The Punchbowl Trends Blog

Marketing insights from the leading celebrations site for moms

3 Reasons Why Top CPG Brands Are Committed to Digital Media

March 24, 2014 · in Advertising

top cpg brands

Recently, several consumer packaged goods brands have announced plans to dramatically increase their spend on digital media in 2014. Mondelez International, makers of Oreos and Wheat Thins, plans to dedicate over half of its media budget to digital by 2016, according to AdAge. In addition, General Mills increased its digital media budget from 8% in 2008 to 17% in FY2013. While they continue to spend the bulk of their budget on TV advertising, this digital media increase certainly bears notice.

Spending on digital media may soon surpass other traditional forms of advertising, such as radio and television. Radio ad spending, as well as ad revenues, remained flat in 2013. In fact, some predict that digital ad spending will overtake TV ad spending in less than 4 years. It’s already overtaken magazine, newspaper, radio, and out of home advertising in the past few years.

This is excellent news for marketers in the celebrations industry. For CPG food and beverage brands that seek to reach new, niche audiences, such as the party hosts and their guests, digital media provides the perfect space to advertise. Since many of these consumers – moms, especially – welcome all things digital with open arms, brands are able to reach their target audiences more effectively than ever before.

Here are 3 key reasons why CPG brands have made the resounding decision to increase their digital advertising spend:

  1. Brands can target niche audiences: Brands can better target the audience that they want through digital media advertising. Consider the celebrations industry, for instance. Brands that want to target women who are cooking for and entertaining for a large party or holiday have a number of party planning-specific sites where they can advertise. That type of effective targeting doesn’t exist with television, radio, or even print. Digital is the clear winner. 
  2. Digital media connects all channels: Digital media efforts reach consumers wherever they are – at the office, the gym, the playground – through whichever media they’re near, whether it’s television, radio, or online with their smartphone or laptop. Digital media, such as websites and social media have become the connector for multichannel brand campaigns. From Twitter hashtags on TV commercials to print ads that reference Instagram campaigns, it all ties together in the brand’s digital website and advertising. Newer platforms are making an impact, as well. Consider interactive digital video ads, which can increase brand awareness by up to 50% compared with non-interactive video.
  3. It’s easy to optimize campaigns: Digital media allows brands to easily monitor their campaigns and quickly make changes. If display ads don’t generate a desired clickthrough rate or videos aren’t seeing a strong completion rate, brands can adjust the creative or reevaluate their publishing partner.  Unlike print media, for example, digital media can be changed in real-time without a great undertaking.

These reasons are important for marketers to keep in mind as they plan out advertising budgets. Advertising is making a strong shift towards digital over traditional methods, and one industry that is on the forefront of digital is celebrations.  

To learn more about the shift from paper to digital in the celebrations market, download our free white paper.



Posted by Amie Reardon

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