E marketer the_us_cpg_and_consumer_products_industry_2013-digital_ad_spending_forecast_and_key_trends

THE US CPG
AND CONSUMER
PRODUCTS
INDUSTRY 2013
Digital Ad Spending Forecast
and Key Trends
OCTOBER 2013
Victoria Petrock
Contributors: Christine Bittar,Tobi Elkin, Cindy Liu, Martín Utreras
Read this on
eMarketer for iPad

THE US CPG AND CONSUMER PRODUCTS INDUSTRY 2013: DIGITAL AD SPENDING FORECAST AND KEY TRENDS ©2013 EMARKETER INC. ALL RIGHTS RESERVED 2
CONTENTS
2 Executive Summary
3 Once a Digital Laggard, CPG Works to Catch Up
8 Mobile Investments Accelerate
10 Branding vs. Direct Response: A 63/37 Split
18 Putting Data to Better Use
20 Conclusions
21 eMarketer Interviews
21 Related eMarketer Reports
21 Related Links
22 Editorial and Production Contributors
EXECUTIVE SUMMARY
The US consumer packaged goods (CPG) and
consumer products industry’s advertising spending
on digital media will hit $3.51 billion in 2013 and rise
to $5.40 billion by 2017. Online and mobile campaigns
are commanding a larger portion of investment in this
historicallyTV- and print-focused industry, which was
slow to embrace digital advertising but is catching
up quickly. As a result, ad spending will grow at a
compound annual growth rate (CAGR) of 12.6% from
2012 to 2017.
This year, eMarketer has taken a closer look at digital
spending to determine how much marketers are investing
in ad tactics primarily focused on obtaining sales or leads
compared with those designed to drive favorable opinion
about a brand. eMarketer estimates that marketers in
the CPG and consumer products industry will invest
63% of their paid digital dollars in branding-focused
efforts this year. Direct-response campaigns will make up
the remaining 37%.Targeted advertising in mobile and
social formats is growing rapidly as marketers redouble
efforts to establish direct and personal relationships with
consumers in the last mile before a product purchase.
KEY QUESTIONS
■■ How much will CPG and consumer products
marketers spend on US paid digital advertising
between 2013 and 2017?
■■ How much of their digital budgets are CPG and
consumer products companies spending on
direct-response vs. branding initiatives?
■■ How are online and mobile platforms changing
the way the CPG and consumer products industry
approaches advertising?
billions, % of total digital ad spending and % change
US CPG & Consumer Products Industry Digital Ad
Spending, 2011-2017
2011
$2.50
7.8%
25.5%
2012
$2.98
19.1%
8.1%
2013
$3.51
17.7%
8.3%
2014
$4.00
13.9%
8.4%
2015
$4.46
11.6%
8.5%
2016
$4.99
8.7%
11.7%
2017
$5.40
8.8%
8.3%
Digital ad spending % of total digital ad spending % change
Note: CAGR (2012-2017)=12.6%; includes advertising that appears on
desktop and laptop computers as well as mobile phones and tablets, and
includes all the various formats of advertising on those platforms; data
through 2012 is derived from IAB/PwC data
Source: eMarketer, Aug 2013
162035 www.eMarketer.com

ONCE A DIGITAL LAGGARD, CPG
WORKS TO CATCH UP
The US CPG and consumer products industry
spent $2.98 billion in paid online and mobile media
advertising in 2012. eMarketer forecasts that this
number will rise to $3.51 in 2013 and hit $5.40 billion
by 2017. Above-average compound annual spending
growth will increase the industry’s share of digital
investment, relative to other sectors, during the
forecast period.
Changing consumer behavior is forcing brands to rethink
the way they plan and execute their marketing. Many
CPG and consumer products marketers—which were
slow out of the gate to embrace digital tactics—have
now fast-tracked investments, expanding their use of
dynamic ad formats and targeting, not only to build brand
awareness, but also to reach consumers in all phases of
the purchase funnel. “Consumer and packaged goods
companies really want to take control of the relationships
they have with consumers,” said Mark Jacobson,
Microsoft Advertising’s director of strategy.
billions, % of total digital ad spending and % change
Spending, 2011-2017
2011
$2.50
7.8%
25.5%
2012
$2.98
19.1%
8.1%
2013
$3.51
17.7%
8.3%
2014
$4.00
13.9%
8.4%
2015
$4.46
11.6%
8.5%
2016
$4.99
8.7%
11.7%
2017
$5.40
8.8%
8.3%
Digital ad spending % of total digital ad spending % change
Note: CAGR (2012-2017)=12.6%; includes advertising that appears on
desktop and laptop computers as well as mobile phones and tablets, and
includes all the various formats of advertising on those platforms; data
through 2012 is derived from IAB/PwC data
Among the US industries eMarketer tracks, CPG and
consumer products—which we define to include food
and beverage products, household products, packaged
goods, tobacco, personal care products, toiletries and
cosmetic products—ranks fifth in total dollars spent on
digital advertising. But the sector’s 12.6% CAGR during
the period from 2012 to 2017 will be significantly above
the 10.8% average for all industries.
billions
US Digital Ad Spending, by Industry, 2012-2017
Retail
Financial services
Automotive
Telecom
CPG & consumer
products
Travel
Computing products &
consumer electronics
Media
Entertainment
Healthcare & pharma
Other
Total
2012
$8.2
$4.6
$4.3
$4.3
$3.0
$2.9
$2.8
$1.8
$1.7
$1.1
$2.1
$36.8
2013
$9.4
$5.2
$5.1
$4.8
$3.5
$3.4
$3.2
$2.2
$1.9
$1.2
$2.2
$42.3
2014
$10.5
$5.9
$5.9
$5.3
$4.0
$4.0
$3.6
$2.7
$2.2
$1.2
$2.3
$47.6
2015
$11.6
$6.5
$6.6
$5.8
$4.5
$4.4
$4.0
$3.0
$2.5
$1.3
$2.4
$52.5
2016
$12.6
$7.0
$7.3
$6.3
$5.0
$4.8
$4.4
$3.4
$2.8
$1.4
$2.5
$57.3
2017
$13.5
$7.5
$7.9
$6.7
$5.4
$5.0
$4.7
$3.6
$3.0
$1.5
$2.6
$61.4
CAGR
(2012-
2017)
10.5%
10.2%
13.1%
9.2%
12.6%
11.3%
10.5%
14.6%
12.2%
5.9%
5.1%
10.8%
Note: includes advertising that appears on desktop and laptop computers
as well as mobile phones and tablets, and includes all the various formats
of advertising on those platforms; data through 2012 is derived from
IAB/PwC data; numbers may not add up to total due to rounding
This growth rate will help boost the CPG and consumer
products industry’s share of the total US digital
advertising pie from 8.1% in 2012 to 8.8% in 2017.
% of total
US Digital Ad Spending Share, by Industry, 2011-2017
Retail
Financial services
Automotive
Telecom
CPG & consumer products
Travel
Computing products &
consumer electronics
Media
Entertainment
Healthcare & pharma
Other
2011
22.4%
12.6%
11.3%
12.3%
7.8%
7.5%
7.8%
4.5%
4.4%
3.2%
6.2%
2012
22.3%
12.5%
11.6%
11.7%
8.1%
8.0%
7.7%
4.9%
4.6%
3.0%
5.6%
2013
22.3%
12.4%
12.1%
11.4%
8.3%
8.0%
7.6%
5.3%
4.6%
2.8%
5.2%
2014
22.1%
12.4%
12.3%
11.2%
8.4%
8.3%
7.6%
5.6%
4.7%
2.6%
4.8%
2015
22.1%
12.3%
12.5%
11.1%
8.5%
8.3%
7.6%
5.8%
4.8%
2.5%
4.5%
2016
22.0%
12.2%
12.7%
11.0%
8.7%
8.3%
7.6%
5.9%
4.8%
2.4%
4.4%
2017
22.0%
12.2%
12.9%
10.9%
8.8%
8.2%
7.6%
5.8%
4.9%
2.4%
4.3%
of advertising on those platforms; data through 2012 is derived from
IAB/PwC data; numbers may not add up to 100% due to rounding
Source: eMarketer, June 2013; conﬁrmed and republished, Aug 2013

