Consumer Packaged Goods: Stay Ahead of the Digital Marketing Curve

In the past, CPGs have resorted to more traditional marketing but the landscape is quickly changing. CPGs now need to be innovative in order to capture more market share and are now more than ever using digital technology to do so, especially mobile commerce and mobile measurement. CPG digital spend is expected to exceed $4 billion this year, which shows to what extent these firms recognize the growing importance of digital marketing strategy for their products.

“Purchase History is the Strongest Indicator or Purchase Intent” – consumers are more predictable that they think they are. People are a lot more likely to buy something if they bought it in the past. Using purchase data, CPGs can predict who is most likely to buy from them. Segmenting the market and focusing on those that are most likely to purchase your goods can significantly trim down on costs.

CPGs are unique marketers in the sense that digital metrics such as click-through rates are not good indicators of marketing efficiency. It is more difficult to determine which of your brick and mortar customers saw online ads.

The CPG industry sells what some consider to be commodities. There are always numerous alternatives to products and they often compete on pricing. When you go to buy toothpaste, you are presented with 100’s of options when really they all do the same thing. This is one of the reasons that it is so important to advertise in this industry in order to establish some sort of competitive advantage, and who better to reach out to than people who have purchased your products in the past.

http://www.cmswire.com/cms/digital-marketing/consumer-packaged-goods-stay-ahead-of-the-digital-marketing-curve-026948.php