2013 Digital IQ Index: Beer

Excerpt from the Digital IQ Index : Beer ®

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March 7, 2013
SCOTT GALLOWAY
NYU Stern

Beer © L2 2013 L2ThinkTank.com

Digital IQ Index®:
March 7, 2013
Beer

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Beer Video
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For 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.

U.S Annual Growth in Alcohol Consumption
Crafty In Percent Change, Gallons Per Person
There is a substantial resource gulf between premium and craft
Beer Wine Spirits
beer brands. A craft brewer produces less than six million barrels
a year vs. an Anheuser-Busch InBev, which shipped close to 100 4.4%
4.1%
million barrels domestically in 2011 (almost half of all the beer sold 3.8%
in the U.S.).3 4 While industry titans spend upward of 85 percent
2.9%
of their working media budgets on television,5 a single 30-second 2.8% 2.7%
2.4%
Super Bowl spot ($3.8 million) is larger than the annual marketing 2.2%
2.0%
expenditures of many craft brewers. These smaller, more nimble 1.6% 1.7%
1.5% 1.4% 1.4%
1.4%
brands with no/limited traditional media have been forced to 0.9% 0.9%
0.7% 0.7%
develop skills to cut through the noise with superior product 0.4% 0.2% 0.4%
and innovation, an approach that is evidence of a broader trend
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
threatening the broadcast industrial complex. Digital is one of these 0.0%
weapons, and craft brewers boast an average Digital IQ 13 points -0.5%
higher than any other beer category. -1.0%
-0.9%
-1.2%

-2.5%
-3.0%

-3.8%
1. “Annual Industry Review 2012,” Distilled Spirits Council, February 6, 2013.
Source: Beverage Information Group and U.S. Census
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.

© L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 2

Digital IQ Index®:
March 7, 2013
Beer

Echo
Social Media Lift from Super Bowl XLVII Ad Buy
Premium beer brands use digital to extend the shelf life of their
February 1–4, 2013
broadcast investment, whereas craft beers try to use digital as
the initial “Boom.” A recent survey suggests 24 percent of the Average Comparative
U.S. television audience qualify as “TV Talkers” (posting online Beer Brand Performance Notes

references to what they watch on a weekly basis, including ads).6 +3,451,275 views +9,748 views ×354 Budweiser hosts less than 10 minutes of content on its
Despite an exclusive on beer-related Super Bowl advertising, +93.26% +0.33% primary YouTube channel. The two “Clydesdales” videos
now represent 92 percent of all views.
only half of Anheuser-Busch InBev’s six spots contained a
digital call to action—all in the form of a hashtags (#Clydesdales, +1,537 followers +130 followers ×12 Budweiser’s Twitter account started broadcasting on
#HereWeGo).7 Although the visibility of those ads dwarfed +54.72% +0.74% January 27—it remains to be seen if the account can grow
past the goodwill it engendered with the Super Bowl spot.
other activity across the Index for a three-day window, the buzz
across each of the brands’ social media channels rapidly trailed + 1,915 fans +2,186 fans ×0.9 Budweiser’s largest online community (3.7 million) was
off, suggesting the echo effect is not as powerful as touted by 0.05% +0.32% mobilized to name the Clydesdale foal via comments (0.31
percent post engagement)—but no organized voting tab/app.
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
Budweiser: Social Media Lift from Super Bowl
(“Clydesdales: Brotherhood”)
views and substantial buzz on blogs.
January - February 2013

Digital IQ = Shareholder Value YouTube Twitter Facebook

This study attempts to quantify the digital competence of 50 6,000,000 6,000
Daily Change in Video Views

Daily Change in Fans/Followers
iconic beer brands in the U.S. Our aim is to provide a robust tool 5,000,000 5,000
to diagnose digital strengths and weaknesses and help brands

(Facebook, Twitter)
4,000
4,000,000
(YouTube)

achieve greater return on incremental investment. Like the medium 3,000
3,000,000
we are assessing, our methodology is dynamic and we hope you 2,000
2,000,000
1,000
will reach out with comments that improve our methodology and
1,000,000 0
findings. You can reach me at scott@stern.nyu.edu.
0 -1,000
January 2013 February 2013

Scott Galloway
Professor of Marketing, NYU Stern
Founder, L2

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.


