Butterfinger Boosts Media Spend to Target Gamers
Candy brand Butterfinger is increasing its media spend this year on gaming creators and streamers to boost brand awareness with younger shoppers. The initiative, called “Game Better with Butterfinger,” is targeting millennial and Gen Z gamers. The brand has shifted away from linear television advertising and is now focusing on streaming ads, social media, and gaming.
In 2021, Butterfinger spent nearly $40 million on media from January to November. This year, the brand is working towards having an always-on presence and is increasing its paid media investment by nearly 60% compared to last year. This investment is being spread across efforts to expand Butterfinger’s creator network and work with retailer partners.
Butterfinger has joined forces with Square Enix, the video game company behind the popular “Final Fantasy” franchise, for a collaboration. Online video ads accounted for 54% of Butterfinger’s media spend in 2023, followed by linear television at 40%. The brand has a history of partnering with gaming streamers on Twitch. In 2022, Butterfinger even teamed up with the video game “PUBG Mobile” to offer in-game items.
Since being acquired by Ferrero from Nestlé’s U.S. confectionery business, Butterfinger has seen growth in its social presence and brand, now reaching more than 1.5 billion gamers. Brands are increasingly using gaming as a way to market to younger shoppers, even as the esports gold rush starts to fade. U.S. ad spend on video games reached $8.6 billion in 2022, with video game ad revenue growing by 7% compared to the previous year.
In order to be successful, brands should authentically integrate into the gaming community. Butterfinger is taking a collaborative approach to expand its investment and footprint in the gaming space. The focus is on building relationships with streamers and influencers to ensure a genuine connection with gamers.
Analyst comment
Positive news: Butterfinger is increasing its media spend on gaming creators and streamers to boost brand awareness with younger shoppers. The brand is shifting away from linear television advertising and focusing on streaming ads, social media, and gaming. The brand is increasing its paid media investment by nearly 60% compared to last year and expanding its creator network and working with retailer partners. Butterfinger has joined forces with Square Enix for a collaboration. Since being acquired by Ferrero, Butterfinger has seen growth in its social presence and brand, reaching more than 1.5 billion gamers.
Market impact: With the increasing popularity of gaming and the target audience being millennial and Gen Z gamers, Butterfinger’s focus on gaming creators and streamers is a smart move. By shifting away from linear TV advertising and investing more in streaming ads and social media, the brand is adapting to the changing media consumption habits of its target audience. The collaboration with Square Enix and the expansion of its creator network will help Butterfinger establish a stronger presence in the gaming community. Overall, these initiatives are likely to boost brand awareness and drive sales among the target demographic.