eMarketer’s US Digital Ad Spending Forecasts:
Scope and Definitions
eMarketer’s US digital ad spending estimates for the
years up to and including 2012 are benchmarked against
data from the Interactive Advertising Bureau (IAB) and
PricewaterhouseCoopers. Estimates for years subsequent
to 2012 are eMarketer’s own projections. Estimates are
based on the analysis of reported revenues from major
digital ad-selling companies; estimates from other
research firms; consumer internet usage trends; and
eMarketer interviews with executives at ad agencies,
brands, digital ad publishers and other industry leaders.
eMarketer’s digital ad spending figures include advertising
that appears on desktop and laptop computers, as well
as mobile phones and tablets, and include all the various
formats of advertising on those platforms: banner ads
(static display), classified ads, email (embedded ads only),
mobile messaging (SMS, MMS and peer-to-peer [P2P]
messaging), rich media, search ads (including contextual
text links, paid inclusion, paid listings and search engine
optimization [SEO]), sponsorships, lead generation
(referrals) and video (including in-banner, in-stream,
in-text). Forecasts include direct spending in digital paid
media by CPG and consumer products companies as well
as those companies’ share of digital ad spending that
is part of co-op advertising programs undertaken with
retail partners.
eMarketer’s breakouts of direct-response vs. branding
spending are based on overall estimates of spending
by media from the IAB; analysis of third-party CPG and
consumer products industry ad spending data; and
in-depth interviews with brand marketers, agency media
planners and other industry marketing strategists.
OVERALL MARKETING
INVESTMENTS GROW
By most accounts, overall US consumer products
marketing spending—including paid advertising, trade
marketing and consumer promotion—is expected to
grow at a modest pace over the next few years. Paid
advertising as a component of this expenditure will
also see an uptick, fueled by stronger product sales
and increased investments in both traditional and
digital media.
Several of the largest consumer products companies
are already among the country’s biggest ad spenders.
A Kantar Media analysis found that Procter & Gamble
(No. 1) and L’Oréal (No. 5) made the list of top 10 overall
US advertisers in 2012. More recent research by Kantar
Media in Q2 2013 found similar rankings for these two
companies—Procter & Gamble at No. 1 and L’Oréal at
No. 3—and also included PepsiCo at No. 9.
millions and % change
Top 10 US Companies, Ranked by US Ad Spending,
Q2 2012 & Q2 2013
1. Procter & Gamble
2. AT&T
3. L'Oréal
4. Comcast
5. General Motors
6. Verizon Communications
7. News Corp.
8. Time Warner Inc.
9. PepsiCo
10. Pﬁzer
Total
Q2 2012
$595.0
$376.6
$380.5
$476.0
$295.7
$331.7
$298.1
$295.4
$264.6
$197.3
$3,511.0
Q2 2013
$804.8
$501.8
$397.9
$393.2
$378.6
$335.1
$322.5
$316.0
$308.5
$303.9
$4,062.3
% change
35.3%
33.2%
4.6%
-17.4%
28.0%
1.0%
8.2%
6.9%
16.6%
54.0%
15.7%
Note: excludes FSIs, house ads and public service announcement (PSA)
activity; numbers may not add up to total due to rounding
Source: Kantar Media as cited in press release, Sep 9, 2013

Kantar Media also reported overall year-over-year ad
spending increases in full-year 2012 and Q2 2013 for
some of the largest consumer products categories.
These included personal care items (up 5% in 2012 and
0.4% in Q2 2013) and food and candy (up 2% in 2012
and 3.4% in Q2 2013).These figures likely underestimate
true expenditure and growth because they include online
display ads but exclude faster-growing digital formats
such as online video, mobile advertising and paid search.
eMarketer does not cite Kantar Media data from Q1 2013
in this report because the media tracking firm excluded
internet display from its ad spending figures for that
time period.
Top 10 US Product Categories, Ranked by US Ad
Spending, Q2 2012 & Q2 2013
Q2 2012 % change
1. Retail 0.1%
2. Automotive* 6.9%
3. Local services 4.4%
4. Telecom 19.5%
5. Personal care products 0.4%
6. Financial services -1.7%
7. Restaurants 12.6%
8. Food & candy 3.4%
9. Direct response -13.1%
10. Insurance 12.9%
Total
$3,821.0
$3,398.3
$2,295.4
$1,975.0
$1,927.3
$1,937.2
$1,538.2
$1,567.3
$1,625.3
$1,127.0
$21,212.0
Q2 2013
$3,823.5
$3,633.0
$2,396.6
$2,361.0
$1,934.1
$1,905.0
$1,732.6
$1,620.6
$1,411.9
$1,272.2
$22,090.7 4.1%
Note: excludes FSIs, house ads and public service announcement (PSA)
activity; numbers may not add up to total due to rounding; *includes
manufacturers and dealers
Source: Kantar Media as cited in press release, Sep 9, 2013
DIGITAL RISES ON PRIORITY LIST
CPG and consumer products marketers still invest the
majority of their budgets in traditional broadcast and
print. However, digital channels are increasingly important
to the marketing mix. In an April 2013 survey of global
consumer goods executives, KPMG andThe Consumer
Goods Forum found that 44% of respondents rated
marketing—including digital and mobile—as a high priority
for investment over the next two years. Another 39% of
respondents saw it as a moderate priority.
% of respondents
Areas for Investment* of Consumer Goods Executives
Worldwide, by Priority Level, April 2013
High Moderate Low
Product development/enhancement 48% 38% 9%
Marketing (including digital, mobile) 44% 39% 14%
Supply chain/distribution 38% 43% 15%
Internet/ecommerce 38% 36% 19%
Manufacturing/production process 31% 44% 17%
In-store/retail innovation 29% 44% 16%
Sustainability/environmental initiatives 27% 45% 21%
Note: over the next two years; *in R&D and innovation
Source: KPMG and The Consumer Goods Forum, "Consumer Executive Top
of Mind Survey 2013," June 14, 2013
On the paid advertising front, a sampling of CPG industry
marketing experts—representing both brands and
agencies that work with them—told eMarketer that
approximately 10% to 20% of industry ad spending
was currently invested in digital media. An analysis by
GroupM, which encompassed all of North America,
pegged that number slightly higher. For the past three
years, 22% of total media investment in support of
fast-moving consumer goods (FMCG) went to digital
channels, GroupM reported.
% of total
Digital Share of Total FMCG Media Spending in Select
Regions Worldwide, 2010-2012
2010 2011 2012
Asia-Paciﬁc 13% 19% 23%
North America 22% 22% 22%
Western Europe 9% 11% 13%
Central & Eastern Europe 4% 4% 6%
Latin America - - 6%
Worldwide 15% 16% 18%
Source: GroupM, "GroupM Interaction 2013," March 28, 2013

