CPG manufacturers have been struggling to convince consumers to purchase more expensive branded products ever since the recession cut into the household budget. With the job market and the economy finally improving, CPG marketers are showing a willingness to spend more on advertising, especially in the mobile market. This spending may be their ticket to higher sales.
A report by Advertising Perceptions shows that CPG marketers are feeling more optimistic about the future than at any point since 2007. A significant number, 64%, believe mobile is the way to go as they plan to increase their spending on these types of campaigns. While 51% say they’ll boost their digital campaigns in 2013, the numbers are lower for traditional media. About 34% say they’ll fund more Advanced TV advertising while only 10% expect to put more money into national newspapers. By contrast, 35% will cut their national newspaper spending and 26% will cut magazine spending.
Survey results also show a smaller number of CPG marketers planning a social media increase this year. About half, 49%, will give a boost to social media. Last year, 59% did so.
This study echoes the findings of a Mobile Marketer report that was issued last summer. Early adopter CPGs are reaching consumers with apps to strengthen brand loyalty and they're using also QR codes, especially in conjunction with larger retailers, to encourage consumers to get coupons and buy their products. This is further evidence that even marketers who are slow to adapt to new trends are realizing that consumers are spending increasing amounts of time with mobile devices.[Sources: Rey, Jason. Guess Who’s Planning to Spend Big in Mobile? Adage.com. 7 Mar. 2013. Web. 19 Mar. 2013; Tode, Chantal. CPGs step up their mobile marketing game. MobileMarketer.com. 17 Aug. 2012. Web. 19 Mar. 2013]