Despite facing economic uncertainty, Diageo, the renowned drinks giant behind popular brands like Guinness, Baileys, and Johnnie Walker, has increased its global marketing investment by 5.6%.

According to the financial results for the year ending June 30, 2023, the company’s marketing spend soared to £3 billion, surpassing last year’s figure of £2.7 billion during the same period.

This move aligns perfectly with Diageo’s commitment to bolster its marketing efforts in 2023, staying true to its promise of investing “strongly” in this critical area while simultaneously enhancing the efficiency of its spend. In the six months leading up to December 31, 2022, the firm also ramped up its organic marketing investment by an impressive 6.8%, reaching a substantial £1.58 billion. This increase is a testament to Diageo’s dedication to consistent and robust investment in its brands.

Ivan Menezes, the CEO of Diageo, emphasized the company’s focus on effectiveness during this period of growth. He stated, “We have significantly increased our advertising and promotional investment and continue to transform its effectiveness.” Key to this transformation is the utilization of analytics tools, Catalyst and Sensor, which optimize marketing spend across the company’s diverse portfolio and channels.

“To further enhance the efficiency of their advertising efforts, Diageo has teamed up with CreativeX, a specialized partner that tests the effectiveness of their advertisements before deployment. By taking into account different platforms’ algorithms, this collaboration ensures that the content is “perfectly optimized to deliver engagement.”

One notable example of this strategic approach is the recent deployment of the tool in the UK market. The implementation of CreativeX has been credited with ensuring that Diageo’s advertising content resonates with its target audience, resulting in higher engagement and more significant impact.

The increased marketing investment by Diageo comes at a time when economic conditions may cause hesitation among other companies. Still, the bold move demonstrates the company’s confidence in its brands and its commitment to maintaining a strong presence in the global market. With continued efforts to optimize advertising effectiveness and investment efficiency, Diageo is poised for continued success even amidst economic challenges.