Other studies affirm that CPG and consumer products
advertisers are increasing online and mobile advertising,
often at the expense of mass-audienceTV and print
tactics. Path to Purchase Institute and Shopper Marketing
magazine’s “Trends 2013” report noted that 74.0% of
US CPG marketing executives planned to boost digital
advertising and promotions budgets.This compared with
only 5.0% who foresaw a decline.
% of respondents
Change in Advertising and Promotions in 2013
According to US CPG Marketing Executives,
by Promotional Channel
Shopper marketing
47.3% 41.8% 10.9%
Consumer promotions
32.0% 55.0% 12.3%
Trade promotions
19.8% 53.0% 27.2%
Traditional media (TV, print, etc.)
19.5% 43.5% 37.0%
Budget increase Stay the same Budget decrease
Note: numbers may not add up to 100% due to rounding
Source: Path to Purchase Institute and Shopper Marketing, "Trends 2013,"
Jan 2, 2013
Digital media (mobile, paid search, etc.)
74.0% 21.0% 5.0%
In fall 2012 and spring 2013, Advertiser Perceptions asked
US CPG ad and marketing executives whether they
planned to increase or decrease their ad investments in
specific media in the next 12 months. It then calculated
the difference between percentages.The study’s
“optimism index” showed generally high numbers for
most digital media, indicating intent to raise spending,
especially in mobile and digital video.
optimism index*
Consumer Goods Ad Spending Outlook of US
Advertisers, by Media, Fall 2012 & Spring 2013
Alcoholic
beverages
Beauty/
toiletries
Consumer
packaged
goods
Mobile
Digital video
Cable TV
Digital search
Digital display
Broadcast TV
National newspapers
Magazines
Advanced/interactive TV
Fall
2012
59
51
19
41
30
6
-17
-23
10
Spring
2013
68
62
53
28
24
6
-18
-19
-
Fall
2012
57
51
16
35
43
20
-4
-9
23
Spring
2013
57
57
-8
11
33
-6
1
8
-
Fall
2012
64
57
18
40
40
9
-35
-10
25
Spring
2013
61
61
23
44
37
-4
-5
4
-
Note: includes client-side marketers and agencies; *difference between
the percent of respondents increasing and those decreasing their ad
spending in the next 12 months
Source: Advertiser Perceptions, "Advertiser Optimism Index Wave 18, Fall
2012" and "Advertiser Optimism Index Wave 19, Spring 2013," March 14,
2013 & Sep 24, 2013
An earlier poll by Advertiser Perceptions in June 2012
found that 63% of US CPG ad and marketing executives
planned to boost spending in digital media. And in
a similar study, a Booz & Company analysis of data
collected by the Brand Activation Association in March
2013 found that digital tactics were expected to have the
steepest increases among the US brand manufacturers
and retailers studied.
% of respondents
US Brand Manufacturers and Retailers Who Will
Increase Their Ad and Promotions Spending, by Tactic,
March 2013
Total
Mobile marketing 100%
Social media 96%
Internet ads on retailer sites 96%
Internet ads not on retailer sites 96%
Shopper marketing 96%
Paid search 89%
Brand manufacturer sites 89%
Trade promotions 52%
TV advertising 48%
Print advertising
Increase
0%-5%
26%
30%
41%
44%
52%
22%
37%
33%
33%
19%
Increase
5%+
30%
30%
26%
26%
26%
30%
26%
15%
4%
-
Increase
10%+
44%
37%
30%
26%
19%
37%
26%
4%
11%
11% 30%
Note: in the next two years
Source: Booz & Company and Brand Activation Association (BAA),
"Reimagining Shopper Marketing: Building Brands through Omnichannel
Experiences," June 6, 2013

Top Spenders Lead Digital Charge
Not surprisingly, the largest spenders in the industry are
also leading the charge to digital. In an August 2013 article
inThe Wall Street Journal, Procter & Gamble CEO A.G.
Lafley said his company is now spending up to 35% of its
marketing budget on digital media in the US. “The bottom
line is we need and want to be where the consumer is,
and increasingly that is online and mobile,” a Procter &
Gamble spokesperson said.
Unilever CFO Jean-Marc Huet told investors that digital
ad spending had recently risen nearly 40%, according to
a January 2013 article in Advertising Age. Huet also noted
that Unilever had put 2,000 of its marketers through
digital training and was continuing its program to reduce
the overhead, or “nonworking,” ad outlays.
Roy Benin, chief consumer officer of Mars Chocolate
North America, told eMarketer that his division has
consistently been investing about 10% to 20% of overall
marketing spend in digital media, including social, mobile,
video and display.
L’Oréal, which has been ramping up total ad investments
since 2009, is also placing particular emphasis on digital
tactics, which Americas CMO Marc Speichert told
Advertising Age had grown by “double-digit percentages
annually” and “more than doubled overall” since he took
the CMO reins in 2010. “We’re certainly significantly
higher than we were three years ago, and that will
continue as we go into 2014,” he added.
The J.M. Smucker Co. is slated to spend 15% of its
total marketing budget on a variety of digital marketing
initiatives, according to an April 2013 CPGmatters article.
“Our research continues to demonstrate that digital
marketing has been an efficient and effective method for
our marketing mix,” CEO Richard M. Smucker said earlier
this year at a securities analyst conference. He added
that “the addition of digital has enabled us to easily target
key consumer groups, and in combination with traditional
media, expand our consumer reach.”
Even companies not as heavily invested in digital across
the board are using it strategically to reach specific
demographics. Kasper Rorsted, CEO of Germany-based
consumer goods company Henkel, toldThe Wall Street
Journal that while digital spending is growing as a
percentage of total ad budgets,TV is still the predominant
advertising vehicle. “The consumer is still fairly traditional
in the way he or she is exposed to most of our products,”
he said. “But if you take some of our youth-oriented
styling brands, such as [haircare line] göt2b, that’s largely
digital because that’s the only way you can engage with
that group.”
And while Campbell Soup Co. reported that it decreased
its total ad budget for some of its brands, according to
a February 2013 Advertising Age article, the company
is increasing its strategic digital use. For example, it
recently turned to social and digital channels to introduce
a new line of microwaveable soup pouches targeted
at millennials.

