Heineken's US CMO lays out how the brewer pivoted to online streaming ads and how it is standing out in the 'cluttered' digital space

Financial world news, market analysis, investment scam prevention tips and more ✔️ Learn all there is to know about the asset management industry. This magazine is crafted specifically for those who are interested in diving into the global asset management world. A shot from a recent Heineken ad HeinekenHeineken has paused sponsorships for events like Coachella and the US Open. CMO Jonnie Cahill said that the brewer is instead focusing on connected TV and other digital media. Heineken is planning to trim agency costs and other ad expenses as part of a larger €2 billion in cost cutting. Visit the Business section of Insider for more stories. Heineken is trying to meet customers where they are and during the pandemic that's increasingly been on the couch. The brewer is shifting from traditional ads and sponsored live events to streaming TV.  As the pandemic has gone on, the brewer has put an increasing amount of its marketing spending into digital advertising options, Jonnie Cahill, Heineken's chief marketing officer in the US, told Insider in an interview. Heineken has taken a "rain check" with partners such as Coachella and the US Open tennis tournament due to coronavirus, Cahill said. It has also paused efforts to sample new products.  "In the short term, what I see is less around experiential sampling and sort of on-the-floor stuff," he said. "And that, in turn, has freed up more money for media." Connected television, including streaming services, has instead become a greater focus for the maker of Dos Equis and Tecate, during the pandemic, he added. Heineken is far from the only CPG company trying to do more digital advertising and get more for its ad money lately, and the Dutch brewer has had to up its creative game to stand out in what Cahill called a "cluttered space" that's "evolving rapidly." Jonnie Cahill Heineken Over the last year, the company's TV spots have included its social distancing-themed "Back to the Bars" spot as well as Tecate's "Mexico is in us" ad. "Once upon a time, it was very straightforward," he said of television advertising. "You called Disney or ABC or NBC or whomever, you booked the spots and you thought about [gross rating points]," he said, referring to a measure of an ad's impact that the company still uses. "But we also think about what are the 12 or 13 different ways that spot and show up in [your] life," he added. Figuring out which of those channels work best has taken a lot of experimentation, he added. "We've spent a lot of time with test and learn pilots where we run this similar media but geo-targeted to different cities or to different consumer groups and try to isolate effectiveness," he said. "We, like all CPG marketers, are in that scramble to truly understand what our best options are," he said. Expanding those options has been key during the pandemic. Last summer, Heineken was one of many marketers that temporarily pulled ads from Facebook, citing the social network's treatment of hate speech. Instead, the company has put more effort into advertising on Pinterest, a platform that has gotten more attention with consumers cooking and decorating their homes, Marketing Vice President Alison Payne told AdAge in November. Other CPG players like General Mills and Hershey have also rethought their marketing strategies over the last several months. Heineken said earlier this month that it would cut €2 billion in costs company-wide as many bars, restaurants, and other social venues remain closed and large events that the brewer sponsors are canceled or pared back due to COVID-19. The reductions will include less spending on so-called "non-working" ad spending, which includes payment to advertising agencies and costs associated with producing ads, CEO Rudolf Gijsbert Servaas van den Brink told analysts during the company's most recent earnings call. Heineken wants to make sure it is getting the most for its advertising dollars, Cahill told Insider. Last November, it consolidated its ad spending behind a single agency, Dentsu, but Cahill indicated that there is more to do. "We structurally understand: Is it better to spend a dollar on a billboard in Dallas or Instagram influencer activity in California?" he said. "What the team around me spend their time doing is making sure that more of the money goes into more of the activities that deliver more return." To keep reading about Heineken's US CMO lays out how the brewer pivoted to online streaming ads and how it is standing out in the 'cluttered' digital space, Click on the link. Seoul, Korea
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