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BeerMarch 7, 2013
SCOTT GALLOWAYNYU Stern
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ExCErpT from the Digital IQ Index®: Beer To access the full report, contact [email protected]
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Digital IQ Index®:
BeerExCErpT from the Digital IQ Index®: Beer To access the full report, contact [email protected]
Crafty There is a substantial resource gulf between premium and craft
beer brands. A craft brewer produces less than six million barrels
a year vs. an Anheuser-Busch InBev, which shipped close to 100
million barrels domestically in 2011 (almost half of all the beer sold
in the U.S.).3 4 While industry titans spend upward of 85 percent
of their working media budgets on television,5 a single 30-second
Super Bowl spot ($3.8 million) is larger than the annual marketing
expenditures of many craft brewers. These smaller, more nimble
brands with no/limited traditional media have been forced to
develop skills to cut through the noise with superior product
and innovation, an approach that is evidence of a broader trend
threatening the broadcast industrial complex. Digital is one of these
weapons, and craft brewers boast an average Digital IQ 13 points
higher than any other beer category.
1. “Annual Industry Review 2012,” Distilled Spirits Council, February 6, 2013.2. “State of the Craft Beer Industry,” Demeter Group Investment Bank, 2013.3. “Craft Brewer Defined,” Brewers Association, accessed February 2013.4. “The Audacity of Hops,” David Rosenbaum, CFO.com, September 11, 2012.5. Kantar Media Stradegy data, accessed March 1, 2013.
Change BrewingFor more than a decade, beer brands’ share of the U.S. alcohol beverage market has declined, from 56
percent in 2000 to 49 percent in 2012—ceding ground to the booming spirits trade.1 But weakening demand
for “premium” and “light” brands has been offset by double-digit growth in the “craft” segment, up 13.9
percent annually from 2009-2011.2 Last year, five of the 10 fastest growing beers were craft brands.
Watch the Beer Video Click to Play
U.S Annual Growth in Alcohol Consumption In percent Change, Gallons per person
Wine SpiritsBeer
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
0.4%
4.1%4.4%
2.4%
2.8%
3.8%
0.9%
1.5%
0.7%
2.7%2.9%
0.2%
2.2%
1.4%
0.4%
1.4%
0.7%0.9%
1.4%1.7%
2.0%
-0.5%
-3.0%
-1.2%
0.0%
-1.0%-0.9%
-2.5%
-3.8%
1.6%
Source: Beverage Information Group and U.S. Census
3
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EchoPremium beer brands use digital to extend the shelf life of their
broadcast investment, whereas craft beers try to use digital as
the initial “Boom.” A recent survey suggests 24 percent of the
U.S. television audience qualify as “TV Talkers” (posting online
references to what they watch on a weekly basis, including ads).6
Despite an exclusive on beer-related Super Bowl advertising,
only half of Anheuser-Busch InBev’s six spots contained a
digital call to action—all in the form of a hashtags (#Clydesdales,
#HereWeGo).7 Although the visibility of those ads dwarfed
other activity across the Index for a three-day window, the buzz
across each of the brands’ social media channels rapidly trailed
off, suggesting the echo effect is not as powerful as touted by
ad mavens. Smaller brands were not completely absent from
the Super Bowl conversation. Will Ferrell’s irreverent ad for
Old Milwaukee aired in just three markets (Sherman, Texas;
Ardmore, Oklahoma; and Glendive, Montana) and received 3.5
million views on YouTube. Red Stripe created a response to
Volkswagen’s Jamaican accent ad and nabbed almost 35,000
views and substantial buzz on blogs.
Digital IQ = Shareholder ValueThis study attempts to quantify the digital competence of 50
iconic beer brands in the U.S. Our aim is to provide a robust tool
to diagnose digital strengths and weaknesses and help brands
achieve greater return on incremental investment. Like the medium
we are assessing, our methodology is dynamic and we hope you
will reach out with comments that improve our methodology and
findings. You can reach me at [email protected].
6. “The New Power of Television: How Social Is Revitalizing the Future of TV,” Initiative, October 2012.7. “2013 Super Bowl Beer Ad Scorecard,” Drink Nation, February 4, 2013.
