Diageo strengthens ties with Facebook

Diageo has announced plans to step-up its multi-million dollar strategic partnership with social media website Facebook.

According to Diageo, the current relationship has seen Diageo enjoy “strong return” on advertising investment. An initial study across five key brands in the US showed a 20% increase in sales as a result of Facebook activity.

A statement from Diageo continued: “This 5:1 return has come off the back of Diageo’s brands growing their collective fan base from 3.5 million to 12 million in the past 12 months and Smirnoff becoming the number one beverage alcohol brand on Facebook worldwide.”

The new partnership agreement will focus on “emerging growth markets”.

Facebook will provide strategic consultancy to Diageo’s priority brands in New York, London, Amsterdam, Dublin, Sao Paulo and Singapore.

According to Diageo, Facebook has established local account teams in Brazil and Singapore after recognising the importance of emerging growth markets to Diageo’s business.

Andy Fennell, Diageo's chief marketing officer, said: “Facebook has been a natural fit for us from day one. Working in such close collaboration will allow us to really maximise consumer participation at scale in our campaigns, particularly in emerging markets.

“We are already seeing real value from our work in this space. Over 950 Diageo marketers around the world have now been trained in Facebook boot camps to build their social media capabilities and we are seeing significant returns on investment across a number of brands. We expect this new way of working to deliver even more commercial value for Diageo.”

Carolyn Everson, VP of global marketing solutions, Facebook added: “Diageo is an ideal partner because we see the world through the same lens - we put people at the centre of everything we do. Working closely together has delivered some amazing results and I'm looking forward to bringing to life some of the great things in the works across several of Diageo's core brands."