Digital IQ Index®:
March 7, 2013
Beer
About the Ranking
The Methodology

25% 25% 20% 30%
Site Digital Marketing Mobile Social Media
Effectiveness of Brand Site Search, Display, and Email Marketing Efforts Compatibility, Optimization, and Brand Presence, Community Size, Content,
Age Gateway Search: Marketing on Smartphones and Tablets and Engagement
Traffic, SEM, SEO, Web Authority  Mobile Site: Facebook:
Site Technology
Compatibility, Functionality, Load Time Likes, Growth, Tabs & Applications, Responsiveness,
Advertising & Innovation:
Navigation & Site Search Engagement
Display, Retargeting, Miscellaneous Brand Initiatives Mobile Applications:
Customer Service & Retail Locator Availability, Popularity, Functionality, Twitter:
Blog & Other User-Generated Content:
Account Capture iPhone/iPad/Android Differentiation Followers, Growth, Frequency, Programming 
Mentions, Sentiment
Brand Content Innovation: YouTube:
Email Marketing:
Untappd, SMS, Other Mobile Initiatives Views, Number of Uploads, Subscriber Growth, Viral Videos,
Product Page Frequency, Content, Promotion, Segmentation
YouTube Search Visibility

Emerging Social Media:
Instagram, Google+, Pinterest

Digital IQ Classes
Genius 140+ Gifted 110–139 Average 90–109 Challenged 70–89 Feeble < 70
Digital competence is a point of Brands are experimenting and innovating Digital presence is functional Limited or inconsistent adoption of Investment does not
competitive differentiation for these brands. across site, mobile, and social platforms. yet predictable. Efforts are mobile and social media platforms. match opportunity.
Creatively engineered messaging reaches Digital presence is consistent with brand often siloed across platforms. Sites lack inspiration and utility.
consumers on a variety of devices and in image and larger marketing efforts.
many online environments.


Digital IQ Index®:
March 7, 2013
Beer
Digital IQ Ranking
In the Company of Genius
RANK BRAND DIGITAL IQ Rank BRAND DIGITAL IQ Rank BRAND DIGITAL IQ GENIUS
Heineken
Budweiser
Genius Gifted Average
1 GIFTED
Bud Light
3 138 10 109 Stella Artois
Samuel Adams
Coors Light
AB InBev Diageo Sierra Nevada
New Belgium
Blue Moon
AVERAGE
Guinness
3 138 10 109 Miller Lite
150 Beck’s
Pabst Blue Ribbon
AB InBev MillerCoors Widmer Brothers
Corona
Heineken International Redhook
Shiner
Saranac
5 133 12 107 Newcastle Brown Ale
Rolling Rock
CHALLENGED
The Boston Beer Co. AB InBev Dos Equis
Michelob ULTRA
Pyramid
Yuengling
Henry Weinhard’s
6 132 13 104 Old Milwaukee
Coors
Miller64
MillerCoors Pabst Brewing Co. Red Stripe
2 Miller Genuine Draft
Miller High Life
Labatt Blue
Keystone Light
7 124 13 104 FEEBLE
Amstel Light
Budweiser Select
Sierra Nevada Brewing Co. Craft Brew Alliance Modelo Especial
Bud Light Lime
LandShark
Foster’s
142 George Killian’s
8 122 15 97 Labatt Blue Light
Tecate
AB InBev Busch Light
New Belgium Brewing Co. Crown Imports Pacifico
Busch
Michelob
Select 55
Natural Light
9 120 16 96 St. Pauli Girl
Milwaukee’s Best