MOBILE INVESTMENTS
ACCELERATE
eMarketer estimates that CPG marketers currently
invest about 5% to 10% of digital ad spending in
paid mobile advertising. According to Microsoft’s
Jacobson, this spending as a percentage of digital
is “low right now, but there is a lot of emerging
activity.We have an expectation that it’s going to
grow at a faster pace than some of the current spend
in search and display.The growth rate is going to be
relatively high.”
The Mobile Marketing Association (MMA) and
mLightenment predicted that US CPG manufacturers
would collectively spend $597 million on mobile
marketing this year, up significantly from $382 million in
2012. MMA and mLightenment also expect CPG mobile
marketing outlays to nearly double by 2015.
millions
US Mobile Marketing Spending, by Industry, 2010-2015
Finance, insurance,
real estate
Retail trade—other
Manufacturing—other
Information
Professional, scientiﬁc
and business services
Manufacturing
—consumer
packaged goods
Retail trade
—consumer
packaged goods
Government
Transportation
and warehousing
Wholesale trade
Accommodation
and food services
Healthcare and
social assistance
Resources (agriculture,
mining, utilities,
construction)
Educational services
Arts, museums, sports
and recreation
Other
Total
2010
$470
$397
$269
$240
$152
$139
$107
$116
$93
$72
$68
$56
$42
$20
$17
$145
$2,405
2011
$784
$648
$471
$389
$245
$227
$171
$179
$156
$119
$110
$95
$74
$36
$27
$227
$3,957
2012
$1,332
$1,082
$842
$648
$407
$382
$281
$294
$266
$202
$181
$164
$132
$64
$44
$371
$6,693
2013
$2,080
$1,676
$1,373
$991
$632
$597
$433
$432
$422
$322
$281
$265
$218
$105
$67
$562
$10,456
2014
$3,032
$2,425
$2,023
$1,401
$903
$867
$625
$622
$612
$473
$403
$396
$323
$156
$95
$807
$15,162
2015
$4,017
$3,164
$2,691
$1,778
$1,163
$1,123
$804
$771
$814
$630
$512
$539
$446
$204
$120
$1,028
$19,806
Note: includes mobile media advertising, mobile-enhanced traditional
advertising and mobile CRM; numbers may not add up to total due to
rounding
Source: Mobile Marketing Association (MMA) and mLightenment, "Mobile
Marketing Economic Impact Study" in partnership with IHS Global Insight,
May 9, 2013
Though the MMA’s definition of mobile marketing is
broader than just paid advertising, the numbers serve
to illustrate the large investment CPG companies are
making—and the potential they envision.
As with total digital advertising, some of the industry’s
biggest spenders are leading the mobile pack. Most
notably, Mondelez International announced late last year
that it would spend 10% of its entire global marketing
budget on mobile. “As we look at mobile as a pure
media platform, we’re seeing engagement rates that are
sometimes four times greater than traditional display,”
said Beth Reilly, head of the company’s global digital
strategy, in a May 2013 press release. “We’re mapping
media against the entire consumer journey and rethinking
our media investment through a mobile lens.”
Alessio Rossi, vice president of digital marketing,
ecommerce and CRM at Lancôme, is seeing mobile use
compress the path to purchase. “The consumer decision
journey has become much shorter [and much more
instinctive]. It doesn’t take days anymore for consumers
to decide what they want to purchase,” he said. “We
see that the higher volume of store locator requests
and how-to requests and consumer review requests are
coming through a mobile device. So mobile traffic now
accounts for 25% of our traffic, but 12 months ago it was
only 10%.”
Tata Consultancy Services projected that by 2015,
33.3% of marketing campaigns by consumer products
manufacturers in North America would be designed
exclusively for mobile consumers, up from 17.2% in 2012.

Percent of Marketing Campaigns Designed Exclusively
for Mobile Consumers According to Large Companies
in North America, by Industry, 2012 vs. 2015
Projected
(2015)
Telecom services 51.8%
Travel, hospitality and leisure 47.8%
Airlines 50.0%
Automotive manufacturing 44.3%
Energy and utilities 36.5%
Retail 41.5%
Industrial manufacturing 36.5%
Media, entertainment and sports 35.8%
Computer (hardware and software) 32.9%
Government (federal, state, local) 35.0%
Banking/ﬁnancial services/insurance/
private wealth management
34.1%
Transportation logistics 31.2%
Consumer products manufacturing
(food, beverages and durables)
33.3%
Healthcare services 32.7%
Pharmaceuticals 29.1%
Other 25.1%
Average
Current
(2012)
35.0%
29.1%
27.3%
27.1%
26.3%
23.2%
20.9%
20.0%
19.9%
18.9%
18.0%
17.3%
17.2%
16.3%
15.0%
13.4%
21.4% 36.9%
Source: Tata Consultancy Services, "The New Digital Mobile Consumer:
How Large Companies Are Responding" conducted by Research Now,
Sep 26, 2012
Over the past several years, paid mobile advertising for
consumer goods has seen significant growth, both in
the US and around the world. Millennial Media reported
that global 2012 CPG/FMCG advertising on its network
made up 6% of all mobile ad campaigns and increased
235% from 2011.The same metrics for Q1 2013 showed
that consumer goods ad investments rose 188% year
over year.
% change vs. same period of prior year
Leading Industries Worldwide, Ranked by Mobile Ad
Spending Growth, Q1 2013
Sports 600%
Nonproﬁt & charities 264%
Energy & power 261%
Employment 231%
Government services189%
Consumer goods 188%
Automotive109%
Telecommunications102%
Note: based on campaigns on Millennial Media's network
Source: Millennial Media, "Scorecard for Mobile Advertising Reach and
Targeting (SMART)," June 24, 2013
Millennial Media also found that in 2012, the beverages
category accounted for the largest share of CPG mobile
spending worldwide, followed by the cosmetics and
hygiene space.
MOBILETARGETING IMPROVES
Jim Norton, senior vice president and head of advertising
sales at AOL, sees “different types of mobile ad targeting,
mobile couponing and in-game mobile applications”
driving much of mobile’s growth. Indeed, mobile ads
are especially attractive to CPG and consumer products
advertisers for their ability to target desired audiences,
who may often be near the point of purchase, by location.
Verve Mobile reported that 49% of consumer
goods-related campaigns it served were targeted by
designated market area or ZIP code, while 30% made
use of location-based real-time data, and 21% were
aimed at specific audience segments that had been built
based on a user’s location and time.
% of total
US Location-Based Mobile Ad Campaigns Served by
Verve Mobile, by Industry and Target, 2012
Political
73% 27%
Auto
70% 10% 20%
Financial
67% 11% 22%
Travel
57% 30% 13%
Retail
55% 32% 13%
Restaurant
50% 43% 7%
Consumer goods
49% 30% 21%
DMA/ZIP/ZIP+4 Geoaware or geofenced Audience*
Note: *includes third-party data and place-based targeting
Source: Verve Mobile, "Location Powered Mobile Advertising Report,"
Feb 6, 2013
Telco
69% 28% 3%

Local targeting is proving especially valuable to sectors
of the industry that encourage impulse-based purchases.
For example, research by Millennial Media and comScore
found the beverage category, when compared with other
industries, was responsible for the largest percentage
of mobile ads using location-based targeting on the
Millennial Media network.
% of total
CPG Industry Mobile Ad Campaigns Worldwide that
Use Location-Based Targeting, by Category, 2012
Beverages
52%
Cosmetics &
hygiene
17%
Food
16%
Household
products
12%
Pet products
3%
Note: on Millennial Media's network
Source: Millennial Media and comScore Inc., "Mobile Intel Series:
Consumer Goods," April 16, 2013
BRANDING VS. DIRECT RESPONSE:
A 63/37 SPLIT
This year, eMarketer has taken a deeper dive into
US paid digital spending to determine how much
marketers in vertical industries are investing in ads
primarily focused on driving favorable opinion about
a brand compared with those aimed at obtaining
sales or leads. As a result of this analysis, eMarketer
estimates that in 2013, the US CPG and consumer
products industry will spend 63%, or $2.21 billion,
on brand-focused digital advertising.These formats
include online and mobile banner ads, rich media,
online video, paid social placements, in-game ads,
content sponsorships and native ads.
The remaining 37% of the industry’s digital ad dollars,
$1.30 billion, will go toward direct-response tactics.
eMarketer includes online and mobile paid search,
classifieds, online directories and paid ads embedded in
email messages in our definition of direct response.
billions and % of total
Spending, by Objective, 2013
Branding*
$2.21 (63%)
Direct response**
$1.30 (37%)
of advertising on those platforms; *includes banner ads, rich media,
sponsorships and video; **includes classiﬁeds & directories, email, lead
generation, mobile messaging (SMS, MMS and P2P messaging) and search
Total=$3.51

