In several industries, smart firms with large market share have realized the mutually damaging effects of the price wars that are characteristic of the retail and fast food industries. This is especially true of the mid-quality beer industry.
As recently as five years ago, Budweiser and Miller combined to hold a majority share of the light beer market in the United States. They aired ads such as this one which directly compared their products to their competitors'.
However, both firms soon changed their advertising philosophies. They learned that directly competing only allowed smaller competitors such as Keystone and Natty Light to eat up market share. By using ads which promote their own brands without hurting their competitors', Budweiser and Miller hope to grow the beer category while still maintaining their strong market positions.
Over the last several years, Miller and Bud ads have moved away from direct comparison. Instead, they attempt to create memorable scenarios which will prompt water-cooler conversations, and eventually sales. A few of the best new Bud ads are shown below. Note the conspicuous lack of direct comparison in the ads.
A Few Recent Bud Commercials
A Miller Commercial, for Good Measure
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