MillerCoors Craft Brew Alliance


Digital IQ Index®:
March 7, 2013
Beer
Digital IQ Ranking

Rank BRAND DIGITAL IQ Rank BRAND DIGITAL IQ Rank BRAND DIGITAL IQ GENIUS
Heineken
Budweiser
GIFTED
Bud Light
17 95 24 87 30 76 Stella Artois
Samuel Adams
Coors Light
The Gambrinus Co. D.G. Yuengling & Son MillerCoors Sierra Nevada
New Belgium
Blue Moon
AVERAGE
Guinness
18 94 25 81 32 72 Miller Lite
Beck’s
Pabst Blue Ribbon
Matt Brewing Co. MillerCoors North American Breweries Widmer Brothers
Corona
Redhook
Shiner
Saranac
19 93 26 79 33 71 Newcastle Brown Ale
Rolling Rock
CHALLENGED
Heineken International Pabst Brewing Co. MillerCoors Dos Equis
Michelob ULTRA
Pyramid
Feeble Yuengling
Henry Weinhard’s
20 91 27 78 34 69 Old Milwaukee
Coors
Miller64
AB InBev MillerCoors Heineken International Red Stripe
Miller Genuine Draft
Miller High Life
Challenged Labatt Blue
Keystone Light
21 89 27 78 35 67 FEEBLE
Amstel Light
Budweiser Select
Heineken International MillerCoors AB InBev Modelo Especial
Bud Light Lime
LandShark
Foster’s
George Killian’s
22 88 27 78 36 66 Labatt Blue Light
Tecate
Busch Light
AB InBev Diageo Crown Imports Pacifico
Busch
Michelob
Select 55
Natural Light
22 88 30 76 37 65 St. Pauli Girl
Milwaukee’s Best

North American Breweries MillerCoors AB InBev


Digital IQ Index®:
March 7, 2013
Beer
Digital IQ Ranking

Rank BRAND DIGITAL IQ Rank BRAND DIGITAL IQ GENIUS
Heineken
Budweiser
GIFTED
Bud Light
37 65 45 48 Stella Artois
Samuel Adams
Coors Light
AB InBev AB InBev Sierra Nevada
New Belgium
Blue Moon
AVERAGE
Guinness
39 64 45 48 Miller Lite
Beck’s
Pabst Blue Ribbon
MillerCoors AB InBev Widmer Brothers
Corona
Redhook
Shiner
Saranac
40 52 47 46 Newcastle Brown Ale
Rolling Rock
CHALLENGED
MillerCoors AB InBev Dos Equis
Michelob ULTRA
Pyramid
Yuengling
Henry Weinhard’s
40 52 48 43 Old Milwaukee
Coors
Miller64
North American Breweries AB InBev Red Stripe
Miller High Life
Labatt Blue
Keystone Light
40 52 49 34 FEEBLE
Amstel Light
Budweiser Select
Heineken International AB InBev Modelo Especial
Bud Light Lime
LandShark
Foster’s
George Killian’s
43 51 50 33 Labatt Blue Light
Tecate
Busch Light
AB InBev MillerCoors Pacifico
Busch
Michelob
Select 55
Natural Light
44 50 St. Pauli Girl
Milwaukee’s Best

Crown Imports


Digital IQ Index®:
March 7, 2013
Beer
Key Findings Site
Path to Purchase Retail Locators
Percent of Locators With the Following Features
Regulation in the beer industry inhibits direct-to-consumer
January 2013, n=23
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
95%
Search by Address/Zip
powered by Google maps. Not surprisingly, the Super-premium/
Craft category offers robust locators due to product scarcity. 77%
Distinguishes Between
Bar/Restaurant/Retail

35% Directions
Includes Map

43%Specific
Search by
13% Location by IP Products
Auto Detects


Digital IQ Index®:
March 7, 2013
Beer
Key Findings Social Media
Facebook continued
Looking 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, Facebook Most Popular Cities
Feburary 2013
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 CHICAGO
Miller Lite
for Heineken and Guinness.
Beck’s
Rolling Rock
Keystone Light
PORTLAND SEATTLE Miller64
Widmer Brothers Redhook Amstel LIght
UTICA
Henry Weinhard’s ROCHESTER Saranac
George Killian’s Labatt Blue Light
Miller High Life
BOSTON
PHILADELPHIA Samuel Adams
Yuengling
SIOUX FALLS NEW YORK
Michelob Coors Light
MILWAUKEE Labatt Blue
Old Milwaukee BALTIMORE
CHICO
New Belgium
Sierra Nevada DENVER MARIETTA
Coors Busch Light
ST.LOUIS
Busch
Natural Light VIRGINIA BEACH
Select 55

LOS ANGELES
BUENOS AIRES Stella Artois
Pyramid
Newcastle Brown Ale LONDON Foster’s
Blue Moon MÉXICO CITY Modelo Especial
Pabst Blue Ribbon SANTIAGO Corona
Red Stripe SÃO PAULO Heineken, Guinness
SAN ANTONIO
Pacifico
Dos Esquis
Tecate HOUSTON
Landshark
Shiner Bud Light
Budweiser Select Budweiser
Bud Light Lime
Michelob Ultra


