Alcohol Advertisers Say No to Another Round of Ads 

Revenue in the alcoholic drinks market is projected to reach $283.8 billion this year and is expected to grow at 5.5% annually through 2027. With the average American consuming four drinks a week, this growth is not surprising. However, many alcohol brands decreased their ad investments in 2022.

According to MediaRadar’s data, over 2,000 alcohol advertisers invested nearly $1.7 billion to promote beers, wines, and spirits in 2022, representing a 17% year-over-year (YoY) decrease. The number of advertisers and brands also declined by 8% and 6% YoY, respectively.

Alcohol Advertisers Say No Thanks

Despite the potential of digital advertising, many alcohol advertisers who spent in 2021 did not return in 2022. Of the nearly 2,400 alcohol advertisers in 2021, almost half (48%) didn’t appear in 2022. These advertisers were responsible for just 1% of the ad investment in 2021, spending a combined $24.5 million. This suggests that the advertisers pulling away are likely smaller brands or larger brands that briefly promoted new products no longer on the market.

In 2022, more than 800 new advertisers entered the market, including Apax Partners’ Ole Smoky Distillery, following its acquisition of a controlling stake in the company.

Another Vodka Soda, Please

Advertisers from five alcohol categories—beer, whiskey, hard seltzer, wine, and vodka—accounted for 86% ($1.4 billion) of the industry’s investment. Of these, only vodka advertisers increased spending in 2022.

In 2022, advertisers for vodka labels such as Bacardi Limited (Grey Goose), Diageo (Smirnoff, Ketel, and others), and Pernod-Ricard (Absolut Vodka) spent nearly $104 million, a 5% YoY increase. These three brands collectively spent $89 million, or 86% of the investment from vodka advertisers.

• ​Grey Goose increased spending by 30% YoY.
• ​Diageo and Absolut Vodka increased spending by more than 20% and 200% YoY, respectively.

Part of Absolut Vodka’s investment went to its “The World of Absolut Cocktails. Born to Mix” campaign, which launched in June and encouraged people to connect with others from different backgrounds. The campaign included TV, out-of-home, social media, and digital video ads.

Meanwhile, advertisers promoting beer, whiskey, hard seltzer, and wine all reduced their spending.

Beer, Whiskey, and Seltzer Advertisers Are Cut Off

• ​Beer brands spent almost $760 million in 2022 (46% of total alcohol ad investment), a 2% YoY decrease. This comes despite a 67% YoY increase in Q4 during the NFL season, mainly due to Constellation Brands boosting their budget by 70% YoY to promote Corona Extra and Modelo.
• ​Whiskey advertisers spent $261 million in 2022, a 20% YoY decrease. Much of this decrease comes from Sazerac (Fireball Cinnamon Whiskey and Southern Comfort) nearly eliminating their budget, likely due to a lawsuit with a former distributor resulting in supply shortages and unpaid bills. Brown-Forman (Jack Daniels and Woodford Reserve) increased spending by 37% YoY, offsetting some of the decline.
• ​Hard seltzer and wine advertisers decreased spending by 41% and 24% YoY, respectively. Hard seltzer advertisers still accounted for 10% of the total investment. Despite the hard seltzer market’s expected growth, spending on Bud Light Seltzer decreased by 57%, and Corona Hard Seltzer dropped by 79% YoY. This reduction may be due to shifting go-to-market strategies or reliance on word-of-mouth and brand loyalty.

Ad Spending Continues to Fall for Some in 2023

In January 2023, most ad dollars came from beer, whiskey, wine, and vodka advertisers, with tequila advertisers also making an appearance. These categories accounted for $60.7 million, or 87% of January’s investment. However, this represents an 18% YoY reduction from January 2022.

• ​Beer advertisers decreased spending by 14% YoY in January. Anheuser-Busch reduced spending by 8% YoY but increased investment significantly for Michelob ULTRA (up 50%) and Bud Light (up over 1,000%).
• ​Whiskey advertisers decreased spending by 34% YoY, with reductions from Diageo (down 23%) and Suntory (down 45%).

Wine and Dine

Wine advertisers increased their budgets by 21% YoY to $5.2 million in January. E & J Gallo (Barefoot label) and Josh Cellars Wines (Deutsch Family Wine & Spirits) increased investments by more than 1,000% and 900% YoY, respectively. E & J Gallo’s increase followed its announcement as the official wine sponsor of the NFL, aiming to make wine more accessible and insert it into new occasions.

Vodka and tequila advertisers also increased spending in January: vodka by 72% YoY and tequila by 355%. Bacardi’s Patron and Becle (1800 Tequila, Jose Cuervo, etc.) accounted for 92% of tequila advertising, both increasing more than 1,000% YoY.

Alcohol Advertisers Go Digital

While many alcohol advertisers reserved spending in 2022, they are still focusing on digital channels. In January, advertisers spent $49 million on TV ads, 23% less than in January 2022, and print spending was also down. However, investment in digital media increased by 10% YoY to $17.5 million.

Although TV and digital investments are still far apart, the gap is shrinking, especially when excluding Super Bowl ad spending. Alcohol advertisers are increasingly embracing digital ecosystems, including OTT and social media.