Matt: Hello again! Welcome to “Pixels and Points.” This is Matt Nelson, the Digital Media Director here at Redroc.

Susie: And I’m Susie, the Media Buyer and Planner here at Redroc. We’re happy to be back after a brief hiatus.

Matt: Today, we have some articles about liquor advertising—liquor, wine, beer, and general alcohol advertising. Without wasting any time, let’s jump in.

Susie: We’ll discuss where the industry is advertising, recent trends, and the future direction.

Matt: My first article covers how leading social media companies—like Google, Meta, and TikTok—are collaborating to create guidelines aimed at limiting alcohol advertising to individuals under 21. It seems they’ve acknowledged that it’s been a problem in the past.

Susie: I agree, and it’s a challenge in digital advertising as well as traditional media like billboards and TV.

Matt: Exactly. Many brands are shifting their advertising focus to CTV and pre-roll, but targeting online audiences can still be problematic.

Susie: For instance, TV and CTV can use responsible drinking messages, but I’m skeptical about how effective these measures will be.

Matt: Right. There’s no guarantee that these platforms can truly filter audiences accurately, even if they implement age checks.

Susie: They can ask users to log in with verified IDs, but it’s not foolproof.

Matt: TikTok is experimenting with ID checks for younger users, which can feel excessive.

Susie: True. There’s a risk that kids could still access alcohol-related content if they use someone else’s ID.

Matt: This seems like a PR strategy for social media platforms to deflect criticism when issues arise with their advertising.

Susie: Exactly. They can claim they’ve implemented age restrictions, even if those measures aren’t very effective.

Matt: I also came across an article discussing current trends in advertising spending, noting that 61% of total US alcohol ad spend is on digital platforms as of 2024.

Susie: That’s a significant shift. A recent government report revealed that 49% of Americans are regular alcohol buyers, making it a substantial market.

Matt: Interestingly, 35% of these regular buyers have made a purchase in the last month.

Susie: That shows consistent consumer behavior. The growth in online sales post-pandemic is notable, but it also increases competition among retailers.

Matt: Right. Smaller liquor stores now compete with a larger number of delivery services, which changes the landscape.

Susie: Yes, it creates a double-edged sword for local stores trying to attract customers back into physical locations.

Matt: Another article highlighted that CTV spending for alcohol ads saw a 20% growth, while programmatic advertising also increased by 18%.

Susie: This shows that brands need to boost their digital budgets to remain competitive.

Matt: Breaking down the spending by category: beer accounts for 58%, wine and whiskey each hold 37%, vodka at 36%, and tequila brands only capture 25%.

Susie: There’s a clear opportunity for tequila brands to increase their marketing presence, given that the other categories are spending significantly more.

Matt: Definitely. Overall, the trend is shifting strongly towards digital advertising, and it’s vital for brands to adapt to this evolving landscape.

Matt: We can shift to another spending article. Brands really need to become more competitive in branding. They can’t just target one specific consumer anymore; the landscape is getting more competitive.

Susie: Right. Before diving into this article, I pulled some local spending data for Austin, comparing liquor stores and brands. In the first two quarters of this year, 95% of store spending and 75% of brand spending was on radio. That highlights a significant opportunity for liquor stores, which only spent 2% of their budgets on digital.

Matt: Interesting. What about the Media Radar blog?

Susie: They reported that over $1.4 billion was spent on alcohol advertising in November 2023, covering data from over 1,600 companies. They identified 12 key advertisers to watch. It’s fascinating to compare local spending on radio with these national trends.

Matt: For example?

Susie: Bud Light’s total spend for 2023 is $100 million, mainly on broadcast and online video, particularly CTV and pre-roll. Their strategy still heavily relies on cable.

Matt: What about Crown Royal?

Susie: Crown Royal has increased its OTT budget by 22%, targeting specific demographics. It shows how brands are shifting their focus.

Matt: And Kettle One?

Susie: They’ve significantly increased spending, focusing on cable and targeting women through channels like WTV and HGTV. Their cable spending actually exceeds that of many large beer companies.

Matt: What’s Jose Cuervo up to?

Susie: They’ve ramped up Twitter spending, taking advantage of opportunities as others pull back. Their strategy seems focused on male audiences, especially during football broadcasts.

Matt: I’ve heard some brands, like Brewmate, are focusing more on online video.

Susie: Exactly. They’re concentrating budgets on platforms like TikTok, likely through influencer partnerships.

Matt: And what’s the deal with Barefoot?

Susie: Barefoot has a strange spending report, with only $390 spent on Facebook. This might indicate a change in strategy.

Matt: Overall, these insights really reveal where major brands are allocating their budgets and how they’re shifting in this evolving media landscape. Any final thoughts on this?

Susie: The biggest takeaway is that all the money is shifting to digital, which we’ve always known. We need to chase it.

Matt: Absolutely. A lot of big brands are reallocating their budgets toward digital, but they’re not abandoning TV and cable. Some are even still using print where it makes sense.
Susie: Right. Smaller brands should ensure they’re not solely relying on targeted digital campaigns like Facebook. They might need to invest in broader strategies, perhaps using targeted CTV or streaming.

Matt: Local brands, especially, have plenty of opportunities. In my area, Leander and Cedar Park, there are dozens of breweries and distilleries.

Susie: Exactly. They could really benefit from targeted broadcast and cable advertising to boost their brand visibility.

Matt: When you walk into local stores like HEB, it’s hard to differentiate between brands. Strong branding in the community can make a huge difference.

Susie: It really can. There are so many opportunities for both big brands and local players to do targeted OTT campaigns and mobile ID strategies, focusing on people who shop at liquor stores rather than just grocery stores.

Matt: That’s what we specialize in—ensuring brands are well-known in the community.

Susie: It works effectively!

Matt: Great. I think that’s it for today. We’ll be back in a couple of weeks with a new topic.

Susie: Good to talk to you!