How AB InBev's In-House Agency draftLine Helped the Company Navigate 2020

The difficulties of doing business during the pandemic seem to have validated Anheuser-Busch (AB) InBev’s decision to create draftLine, its own in-house agency. This year, the brewer behind Budweiser, Stella Artois and Michelob Ultra plans to grow the team’s headcount by 25%. Since debuting as a three-person digital agency in spring 2018, draftLine now consists of more than 500 employees around the globe who provide a full range of services—from radio and out of home to programmatic and memes. The move is part of a trend as more companies bring their marketing operations in-house. Nearly three in four organizations worldwide have insourced some aspect of their marketing, amounting to a 68% increase over the past decade, according to a survey conducted by market research firm Forrester in partnership with the In-House Agency Forum. Unlike internal agencies that support a single brand, however, draftLine assists many within AB InBev’s vast portfolio. In the U.S. alone, 110 draftLine employees work with more than 50 brands designed to satisfy distinct needs and appeal to different demographics. This unique position within the company allows draftLine to do what external partners tasked with a project here or there can’t: disseminate information among brands. “Just by having that one function, our brands are able to communicate and share,” said Spencer Gordon, vp of digital and head of draftLine U.S. at AB InBev. “We’re able to replicate and move very quickly on things that work on one and then apply to the other.” Inspiration from numbers Another draftLine asset that’s not always available to outside agencies is access to AB InBev’s first-party data, such as sales and other sensitive numbers. Combining these statistics with social listening and third-party research allows draftLine to get a better view of how consumer behavior is affecting the business. It can then generate marketing material with more precision and purpose. “Data-driven creativity is our reason to exist,” said Tracy Stallard, global vp of draftLine and experiential at AB InBev. Stallard noted that draftLine's goal is not to fully insource all marketing activity, as it continues to work with many ad agencies; rather, it's to “add something that another agency can't do.” Pivoting through the pandemic This ability to keep pace with culture has proven valuable during the pandemic. Early into the outbreak, when fear and feelings of uncertainty were high, AB InBev donated $5 million to the American Red Cross to help support frontline workers. Together with its sports partners, the company also turned empty stadiums and arenas into safe places for blood drives to continue amid mass cancellations due to concerns over Covid-19. The campaign began in the U.S. before expanding to Canada, Europe, India, Nigeria, Brazil, South Korea and South Africa. With bars and restaurants in trouble, AB InBev created a gift card program called “Save Pub Life.” Whatever amount people put toward future drinks, the company matched, providing local establishments with much need cash. Versions of the initiative spread to multiple countries, raising over $10 million for thousands of retailers. As fear shifted to boredom and isolation, draftLine premiered a live concert series in Brazil for people to stream in their bedrooms. More than 350 concerts featuring nearly 300 artists garnered 678 million views in 12 weeks. Aware that sitting inside all day isn’t great for people’s physical fitness, the low-calorie Michelob Ultra brand created a series of in-home workouts with professional trainers and celebrity guests. A virtual tip jar enabled viewers to support trainers who found themselves without income due to gym closures. Future outlook Restrictions on bars, concert halls and sports stadiums following the outbreak of Covid-19 have hurt beer sales. AB InBev reported $46.9 billion in revenue for 2020, down 3.7% on an organic basis compared to the previous year. Still, without draftLine it could have potentially been worse. Competitor Heineken saw year-over-year organic sales drop nearly 12%. Molson Coors declined almost 9%. Looking ahead, AB InBev is optimistic about the future and anticipates the situation to improve in 2021. During an earnings call last October, AB InBev CEO Carlos Brito told analysts that because of draftLine the company is delivering “marketing campaigns with more speed and relevance than ever before.”