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Huge Boost in TV Spending by A-B

Nov 20, 2007 - Anheuser-Busch Cos. plans to increase spending by at least $100 million on television advertisements next year for its four core brands while reducing its spending on its small brands, the Wall Street Journal reported Monday.

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A-B will spend about $70 million more than it has this year on advertisements for its top-selling beers, Bud Light and Budweiser, according to the Journal's online story. Its other two core brands, Michelob and Michelob Ultra, will receive about $30 million in ads focusing on the traditional way Busch brews the beer.

The Journal reports that this increase in spending on Anheuser-Busch's core brands will result in reduced spending on smaller brands like Bud Select and Rolling Rock.

The change comes after research into changing consumer habits showed there is potential to target some of Anheuser-Busch's mainstream brands, such as Michelob, at consumers who favor craft beer and imports, the Journal reported.

"I think we have a better knowledge of who the consumer is and what we need to tell them," Dave Peacock, vice president of marketing, told the paper.

Anheuser-Busch spent $247 million on advertising in the first six months of this year, and $183 million of that was spent on TV ads, according to ad-research firm TNS Media Intelligence. About 60 percent of TV ad spending was on the four core brands, according to the Journal.


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