CPG Marketing Reinvented

CPG Marketing
Reinvented
A Snapshot of How Personalized
Content and Local Digital
Activation Are A Winning
Combination for CPG Brands
Table of Contents
Introduction ................................................................................................................. 3
Methodology & Objectives ................................................................................... 3
Major Findings ............................................................................................................ 4
Survey ............................................................................................................................. 6
Conclusion ................................................................................................................... 15
About G/O Digital .................................................................................................... 16
Contact Us .................................................................................................................... 16
CPG Marketing Reinvented
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2
Introduction
Shopping is a fact of life. Everyone does it – regardless of age, race, household income or location. While the need to grocery
shop will never cease to exist, digital experiences and advertising have reordered consumers’ path to purchase – from clipping
coupons and deals in the local newspaper to clicking and swiping through retailer sites to redeeming coupons from our
pinch to their wallets when cruising the aisles of their local retail store. When you couple the “always on, always connected” behaviors
of today’s grocery shoppers with their need to cut costs, the result is one that requires food and beverage brands – as well as the
grocery retailers who sell their products – to create personalized content, allow for dynamic pricing in real-time and locally target offers
to meet the needs and wants of shoppers – whether they’re at home, on-the-go or even in-store.
According to eMarketer, ‘Brands are testing all types of campaigns with all types of media, including apps, digital video and social
media, partnering with retailers and technology companies to test beacon technology and leverage shopper marketing data to
experiences and advertising to boost engagement, click-thru-rates, time spent on sites and ultimately, in-store sales.
“
Consumers really want value and relevant
offers, not just a discount on some random
product. And they want those offers to be
presented at the time they are ready to use
them, because saving time is nearly as
important as saving money.
eMarketer
Methodology & Objectives
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3
Major Findings
Google search ads initiate
consideration for CPG brands
both moms (64 percent) and dads (67 percent) use before
CPG Brand Success Hinges On
DigitizED Coupon Clipping
Nearly half of moms (45 percent) and dads (40 percent)
reported they most want the ability to clip and add deals
(like coupons) digitally to their loyalty cards.
or their local supermarket.
Deal content distributed across
digital channels Flex More
Marketing Muscle Than TV Ads
32 percent of moms and 24 percent of dads cited digital circular
content as the number one type of ad to persuade them to make
Future of Retail Will Be Played
Out In Digital Pre-Shopping
Funnel As Webrooming Helps
Parents Track Down Deals
40 percent
Low Prices Trump Loyalty to
Preferred Stores
very inclined to visit a local supermarket that offers/
CPG Marketing Reinvented
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Personalized Ads Move
Shoppers From Screens
Into Aisles
79 percent of moms and 75 percent of dads are
more likely to make an in-store purchase when they
receive locally personalized deals.
Mobile deals and in-app
promotions bring the web in-store
When asked about the value of digital promotions and
circulars while standing in-store, 19 percent of moms
replied that “it’s very important…I regularly check
promotions and deals” and another 36 percent of moms
believe “it’s somewhat important…I am more likely to
Facebook Trounces Twitter
As King of Social
Over half of moms (55 percent) and just slightly less than
half of dads (47 percent) believe Facebook is the most
useful social media channel
4
Major Findings
Local Facebook Offers
Are In High Demand
77 percent of moms and 72 percent of dads
Social Proof & Credibility Steers
Shoppers Into STORE Aisles
39 percent of moms and 39 percent of dads care most
they drop into their grocery shopping carts.
Resistance to Facebook Ads Is
Costly Mistake for CPG Brands
39 percent of moms and 42 percent of dads reported
clicking on Facebook ads at least once a week before
visiting their local supermarket.
CPG Marketing Reinvented
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One-Size-Fits-All Online & Mobile
Ads WILL Deplete In-Store Sales
When asked what is most frustrating about online and mobile
35 percent of moms and
29 percent of dads cited “information and promotions
5
Google Search Ads Initiate
Consideration for CPG
Brands
Which one of the following channels do you use
FIRST before visiting a food/beverage brand’s
website, mobile site, app or local supermarket?
7%
11%
Google
Yahoo
13%
Bing
64%
As advanced as digital, mobile and social marketing become,
marketers cannot afford to ignore the value of simpler tactics.
Paid search remains a highly effective way to drive conversions,
topic. “While TV, print, out-of-home and other media are more
typical for brand marketing, search advertising presents a
powerful, cost-effective channel to drive brand metrics. And
unlike those more traditional channels, search can impact
brand awareness in the moments that matter to consumers,
when they are shopping and gathering product information;
in other words, brand get access to an interested audience
at the moment the consumers are interested.”
