As per Httpool's recently released FMCG advertising insights 2021 report, the FMCG/CPG sector has recorded notable growth in digital ad spend worldwide as companies better understand the opportunities digital provides.
The new post-COVID-19 reality has propelled digitalization forward by five years. McKinsey's research suggests that it could take anywhere between three to ten years for us to feel that going to supermarkets is again a safe and convenient way of grocery shopping. The Httpool FMCG advertising insights 2021 report takes cues from the observations and data collected by different sources to draw inferences for FMCG marketing and social media branding gimmicks.
Key Highlights:
FMCG/CPG battles retail to become the top digital advertising vertical
Alongside the growth in the industry, FMCG/CPG also achieved notable growth in digital ad spend worldwide as companies understood the opportunities of digital. Research from eMarketer shows that Q2 of 2020 saw up to a 53% increase in ad spending in the FMCG/CPG sector. In the UK, 2020 FMCG/CPG represented a 13.5% share in digital ad spend, earning second place, following retail at 20% ad spend. In the USA, CPG will make up 14.4% of all US digital ad spending in 2020, making it the third-largest spender among the industries we cover. According to eMarketer research, CPG advertisers in the USA spend heavily within the mobile sector, with the most popular form being display advertising on social networks and video platforms.
On Facebook, smaller businesses can successfully take on some of the largest FMCG/CPG brands
Facebook’s 2.8 billion audiences represent an almost limitless world of opportunities for advertisers to explore, offering the chance to win customers over at their most receptive state. FMCG/CPG is among the top five ad spend categories across most Facebook markets within the industry.
Large brands such as Unilever, P&G, Nestle, have already fully leveraged the global opportunities that Facebook advertising can accomplish.
The category is highly competitive, whilst offering a level playing field for global, national, and local brands. The business outcomes should be at the forefront, understanding the importance of expert teams, knowledge sharing, implementation of best practices, and the readiness to learn and develop.
Combining creativity and measurement on Facebook is a winning formula for FMCG/CPG brands
Advertisers within this segment have learned to refine their marketing objectives and define their optimal audiences in order to solve potential business problems. Additionally, advertisers should pay particular attention to the following: Think Mobile, Think Creative, Think Data, Think Multi-screen.
People love to talk about FMCG/CPG products on Twitter
The Marketing Dive reported that Kraft Heinz, Nestlé, and Coca-Cola were among the top five Twitter ad spenders in 2019. The concentration of FMCG/CPG brands within Twitter's top advertisers demonstrates the sheer value Twitter holds for brands in this industry.
Most FMCG/CPG brands use Twitter to run ads and organic campaigns, however, Twitter has proven particularly successful for product launches. Having a highly engaged audience with users who care about a wide array of topics, makes Twitter the ultimate platform to reach out to your audience, however niche it might be. Average results from Twitter launch campaigns include an 82% higher recall, 18% increased brand awareness, 21% increased campaign awareness, and 15% increased message association.
FMCG/CPG advertisers can Snap away to reach Gen Z members
FMCG advertisers should not be afraid to leverage the opportunities that AR brings to the advertising world. They should instead learn to harness the power of Snapchat and embrace the new era of consumers who will soon hold the largest purchasing power. For example, by making two friends shop for a prom dress together and add on a virtual try-on app for Gucci shoes. Look at your feet through a Snap camera to see how the latest design would fit you and then simply push a purchase button! In addition to developing such lenses on the platform, Snap is also letting brands like MLB and Nike build Snapchat AR lenses into their own apps.
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