DISPLAY EVOLVES BEYONDTHE BANNER
The bulk of CPG and consumer products ad spending
continues to be aimed at bolstering company image
and building favorable brand awareness. KPMG andThe
Consumer Goods Forum’s study found that “building the
company brand” was the top marketing strategy priority
of consumer goods executives worldwide.
% of respondents
Marketing Strategy Priorities of Consumer Goods
Executives Worldwide, April 2013
Building the company brand
35%
Pricing
32%
Consumer data analytics
31%
Identifying emerging trends
26%
Online/mobile sales
23%
Social media
22%
Loyalty programs
22%
Adapting to changing demographics
20%
Targeted and location-based advertising
17%
In-store technologies
16%
Creating new apps
12%
Note: for this year; respondents selected up to three strategies
Source: KPMG and The Consumer Goods Forum, "Consumer Executive Top
of Mind Survey 2013," June 14, 2013
Digitally, brands are accomplishing this with various
forms of online and mobile display advertising. comScore
Ad Metrix reported that the consumer goods industry
delivered more than 255 billion online display ads in 2012.
billions
Number of Online Display Ad Impressions Delivered
in the US for Select Industries, 2012
Online media 453.24
Retail 433.28
Finance 421.62
Telecom 294.25
Consumer goods 255.66
Note: read chart as saying 433.28 billion impressions delivered were from
advertisers belonging to the retail industry
Source: comScore Ad Metrix as cited in "US Digital Future in Focus 2013,"
Feb 14, 2013
A large portion of display advertising is intended to drive
traffic to brand-owned or retailer dot-com sites. For
example, the study by Millennial Media and comScore
found that mobile ads worldwide for the CPG industry
were significantly more likely than all mobile ads to have
“brand awareness” and “site traffic” as a campaign goal.
% of total
Primary Campaign Goal of CPG Industry vs. Total
Mobile Ads Worldwide, 2012
Total mobile ads
Brand awareness 14%
Site trafﬁc 14%
Sustained in-market presence 38%
Registrations 12%
Increased foot trafﬁc 10%
Product launch/release
CPG industry
46%
29%
11%
7%
5%
3% 12%
Note: on Millennial Media's network; numbers may not add up to 100% due
to rounding

Similarly, L2ThinkTank’s July 2013 analysis of advertising
for personal care brands found that “learn more” was
the most prevalent call to action in display ads for the
brands studied.
% of ads studied
Display Advertising Calls to Action of US Personal
Care Brands, July 2013
Learn more
27%
Shop now
19%
Coupon
18%
Social media campaign
8%
Retailer co-branding
7%
Enter contest
6%
Site tool
6%
Ratings & reviews
5%
Sample
5%
Watch video
4%
Note: n=1,133 ads across 64 brands
Source: L2 Think Tank, "Digital IQ Index: Personal Care," Sep 3, 2013
Display advertising is also among the many components
used in shopper marketing programs, which are often
cooperatively funded with retailers (known as co-op
advertising) to drive shopper awareness and interest
at the point of purchase. In the Path to Purchase
Institute/Shopper Marketing magazine survey, 70% of US
CPG executives reported using display advertising in their
shopper marketing programs.
% of respondents
Types of Digital Marketing Content Used for Digital
Shopper Marketing Programs According to US CPG
Executives, March 2013
Coupons 89%
Images 72%
Posts 70%
Display advertising 70%
Sweepstakes 63%
Microsites 59%
Tweets 52%
Videos 52%
Educational 35%
Blogs 33%
Apps 33%
Online article 30%
Entertainment/games26%
Other*6%
Note: *includes podcasts, in-app advertising and other
Source: Path to Purchase Institute and Shopper Marketing, "Digital Shopper
Marketers Survey 2013," April 29, 2013
DigitalVideo Creates Personal Connections
Even as CPG and consumer products companies
continue to invest in static and rich media display,
industry marketers report that today’s brand advertising
mix is rapidly evolving from standard banner units—for
which investment is expected to remain flat—to more
engaging and interactive units, such as video, paid social
placements, content sponsorships and retargeted ads.
Video is the rising star among these newer digital
display formats. More than many other verticals, CPG
and consumer products manufacturers are upping
their investment in digital video advertising as targeted
inventory becomes available. Not only does video give
them more and lower-cost opportunities to repurpose
existingTV campaigns and create original programming,
it helps them forge and strengthen personal connections
with desired audiences through sight, sound and motion.

Advertiser Perceptions’ June 2012 survey of US CPG
ad/marketing executives found that nearly three-quarters
of respondents were planning to increase digital video ad
spending.This was higher than for any other tactic.
% of respondents
US CPG Ad/Marketing Executives Who Plan to
Increase Their Ad Spending, by Media, June 2012
Digital video 74%
Mobile 65%
Digital total 63%
Digital search 59%
Digital display 55%
Advanced/interactive TV 50%
Cable TV 33%
Radio 31%
TV 28%
Magazines 24%
Print 20%
National newspapers18%
Broadcast TV 16%
Local newspapers6%
Outdoor6%
Overall 37%
Note: in the next 12 months
Source: Advertiser Perceptions, "Advertiser Intelligence Reports (AIR) Wave
17," Aug 8, 2012
During roughly the same time period,YuMe reported that
the CPG industry was its top online video spender in
Q2 2012, making up almost one in four dollars invested in
online video ads.
YouTube and online video ad networks have clearly
benefitted from last year’s investments and continue
to see growth in this area. A more recent analysis by
Videology showed that CPG was still at the head of
the pack. In Q2 2013, consumer goods advertisers
represented more than one-third of video advertisers on
its network, the highest percentage by far.This was up
from 22.2% in Q1 2013.
% of total
US Digital Video Advertiser Share, by Industry,
Q2 2013
Consumer goods
35%
Automotive
13%
Restaurants
9%
Retail
9%
Healthcare services
6%
Financial services
5%
Travel
5%
Educational services
4%
Entertainment
4%
Pharmaceuticals
3%
Telecom
3%
Business products
1%
Other
3%
Source: Videology, "US Video Market at a Glance Q2 2013," Aug 2013

