Tuesday, December 18, 2007

A-B Increases Ad Budget for 2008

As if we weren't already saturated with the goofy, often entertaining ads from Anheuser-Busch, it seems that 2008 will feature more Bud, more of the time.
A-B will spend about $70 million more than it has this year on advertisements for its top-selling beers, Bud Light and Budweiser, according to the Journal's online story. Also, its other two core brands, Michelob and Michelob Ultra, will receive about $30 million in ads focusing on the traditional way A-B brews the beer.
This story goes on to say that A-B paid $247 Million in the FIRST SIX MONTHS of 2007, which would suggest an annual budget of just under $500 Million! With about 60% of their ad budget highlighting their four core brands, it seems safe to say that we'll be seeing a lot more advertising from the company that only has a 48.4 market share in the US beer market. I suspect the 70 million extra dollars won't do a whole lot to get them to 48.5, if trends of the last several years continue (and there's no reason to think they won't).

The most intriguing part of this press-release looking story is the last paragraph where they tell us what A-B is.
St. Louis-based Anheuser-Busch Cos. Inc. (NYSE: BUD), the largest domestic brewer, manufactures and recycles aluminum cans and operates theme parks.
I know it's all true, but the manufacturer and recycling bit struck me as odd. I don't really know why yet.

Anyway, look forward to a few more Bud and Bud Light ads in 2008, it seems they'll be here whether you want them or not.