Digital CPG Blog

The last few years have witnessed manufacturers of Consumer Packaged Goods (CPG) embrace social media with great enthusiasm. When it comes to social media, industry giants like Kraft and P&G have adapted rather impressively, having not just a Twitter or Facebook presence, but also putting immense efforts at being the ‘customer’s brand.’ Let us look at some reasons why CPG brands should give social media marketing its due importance:

• Of the total companies surveyed (The Shopper Technology Institute Study) 76% said that the budget for social media has increased in 2011 compared to the previous year.
• The survey confirms that consumers are willing to connect with brands via social media; although this is mainly influenced by the degree of emotional connection they have with the brand. For manufacturers of consumer packaged goods, this translates into an opportunity waiting to be explored.
• The most commonly used networking channels by CPG brands are Twitter and Facebook. For the 11% that don’t use either one, we recommend they start doing so, considering the fact that Facebook and Twitter are two channels where they are most likely to find their target audiences.
• A joint-study, conducted over a two year period bycomScore and dunhumbyUSA, found a median 21% in-store sales increase among shoppers who had been exposed to online ads for CPG brands compared to those who had not seen them. Almost one-quarter of campaigns received a boost of +40%.; a good reason for CPG manufactures to further increase focus on their online promotional strategies.
• According to eMarketer, 2011 is likely to witness 35% increase in online CPG advertising. Although the growth will slow, consumer products are likely to have as much as 10% of the total ad spending by 2015.

P&G’s re-entry into e-commerce via Facebook indicates just how crucial social media is becoming to CPG brands. The company recently added “Shop Now” buttons to the Facebook fan pages for several of its brands including Gillette, Olay and Tide. The global giant is one of the many CPG companies that are exploring the concept ‘e-tailing’ with renewed interest and are talking internet marketing more seriously than ever before. Considering the fact that the modern consumer is willing to make purchases online, the recent upsurge in social media activity by CPG brands isn’t surprising at all.

We’ll share some more info in tomorrow’s post about how to connect successfully with your CPG customers on social media.