Budweiser and Bud Light, the flagship beers of the Anheuser-Busch InBev (BUD) corporation, are always near the top when it comes to ranking the best Super Bowl ads.
Who could forget "Dilly Dilly," the "Lost Dog," or even "Whassup" and the Budweiser "Frogs" from the 20th Century?
But the company is taking a step back from this year's big game.
AB InBev declined the alcohol category exclusivity agreement it has signed with every Super Bowl broadcaster since 1989, AdWeek reported.
While the company is still purchasing three minutes of national ad time for its Bud Light, Michelob Ultra, and Busch Light brands from Fox (FOX), the media company broadcasting Super Bowl 57 on February 12, and another 30 seconds of regional ad time for Budweiser, that is down from the four minutes the company purchased during last year's game.
“There is no change in our strategy, but the way we operate that strategy has evolved,” Benoit Garbe, Anheuser-Busch’s CMO, told AdWeek. “It’s far more deliberate, far more focused, really making sure that our dollar works harder for us as a business.”
The company is now more focused on its premium and super premium beverage categories, according to Garbe, and the commercials for Budweiser will air "only in its strongest U.S. markets."
“We want Budweiser to be part of the Super Bowl because Budweiser is an icon of the Super Bowl,” Garbe said. “But, really, what we’re doing this year is rethinking what Budweiser is, and how we reconnect with a younger and multicultural consumer.”
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The Super Bowl Effect
Television ad time for an event as big as the Super Bowl is sold months in advance, so AB InBev's strategy for the big game isn't due to current market conditions.
"But then I look at our book, and the bid for sports continues to be there... We're super well sold on Super Bowl," Fox's CFO Steve Tomsic said during the company's last earning call.
And the NFL has done well for AB InBev. Sales of Michelob Ultra have doubled in the last five years, and the company credits its Super Bowl advertisements with at least some of the success, according to Garbe.
And the CEO of the company seems to agree.
"Our creative marketing capabilities continue to be recognized," said Michel Doukeris, CEO of AB InBev, said during the company's third quarter earnings call.
"This combination of best-in-class creativity, brand-building capabilities and effective marketing are driving strong consumer connections with our brands and enabling our accelerated top-line growth."
Tight Ad Marketing Environment
Inflationary pressure is causing a ripple effect across many sectors of the economy as some of the biggest players seem to be signaling that they expect a recession.
"I think the one thing that's thematic probably across all advertising players is visibility is lower and the money is coming in later," Tomsic said.
But despite the economic reality, the draw of the NFL and its reach has advertisers ready to spend.
"NFL continues to just set itself apart from most other sort of broadcast assets in terms of driving sort of viewership levels, and from our perspective, from a monetization perspective, being able to really drive that," Tomsic said.
The average cost of a 30-second spot for the big game in 2022 was $6.5 million, a $1 million increase from the previous year.
