Vizio Boosts Marketing Spend; More in Store

Irvine flat-screen maker Vizio Holding Corp. shelled out $31.2 million last year in marketing expenses, and a peek at its regulatory filings offered insights on where that money went.
 
The total spent last year on marketing was up 38% from 2019. Vizio said in its initial public offering filing this month with the Securities and Exchange Commission it intends to continue its investment in advertising and marketing its consumer products via a mix of sponsorships, PR, digital marketing, social media, traditional channels and in-store promotions.
 
When the company first started in 2002, it relied on bold colors in its packaging to grab shoppers’ attention in stores and also in the wholesale channel, “accelerating initial consumer awareness and education … with minimal additional cost.”
 
The game plan’s clearly evolved since, with Vizo now touting education and awareness.

Last year, the company worked with influencers on targeted campaigns. Educational websites and product videos on 4K UHD, home theater sound quality and other editorial content have also helped.
 
In-store displays have been used, with Vizio saying it’s either the No. 1 or No. 2 brand for high-definition TV shelf space at Target, Walmart and other big-box retailers.
 
Moving forward, the other end of the advertising and marketing spectrum for Vizo, as a media company, could prove far more lucrative. Vizio not only makes consumer electronics, but it’s also more recently sought to monetize what it refers to as the Platform+ division, which helps with content distribution, ad placement and co-branded opportunities in stores via its SmartCast TVs.

The strategy could be a boon as more and more consumers cut long-standing—and costly—ties with traditional cable companies in favor of cheaper streaming services, helping explain the over 300% spike in Platform+ net revenue between 2018 to 2020 to $147.2 million.