If Procter and Gamble’s increased emphasis on shopper marketing is any indication of the future, more companies will be upping their budgets to reach consumers when they are in stores. This conclusion was reached by Jack Neff, writing for Advertising Age. He notes that renewed focus on ‘store-back’ comes as P&G and other packaged goods firms are struggling to meet sales targets during the recession.
Neff also points out that when it comes to packaged goods marketing, spending on trade and store promotions can easily exceed media spending. As a result, more agencies are building shopper marketing expertise into their offerings and finding ways to extend consumer campaigns into in-store campaigns. This can be easy to do in some cases, such as adding a packaging blurb. However, consumers who are attached to a company’s brand aren’t always the same people as the actual shoppers. In those cases, reaching consumers in stores is often about “product formulation..and packaging” which translates into higher marketing expenditures.
The increased emphasis on shopper marketing is expected to continue because:
- Marketers believe these campaigns return an effective ROI
- Shopper marketing will be easy to merge with digital, especially mobile media and coupons
- Retailers are asking for more co-op advertising and telling manufacturers how to spend money allocated for ‘store-back’ programs