Alcohol marketing: reviewing the evidence and pushing the boundaries of “interactivity”

1. Alcohol marketing: reviewing the evidence and pushing the boundaries of “interactivity” Patrick Kenny Dublin Institute of Technology

2. What does this tell us?

3. It tells us not to “waste” a night • But being “wasted” is important for many young people • It tells us who paid for it • Diageo is bigger than the drink sensibly message • “As many as 9 out of 10 consumers thought that it was good to see Diageo Ireland advertising a responsible drinking message.” - Diageo Ireland Corporate Citizenship Report 2005 • For students, drink sensibly = don’t drink & drive

4. But most importantly... • It tells us that alcohol marketers know that marketing works

5. Power of marketing often denied • Advertising is designed to support alcohol brands in a declining market - not to recruit new consumers • c. €2m per annum on drinking sensibly • c. €70m per annum promoting alcohol products • You can’t have your cake and eat it...

6. Argument relies on econometric studies • Total alcohol consumption and total advertising expenditure over a period of years or months • Generally suggests no (or very small) relationship between advertising and alcohol consumption

7. Weakness of econometric studies • Estimates only • Only medias spend, ignores creativity costs • International spillover • Lagged effects over time • Marginal effects likely to be small • Marketing mix • Ignores youth segment

8. Why segmentation is important • Young people a significant concern • May be an average of no effect amongst established drinkers and a more significant impact on younger consumers • Adolescents with less experience more susceptible to advertising

9. Reliance on econometrics is ironic • Advertisers do not use econometrics themselves! • Advertising effectiveness measured at consumer level, not population level

10. Consumer studies

12. Big problem for traditional advertising

13. But online engages like never before

14. Interactive websites • http://mixitup.jamesonwhiskey.com/

15. They don’t all have age controls • Google “Bulmer’s Pear”

16. Social networking sites • Exponential growth

17. Facebook growth in Ireland since 4/10

19. Alcohol brands on Facebook • People over a certain age normally clueless • 4 of top 10 Irish Facebook pages are for alcohol brands • Guinness Ireland 156,000+ fans • Access can be restricted • ...but 4 of top 15 allowed a 15 year join up

20. User generated material • Individuals become powerful marketers

24. Immersive environments • Players take on new identities and live a “second life” • Actively targeted by alcohol brands • Provide much more meaningful interaction than traditional advertising

25. iPhone applications • Often available for free • Powerfully combines interaction, GPS location services and ability to share with others • User becomes a marketer • Phone is very personal and important and therefore powerful

26. Offline marketing of online sites • Traditional advertising used to drive people to interact

27. Issues to consider • First task is to protect the young • Eliminate Facebook for underage • Prevent underage from “Liking” alcohol brands • No back-clicks to correct ages • Independent proof of age for branded websites similar to gambling and pornography sites

28. But it’s not just about the young • Not suddenly immune to marketing at 18 • Apply spirit of the advertising codes to apps and games • Bobsleigh/driving concept in Budweiser Ice Cold app • Industry can restrict user generated material through intellectual property rights