Tuesday, August 2, 2011

The CPG Industry's Path to the Internet: As a Sales and Marketing Channel

For a number of years, the online advertising industry has eyed CPG / FMCG giants' vast marketing budgets, knowing that shifting just a few percentage points of traditional-media spend would do wonders for its share. Yet, the CPG industry has historically been hesitant to move dollars to digital, arguing that it doesn’t make sense to advertise online when the majority of CPG / FMCG products are purchased in retail stores.

comScore says that in recent years, however, this thinking has changed dramatically as a result of two key factors. First, the Internet has arguably become the most powerful and pervasive medium in the world, something no marketer can ignore. Second, contrary to early belief, the Internet is much more than a direct response channel. Digital advertising has proven to have a strong branding impact and a significant ability to drive in-store sales. As a result of this evolution, more and more CPG marketing dollars are moving to digital, yet there is still a huge potential for more budgets to migrate towards online trade promotions, such as coupons.

At AaramShop, we believe we have created a unique mechanism to address the original concern of the CPG brand owners - by integrating the ubiquitous nature of the internet (via our web-store) with the existing channel and retail stores (via the independently operated neighborhood stores that we call AaramShops).

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