Toxic Clicks: Alcohol Giants’ Predatory Online Marketing Exposed

A new study released by the Foundation for Alcohol Research and Education (FARE) has unveiled alarming trends in how alcohol companies are leveraging social media platforms to drive sales and rapid delivery of alcohol directly to consumers’ homes. The research, conducted by The University of Queensland, analysed over 56,000 alcohol advertisements on Meta platforms (including Facebook and Instagram) between October 2021 and June 2023, revealing a concerning integration of advertising, online sales, and delivery services.

Key Findings

Volume and Frequency of Advertisements The study found that alcohol companies bombard social media users with over 1,000 ads per month promoting the sale and rapid delivery of alcohol. This high-volume approach raises questions about the potential impact on vulnerable populations and those at risk of alcohol-related harm.
Direct Links to Sales Platforms Over one-third (39.2%) of the analysed alcohol advertisements contained buttons directing users to online platforms where alcohol could be purchased. For ads using a “shop now” button, an overwhelming 89.4% linked directly to alcohol sales. Even ads with seemingly innocuous “learn more” buttons led to direct sales in 21.5% of cases.
Rapid Delivery Options Nine out of ten retailers posting ads with buttons linking to websites included options for rapid delivery of their products. This integration of advertising and swift delivery services effectively turns every smartphone into a potential liquor store, bypassing traditional safeguards present in physical retail environments.
Targeting and Personalisation The research suggests that alcohol companies are using sophisticated targeting methods, including personalised notifications and special deals, to reach consumers when they may be most vulnerable. This raises ethical concerns about the exploitation of individuals struggling with alcohol use disorders.

Impact on Public Health

The findings come at a critical time when alcohol-induced deaths in Australia are at their highest rate in a decade. Caterina Giorgi, CEO of FARE, emphasised the gap between existing regulations on alcohol sales and the current online advertising landscape. “Every phone is now a bottle shop,” Giorgi stated, highlighting the need for updated laws to address privacy, marketing, and alcohol sales in the digital realm.

Associate Professor Nicolas Carah, Chief Investigator on the report, noted, “The research shows the clear objective of alcohol advertisements to drive the sale and rapid delivery of alcohol into people’s homes.” This practice is particularly concerning given previous FARE research linking rapid alcohol delivery to higher-risk drinking behaviours.

A 2020 national survey found that nearly three in four people who received alcohol through rapid delivery services engaged in higher-risk drinking on the day of delivery. This correlation underscores the potential for online sales and delivery to exacerbate alcohol-related harms.

Industry Practices and Ownership

The study revealed that a small number of companies are responsible for a disproportionate amount of alcohol advertising linked to direct sales. Ten alcohol retailers, nine of which offer rapid delivery services, were responsible for 43.5% of all ads directly linking to alcohol sales, despite comprising only 0.7% of advertisers in the study.

Many of these high-volume advertisers are owned by large corporations or holding companies. For example, Coles Group Limited, Endeavour Group Limited, and Liquor Marketing Group Ltd own several of the top advertising brands. This concentration of advertising power in the hands of a few major players raises concerns about the industry’s influence on consumer behaviour and public health outcomes.

Call for Regulatory Action

In light of these findings, FARE and public health advocates are calling for urgent regulatory action to address the unchecked expansion of alcohol delivery services. Proposed measures include:

Limiting alcohol deliveries to before 10 PM
Ending aggressive data-driven marketing tactics
Introducing a two-hour safety pause between when an order is made and when alcohol is delivered

These suggestions aim to introduce “speed bumps” into the online alcohol purchasing process, similar to those that exist in traditional retail environments.

Broader Implications:

The research highlights a fundamental shift in how alcohol is marketed and sold in the digital age. The blurring of lines between advertising, sales platforms, and delivery services creates a seamless experience for consumers but potentially removes important safeguards against excessive consumption.

As jurisdictions across Australia, including the Australian Capital Territory and Queensland, consider reforms to online alcohol sales and delivery regulations, this research provides crucial evidence for policymakers. It underscores the need for a comprehensive approach that considers the entire ecosystem of digital alcohol marketing and sales.

Conclusion

The FARE study serves as a wake-up call to the potential dangers of unchecked digital alcohol marketing and sales practices. As the online environment continues to evolve, it is clear that current regulations are struggling to keep pace. Balancing the convenience of online commerce with the necessary protections for public health will be a critical challenge for policymakers in the coming years.

As Alex Bagnara, whose friend died from alcohol-related organ failure, poignantly stated, “More needs to be done to hold alcohol companies to a higher standard when it comes to marketing and selling alcohol online.” The findings of this research provide a strong foundation for such action, emphasising the urgent need for updated regulations that protect consumers in the digital age while addressing the persistent public health challenges posed by alcohol consumption.