Coca-Cola Consolidated Inc (NASDAQ:COKE) engages in the production and sale of water, fruit juice, iced tea, and soda for several decades. Bringing commercial ads to enthuse customers to buy their products is not an easy task. Coca-Cola meticulously uses its TV ads that feature popular singers on hilltops with pop culture to attract the audience.
Consumers do not prefer TV ads
With the rising popularity of streaming videos, consumers are saying a big No to traditional TV ads. On-demand video centers run ads for few seconds during the primetime TV slot at night. Coca-Cola is placing more emphasis on the latest trends to focus on streaming videos and decides to cut spending on traditional TV ads.
Coca-Cola paused ad spending on social media channels like Facebook, Inc. (NASDAQ:FB). Several companies stopped sponsoring ads on Facebook because it supported hate speech. The ad revenues for Facebook fell to 50% in July from 10% in June. Coronavirus also affected ad spending on social media. Some of the major brands that boycotted ads on Facebook include Ford, Coca-Cola, and Levi’s.
More emphasis on streaming videos
Group Director (Connections Planning and Investment) at Coca-Cola, Jeff Hagen said the company wants a direct connection with the customers. The company wants to immerse with them instead of simply appearing in between on the screen and moving away. Several other companies are focusing on streaming videos rather than traditional TV ads.
Some media buyers are establishing relationships with NBC’s Universal Peacock and Disney’s Hulu because a large chunk of consumers prefers videos through on-demand video services compared to watching shows on CBS or NBC.
CCO of WPP’s Mindshare, David Lang said it is a rich territory and this trend will continue in the future because several viewers watch shows through their subscription services. So, brands can consider being part of the show.
According to recent statistics, the ad spending on streaming videos that support ads increased significantly in recent periods. The ad spending on Roku, Hulu, and ViacomCBS’ Pluto has surged by 31.2%, 12.2%, and 60%.
The ad spending at ABC, CBS, and NBC declined by 10%, 25%, and 28% during coronavirus crises. Therefore, establishing an alliance with reputed players like Disney Plus, Amazon Prime, and Netflix takes millions but offers more sales. Therefore, Coca-Cola is working with them to improve its fortunes.