Facebook
MOMS
Review Sites
brand’s website, mobile site, app or their local supermarket.
6%
7%
7%
Customer
review sites
6%
Google
Facebook
DADS
Yahoo
13%
Bing
Review Sites
67%
Customer
review sites
Note: Figures may not add to 100, due to rounding.
CPG Brand Success Hinges On Digitized Coupon Clipping
The Washington Post
ability to clip and add deals (like coupons) digitally to their loyalty cards.
returning, loyal cross-channel buyer – the information and prices they want, where they want them and how they want them. Clearly, the delivery
What type of experience do you MOST WANT
when accessing digital circulars?
MOMS
45%
Ability to clip and add deals (like coupons) digitally to your loyalty card
33%
Interactive page browsing and display of all deals in one place
Interactive tiles replicating look and feel of Pinterest
3%
19%
Listing total number of deals in each product category
DADS
40%
Ability to clip and add deals (like coupons) digitally to your loyalty card
29%
Interactive page browsing and display of all deals in one place
Interactive tiles replicating look and feel of Pinterest
Listing total number of deals in each product category
7%
25%
Note: Figures may not add to 100, due to rounding.
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Digital Circulars Flex More
Direct Marketing Muscle
Than TV Ads
What type of advertising has the HGHEST
influence/power over your decision to
buy a food/beverage product in-store?
MOMS
Direct mail
digital circulars as the number one type of advertising to persuade
them to make an in-store purchase. This is in stark contrast to TV
to make in-store purchases. While television ads have been and
will continue to be an effective way to build brand awareness, it’s
interesting to note that a simpler and more traditional form of
15%
Facebook advertising
3%
Mobile advertising
4%
Mobile app
6%
Newspaper advertising
TV advertising
shoppers’ purchasing decisions. More than anything, these
all of their marketing dollars and resources trying to reinvent the
marketing wheel. Instead, they should look to digital to enhance
trusted weekly ads and circulars to be highly personal, locally
relevant and targeted to consumers’ needs and wants.
32%
Digital circular
21%
6%
Online advertising
(search/PPC ads)
DADS
14%
24%
Digital circular
Direct mail
In addition to cross-screen scalability and dynamic new placement
options where weekly ads can be viewed – within mobile apps,
social plug-ins and ad server windows – shoppers are now
engaging with any and all pre-approved assets once limited by
Facebook advertising
Mobile advertising
Mobile app
Newspaper advertising
a promotion. In essence, grocery shoppers are searching for and
banner ads, targeted emails, social feeds, mobile video and more
– all of which work well to move them from their screens into their
local supermarkets and on to checkout.
CPG Marketing Reinvented
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TV advertising
Online advertising
(search/PPC ads)
14%
4%
6%
9%
15%
12%
14%
Note: Figures may not add to 100, due to rounding.
7
Personalized Ads Move
Shoppers From Screens
Into Aisles
Are you MORE LIKELY to purchase a
food/beverage item at your local supermarket
when a digital circular provides deals/offers
that are locally relevant and personalized?
21%
shoppers than TV commercials, but they also facilitate the
MOMS
deliver greater relevance with local offers. To put it simply, it’s all
No
79%
Yes
at their local supermarket when a digital circular provides
40%
DADS
served up at every stage of the buyer journey and are targeted
and location. Why do these personalized circulars wield so
No
60%
Yes
grocery shoppers’ existing behaviors – rather than disrupt them
– all for the sake of simplifying, speeding up and improving
Future of Retail Will Be Played Out In Digital Pre-Shopping
Funnel As Webrooming Helps Parents Track Down Deals
who is casually browsing a grocer’s website or mobile site during her work lunch break by enticing her into her local supermarket
mom has now moved from her second screen to make a purchase in-store.
Before you go to your local supermarket, do you use your desktop/laptop computer,
smartphone or tablet device to pre-search for food/beverage items “on sale”?
MOMS
40%
Yes, this is one of the first things I do
42%
Sometimes, if Im looking for a specific deal/promotion on a food/beverage product
No, I head straight to my local supermarket so I can search for food/beverage items from aisle to aisle
DADS
Yes, this is one of the first things I do
19%
30%
44%
Sometimes, if Im looking for a specific deal/promotion on a food/beverage product
No, I head straight to my local supermarket so I can search for food/beverage items from aisle to aisle
26%
Note: Figures may not add to 100, due to rounding.
