Does Starbucks Have Commercials in 2024? A Nuanced Look at a Retail Leader‘s Advertising Strategy

Starbucks built itself into a retail juggernaut globally recognized for quality coffee drinks without leaning heavily on commercials like most fast food chains. But the brand does occasionally advertise, mainly around new product launches and special initiatives. Below we analyze Starbucks‘ unique marketing mix in detail – blending facts, financial data, expert perspectives and reasoned predictions.

Starbucks Doesn‘t Need Commercials – But Sometimes Runs Them Strategically

With over 15,000 US locations and massive brand awareness, Starbucks sustains sales through store ubiquity and customer loyalty – not big ad buys. As creative agency Droga5‘s Ted Royer stated to AdAge: "Starbucks has become one of the most valuable brands in the world by using its stores as media." This retail media edge lets Starbucks forgo major television and online video ad campaigns most food chains rely on.

However, that doesn‘t mean Starbucks never runs commercials. As this table shows, while ad spending is modest for a brand this size, Starbucks has roughly doubled commercial production investment over six years:

So what warrants occasional Starbucks commercials or online video ads? Typically specific initiatives like:

• Major new menu launches around holidays
• CSR-focused campaigns highlighting sustainability improvements
• Brand-building ads showcasing positive customer and employee stories

These targeted campaigns aim not just to increase sales, but also advance Starbucks‘ desired brand identity.

Contrasting Starbucks and McDonald‘s Ad Budgets

How modest is Starbucks‘ advertising investment compared to fast food titans? Consider McDonald‘s yearly ad spending below:

As this table shows, McDonald‘s 2020 ad budget alone was over 250% higher than Starbucks‘ investment. And in 2019, McDonald‘s ad spending was over five times larger than Starbucks‘ current $258 million annual investment.

The takeaway? For Starbucks, product quality, customer loyalty and retail sites drive success more than commercial advertising. McDonald‘s remains far more reliant on big ad budgets to attract customers.

Occasional Seasonal Starbucks Commercial Campaigns

When Starbucks does advertise, seasonal holiday initiatives often warrant higher commercial investment. Commercial volume trends analysis by Ace Metrix below tracks this seasonal pattern:

As you see, Starbucks commercial volume spikes during November-December, focused on hot holiday offerings like specialty lattes, gift cards and branded merchandise.

Recent seasonal ad campaigns have highlighted:

• Holiday Beverages: Peppermint mocha, gingerbread lattes, eggnog drinks and more.
• Gifts: Gift cards let customers purchase Starbucks products as holiday gifts.
• Branded Merchandise: From coffee mugs to blankets to Christmas tree ornaments, Starbucks holiday gear attracts avid fans.

This commercial targeting fuels seasonal sales surges. Then advertising dips back down early in new calendar years.

Viral Social Media Builds Starbucks Hype Sans Commercials

Beyond occasional commercial campaigns, how else does Starbucks drive interest and sales without big ad buys? Viral social media marketing – often focused on flashy limited-time specialty drinks.

Recent examples like the Unicorn Frappuccino and Halloween Phantom Frappuccino went viral fast. Shared user photos did the heavy sales lifting, not commercials:

Per industry analysts, these innovative beverages attracting social shares and press coverage may offer the highest earned media value (EMV) of any fast food ads.

So while light on commercials, Starbucks remains an earned-focused marketing juggernaut – especially on Instagram where it has over 15 million followers.

The Future: Potential Acceleration of Holiday & Social Ad Spend

Given years of consistent but restrained ad growth, what‘s the likely future for Starbucks advertising? Our prediction based on trends:

• More Seasonal Holiday Commercials: As holiday menu offerings expand, look for more November-December TV and online video ads touting specialty drinks, gifts and branded merchandise.

• Bigger Investments in Viral Social Media Campaigns: Expect pricy launches of innovative, photogenic drinks timed to spikes in traffic and social sharing. Marketing via customers rather than commercials.

But also expect Starbucks‘ marketing mix to remain far less ad-reliant than McDonald‘s and similar giants. With phenomenal brand equity and massive retail presence, Starbucks can drive sales while spending modestly on commercial production. Its java and merch move themselves.

Sources

• [Ace Metrix report]
• [Starbucks CSR report]
• [Forbes article]