The Inside Scoop on the CPG Industry
The U.S. CPG industry is rife with opportunity–offline and online sales are expected to cross $407 billion this year–as consumers are starting to feel optimistic about the economy. With sales dollars pouring in, CPG advertisers will battle it out to ensure that they command a significant share of the mind and the market.
CPG Marketing Trends
- Offline and online CPG sales will see a positive momentum in 2016, with online sales gaining traction.
- Millennials fuel online CPG shopping, owing to convenience, value and interactivity offered by digital purchasing platforms.
- CPG ad spending will witness a boost, with the industry touted to have the highest ad spend CAGR for the five year period up to 2020. Digital advertising will gain a considerable share of the ad spend pie, due to consumers becoming more connected.
- Display video advertising will be favored in part because it is an extension of the sector’s preference for television ads, and in part due to its targeting capabilities.
- Programmatic buying will witness an uptick, particularly around programmatic digital video advertising inventory.
- Utilizing first-party data (offline and online data, and shopper marketing data) and third-party data helps
- CPG marketers better serve the right ads to the right consumers.
- Mobile advertising will receive a push as connected consumers consider mobile to be the most important shopping tool.
- Beacon-triggered messages to shoppers are likely to positively impact customers’ in-store shopping experience.
- Native advertising offers marketers a platform to connect with consumers on an emotional level.
- Social media spend is expected to witness a thrust, as consumers are increasingly using social as a means of purchase-decision making.
- Print advertising packs quite a punch, with magazines showing the highest return on ad spend for CPG brands.
For a more in-depth analysis of the latest CPG trends, contact one of our media experts today!
The US CPG and Consumer Products Industry 2016: Digital Ad Spending Forecast and trends | eMarketer | May 2016