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Mobile Deals & In-App Promotions Bring the Web Into Stores
As everyone says: “There’s an app for that.” When asked about the value of digital promotions and circulars while standing
with grocery shoppers while they’re in-store - whether they are looking up recipes, searching for ingredients, building shopping
lists or watching cooking videos.
The introduction of iBeacon technology creates another promising, yet perplexing, superpower to the mobile line up. Locationbased marketing is necessary in the age of personalized communication. Customers expect it, but are highly sensitive to the
communicate with mobile devices. Think about the number of Bluetooth enabled devices you encounter in a day. Bluetooth
exists everywhere, from entertainment systems, to cars, to deadbolts on doors. With minimal impact on battery life and the ever
increasing prevalence of Bluetooth LE powered consumer products, the “on” position and iBeacons’ power has become permanent.
The buzz – and subsequent panic – about the negative consequences of webrooming and showrooming on brick-and-mortar
mortar are competing and taking market share away from each other, it’s time for both to become fast friends.
How important is it for you to receive digital promotions and circulars
while standing in your local supermarket
MOMS
It’s very important and I regularly check websites, mobile sites and apps for brand/product-specific
promotions and deals
19%
36%
It’s somewhat important and I am more likely to purchase an item in-store if I find a coupon or deal online
It’s minimally important, but doesnt sway my final purchase decision
It’s not important at all
DADS
It’s very important and I regularly check websites, mobile sites and apps for brand/product-specific
promotions and deals
It’s somewhat important and I am more likely to purchase an item in-store if I find a coupon or deal online
It’s minimally important, but doesnt sway my final purchase decision
It’s not important at all
24%
21%
16%
37%
25%
22%
Note: Figures may not add to 100, due to rounding.
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Low Prices Trump Loyalty To Preferred Local Stores
without saying these shoppers want and expect every
single shopping trip to be productive and minimally
stressful on their wallets. As our research found, price and
location play an important role in their overall purchase
behaviors.
Consumers are no longer shopping at their favorite stores
feel the same way. To win with local marketing and effectively drive
marketers and grocery retailers need to present offers that are
both relevant and competitively priced to meet the local,
real-time needs of shoppers.
Does your online/mobile pre-search for “on sale” items influence which
specific supermarket you visit in your local neighborhood?
MOMS
Absolutely, I would be very inclined to visit a local supermarket that offers/advertises the
lowest prices and special deals
Not really, it’s primarily for me to see what’s new and fresh ahead of my visit
to the local supermarket
DADS
Absolutely, I would be very inclined to visit a local supermarket that offers/advertises the
lowest prices and special deals
Not really, it’s primarily for me to see what’s new and fresh ahead of my visit
to the local supermarket
59%
41%
51%
49%
Note: Figures may not add to 100, due to rounding.
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Facebook Trounces Twi"er
As King of Social
Which one of the following social media
channels do you find MOST useful to engage
with your favorite food/beverage brands?
33%
beverage brands.
MOMS
None
Meanwhile, Twitter is close to the bottom of the pile with only
the importance of thinking beyond ‘Likes’ and understanding
will produce outcomes that matter (sales).
55%
5%
7%
1%
36%
DADS
None
47%
7%
7%
3%
Facebook
Pinterest
Instagram
Twitter
I don’t use social media to engage
with food/beverage brands
Note: Figures may not add to 100, due to rounding.
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11
Local Facebook Offers Are In High Demand
their physical shopping carts.
most likely to persuade them to add an item to their grocery cart in-store. If promotional content is not localized and distributed at the
appropriate scale, brands are missing their largest opportunity to establish a meaningful relationship with their target consumers that
goes beyond a singular need, and instead drives long-term loyalty and consistent cross-channel sales.
How much of an impact do local deals/offers on Facebook have on your decision
to add a food/beverage product to your shopping cart in your local supermarket?
MOMS
23%
It doesn’t influence my decision at all
33%
It’s important, but I would continue to research online for better prices/deals
28%
It’s somewhat important
It’s very important and I would be likely to make an in-store purchase within a week
16%
It doesn’t influence my decision at all
29%
It’s important, but I would continue to research online for better prices/deals
30%
DADS
25%
It’s somewhat important
It’s very important and I would be likely to make an in-store purchase within a week
17%
Note: Figures may not add to 100, due to rounding.
