SodaStream has hired Commerce House to lead its health and wellness repositioning efforts. The Dallas-based agency will create a strategic advertising campaign, including TV buys, with tests to begin later this summer. Therefore, as we’ve been reporting, continue to seek ad dollars for a big fall/Q4 push (holiday revenue and combating launch of rival Keurig Kold) and in 2016 around big product launches.
SS has moved away from the Super Bowl, perhaps signaling that’s going to cast a wider net in Q4 and Q1, historically its top buying periods. Already, since January, SS’s display presence, including mobile, has skyrocketed compared to last year and gone almost completely programmatic. Given SS’s display targeting shift this year, news and sports sellers may have an advantage.
Media Spend: SS’s measured media spend plummeted last year, falling 56 percent to $9 million from $20.8 million in 2013, Kantar Media reports. Spending was down across broadcast, print and display.
[su_spoiler title=”TV Breakdown“]ISpot.tv reports that SS hasn’t run any national TV ads this year compared to $4.2 million over the same period in 2014. However, keep in mind that all of this spending last year funded a four day flight around Super Bowl XLVIII and included a buy during the big game. For all of 2014, $5.1 million went to national TV ads (see targeting right), the extra $900,000 supporting small flights in November and December.[/su_spoiler]
[su_spoiler title=”Digital Breakdown“]Since January, 68 display ads have run on 2,478 publishers, 99 percent of which were placed programmatically instead of publisher direct. Desktop activity has been highest with local/large paper, news and sports publishers.
Similarly, mobile, where activity just began this month, has skewed largely to sports, large paper and magazine sites like usatoday.com and people.com. SS has run one piece of sponsored content this year, according to brandtale.com. It appeared on Food Network in May.[/su_spoiler]
Digital Marketing Innovation: SS has created “SodaStream Mission Control,” touted by CEO Daniel Birnbaum as a “center of expertise and excellence for digital marketing.” Mission Control leads all social activity and content creation for online campaigns, including banner ads, viral videos, social media, branded content and re-marketing. Furthermore, a new head of PR has been hired to lead SS’s more than 60 specialized agencies globally, which create product buzz and brand stories to boost brand awareness and consumer awareness.
New Products: The rollout of the Source and Play sparkling water makers continues and Power, a premium automated sparkling water maker, was slated to expand its retail presence in June. Looking to 2016, slated for Q2 is SodaStream Mix, a cloud-connected soda maker that creates cocktails. It will target a more affluent, young adult customer base, creating an in for entertainment and lifestyle sellers. Then, in Q3 will be the debut of Ultimate, a cloud-connected on-demand system for purified hot and cold beverages, taking Keurig on directly.
New Positioning: Using the new “Water Made Exciting” tagline, SS is moving away from larger above-the-line ad buys (hence no Super Bowl buy) to focus more on guerilla/grassroots, PR and in-store demonstrations. The goal here is to activate trendsetters and influencers, including doctors, nurses, sports trainers and nutritionists. Health and wellness focused messaging will make up the bulk of spending, but SodaStream also is focused on four other key target trends: sustainability, value, personalization and convenience.
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