SCOTT GALLOWAYProfessor of Marketing, NYU SternFounder, L2
Budweiser: Social Media Lift from Super Bowl(“Clydesdales: Brotherhood”)
January - February 2013
FacebookTwitterYouTubeDa
ily C
hang
e in
Vid
eo V
iew
s(Y
ouTu
be)
Daily Change in Fans/Followers
(Facebook, Twitter)
6,000,000 6,000
5,000
4,000
3,000
2,000
1,000
0
-1,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0January 2013 February 2013
Social Media Lift from Super Bowl xLVII Ad Buy February 1–4, 2013
+3,451,275 views +93.26%
+9,748 views +0.33%
×354 Budweiser hosts less than 10 minutes of content on its primary YouTube channel. The two “Clydesdales” videos now represent 92 percent of all views.
+1,537 followers +54.72%
+130 followers +0.74%
×12 Budweiser’s Twitter account started broadcasting on January 27—it remains to be seen if the account can grow past the goodwill it engendered with the Super Bowl spot.
+ 1,915 fans 0.05%
+2,186 fans +0.32%
×0.9 Budweiser’s largest online community (3.7 million) was mobilized to name the Clydesdale foal via comments (0.31 percent post engagement)—but no organized voting tab/app.
Average Beer Brand
Comparative Performance Notes
About the RankingThe Methodology
March 7, 2013Digital IQ Index®:
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ExCErpT from the Digital IQ Index®: Beer To access the full report, contact [email protected]
Digital IQ Classes
Genius 140+Digital competence is a point of competitive differentiation for these brands. Creatively engineered messaging reaches consumers on a variety of devices and in many online environments.
Gifted 110–139Brands are experimenting and innovating across site, mobile, and social platforms. Digital presence is consistent with brand image and larger marketing efforts.
Average 90–109Digital presence is functional yet predictable. Efforts are often siloed across platforms.
Challenged 70–89Limited or inconsistent adoption of mobile and social media platforms. Sites lack inspiration and utility.
Feeble <70Investment does not match opportunity.
25% Digital MarketingSearch, Display, and Email Marketing Efforts Search: Traffic, SEM, SEO, Web Authority
Advertising & Innovation: Display, Retargeting, Miscellaneous Brand Initiatives
Blog & Other User-Generated Content: Mentions, Sentiment
Email Marketing: Frequency, Content, Promotion, Segmentation
25% Site
20% Mobile
30% Social Media
Effectiveness of Brand Site Age Gateway
Site Technology
Navigation & Site Search
Customer Service & retail Locator
Account Capture
Brand Content
product page
Compatibility, Optimization, and Marketing on Smartphones and Tablets Mobile Site: Compatibility, Functionality, Load Time
Mobile Applications: Availability, Popularity, Functionality, iPhone/iPad/Android Differentiation
Innovation: Untappd, SMS, Other Mobile Initiatives
Brand presence, Community Size, Content, and Engagement Facebook: Likes, Growth, Tabs & Applications, Responsiveness, Engagement
Twitter: Followers, Growth, Frequency, Programming
YouTube: Views, Number of Uploads, Subscriber Growth, Viral Videos, YouTube Search Visibility
Emerging Social Media: Instagram, Google+, Pinterest
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Digital IQ Ranking
March 7, 2013Digital IQ Index®:
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Heineken International
AB InBev
In the Company of Genius
1
2
150
142
Genius
RANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ
3 138
3 138
5 133
6 132
7 124
8 122
9 120
The Boston Beer Co.
New Belgium Brewing Co.
AB InBev
AB InBev
Sierra Nevada Brewing Co.
MillerCoors
MillerCoors
Gifted
RANK BRAND DIGITAL IQ
10 109
10 109
12 107
13 104
13 104
15 97
16 96
Craft Brew Alliance
AB InBev
Crown Imports
MillerCoors
Diageo
Craft Brew Alliance
Pabst Brewing Co.
