- Pabak Sarkar/flickr
Forget Snapchat. Alcohol companies are ramping up advertising spending, and most of that is still going to television, radio and print. The industry spends around 89% of its advertising dollars on television, according to research done by Citigroup.
Last quarter, the alcoholic-beverage industry spent $421 million on advertising, up 26% compared to the same time last year. Beer brands were far and away the biggest spenders ($357 million), followed by winemakers ($11 million), according to Wendy Nicholson, an analyst at Citi.
The largest individual spender was the brewer Shock Top, which is owned by Anheuser-Busch InBev. Shock Top ran a Super Bowl ad campaign with actor T.J. Miller from Silicon Valley.
Nicholson contributes the increase in spending to a more competitive environment, and she sees the trend largely continuing as sales in the industry grow. Still, even outside of television, the industry’s preferences for advertising are decidedly old-school.
TV isn’t the only old media alcohol companies are spending on. For MillerCoors, magazine advertisements were another top category. Boston Beer Co prefers radio advertisements after television.
- Citi Research
The “internet” category, where mobile is king and cord-cutters make up a lot of the population, is surprisingly one of the smallest for alcohol companies, representing only 2% of their total ad spending according to Nicholson. That’s not the case in other industries of course. In the first quarter of 2016, digital advertising across all industries increased 21% to about $15.9 billion according to the Interactive Advertising Bureau.