It would be easy to look at this and conclude that digital will never play a central role for consumer packaged goods, and that the industry's data-driven executives must have caught on to the fact that digital just doesn't work that well for them, despite much talk of late about how efficient it is.
But the reality is far more complex. Several studies suggest digital sells as well or better than TV for CPG brands. Despite the slow uptake through nearly two decades of hype, packaged goods may now be on the upward slope of a hyperbolic adoption curve, since digital as a percentage of marketing spend has doubled or tripled at P&G, Unilever and L'Oréal over the past few years. Moreover, digital media appears on the brink of some measurement breakthroughs that could have huge ramifications for data-driven CPG marketers. That data revolution, however, is proceeding on separate tracks with vastly different implications for how digital will be used.
Two years earlier, ComScore and Dunnhumby found a 9% average sales lift for 600-plus CPG campaigns, compared with 8% for TV campaigns across 130 measured over several decades by SymphonyIRI. The digital lift came in three months, vs. 12 months for the TV campaigns.
Digital may work faster in part because it's more targeted, said ComScore Chairman Gian Fulgoni. But the other reason digital worked faster in the study points to another key difference: In CPG, digital is a conduit for price promotion.
Read more on this game changing trend here on Adage. And to understand how AaramShop is enabling digital marketing of FMCG / CPG brands in India visit the Brand Engagement Center.