Average
GENIUSHeineken
BudweiserGIFTED
Bud LightStella Artois
Samuel AdamsCoors Light
Sierra Nevada New Belgium
Blue MoonAVERAGEGuinness Miller Lite
Beck’sPabst Blue Ribbon
Widmer BrothersCorona
RedhookShiner
SaranacNewcastle Brown Ale
Rolling RockCHALLENGED
Dos EquisMichelob ULTRA
PyramidYuengling
Henry Weinhard’sOld Milwaukee
CoorsMiller64
Red StripeMiller Genuine Draft
Miller High LifeLabatt Blue
Keystone LightFEEBLE
Amstel LightBudweiser SelectModelo EspecialBud Light Lime
LandSharkFoster’s
George Killian’sLabatt Blue Light
TecateBusch Light
PacificoBusch
Michelob Select 55
Natural LightSt. Pauli Girl
Milwaukee’s Best
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Digital IQ Ranking
March 7, 2013Digital IQ Index®:
BeerExCErpT from the Digital IQ Index®: Beer To access the full report, contact [email protected]
RANK BRAND DIGITAL IQ
24 87
25 81
26 79
27 78
27 78
27 78
30 76
RANK BRAND DIGITAL IQ
17 95
18 94
19 93
20 91
21 89
22 88
22 88
MillerCoors
Heineken International Pabst Brewing Co.
AB InBev Diageo
Matt Brewing Co. MillerCoors
The Gambrinus Co. D.G. Yuengling & Son
Heineken International MillerCoors
AB InBev MillerCoors
North American Breweries
Challenged
RANK BRAND DIGITAL IQ
30 76
32 72
33 71
34 69
35 67
36 66
37 65
MillerCoors
Crown Imports
North American Breweries
MillerCoors
AB InBev
Heineken International
AB InBev
Feeble
GENIUSHeineken
BudweiserGIFTED
Bud LightStella Artois
Samuel AdamsCoors Light
Sierra Nevada New Belgium
Blue MoonAVERAGEGuinness Miller Lite
Beck’sPabst Blue Ribbon
Widmer BrothersCorona
RedhookShiner
SaranacNewcastle Brown Ale
Rolling RockCHALLENGED
Dos EquisMichelob ULTRA
PyramidYuengling
Henry Weinhard’sOld Milwaukee
CoorsMiller64
Red StripeMiller Genuine Draft
Miller High LifeLabatt Blue
Keystone LightFEEBLE
Amstel LightBudweiser SelectModelo EspecialBud Light Lime
LandSharkFoster’s
George Killian’sLabatt Blue Light
TecateBusch Light
PacificoBusch
Michelob Select 55
Natural LightSt. Pauli Girl
Milwaukee’s Best
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Digital IQ Ranking
March 7, 2013Digital IQ Index®:
BeerExCErpT from the Digital IQ Index®: Beer To access the full report, contact [email protected]
RANK BRAND DIGITAL IQ
37 65
39 64
40 52
40 52
40 52
43 51
44 50
Crown Imports
MillerCoors
AB InBev
MillerCoors
AB InBev
Heineken International
North American Breweries
RANK BRAND DIGITAL IQ
45 48
45 48
47 46
48 43
49 34
50 33
AB InBev
MillerCoors
AB InBev
AB InBev
AB InBev
AB InBev
GENIUSHeineken
BudweiserGIFTED
Bud LightStella Artois
Samuel AdamsCoors Light
Sierra Nevada New Belgium
Blue MoonAVERAGEGuinness Miller Lite
Beck’sPabst Blue Ribbon
Widmer BrothersCorona
RedhookShiner
SaranacNewcastle Brown Ale
Rolling RockCHALLENGED
Dos EquisMichelob ULTRA
PyramidYuengling
Henry Weinhard’sOld Milwaukee
CoorsMiller64
Red StripeMiller Genuine Draft
Miller High LifeLabatt Blue
Keystone LightFEEBLE
Amstel LightBudweiser SelectModelo EspecialBud Light Lime
LandSharkFoster’s
George Killian’sLabatt Blue Light
TecateBusch Light
PacificoBusch
Michelob Select 55
Natural LightSt. Pauli Girl
Milwaukee’s Best
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March 7, 2013Digital IQ Index®:
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path to purchaseRegulation in the beer industry inhibits direct-to-consumer
e-commerce. While 46 percent of brands sell merchandise
through their sites, Saranac, which offers custom-labeled six-
packs through its mysaranac.com microsite, is the only brand
to sell product directly to consumers.
Less than half (46 percent) of sites include a retail
locator, far fewer than the 84 percent registered in Digital IQ
Index®: Spirits. Despite the lower adoption rate, the locator
functionality proves to be more robust. All but one beer locator
provides search by ZIP code and 77 percent distinguish
between bars, restaurants, and retail locations. Pyramid, for
example, offers listings ranging from bars and restaurants to
convenience stores and wholesale clubs through its “Global
Pint Seeker” tool.
