Earlier today, I highlighted an eMarketer report that touted the huge investment retailers have made in digital advertising. One industry which has lagged in digital ad investment and effectiveness is the consumer packaged goods sector, specifically, personal care product businesses. A new L2ThinkTank.com report summarizes where these marketers are particularly challenged in the digital universe and suggests steps to remedy the problem.
Researchers categorized manufacturers of various product categories according to their digital IQ which was calculated by taking websites, social media, digital marketing, and mobile efforts into account. The scores are as follows:
- Diapers 120
- Tissues/hygiene 95
- Bath & body 90
- Oral care 88
- Shaving/hair removal 88
- Deodorant/ antiperspirant 81
Some of the reason for the poor performance in certain categories is linked to sloppy execution of online efforts. For example, nearly 70% of researched personal care websites have not had an update in 30 days. These businesses are failing to generate demand in display ad campaigns because they don’t often provide coupons or good links and co-branding with their retailers. Personal care brands are not acting aggressively in the social media space, with many using YouTube ‘as a repository for old TV ads’.
According to the researchers, only about 4% of this industry's product sales occur online. This statistic may hint at a larger issue for CPG manufacturers. The long-established system of branding, promoting and distributing products in conjunction with their retail partners has been disrupted. As shoppers research products online, especially via mobile devices, personal care product businesses have to decide which business they are in — whether they intend to sell directly to consumers and/or through their partners. During this process, they must work with their partners to determine their roles, levels of information sharing about consumers, and which marketing channels deserve investment in order to maximize revenue. Then, they can focus on streamlining their digital presence.