digital media, especially social media. Alcohol brands increased their budget investment in digital media, from 21% in 2019 to 24% in 2020. Seeking to create compelling brand experiences at home, rather than at the bar, beverage companies invested in assets of their own, such as their websites and educational content. Spirits brands particularly stood out, using influences and partners to teach consumers how to make their own cocktails, for example. ” driving 9.2% annual growth in digital ad spend between 2019 and 2023, when digital will account for 30% of alcoholic beverage advertising budgets Zenith expects alcoholic beverage brands to reduce their television investment by around 2.4% annually until 2023, taking 2019 as a reference, since traditional broadcast audiences will continue to decline. OOH, on the other hand, will grow around 1.1% per year, even taking into account the reduction in traffic, both pedestrian and road, caused by the pandemic.
The drop in television reach makes the ubiquity of OOH even more valuable. In Mexico, alcoholic beverage advertising on TV was also affected as a result of the pandemic. But nevertheless, Industry brands had already begun to reduce advertising investment in this medium since 2019 as in other countries in the world.Advertising for alcoholic beverages will recover, in 2023, from the fall of 2020.Advertising for beverages Alcoholics declined, in 2020, almost twice as fast as the advertising market in general, with a fall of 11.6% compared to 6.4% for the market as a whole. The finances of the brands were affected by the reduction in the volume of consumption, the average price per drink and the profit margins. With bars, pubs and restaurants closed, consumers drank less alcohol and bought the drinks they consumed in stores, where they cost less, with a much lower profit margin. Brands drastically reduced their marketing budgets to protect their bottom line and, therefore, their advertising investment fell from $ 7.6 billion in 2019 to $ 6.7 billion in 2020.