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Adspend and alcohol consumption

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Does increased advertising of alcohol lead to increased consumption?  

The latest analysis of New Zealand data by The Foundation for Advertising Research paints an interesting picture.  

The analysis found that while 2018 alcohol adspend soared from $46.7 million to $60.7 million (an increase of 30%), average annual alcohol consumption by persons 15 and over decreased by 0.4% % to 8.808 litres per person. 

This perhaps challenges concerns from health advocates who maintain that increased advertising leads to increased consumption.  

However, the Foundation for Advertising Research (FAR) maintains that while there is a temptation for industry to argue there is an inverse correlation, that conclusion, too, is incorrect.  

“This apparent paradox is not unusual,” said FAR director Glen Wiggs 

“We have measured alcohol adspend (using Nielsen data) and alcohol consumption (using NZ Stats data) from 1987. Over the 32-year period there has not been any correlation or inverse correlation between adspend and consumption.” 

The following graph, with adspend adjusted for inflation, was provided by the FAR: 

In Australia, the restaurant industry, covering licensed, unlicensed and BYO restaurants, is expected to grow its revenue 2.0% annually over the five years through 2018-19, to $18.8 billion.   

Read the alcohol advertising code of practice here. 

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