Though CPG and consumer products video ad metrics
vary by product advertised and ad format, pre-roll and
in-stream video ads for this industry generally have
favorable completion rates. And Nielsen research
commissioned by the IAB showed favorable metrics
for online video when it was compared with television.
Online video ads for two categories that include
consumer products—food and beverage, and health and
beauty—outscoredTV commercials by a large margin for
general recall, brand recall and message recall.
% of respondents
Ad Recall of US TV vs. Online Video Advertising,
by Industry, Jan 2011-March 2012
General recall Brand recall Message recall
Finance
Retail
Restaurants
Hospitality
Pharmaceuticals
Telecom
Food & beverage
Health & beauty
Technology
Automotive
71%
67%
65%
65%
63%
62%
61%
61%
60%
60%
50%
47%
47%
45%
45%
51%
46%
37%
46%
44%
53%
53%
53%
55%
49%
44%
50%
45%
44%
42%
30%
30%
32%
26%
26%
26%
30%
19%
24%
23%
43%
44%
45%
44%
36%
36%
40%
35%
32%
34%
21%
23%
24%
19%
18%
21%
23%
13%
18%
17%
Note: ages 18+; online and TV data based on responses up to 1 day post-ad
stream; limited to the same brands that streamed online and aired on TV
during the same period
Source: Nielsen, "A Comprehensive Picture of Digital Video and TV
Advertising: Viewing, Budget Share Shift and Effectiveness" commissioned
by Interactive Advertising Bureau (IAB), Feb 25, 2013
Online video ads in full-episode players
TV commercials (broadcast & cable)
Mobile video is another growth area that is starting to
see increased investment, according to Jim Lecinski,
vice president of sales for the Americas at Google.
Millennial Media and comScore’s study reported that
CPG companies were indeed using mobile ads to drive
audiences to mobile video, as well as to social media
presences. In addition, the analysis found that CPG
companies were also much more likely than average to
offer video or social media as a post-click action.
% of campaigns
Post-Click Actions Offered by CPG Industry vs. Total
Mobile Ad Campaigns Worldwide, 2012
CPG industry Total mobile ads
Watch video 44% 16%
Social media 34% 18%
Site search 26% 29%
Store locator/view map 21% 21%
Enroll/join/subscribe 21% 19%
Mcommerce 20% 16%
Retail promotion 20% 9%
App download 15% 37%
Place call 9% 9%
Note: on Millennial Media's network
Paid Social Boosts Owned and Earned Content
CPG and consumer products marketers were quick to
embraceYouTube, Facebook,Twitter and other social
venues as hubs of brand and product information as
well as other owned and earned content. As a result,
they are responsible for a high percentage of socially
enabled ads—those that appear outside social networks
but encourage consumers to visit social sites and
engage with brands there. comScore Ad Metrix reported
that consumer goods accounted for 22% of socially
enabled US ad impressions in 2012, more than any other
sector studied.
% of total
Socially Enabled Ad Impressions Delivered in the US
for Select Industries, by Share, 2012
Consumer goods
22%
Retail
19%
Online media
17%
Media &
entertainment
10%
Finance
4%
Other
28%
Source: comScore Ad Metrix as cited in "US Digital Future in Focus 2013,"
Feb 14, 2013

Industry marketers have racked up impressive numbers
of fans and followers. A November 2012 study by
BrandSpark and Better Homes and Gardens found that
manufacturers of food and beverages, beauty products
and cosmetics, personal care and grooming products, and
household care products were among the top company
types that US internet users followed on Facebook.
% of total
Types of Companies Followed on Facebook by US
Internet Users, Nov 2012
Manufacturers of food or beverages
65%
Restaurants
55%
Manufacturers of beauty products or cosmetics
52%
Grocery retailers
40%
Manufacturers of personal care or grooming products
39%
Manufacturers of household care products
36%
Electronics manufacturers
28%
Automobile manufacturers
14%
Airlines
13%
Other
17%
Note: n=703 ages 18+; among those involved in their household shopping
for food, household care, or health and personal care/beauty products
Source: BrandSpark and Better Homes and Gardens, "2013 American
Shopper Study," Jan 24, 2013
Despite these high numbers—or perhaps because of
them—CPG and consumer products companies have
only recently begun to fully embrace paid social network
advertising in a big way.
eMarketer estimates that companies in this industry
collectively spend about 10% to 15% of their US digital
ad budget on paid social media placements, with the
majority going to Facebook andYouTube.This level of
investment is rising as more marketers seek to grow their
communities, increase interaction with target audiences
and draw attention to trending owned and earned
content. For example, Dan Skinner, public relations and
social media manager at ConAgra Foods, told eMarketer
that his team looks for opportunities to boost its owned
social content with paid advertising. “[We pay close
attention to] a particular piece of content in its first couple
of hours to assess if we’re going to put more [paid]
support behind it,” he said.
Google’s Lecinski noted that this type of “priming the
pump”—putting paid ad dollars behind owned content—is
also proving effective in kindling views ofYouTube videos.
“If you have good content, you need to at least tip over
the first couple of dominos,” he added. “Then, maybe the
last end of the domino chain is free views that it earns,
but you’ve got to tip the first couple over yourself.”
Consumer products marketers are devoting more budget
and effort to real-time ads on social networks, as well
as retargeted ads on Facebook Exchange.They also
see future advertising potential in other social venues,
includingTwitter, Pinterest, Instagram and Google+.
For this reason, several top social networks have rolled
out programs to aggressively court CPG and consumer
products advertisers. In late 2012, Facebook hired Erin
Hunter, a veteran of Procter & Gamble and comScore,
as its first global head of CPG marketing. In January
2013, the social network held its first “CPG Summit,”
with the hope of making headway with marketers and
showing them how they might use Facebook products—
such as Facebook Exchange, Graph Search, and its
Custom Audiences program—in more strategic and
coordinated ways.
Twitter also sees untapped CPG potential and is
undertaking efforts to show marketers how effective its
ad products can be. According to a recent announcement
on the social platform’s blog,Twitter partnered with
Datalogix, a firm that measures the relationship between
online ads and offline sales, to help marketers understand
the connection between tweets and products purchased.
Twitter said it could “now quantify the impact of
Promoted and organicTweets on offline sales for CPG
businesses in the US.”

Programmatic Buying Increases Efficiency
CPG and consumer products companies already buy a
significant amount of context- and audience-based display
ads via ad networks and across exchanges. Often, they
use these venues to test targeting capabilities, new data
sets, different segments, and the latest platforms or
capabilities within those platforms.
To keep CPMs low, CPG and consumer products
companies are turning to programmatic buying and
premium programmatic buying (automated buying
of premium remnant inventory). “There’s a lot more
interest by CPG brand marketers thinking about
automated programmatic buying, real-time bidding (RTB),
data-appending—those kinds of things,” said Google’s
Lecinski. “They want to know how these things can help
them reach their target audience in a more effective and
more efficient way.”
Quarterly breakouts of ads purchased on Casale Media’s
Index ad serving platform showed that the number of
RTB impressions purchased by one CPG category, US
food and drink, jumped from 3.8% to 6.2% of the total
between Q1 2012 and Q4 2012.
Top 10 US Industries, Ranked by Share of Real-Time
Bidding (RTB) Impressions Purchased, Q1 2012-Q4 2012
Q1 2012
Retail
Financial
Telecom
Travel
Automotive
Computers
Food &
drink
Consumer
electronics
Media
Business
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
26.6%
14.1%
11.3%
11.1%
8.4%
8.2%
3.8%
3.7%
2.8%
2.0%
Q2 2012
Retail
Telecom
Financial
Automotive
Travel
Computers
Food &
drink
Media
Business
Fashion
24.6%
14.3%
12.0%
11.1%
11.0%
5.0%
4.5%
3.5%
2.3%
2.0%
Q3 2012
Retail
Telecom
Travel
Automotive
Financial
Food &
drink
Media
Health
Business
Education
31.6%
16.5%
11.4%
10.5%
9.3%
5.2%
3.0%
2.6%
2.5%
1.8%
Q4 2012
Retail
Telecom
Automotive
Financial
Travel
Food &
drink
Media
Health
Entertain-
ment
Business
35.9%
13.0%
11.0%
9.7%
7.7%
6.2%
4.0%
3.7%
2.5%
2.3%
Note: data is based on the RTB impressions purchased over the Index
ad-serving platform
Source: Casale Media, "Index Quarterly Report: Issue 2, Q3-Q4 2012,"
April 11, 2013
Similarly, the Rubicon Project found that Unilever was
the No. 9 RTB spender on its platform, up a significant
453% between Q2 2012 and Q3 2012.This increase likely
contributed to a 21% jump in the food and drink category
during the same time period.
% change vs. prior quarter
Top 10 US Advertisers and Advertising Categories,
Ranked by Real-Time Bidding (RTB) Spending, Q3 2012
Advertisers
1. AT&T
2. Toyota
3. Sprint Nextel
4. American Express
5. Southwest Airlines
6. Amazon
7. Chrysler Group
8. Verizon Communications
9. Unilever
10. Ford Motor Co.
Industries
1. Technology & computing
2. Personal ﬁnance
3. Automotive
4. Travel
5. Shopping
6. Arts & entertainment
7. Business
8. Style & fashion
9. Home & garden
10. Food & drink
% change vs. prior
quarter
12%
143%
94%
11%
48%
261%
6%
43%
453%
82%
1%
16%
44%
25%
38%
26%
22%
1%
22%
21%
Change in
ranking
No change
8
4
1
No change
29
3
No change
66
9
No change
No change
1
1
No change
No change
1
1
No change
No change
Note: impressions served over the Rubicon Project REVV platform; includes
mobile and video
Source: Rubicon Project, "Real Time Trading Marketplace Report Q3 2012,"
Oct 23, 2012
The use of automated systems to target and buy ad
placements has not only driven US consumer products
ad spending dollars to digital media, it has also given
marketers a better handle on return on investment (ROI).
As RTB technology becomes more sophisticated, the
trend toward more programmatic buying is expected
to continue.

