Gen-Z Opps: Starbucks shifts strategy to reach younger audiences
Sales Lead: In an effort to bolster brand awareness and engagement among Gen-Z, Starbucks is shifting from focusing on hot drinks to cold ones.
- Younger audiences often have more discretionary money to spend, so Gen-Z is becoming more and more of a priority to this company.
- The company will likely:
- Return to heavier ad spend, especially via digital channels
- Seek new digital and/or social agency partners
- Target demographic:
Additional spending insights:
- Broadcast insights (TV ad creative spend, effectiveness, impressions, and performance)
- YTD spend: Starbucks has allocated roughly $36.9m toward national TV commercials.
- Last year: The company allocated around $52m toward this channel last year after having spent 17% less, around $43.1m, in 2020.
- 2022 ad programming: Starbucks's 2022 commercials have targeted millennials watching shows such as NFL Football, Good Morning America, Today, The Tonight Show Starring Jimmy Fallon, and Friends.
- Digital and social insights (digital ad spend, effectiveness, impressions, and performance)
- YTD spend: So far this year, the company has spent approximately $45.2m on digital ads.
- YTD data: Starbucks has earned ~5.3b digital impressions YTD via Instagram (55%), Facebook (26%), desktop video (17%), and Twitter (2%) ads.
- Last year: In 2021, the company's estimated full-year spend decreased 4% to $82.9m from that of $86.3m in 2020.
- Additional channel insights
- The company utilizes OOH, print (magazines), podcasts, and local broadcast.
- It also works with influencers such as Barack Obama.
- Finally, Starbucks invests in cause marketing initiatives such as the Global Month of Good effort featured in the video above.
Additional agency insights:
- Opportunity: Starbucks may need additional digital and/or social media management assistance to more effectively reach Gen-Z.
- Current agency roster:
- Spark Foundry: Media AOR
- Energy BBDO: Creative AOR
- BBDO Worldwide: Creative AOR
- Edelman: PR AOR
Insight Sources: Broadcast insights estimated by iSpot; digital spend insights estimated by Pathmatics; additional channel insights estimated by Kantar.