Male Gen-X, Millennial Opps: Scotts Miracle-Gro plans to allocate additional funds towards advertising
The Scotts Miracle-Gro Company (SMG) is increasing marketing spend, per its fiscal 2021 Q2 (ended April) report. The company's SG&A expenses rose 18% in fiscal Q2 due to higher ad spend and higher media costs. The primary reason behind this higher ad spend in the company wants to improve consumer engagement. The company is also worried about the long term effects of the pandemic on consumer behavior, and it believes marketing will help attract customers. In other news, SMG hired Cheryl Stone as paid media director in May 2021 from Ulta Beauty, where she served as media director.
According to Pathmatics, SMG earned 4.1b impressions through Facebook ads (74%), Instagram ads (17%), desktop display ads (4%), desktop video ads (3%) and Twitter ads (1%). It placed the majority (99%) of these ads site direct onto sites such as facebook.com, instagram.com, youtueb.com, amazon.com and twitter.com. It placed the remainder (1%) indirectly through Amazon and Google AdX+AdSense onto sites such as yahoo.com, amazon.com, ehow.com, allrecipes.com and finance.yahoo.com. It spent around $28.6m on digital display ads YTD, more than double the $12.5m spent in this channel during the same time period of 2020. Full-year spend jumped from $16.8m in 2019 to $31.2m in 2020.
Magellan estimates SMG placed about 150 podcast ads over the last year.
Please view our national TV spend chart for Scotts and Miracle-Gro by brand here. This year, Scotts placed ads during programming such as "SportsCenter," "Diners, Drive-Ins and Dives," "The First 48," "MLB Baseball" and "Home Town." Miracle-Gro placed ads during programming such as "NFL Football," "MLB Baseball," "MLB Tonight," "Diners, Drive-Ins and Dives" and "SportsCenter."
All data comes from iSpot.
Sellers-- I believe SMG is mainly targeting millennials and Gen-Xers. It reaches these demographics primarily through digital display and national TV ads. It has been ramping up digital spend for two years now. However, Scotts decreased YTD national TV spend, while Miracle-Gro increased spend in the channel. It also invests in OOH, print, radio and local broadcast TV ads, per Kantar. Sellers should contact this company offering relevant ad space to secure some of these extra ad dollars.
Agency & martech readers-- SMG tapped VaynerMedia as its creative and media AOR in 2020. It also works with Mediahub on a project-by-project basis and for linear TV planning and buying." I see no signs indicating this company will make any changes to the roster any time soon.