Digital IQ Index®:
March 7, 2013
Beer
Key Findings Mobile
Mobile Site
Are You Still Serving? Mobile Site Adoption
February 2013, n=50
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 4%
these brands, comparatively few have optimized their sites to Redirect to
cater to mobile users. Sixty percent of brands rely exclusively 8% Facebook
Broken/Flash
on the desktop version of their sites. Only half of the six
28%
brands that maintain a flash desktop site have compensated Mobile Site
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 36%
Non-HTML5
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, 24%
undermining the mobile users signaling local intent to find/buy. HTML5

Mobile Site Features
February 2013, n=14
86% 79%
64%
50%

7%

Links to Social Easy Input Age Gate Retail Finder Video Content Site Search


Digital IQ Index®:
March 7, 2013
Beer
Key Findings Social Media
YouTube: Pre-Game Ad Releases
Super Bowl Brands Pre-Releasing the Following Ad Types
The Echo Effect February 2013, n=45
The hype around advertising was as high as ever for Super
Bowl XLVII, with each 30-second time slot costing (on 67%
average) $3.75 million. This year, 80 percent of advertisers
8
47%
across industries pre-released some form of ad on YouTube, 11%
Actual 7%
with 67 percent releasing actual ads. AB InBev, the exclusive Teaser
beer advertiser for the game,9 bought four and a half minutes Extended Contender
of air time10 to promote Bud Light and Budweiser and
introduce two new brands: Beck’s Sapphire and Budweiser
Black Crown.
Top 10: Ad Views on YouTube
Gone are the days when beer reigned as Super Bowl ad
Views by Individual Video (Monday Morning)
king. This year, car advertisers dominated the ad and teaser Super Bowl XLVII
commercials, nabbing six of the top ten view count totals
13,422,896
on YouTube the Monday morning after the Super Bowl. 1 8,653,115
Toyota’s “Wish Granted” ad starring actress Kaley Cuoco 2

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. Toyota Volkswagen
Wish Granted (Ad) Get In. Get Happy. (Ad)

8,459,360 7,755,171
3
6,631,695 6,551,114
4
5 6

Samsung Mobile Audi Mercedes-Benz Go Daddy
El Plato Supreme (Teaser) Prom (Ad) Kate Upton (Teaser) Perfect Match (Ad)

6,004,196 5,990,254
3,886,963 3,595,299
7 8
9 10
Only beer
ad in top 10
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. Budweiser Hyundai SodaStream Mercedez-Benz
10. “Who Bought What in Super Bowl 2013,” Brian Steinberg, AdAge, February 1, 2013. The Clydesdales: Team (Ad) The Unaired Soul (Extended)
11. “Budweiser takes 2013 Ad Meter title in thriller,” USA Today, February 4, 2013. “Brotherhood” (Ad) SodaStream Ad (Ad)

Digital IQ Index®:
March 7, 2013
Beer
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Digital IQ Index®:
March 7, 2013
Beer
Table of Contents
Click Logo to Return

Click to Go To:

5 Methodology 11 Key Findings 38 Flashes of Genius
11 Digital IQ Distribution 38 Budweiser: Super Bowl Blitz
6 Digital IQ Rankings 12 Enterprise Value 39 PBR: Focus on Mobile
6 Genius Site 40 Stella Artois and Labatt Blue: La Société and Good
7 Gifted 13 Age Gate Stuff Rewards
7 Average 14 Path to Purchase 41 AB InBev: Zythology App
8 Challenged 15 Content 42 Dos Equis: A “Most Interesting” Microsite
9 Feeble 16 Sponsorship 43 Old Milwaukee: Will Ferrell Goes Viral
Digital Marketing 44 Guinness and Saranac: Experimenting with QR Codes
17 Empty Inbox 45 Heineken: “Crack The Case”
18 Data Capture 46 Bud Light: The Bud Light Hotel
19 In Search of Search 47 Coors Light: Mobile Ad Tactics
Social Media 48 Heineken: Red Star Access
21 Facebook 49 Samuel Adams, Pyramid, and Redhook: Finding Your Beer
24 Facebook: Size vs. Engagement
25 Twitter 50 L2 Team
27 YouTube
29 YouTube: In Search of Video 51 About L2
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




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2013 Digital IQ Index: Beer