The majority of product locators employ a skinned tool
powered by Google maps. Not surprisingly, the Super-premium/
Craft category offers robust locators due to product scarcity.
retail Locatorspercent of Locators With the Following Features
January 2013, n=23
95%Search by Address/Zip
77%Distinguishes Between Bar/Restaurant/Retail
43%Search by Specific Products
35%Includes Map Directions
13%Auto Detects Location by IP
Key Findings Site
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Key Findings Social MediaFacebook continuedLooking at each brand’s most popular city on Facebook, we see
the regional preferences for local craft breweries. The heritage
of Samuel Adams in Boston, Sierra Nevada in California,
and Redhook in Washington State are on display in their
concentration of Facebook engagement. On the macro side,
cities like Houston have “taken” Budweiser from its St. Louis
origin and Chicago has seized Rolling Rock from Pennsylvania.
Brazil finds a place on the map, hosting the most popular cities
for Heineken and Guinness.
SEATTLERedhook
PORTLANDWidmer Brothers
CHICOSierra Nevada DENVER
Coors
SIOUX FALLSMichelob
BALTIMORENew Belgium
BOSTONSamuel Adams
UTICASaranacROCHESTER
Labatt Blue Light
LOS ANGELESPyramidNewcastle Brown AleBlue MoonPabst Blue RibbonRed StripePaci�coTecate HOUSTON
Bud LightBudweiserBud Light LimeMichelob Ultra
SAN ANTONIODos EsquisLandshark
ShinerBudweiser Select
MARIETTABusch Light
NEW YORKCoors LightLabatt Blue
VIRGINIA BEACHSelect 55
MILWAUKEEOld Milwaukee
CHICAGOMiller Lite
Beck’sRolling Rock
Keystone LightMiller Genuine Draft
Miller64Amstel LIght
Henry Weinhard’sGeorge Killian’sMiller High Life
ST.LOUISBusch
Natural Light
PHILADELPHIAYuengling
BUENOS AIRESLONDON
MÉXICO CITYSANTIAGO
SÃO PAULO
Stella ArtoisFoster’sModelo EspecialCoronaHeineken, Guinness
Facebook Most popular CitiesFeburary 2013
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Key Findings Mobile
86% 79%
7%
Links to Social Easy Input Age Gate Retail Finder Site SearchVideo Content
64%50%
Mobile Site Are You Still Serving?Thirty-one percent of Google monthly keyword searches
for beer brands in the Index originate from mobile devices.
Despite strong evidence that consumers are seeking out
these brands, comparatively few have optimized their sites to
cater to mobile users. Sixty percent of brands rely exclusively
on the desktop version of their sites. Only half of the six
brands that maintain a flash desktop site have compensated
with a mobile site or by redirecting visitors to the brand’s
official Facebook page. Furthermore, 64 percent of all mobile
age gates are not mobile-optimized and require QWERTY
keyboard inputs.
The 14 mobile-optimized sites reviewed are a content
graveyard, housing recent ad campaigns and pushing users
toward more engaging social media channels. Less than two
thirds of the mobile optimized sites feature a retail locator,
undermining the mobile users signaling local intent to find/buy.
Mobile Site Adoption February 2013, n=50
Mobile Site Features February 2013, n=14
28%Mobile Site
24%HTML5
36%Non-HTML5
8%Broken/Flash
4%Redirect toFacebook
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Key Findings Social MediaSuper BowlThe Echo EffectThe hype around advertising was as high as ever for Super
Bowl XLVII, with each 30-second time slot costing (on
average) $3.75 million.8 This year, 80 percent of advertisers
across industries pre-released some form of ad on YouTube,
with 67 percent releasing actual ads. AB InBev, the exclusive
beer advertiser for the game,9 bought four and a half minutes
of air time10 to promote Bud Light and Budweiser and
introduce two new brands: Beck’s Sapphire and Budweiser
Black Crown.
Gone are the days when beer reigned as Super Bowl ad
king. This year, car advertisers dominated the ad and teaser
commercials, nabbing six of the top ten view count totals
on YouTube the Monday morning after the Super Bowl.
Toyota’s “Wish Granted” ad starring actress Kaley Cuoco
came out on top, with 13.5 million views. Budweiser’s “The
Clydesdales: Brotherhood” ad earned the top Ad Meter score
this year,11 and ranked seventh in terms of YouTube video
views immediately following the weekend. Other AB InBev
ads proved much less popular.
