Gen-Z, Millennial Update Opps: Tempur Sealy plans to drastically increase ad spend

Update: Tempur Sealy (TS) disclosed some more marketing plans during its recent Q1 earnings report. The company announced earlier this year it would aggressively increase ad spend, but did not reveal an exact figure. Now its leaders are saying it will spend an additional $50m, bringing the expected 2021 total to $450m. Execs claimed this is the largest advertising investment in the history of the company. It is also planning a campaign to promote the 175th anniversary of its Stearns & Foster brand, so start reaching out to offer ad space. 

Per Pathmatics, TS earned 1.4b impressions YTD through desktop video ads (61%), Facebook ads (25%), Instagram ads (12%) and desktop display ads (2%). It placed 98% of these ads site direct onto sites such as youtube.com, facebook.com, instagram.com, wayfair.com and espn.com. It placed 2% through a variety of indirect channels onto sites such as finance.yahoo.com, yahoo.com, weather.com, foxnews.com and dailymail.com. It spent about $14.9m on digital display ads YTD, compared to $5.5m spent during the same time period of 2020. 

Please refer to the article below for additional spend and targeting information. 

Agency & martech readers-- TS currently works with creative AOR EP+Co. I do not see any signs pointing to an imminent review. I advise readers to keep looking for other opportunities. 


The original article was published on February 19:

Tempur Sealy (TS, but not Eliot) has gradually shifted its advertising model over the past couple of years to focus less on TV and more on digital and social media channels, according to execs in its Q4 2020 earnings call. In 2021, the company will "aggressively" promote its innovative betting products via "significant" ad spend; its execs expect a record amount of marketing dollars this year.

TS promoted a new CEO, Cliff Buster, in January; Buster joined the company in 2017 as the president of its US D2C business.

In 2020, iSpot reports TS's national TV commercials targeted millennials watching programs such as FriendsAmerica's Choice 2020: Democratic National ConventionHome TownThe Big Bang Theory and SpongeBob SquarePants. TS allocated an estimated $35.2m toward this channel last year, more than double the estimated $14.6m it allocated in 2019.

According to Pathmatics, the company spent roughly $14.7m on digital ads in 2020, up 39% from the roughly $10.6m it spent in 2019. TS earned ~1.8b digital impressions last year via desktop video (38%), Facebook (28%), Instagram (19%), desktop display (7%), Twitter (5%) and mobile display (3%) ads. 99% of desktop video ads were placed site direct ont YouTube.

Even though TS's execs mentioned in the call that they're shifting away from TV advertising, the company is obviously still investing in this channel. Judging by its TV commercial targeting, increased ad spend overall and heavy reliance on YouTube, Facebook and Instagram ads, TS is primarily targeting Gen-Z and millennials right now. Per Kantar data, the company also invests in print (newspapers), radio and local broadcast; I have also seen OTT ads for it. 

Agency & martech readers - TS's recent CEO promotion makes reviews possible but not likely enough to get your hopes up. I'd read elsewhere for now. This company currently works with creative AOR EP+Co. and receives creative and digital assistance from RPA