Anheuser-Busch has apparently abandoned the Budweiser Mudflap Theory of Marketing, deciding not to renew its status as the exclusive alcohol beverage advertiser on SuperBowl. A-B hadn’t responded to our request for comment, but Spencer Gordon, vp-consumer connections, told Sports Illustrated’s The Spun:
“When it comes to sponsorships and media, we are evolving our investments so that our brands reach the right consumers, at the right time, in the right place, with the right messages,” Gordon said. “For the Super Bowl, this means we’re focusing on bringing our brands even closer to the sport by connecting with consumers and fans wherever they are, integrating our messaging within the game itself as well as pre and post event. This extends all season, shifting media into the summer with the NFL Draft presented by Bud Light and activations throughout Kickoff as well as with teams, players, and league activations.
“The Super Bowl national broadcast continues to be a special moment in our advertising strategy, and consumers can look forward to seeing our brands prominently featured in the big game,” he said.
Relinquishing its dominance of the Super Bowl amounts to the abandonment of what I called the “Budweiser Mud-Flap Theory of Marketing.” Years ago, on a bus to Los Angeles International Airport from the NBWA convention in Anaheim, Calif., out of the corner of my eye I saw a truck pull up beside us. On the cab was the Budweiser bowtie logo. As the truck pulled away, I saw the Budweiser logo on the side of the trailer, the back of the trailer and even the mudflaps of the trailer.
It seemed to me that that pretty well summarized A-B’s business strategy under August A. Busch III, who was chairman/ceo at the time. He wanted to dominate the share of stomach and the share of mind of consumers.
A lot has changed in the marketing world since then. The rise of the internet and social media has splintered the media, creating a lot more venues in which to advertise. Meanwhile, the cost of advertising on the Super Bowl has gone from excessive to, perhaps, ridiculous, and A-B’s parent company, Anheuser-Busch InBev is nothing if not cost conscious.
Still, since 2011, A-B’s market share has plummeted to 38.6% from 46.9%, while Constellation Brands’s share has doubled, to 11.4% from 5.7%, Boston Beer’s share has more than tripled, to 4% from1.2%, Mark Anthony Brands share has risen to 3.9% from 0.7%. The only three brewers to lose market share in the last 10 years are A-B, Molson Coors (19.8% vs. 28.4% in 2011) and Heineken (3.2% from 4%).
Will A-B’s decision to allow its competitors — not just Constellation, Boston Beer, Mark Anthony, Molson Coors and Heineken, but also distilled spirits producers and wineries — to buy time on the Super Bowl prove to be a wise decision? Or 10 years from now will observers be able to point to this decision as the cause of A-B losing still more share? Only time will tell.