While Heineken’s (HINKY) competition are focusing on old-school techniques such as M&A, the Dutch brewer has instead gone the way of the future by attaching itself firmly to the world of digital and social media. Heineken recently announced a multi-million dollar deal with Google (GOOG) that will see the beer magnate take advantage of the digital giant’s technology to target consumers in more than 20 international markets.
According to Ad Age, Heineken’s newest global campaign, called "Open Your World" was first rolled out on Google’s YouTube video service in December. The first ad, called "The Entrance," generating 4 million hits globally in the first three weeks. Its newest film, “The Date” rolled out simultaneously on YouTube and Facebook in May.
Alexis Nasard, chief commercial officer at Heineken, told Ad Age: "Through the partnership with Google, Heineken will be able to strengthen its leadership position in the digital space. The opportunity exists to build on our successes and continue to provide exciting and compelling content to adult consumers. Our vision is to ignite the digital conversation, breaking new ground in beer advertising."
One of the keys to the agreement, however, may not be the flashy tech outreach but cell phone ad campaigns that the two companies will be working on together for emerging markets. Heineken, not unlike its competitors SABMiller (SBMRY) and Diageo (DEO), is putting its focus on new consumers in new markets rather than fighting over market share in the United States and Europe.
Heineken is said to be in talks with Facebook, an even stronger brand in some emerging markets than Google, to ink a deal on a similar type of new campaign strategy, as well as on other social media platforms that haven’t yet been announced.
The company’s most recent annual report for 2010 saw organic net profit growth of 19.7 per cent with reported net profit of $2.04 billion. Half-year results presentation are set for Aug. 24.
© 2017 Newsmax Finance. All rights reserved.