Which of the following types of Facebook marketing tactics is MOST LIKELY to
influence you to add a food/beverage product to your shopping cart?
53%
Facebook offers that can be redeemed at a local store
18%
Loyalty app promotions
MOMS
Photo/video contests
5%
9%
Promoted posts
Sponsored stories
Sweepstakes, quizzes and polls
Photos/videos that encourage you to choose
your favorite products, styles and colors
5%
6%
5%
41%
Facebook offers that can be redeemed at a local store
18%
Loyalty app promotions
DADS
Photo/video contests
8%
12%
Promoted posts
Sponsored stories
Sweepstakes, quizzes and polls
Photos/videos that encourage you to choose
your favorite products, styles and colors
7%
8%
7%
Note: Figures may not add to 100, due to rounding.
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12
Social Proof & Credibility
Steers Shoppers Into
Store Aisles
Marketers should further capitalize on all their brand-building
footwork by enabling social sharing of promotional content.
People are excited when they buy something they love and
want to share their thoughts on the quality of the products and
their shopping experiences with friends and peers.
Which of the following factors do you
care MOST about when engaging with
a food/beverage brand on Facebook?
39%
Customer reviews/ratings
MOMS
Engaging and fun content
Number of fans/followers
Number of page Likes
9%
4%
7%
Featured products/services
relevant to your needs
advocate for your brand is the best way to get more people
in-store to buy more of your products, thus contributing to the
bottom line.
41%
39%
Customer reviews/ratings
DADS
Engaging and fun content
12%
Number of fans/followers
10%
Number of page Likes
11%
Featured products/services
relevant to your needs
28%
Note: Figures may not add to 100, due to rounding.
Resistance To Facebook Ads
Is Costly Mistake For CPG
Brands
How often do you engage with/click on
Facebook advertising from a food/beverage
brand before buying an item in-store?
2-3 times a week
MOMS
beverage brands at least once a week before buying items in
Once daily
Several times a day
Twice a month
2-3 times a week
DADS
50%
Once a month or longer
Once a week
brands to deliver ad content – something personalized and
locally available – that will guarantee shoppers include it on
their shopping list when they head in-store.
13%
14%
7%
5%
11%
15%
48%
Once a month or longer
Once a week
12%
Once daily
8%
Several times a day
7%
Twice a month
10%
Note: Figures may not add to 100, due to rounding.
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13
One-Size-Fits-All Online & Mobile Ads
Will Deplete In-Store Sales
In the pursuit of giving shoppers what they want, marketers must also be cognizant of what shoppers do not want. When asked
web into their local stores. Nothing is more disappointing for a shopper than seeing something they want, only to have the
desired and advertised product and price unavailable at their local store. Local inventory can easily be integrated into today’s
digital ad units and if that means heading off the frustrations of a grocery shopper, brands must take those steps.
Which of the following is MOST FRUSTRATING to you about
online/mobile advertising from food & beverage brands
MOMS
Excessive volume of communication from same brand/retailer
Inaccurately targeted deals and offers (based on device ID, instead of current location)
18%
15%
35%
Information and promotions that are not locally relevant to products/prices in-store
One-size-fits-all online/mobile experiences and advertising
Uncertainty/concerns about privacy
Excessive volume of communication from same brand/retailer
DADS
Inaccurately targeted deals and offers (based on device ID, instead of current location)
16%
16%
15%
16%
29%
Information and promotions that are not locally relevant to products/prices in-store
One-size-fits-all online/mobile experiences and advertising
Uncertainty/concerns about privacy
23%
18%
Note: Figures may not add to 100, due to rounding.
CPG Marketing Reinvented
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14
Conclusion
reveal higher and more meaningful forms of engagement, conversions and sales, regardless of channels or devices.
““
US food and beverage
retail ecommerce sales
will reach $7.9 billion
in 2015, indicating only
a 10 percent growth in
overall spend.”
eMarketer
In today’s economically challenged climate and digitally-driven way of life, even grocery shoppers are turning to online, mobile
and social to make more convenient and better informed purchasing decisions at the supermarket – in the hopes of ultimately
digital activation at national scale is where the biggest opportunity for growth lies.
CPG Marketing Reinvented
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15
About G/O Digital
godigitalmarketing.com.
Contact Us
For Corporate Communications, Please Contact:
For Media Relations/PR, Please Contact:
Ragini Bhalla, Director of Public Relations & Content
Rebecca Nowacek, Account Director
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