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Under the Microscope: Constellation Brands' push into digital marketing

Who: Constellation Brands, a premium wine, beer and spirits company.

What: For years the company relied on in-store sales and magazine ads for marketing, Business Week reports. Last year it doubled its digital marketing budget to $10 million and plans to increase it by 50% this year.

How: Social media has caught executives' interest, given that most wine is discovered by consumer via personal recommendation. For one struggling brand, Arbor Mist, the company built a Facebook page that eventually became the most popular wine brand on the site via mobile and banner advertising and such events as discussion about romantic comedies and bad haircuts. (Women were targeted as a key demographic). It worked, Business Week said: sales rose 20%.

Anything Else? It targeted Millennials through tweet ups.

Is it a Fluke? Wine and Social Media? It does seem Constellation's instincts are dead on and that social media is in fact a good medium for wine and spirits branding. Decanted Wines's marketing guru Jessica Fialkovich told MarketingVOX that the company has had great success with using psychographic targeting techniques, based on interest and Facebook 'likes.' "For example, previously we would target by an interest of wine, now we will try and reach the same group by targeting based on likes/pages that would indicate an interest of wine. For us, some of these may include competitors, newsletters or websites such as Wine-Searcher.com, Wine Spectator, Wine Library or Wine.com."

According to Fialkovich, since implementing the psychographic targeting, the company has seen an increase of click through rates of 150%, increased fans of 75%, and surprisingly a decrease in click through rate cost by 30%.

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