SEARCH:A DIRECT RESPONSETO
ECOMMERCE EFFORTS
Search engine marketing, the backbone of digital
spending for many direct-to-consumer (DTC) marketers,
has traditionally taken a backseat to brand-focused display
in the CPG and consumer products industry. Despite their
hefty ad budgets, CPG manufacturers rarely appear on
any top 10 lists of search advertisers.
There are a number of reasons for this. First, many
low-price, high-volume FMCG staples do not see
high numbers of searches. As one industry expert
told eMarketer, “There are simply not a lot of people
searching on toothpaste.” As a result, many products
have a slow and steady hum of search presence but
nothing extraordinary in terms of spending. Second, while
brands and the retailers that sell their products often
seek to collaborate on co-op campaigns, manufacturers
often cede complex, big-budget search campaigns to the
retailers. A report from Internet Retailer, “Top 500 Guide,”
noted that the consumer brand manufacturers that were
among the report’s top 500 spent significantly less per
company on search than retail chains and
web-only retailers did.
US Average Monthly Paid Search Spending
per Retailer, by Type, 2011 & 2012
Retail chains
Web-only retailers
Consumer brand manufacturers
Catalog/call center retailers
2011
$1.5
$1.7
$1.0
$0.1
2012
$2.5
$1.9
$1.1
$0.1
%
change
62.4%
10.7%
4.9%
-4.7%
# represented
in Top 500
158
195
66
81
Source: Internet Retailer, "Top 500 Guide," May 7, 2013
But as more brand manufacturers seek to bypass
traditional retailers with their own DTC commerce
initiatives, they are investing more in search marketing—
bidding more aggressively on their own brand terms in an
effort to own the “last mile” before a purchase. In fact,
the June 2012 Advertiser Perceptions study found that
59% of US CPG ad and marketing executives planned to
increase their spending in digital search advertising.
Investments specifically in mobile search advertising
are also rising as a result of exploding consumer use
of mobile devices in all phases of the purchase cycle.
Research byThe Search Agency showed that mobile paid
search click share grew from 15.1% in Q1 2012 to 21.1%
in Q3 2012.This high percentage of mobile searches
is spurring CPG and consumer products companies
to further extend and diversify their search campaigns
across devices.
% of total
US Consumer Goods Paid Search Click Share, by Device,
Q3 2011-Q3 2012
Q1 2012
84.9% 7.6% 7.5%
Q2 2012
81.5% 9.2% 9.3%
Q3 2012
78.9% 11.0% 10.1%
Computer Tablet Smartphone
Source: The Search Agency, "State of Paid Search Report Q3 2012," Oct 30,
2012
Q4 2011
90.1% 4.5%
5.4%
Q3 2011
95.1% 2.7%
2.2%

Google’s rollout and mandatory use of its Google
Enhanced Campaigns as of July 2013 will also likely result
in at least a short-term increase in search prices—and
spending—as lower-priced mobile costs per click rise to
parity with their online counterparts.To prove the value of
mobile search advertising, Google published results of an
April 2013 study showing 86% of visits from mobile CPG
search ads would not otherwise have been clicked on
from a business’s organic search listing.
% of total
Incremental Search Trafﬁc from US Mobile Search
Ads, by Vertical, April 2013
Classiﬁeds & local 97%
Business & industrial 94%
Education & government 94%
Technology 90%
Finance 87%
Automotive 86%
Consumer packaged goods 86%
Media & entertainment 86%
Retail 86%
Travel 85%
Healthcare 83%
Service in all verticals 82%
Average 88%
Note: n=300; read as 88% of visits from mobile search ads would not
otherwise have clicked on the business's organic search listing
Source: Google, "Mobile Search Ads Pause" as cited in company blog, July
16, 2013
PUTTING DATA TO BETTER USE
Though many CPG and consumer products firms
are quickly shifting money into the digital marketing
column, some studies show they are still struggling
to optimize their spending and coordinate it with
their larger marketing programs.
For example, L2ThinkTank’s analysis of digital marketing
for personal care products found a general lack of
“cohesive strategy” across the category. In fact, more
than half of the brands studied were rated “challenged”
or “feeble” when it came to their digital marketing.
Common issues cited were “anemic site and ecommerce
investments, limited DTC data capture, and a fragmented
approach to social media.” Brands that ranked higher,
L2ThinkTank said, had more sophisticated programs but
were still stymied by the lack of “an integrated approach
across digital touchpoints.”
Some industry experts believe the key to better digital
marketing lies in the more effective and coordinated use
of Big Data and technology to both target and measure
campaigns. “Verticals that are more steeped in traditional
media, including CPG, have lagged in terms of fully
capturing the value of online,” said Google’s Robert Dillon,
director of global display sales and strategy. “I think this
is primarily because we haven’t, as an industry, come
forth with the right type of metrics and measurement to
demonstrate brand lift.”

CPG and consumer products manufacturers have long
seen the value in collecting data. In a 2012 study by
33Across, 55.6% of US CPG brand marketers and
agencies strongly agreed that data access and use was
very important to their ad spending; the remaining 44.4%
agreed with the statement. While strong agreement
was lower than in some other industries, CPG was
the only industry where no respondents were neutral
or disagreed.
% of total
US Brand Marketers and Agencies that Believe Data
Access/Use Is Very Important to Their Ad Spending
in 2012, by Industry
Automotive
71.5% 14.6% 13.9%
Financial services
70.4% 15.3% 14.3%
Travel
60.0% 20.0% 20.0%
Consumer packaged goods (CPG)
55.6% 44.4%
Entertainment
45.5% 36.4% 9.1% 9.1%
Retail
44.7% 42.9% 12.4%
Strongly agree Agree Neutral Disagree
Source: 33Across, "Advertiser & Agency Survey," May 17, 2012
Total
60.6% 30.3% 6.1%
3.0%
But at the same time, these marketers and agencies
are still grappling with how to best make use of the data
they collect. “My biggest pet peeve is how do we get
better ROI data, and how do we get a stronger correlation
from the dollars we invest in social media and the sales
impact,” said Mars Chocolate’s Benin. “I’d love to have a
little bit more empirical data against it.”
In its April 2013 publication, “The Data Directive,” the
Economist Intelligence Unit reported that just 13.3%
of executives at global retail and consumer goods
manufacturers had a well-defined data strategy that
focused on aggregating and maximizing the use of data.
Nearly 38% admitted to gathering a large amount of data
but not consistently making the most of its value.
% of respondents
Attitude of Executives Worldwide Toward Their
Company's Use of Data, by Industry, 2013
We have a well-deﬁned data
management strategy that
focuses resources on collecting
and analyzing the most
valuable data
We understand the value of
our data and are marshalling
resources to take better
advantage of them
We collect a large amount of
data but don't consistently
maximize their value
We collect data but they are
severely underutilized
We don't prioritize data
collection
Source: Economist Intelligence Unit (EIU), "The Data Directive"
commissioned by Wipro, April 29, 2013
Professional services
Technology, media and telecom
Financial services
Manufacturing
Retail and consumer goods
40.0%
30.0%
20.0%
6.7%
3.3%
30.4%
45.7%
15.2%
6.5%
2.2%
21.9%
56.3%
12.5%
6.3%
3.1%
15.8%
36.8%
35.1%
8.8%
3.5%
13.3%
40.0%
37.8%
6.7%
2.2%
And an October 2012 study commissioned by Accenture
found that more than half of CPG senior executives polled
believed they had the technology but lacked the talent to
“convert data into a business asset.”
On an optimistic note, CPG and consumer products
marketers appear to be fast-tracking programs that focus
on better data collection and analytics. In the April 2013
KPMG/The Consumer Goods Forum study, 31% of global
consumer goods executives said consumer data analytics
was a marketing strategy priority.

“CMOs now have more dollars available to them
than they’ve had in the past, and it’s not necessarily
a comment on an increase in marketing spend as
much as it is a shift in IT budgets moving from CIOs to
CMOs, primarily to focus in a few different areas,” said
Microsoft’s Jacobson. “One of those areas is leveraging
digital to use data more effectively for attribution across
physical and digital channels.They want to use Big Data
to help them really gain insights into what’s working
and what’s not. We’re seeing a renewed focus on
things like marketing mix modeling and optimization of
marketing spend.”
“The good news about digital technology is that it
changes the whole world of ROI,” said AlexTosolini,
vice president of global ebusiness at Procter & Gamble.
“Technology will allow the best investments to get a
disproportionate amount of funds. Brand building will
become more sophisticated because technology will be
able to specifically address which activity is returning
more money on the investment.”
CONCLUSIONS
The biggest spenders in the CPG and consumer
products industry have committed to digital. While the
industry as a whole is still playing digital marketing
catch-up, the heavy hitters have embraced online and
mobile channels, using them to establish and nurture
direct and personal relationships with consumers.They
are cutting the path for smaller manufacturers that are
dipping their toes in the water and learning from the
heavy hitters.
Branding remains a top priority. Creating brand and
product awareness is—and always has been—the
primary advertising goal for industry marketers. In
addition to traditional print and broadcast formats, they
are increasingly adding brand-focused digital video, social
media and other dynamic display formats into the mix.
Mobile is critical to the ad spending mix. CPG and
consumer products advertisers have ramped up mobile
and location-based advertising, mobile couponing, and
in-game mobile apps to reach targeted audiences in the
“last mile” before a purchase.
Data and technology will help optimize marketing
spend. Industry marketers realize the importance
of using Big Data and new technology tools to more
precisely target and measure their advertising.They are
prioritizing programs to create optimal marketing mixes
and streamline spending efficiency.This, in turn, will help
them manage and fine-tune multichannel campaigns
more holistically.

EMARKETER INTERVIEWS
CMO One-to-One: How Mars Uses Social to
Jump-Start Initiatives Like M&M’s Ms. Brown
Roy Benin
Chief Consumer Officer
Mars Chocolate North America
Interview conducted on March 25, 2013
How LancômeTargets viaTablet
Alessio Rossi
Vice President of Digital Marketing,
Ecommerce and CRM
Lancôme
Interview conducted on May 3, 2013
ConAgra on Spending Digital Ad Dollars in RealTime
Dan Skinner
Public Relations and Social Media Manager
ConAgra Foods
Interview conducted on May 28, 2013
Procter & Gamble Applies Lessons From Abroad to
CPG Ecommerce in the US
AlexTosolini
Vice President of Global Ebusiness
Procter & Gamble
Interview conducted on February 15, 2013
Robert Dillon
Director, Global Display Sales and Strategy
Google
Mark Jacobson
Director of Strategy
Microsoft Advertising
Jim Lecinski
Vice President of Sales, Americas
Google
Jim Norton
Senior Vice President, Head of Advertising Sales
AOL
Interview conducted on January 18, 2013
RELATED EMARKETER REPORTS
Buying OnlineVideo Advertising: Making the Most of
Your Budget
CPG’s Digital Conundrum:Turning Digital Shoppers
into Buyers
CPG in Developing Markets: Consumers’ Digital
Habits in Emerging Economies
Millennials in Aisle 2.0: KeepingYoung Supermarket
Shoppers Engaged with Brands
US Ad Spending: Q3 2013 Forecast and
Comparative Estimates
The US Retail Industry 2013: Digital Ad Spending
Forecast and KeyTrends
RELATED LINKS
33Across
Accenture
Advertiser Perceptions
AOL Advertising
Booz & Company
Brand Activation Association (BAA)
BrandSpark
Casale Media
comScore
The Consumer Goods Forum
Economist Intelligence Unit (EIU)
GoogleThink Insights
GroupM
Interactive Advertising Bureau (IAB)
Internet Retailer
Kantar Media
KPMG
L2ThinkTank
Microsoft Advertising
Millennial Media
Mobile Marketing Association (MMA)
The Search Agency
Tata Consultancy Services
Verve Mobile
Videology

EDITORIAL AND
PRODUCTION CONTRIBUTORS
Cliff Annicelli Senior Editor
Kaitlin Carlin Copy Editor
Joanne DiCamillo Senior Production Artist
Stephanie Gehrsitz Senior Production Artist
Dana Hill Director of Production
Nicole Perrin Associate Editorial Director
Heather Price Copy Editor
Allie Smith Director of Charts

E marketer the_us_cpg_and_consumer_products_industry_2013-digital_ad_spending_forecast_and_key_trends

E marketer the_us_cpg_and_consumer_products_industry_2013-digital_ad_spending_forecast_and_key_trends

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie E marketer the_us_cpg_and_consumer_products_industry_2013-digital_ad_spending_forecast_and_key_trends

Ähnlich wie E marketer the_us_cpg_and_consumer_products_industry_2013-digital_ad_spending_forecast_and_key_trends (20)

Mehr von AdCMO

Mehr von AdCMO (20)

E marketer the_us_cpg_and_consumer_products_industry_2013-digital_ad_spending_forecast_and_key_trends