8. “Super Bowl Commercial Time Is a Sellout,” Stuart Elliott, Forbes, January 8, 2013.9. “MillerCoors Breaking ABInBev’s Super Bowl Stranglehold With Apple Ale Ads,” Shanken News Daily, December 17, 2012.10. “Who Bought What in Super Bowl 2013,” Brian Steinberg, AdAge, February 1, 2013.11. “Budweiser takes 2013 Ad Meter title in thriller,” USA Today, February 4, 2013.
YouTube: pre-Game Ad releases Brands pre-releasing the Following Ad Types
February 2013, n=45
Top 10: Ad Views on YouTube Views by Individual Video (Monday Morning)
Super Bowl XLVII
Actual TeaserExtended Contender
67%47%
11% 7%
ToyotaWish Granted (Ad)
Samsung MobileEl Plato Supreme (Teaser)
BudweiserThe Clydesdales: “Brotherhood” (Ad)
HyundaiTeam (Ad)
SodaStreamThe Unaired SodaStream Ad (Ad)
Mercedez-BenzSoul (Extended)
AudiProm (Ad)
Mercedes-BenzKate Upton (Teaser)
Go DaddyPerfect Match (Ad)
VolkswagenGet In. Get Happy. (Ad)
13,422,8968,653,115
8,459,360 7,755,171 6,631,695 6,551,114
6,004,196 5,990,254 3,886,963 3,595,299
12
3 4 5 6
7 89 10
Only beer ad in top 10
About L2 ?
L2 is a think tank for digital innovation.
We are a membership organization that brings together thought leadership from academia and industry to drive digital marketing innovation.
ReseARch
Digital IQ Index®: The definitive benchmark for online competence, Digital IQ Index® reports score
brands against peers on more than 600 quantitative and qualitative data points, diagnosing their digital
strengths
and weaknesses.
L2 collective®: Series of benchmarking reports designed to help member brands better understand
resources, human capital, budgets, and priorities supporting digital strategies.
eVeNTs
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The largest gatherings of prestige executives in North America.
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clinics: Executive education in a classroom setting with a balance of theory, tactics,
and case studies.
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Working Lunches: Members-only lunches led by digital thought leaders and academics.
Topic immersion in a relaxed environment that encourages open discussion.
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Advisory work includes Digital Roadmaps, Social Media Strategy, and Organizational Strategy engagements.
MeMBeRshIP
For membership info and inquiries: [email protected]
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?About L2
Upcoming Events
LUNCH: ApAC
March 14, 2013 · New York
CLINIC: SOCIAL CrM
April 4, 2013 · New York
Upcoming Research
DIGITAL IQ INDEx® rEpOrTS:
Auto
Specialty Retail
rESEArCH SUppLEMENTS:
China: Fashion
China: Hotels
Hair: Europe
INTELLIGENCE rEpOrTS:
APACTablet
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38
50
51
Flashes of Genius38 Budweiser: Super Bowl Blitz
39 PBR: Focus on Mobile
40 Stella Artois and Labatt Blue: La Société and Good
Stuff Rewards
41 AB InBev: Zythology App
42 Dos Equis: A “Most Interesting” Microsite
43 Old Milwaukee: Will Ferrell Goes Viral
44 Guinness and Saranac: Experimenting with QR Codes
45 Heineken: “Crack The Case”
46 Bud Light: The Bud Light Hotel
47 Coors Light: Mobile Ad Tactics
48 Heineken: Red Star Access
49 Samuel Adams, Pyramid, and Redhook: Finding Your Beer
L2 Team
About L2
11 Key Findings11 Digital IQ Distribution
12 Enterprise Value
Site
13 Age Gate
14 Path to Purchase
15 Content
16 Sponsorship
Digital Marketing
17 Empty Inbox
18 Data Capture
19 In Search of Search
Social Media
21 Facebook
24 Facebook: Size vs. Engagement
25 Twitter
27 YouTube
29 YouTube: In Search of Video
30 Social Spotlight: Brazil
31 Emerging Social Media
32 Instagram: The Big Picture
33 Super Bowl: The Echo Effect
Mobile
35 Mobile Site: Are You Still Serving?
36 Mobile Apps: Hit & Miss
37 Geolocal: Untappd—The Foursquare for Beer
5
6
Methodology
Digital IQ rankings6 Genius
7 Gifted
7 Average
8 Challenged
9 Feeble
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