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Why broadcast and streaming TV are key to Modelo’s World Cup strategy

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During the FIFA World Cup, beer brand Modelo has taken advantage of connected TV to increase brand awareness among soccer fans. While Modelo still spends the majority of its ad budget on linear TV, it’s looking to use streaming and social media ads during the World Cup to meet the fans wherever they watch the games.

To achieve this, Modelo has created two ad spots — one 30-second spot for television and a 15-second spot for social media, both in English and Spanish — that highlight the highs and lows of sports fandom, which often includes spilling beer when celebrating a victory or defeat. Modelo’s goal is to reinforce its brand message with its core Hispanic consumers who are serious soccer fans, while also introducing the brand to new consumers who may be more casual soccer fans.

Modelo’s vp of brand marketing Greg Gallagher said that the dual objective of the TV ad spots is to reach both general consumers and the Hispanic market in order to promote the brand to both of these target audiences. “We aim to drive awareness among total market consumers and drive first choice consideration among Hispanics,” said Gallagher.

The ads started running in late November and the TV spot will run through Dec. 18, while the social spot will run through Christmas. As part of the campaign, Modelo’s ads will show up on channels including ESPN (through premium coverage with sponsored digital videos, pre-roll and editorial content), Telemundo digital (through Spanish language in-game inventory), YouTube ads, programmatic digital TV (through FIFA+ and FuboTV), content and news coverage related to in-game inventory, as well as Reels on Facebook and Instagram in English and Spanish.

“Investing in live sports continues to be a priority for Modelo as it allows us to meet consumers where they are most engaged,” said Gallagher, commenting on why the brand chose to run the ads during the FIFA World Cup. “This event is an amazing opportunity to reach both passionate and casual soccer fans.”

According to Gallagher, the ad mix leans toward linear TV, which prioritizes high-profile Spanish-language in-game inventory because of the TV ratings. “Our target over indexes with watching Soccer on Live TV and the investment puts us in the most highly anticipated games, including the broadcast of Netherlands vs. USA, and this allows us to reach the total market soccer fan, during the hype around the USA’s success,” said Gallagher.

With that said, it is unclear how much of Modelo’s advertising budget is allocated to this campaign, as Gallagher declined to share overall budget specifics. According to Pathmatics data, the brand spent a little over $30 million so far on advertising efforts in 2022, up from $23 million in 2021. Gallagher broke down the budget for the brand’s World Cup campaign, saying 77% went to broadcast TV, 12% went to digital, 6% went to streaming TV and 5% went to Instagram and Facebook.

The FIFA World Cup is a major branding moment for many food and beverage brands in addition to Modelo, including Coca-Cola and Frito-Lay. The tournament is watched by millions of viewers around the world each day during the event and is projected to pass 5 billion viewers across television and streaming platforms by the end of 2022, according to FIFA president Gianni Infantino. 

According to a study conducted by Morning Consult, 40% of soccer fans are people of color, making it the sport with the most diverse fan base. And Hispanics make up nearly a quarter of U.S. adults who identify as soccer fans (27%).

“The fact that it’s viewed across multiple demographics and a large and diverse audience, coupled with the fact that it is a cultural phenomenon mostly untainted by politics, makes it a great opportunity for a brand to cleverly and authentically connect itself with the sport,” said Aliza Freud, CEO of SheSpeaks, a community of female influencers.

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