ADVERTISING & PROMOTION: Drinks ads will dry up in favour of sponsorship

The drinks industry will switch its marketing budget from advertising to PR and sponsorship over the next four years, according to new research from Datamonitor.

The drinks industry will switch its marketing budget from advertising to

PR and sponsorship over the next four years, according to new research

from Datamonitor.



The report, Marketing Strategies in UK Drinks, claims advertising will

decline as a proportion of marketing spend between now and 2000. Rising

advertising and TV costs have been blamed for the trend. Drinks

advertisers are cutting costs by using more specific programming, says

the report.



The drinks industry’s pounds 505m marketing budget is dominated by

above-the-line, accounting for 63.4% of total spend. However, by 2000

Datamonitor forecasts a 25% rise in the industry’s pounds 24m PR spend,

while the current pounds 319m ad budget will rise by just 3.1%. Direct

marketing spend is expected to rise by 9.7% and sponsorship by 15.2%.



Retailers are also blamed for the expected changes. The increase in own-

label goods means that branded goods are turning to sales promotion

techniques to encourage trial and to fight for sales. The rise of

retailers as major advertisers in their own right has led manufacturers

to look for direct marketing and sponsorship as alternative marketing

methods to create brand awareness.



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