Liquor Firms Embrace Internet Marketing June 27, 2007
News Summary
Alcoholic-beverage firms are rapidly increasing their spending on Internet advertising and marketing, the New York Times reported June 22.
A website for new Reyka vodka, for example, includes animations of exploding volcanoes and "fun facts" about Iceland. "The category is so crowded, we really wanted to do something that would set us apart from all the other vodkas," said Elwyn Gladstone, new-brand marketing director at William Grant & Sons. "Most importantly, we think our target consumer, 25 to 35 years old, is on the Web much more than on TV or in print."
Some websites, like Bud TV, have yielded disappointing results. But that hasn't stopped firms like Fortune Brands -- which owns Jim Beam and Canadian Club -- from increasing online ad spending by 268.2 percent in the past year. Diageo, which owns Smirnoff and Johnnie Walker, has increased its online ad budget by 285.2 percent in the same time period.
"It's troublesome, given that the online world is frequently traveled by underage young people," said George A. Hacker, director for the Alcohol Policies Project at the Center for Science in the Public Interest, an advocacy organization in Washington. "When you have a liquor ad on TV, there's a chance a parent can come in and turn off the set before the youngster sees the commercial. Online, with kids going from one screen to another at blazing fast speed, they can hide the liquor screen they're watching behind five others."
Liquor companies like online ads because they provide good data on who is viewing the spots and what they do after they see an ad. In addition to dedicated brand sites, some firms are advertising to consumers on mainstream websites like MSN, which will soon feature the Chivas Regal channel that will recruit "Chivas Regal Ambassadors."
"This is a great way to start our Internet marketing activities," said Craig Johnson, Chivas brand director at Pernod Ricard USA. "An iconic brand like Chivas needs to reimagine itself, and this adds more contemporary values for the brand."
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