Gen-Z Media Opps: Chobani launches campaign amid significant digital ad spend increase
In Chobani's newest animated TV ads, the yogurt brand promotes new "oatmilks," creamers and coffees, offering consumers better-for-you (BFY) options along with its preexisting Greek yogurt products. The campaign launched on March 1 across broadcast TV, online video, paid social, organic social and more. Chobani's internal team spearheaded the campaign's marketing, advertising, insights, product innovation and project management, but it also worked with external partners on elements such as animation, music and illustration.
Chobani recently announced that it's expecting an IPO later this year, which would value it at around $10b; we will keep you updated, of course. Going public would allow the company's ad spend to increase even more (more below).
In 2020, iSpot reports Chobani's national TV commercials targeted millennials viewing programs such as South Park, Home Town, Today, Dr. Pimple Popper and Botched. Chobani allocated roughly $15.5m toward TV commercials last year, down 29% from the roughly $21.9m it allocated in 2019.
So far this year, according to Pathmatics, the company has already spent approximately $3.5m on digital ads, more than half of the approximately $6m it spent in all of 2020. Chobani's estimated full-year 2020 spend also doubled from that of $2.9m in 2019. The company has earned around 396.6m digital impressions YTD via Instagram (36%), desktop video (31%), Facebook (30%) and desktop display (3%) ads. 100% of this year's desktop video ads were placed site direct onto youtube.com.
Additionally, per Magellan, Chobani has aired 194 podcast ads within the past 12 months.
As you can see, lower TV spend has partially allowed higher digital ad spend. This shift, along with Chobani's heavy reliance on Instagram, YouTube and Facebook advertising and usage of podcast ads, show that its traditional mom-oriented target demographic consists largely of Gen-Z right now. To reach this audience, I expect it additionally utilizes OTT. Kantar data reveals Chobani also invests in OOH, radio and local broadcast. It holds planning conversations in Q1 and buying conversations in Q4.
Agency & martech readers - Since the company's in-house creative team developed this campaign and Horizon Media is still its media AOR, I'd read elsewhere for more immediate opportunities.