Did you know that April 7 is National Beer Day? A day to kick back and relax with a cold one and celebrate the beginning of warmer months. According to Statista, revenue for the alcoholic beverage market will amount to over $284 billion in 2022, growing 7.5% over 2021. Within this category, the largest segment by market volume is beer.
With the US adding almost three million potential consumers each year (those turning 21), alcohol consumption is on the rise. In 2020, the federal excise tax relief program (referred to as the Craft Beverage Modernization and Tax Reform Act) for both domestic and foreign qualifying producers was passed, resulting in an explosion in the market and creating opportunities for new brands to enter into the mix. New categories such as hard seltzer, hard kombucha and canned cocktails also emerged in the past few years, enhancing the variety of alcoholic beverages available.
LG Ads Solutions can help advertisers in the alcoholic beverage category reach the right audiences across TV, mobile, tablet and desktop, while preventing wasted impressions.
For any advertisers who want to target alcoholic beverage drinkers, here are three things to know:
1. National Beer Day Is A Real Thing: You might think that National Beer Day is just for consumers. However, on April 7, beer brands get their due share of voice and place a ton of linear TV ads — accounting for twice the ad volume of spirits and four times that of hard seltzers. Viewers see beer ads 2-3x more frequently than other alcoholic beverages. However, heavy linear TV viewers (averaging 6 hours of linear viewing per day) are inundated with alcohol ads, with a frequency of ~90 per month. Conversely, light linear TV viewers see fewer than 10 ads per month. This is where frequency caps, available through brands like LG Ads Solutions, can help your brand reach relevant audiences at optimum frequencies, including those who watch fewer hours of TV.
2. Alcoholic Beverage Advertisers Gotta Love Sports!: Based on our data, sports content, including live sports, is the top place to find audiences interested in alcoholic beverages. Live tune-in to sports is accessible not only through linear TV, but also through streaming, network platforms and other apps. Movies, comedy, games and reality shows are other top genres that resonate with alcoholic beverage audiences. To break through the sports clutter (which is typically expensive), brands can use ACR technology to target sports fans across different shows and networks, making for more effective and efficient advertising.
3. Smaller Budgets Barely Make A Dent In Linear TV Advertising: New and upcoming brands, or those with smaller TV budgets, are entirely outnumbered and obscured by brands that have a heavier wallet. In the beer, liquor and hard seltzer categories, the top two brands take up a significant chunk of the share of voice, while the bottom two brands account for less than one-third. OEMs that supply CTV ad inventory can help brands with smaller budgets bring in a higher SOV and reach relevant audiences by conquesting competitors.
Interested in learning more? Download our Alcoholic Beverages Insights Category Report: