Modelo's World Cup strategy: broadcast and streaming TV

Soccer news Dec 13, 2022

Modelo, a beer company, has used linked TV to promote itself to soccer fans during the FIFA World Cup. A large portion of Modelo's advertising budget is still allocated to traditional television, but the company plans to reach out to supporters via social media and streaming services during the World Cup.

To reach this target audience, Modelo has produced two commercials, one 30 seconds long for television and another 15 seconds long for social media, both of which are available in both English and Spanish and which focus on the highs and lows of being a sports fan, including the inevitable spilling of beer during triumphant and disheartening sporting events. Modelo wants to reach dedicated soccer fans among its core Hispanic customer base and new consumers who may be less invested in the sport.

According to Modelo's VP of brand marketing, Greg Gallagher, the TV commercials are designed to promote the brand to mainstream customers and the Hispanic market. Ultimately, we want Hispanics to view us as their first option, and we want the whole market to be aware of us," added Gallagher.

The TV commercial debuted in late November and will air until December 18; the social media commercial will air during the holiday season. The campaign will include advertisements on ESPN (premium coverage with sponsored digital videos, pre-roll, and editorial content), Telemundo digital (Spanish language in-game inventory), YouTube ads, programmatic digital TV (through FIFA+ and FuboTV), content and news coverage related to in-game inventory, and Reels on Facebook and Instagram in English and Spanish.

According to Gallagher, "investing in live sports continues to be a priority for Modelo as it enables us to reach customers where they are most engaged" in explaining why the company decided to air the advertisements during the FIFA World Cup. This is a fantastic chance to connect with die-hard and casual soccer enthusiasts.

Because of its strong TV ratings, linear TV dominates the advertising mix, and prominent Spanish-language in-game inventory is given top billing, as reported by Gallagher. This investment places us in the most highly anticipated games, including the broadcast of Netherlands vs. USA, and this enables us to reach the whole market of soccer fans amid the frenzy surrounding the USA's victory, as Gallagher put it.

However, Gallagher refuses to reveal how much of Modelo's advertising budget is being spent on this campaign. Marketing for the brand cost just over $30 million in 2022, up from $23 million in 2021, as reported by Pathmatics. According to Gallagher, 77% of the brand's World Cup advertising expenditure went toward traditional television, 12% toward digital media, 6% toward online video platforms like Netflix and Hulu, and 5% toward social media platforms like Instagram and Facebook.

It's not only Modelo but many other food and drink companies, including Coke and Frito-Lay, that use the FIFA World Cup as a big promotional opportunity. FIFA president Gianni Infantino predicts that by the conclusion of 2022, the tournament will have attracted more than 5 billion spectators worldwide through television and streaming services.

Morning Consult found that soccer has the most ethnically diversified fan base of any sport, with 40 percent of supporters identifying as people of color. And among American adults, Hispanics account for almost a quarter (23%) who call themselves supporters of the beautiful game.

"The fact that it is watched across many demographics and a vast and diversified audience, along with the fact that it is a cultural phenomena mainly unspoiled by politics," said Aliza Freud, CEO of SheSpeaks, a network of female influencers.

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