TV Dominates Sugary Drink Ad Spend

November 1, 2011

sugary-drink-ad-spend.jpgThree-quarters of media budgets for all sugary drinks and energy drinks were spent on TV advertising in 2010, with internet and magazine ads (8% each) and radio and outdoor ads (4% each) following far behind, according to [pdf] a study released in October 2011 by Yale University’s Rudd Center for Food Policy. Data from the “Sugary Drinks FACTS Report” indicates that nearly all (90%) energy drink spending went toward TV advertising. TV also constituted a large portion of fruit drink (82%), flavored water and iced teas (74%), and regular soda (70%) advertising budgets. The report defines sugary drinks as non-alcoholic beverages with added sugar in their ingredients.

Soda Top Spending Category

Within the sugary drink category, almost half (46%) of advertising spending was directed towards regular soda, roughly triple the share spent on energy drinks (17%), sports drinks (15%), and fruit drinks (14%). The flavored water and iced tea categories accounted for just 4% each of total advertising spend in 2010.

Soda Spend Jumps

Spending on regular soda advertising grew to $432 million in 2010, representing an increase of 28% from $338 million in 2008. According to the report, spending on energy drinks and other (not children’s) fruit drinks increased by more than one-third from 2008, while spending on children’s fruit drinks went up by 11%. In contrast, spending on iced tea (-2%) remained relatively flat, and spending on sports drinks (-17%) and flavored water (-70%) fell significantly.

Few Brands in Command

ad-spend-soda-brands.jpgAd spending for sugary drink categories was highly concentrated in a small number of brands: just 3 brands (Coca-Cola Classic, 5-hour Energy, and Gatorade) comprised 40% of all ad spending for sugar drinks and energy drinks in 2010. Meanwhile, the top 4 brands (Coca-Cola Classic, Dr Pepper, Pepsi, and 7 Up) constituted 77% of regular soda spending, each spending $40 million or more. Among those, Coca-Cola was the clear leader at over $180 million in ad spending, up 39% from 2008. 7 Up advertising spend also soared 62% from 2008, while Dr Pepper grew 36% to about $60 million.

AdAge: Live TV Shows Command Ad Spot Premiums

TV shows that viewers tend to watch live, rather than play back days later, command a premium for marketers, according to survey results released in October 2011 by Advertising Age. Results from the survey, which measures the costs of running a 30-second commercial in prime time, indicate that NBC’s “Sunday Night Football” now challenges Fox’s “American Idol” as the most expensive program for advertisers. The average cost of a 30-second ad in NBC’s much-watched football contest is $512,367, while it runs between $468,100 and $502,900 for “Idol.” According to Advertising Age insight, the tally is relative since “Idol”‘s prices tend to go up as the show reaches its finale, with some spots going for as much as $640,000.

About the Data: The Yale University report utilized syndicated data when available, including data from Nielsen, comScore, Arbitron, and SymphonyIRI, and supplemented this information with its own studies to quantify the extent of these marketing practices. In addition, the report’s authors conducted content analyses of the different forms of marketing to assess target audiences, messages, and techniques presented in the advertisements.

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