CPG (Consumer Packaged Goods) manufacturers have a long history of advertising both directly to consumers and jointly with retailers through trade promotions or co-op funds. Kantar Media has been studying the advertising trends for CPG firms. The company has just released new information through DirectHeat, which monitors the way CPG companies advertise with retailers as partners.
The latest numbers from Kantar Media shows that retail advertisers rolled out only 1.6% more spending in ad channels last year than in the year before. But they made some big changes in what they are spending on. This change is designed to connect with shoppers as they decide when they are going to buy, often when they are home coming up with their lists.
Two of the biggest growth areas where retailers focused their ad dollars were:
- FSI pages +30.7%
- Digital coupon events on their websites +40.4%
The higher spending on FSI pages and digital coupons was particularly noticeable for Walmart, Safeway and Walgreens. Dan Kitrell, Vice President of Marx Account Solutions at Kantar Media, notes that as retailers change their advertising strategies, they are seeking to ‘win key weeks with shoppers’. Manufacturers should be paying attention to each retailer’s strategic changes. In addition, each manufacturer should understand how “their brands both complement and compete with other brands within these categories, including private label brands.”
By helping to fund circular creation and distribution and timing their own ad campaigns to display when key retailers advertise, manufacturers can help get shoppers into the stores. Once there, additional coupons can help ‘convert category shoppers into brand buyers in the store during these peak weeks.’[Source: Retailers Ditched Ads for Digital Coupons, Inserts in 2011. Mediabuyerplanner.com. 7 Mar. 2012. Web. 17 Jul. 2012]