How Gen Z Is Changing Alcohol Marketing and Why OOH Still Matters
- 6 hours ago
- 3 min read
By Jeff Aldridge, Head of New Business
For decades, alcohol brands followed a pretty simple out of home strategy: be everywhere.
If you drove through any major city, there was a good chance you would see a beer brand on a billboard. Sometimes several. The strategy was straightforward. Stay visible, stay culturally relevant, and stay top of mind when consumers walk into a store or a bar.
For a long time, that approach worked. But one thing is clear: alcohol consumption patterns are evolving, consumer behavior is changing, and alcohol brands are adapting their marketing strategies along with it.
According to Gallup, the percentage of Americans who say they drink alcohol has fallen to 54%, continuing a gradual decline over the past two decades.
Among younger adults, that shift is even more noticeable.
Gen Z Trends with Alcohol and Spirit Consumption
Gen Z, those born 1997 to 2012, tend to drink less frequently than previous generations and are far more intentional about when they do.
Health-conscious: many Gen Z consumers tend to place a greater emphasis on physical and mental health, and regularly examine their relationship with alcohol - some even identify as “sober curious.”
A recent NielsenIQ study found that nearly 45% of Gen Z consumers say they are actively trying to reduce their alcohol consumption.
Managing Finances: Gen Z consumers are more selective about how they spend their money. Nights out are often tied to experiences rather than routine habits. Drinking is increasingly connected to social moments and events vs. everyday consumption.
The marketing playbook for alcohol and spirit brands is evolving, not just in response to consumption habits, but other factors, too.
Competition: the alcohol category has become incredibly competitive. In just the past five years we have seen an explosion of hard seltzers, ready to drink cocktails, premium tequila brands, and craft spirits all competing for attention.
Trade and Tariffs: With international trade and tariffs that affect exports, many alcohol brands are putting more focus on winning domestically.
How do you stay culturally relevant and visible when consumer habits are shifting? Out of home advertising is playing an important role in answering that question.
Shifts in OOH Advertising for Alcohol and Spirit Brands
What we are seeing across the industry is not a decline in alcohol OOH campaigns. Working with alcohol brands and agencies every day, we are seeing a shift in how and when brands use the medium.
The “always-on” billboard presence that defined the category for decades is gradually giving way to something more intentional.
Brands that used to have permanent billboard presence in major markets are focusing their spend around specific moments. Instead of trying to be everywhere all the time, the focus is increasingly on showing up in the right places at the right moments.
Here are a few examples and ideas for your alcohol or spirit brand below:
Leverage OOH Advertising for Product Launch
For their Hardcharged Tea launch, Voodoo Ranger used OOH in a couple of their focus markets, one being Las Vegas. Multiple OOH formats including bus shelters, billboards, and large spectaculars like this one on the Horseshoe (located on the Las Vegas Strip) got the message out to the city of revelry.
Sporting Events and Sport Team Partnerships
Major events like F1 and FIFA give brands a global platform, but OOH is the key to highlighting specific team collaborations. For instance, Sweetwater maximized its Atlanta United FC partnership by using localized OOH to connect with fans right in the heart of the city.
Major music/festival weekends such as Coachella, Lollapalooza, and more also offer a chance for brands to amplify their sponsorships.
Alcohol and Spirit Brands, Programmatic Digital OOH (PDOOH)
Programmatic Digital Out of Home offers many benefits, and alcohol and spirit brands can still leverage this technology to activate campaigns. The benefit of using programmatic is that on the media owner/vendor side, they have pre-determined what inventory can accept alcohol and spirit advertisers.
Many DSPs allow advertisers to mark their category as “alcohol” which streamlines the process. To maximize your budget in PDOOH, consider:
Daypart your campaign: Happy Hour kicks off at 5 PM during the weekday.
Select venue types like entertainment/bars, retail convenience stores where people are actually making purchases
Use audience targeting to reach those that enjoy beer, wine, spirits, etc. or target by Point of Interest such as concert venues, stadiums, bars, etc.
As trends change with consumers, brands will continue to pivot in their marketing strategy. Here at PJX Media, we can help your alcohol or spirit brand use OOH advertising in a way that’s intentional and efficient. If your brand or client needs experienced media strategists in this category, send us a note to get started.
