As the consumer packaged goods (FMCG) industry continues to navigate demand uncertainty in 2024, it is taking a new approach to advertising to drive innovation and drive sustainable growth. With limited room to raise prices, 68% of executives are increasing ad spend as a share of revenue, focusing on promoting core brands – a tactic employed by 66% of companies to maintain market control and protect pricing power.
A privacy-friendly approach to personalization
Given the increasing complexity of measuring ad spend effectiveness, the industry is turning to personalization of their marketing efforts to ensure higher ROIs. The deprecation of third-party cookies has not diminished personalization efforts but rather has highlighted first-party data for those with direct relationships with consumers. Publishers and their partners with direct code-on-page relationships are well-positioned to provide brands with better targeting opportunities.
Leading FMCG companies have forged ahead by adopting platforms that merge proprietary data with predictive AI, creating personalized campaigns, and optimizing the consumer journey through data-driven insights. It’s an approach that reflects consumer expectations, with 82% expressing a preference for ads that are relevant to their needs.
Decoding digital attention for effective branding
As FMCG spend shifts from physical to digital, attention metrics cash app database become crucial to understanding where to capture consumer interest, especially in an environment where digital content is booming. A study from Adelaide shows a direct correlation between attention and business outcomes throughout the funnel, with every additional second of active attention increasing brand recall by 7% . With these insights, marketers can invest their new budgets with greater confidence, optimising their spend to drive high-impact, high-ROI campaigns.
Lancôme ’s adoption of attention metrics is a perfect illustration of the opportunities these insights offer FMCG brands to maintain their market leadership. By combining Brand Studio ’s personalized experiences with insights based on Onyx ’s proprietary data , Lancôme’s campaign received an attention score (AU) of +57% compared to standard display ads. This approach gave consumers a non-intrusive space to explore products, reinforcing branding efforts that Lancôme can leverage to gain pricing power.
“The results obtained demonstrated that attention, as a metric, can offer both quality and scale.”
Nabil Ait Yahia, Director of Trading, Publicis Media
Diversification of the media mix and opportunities on the open web
The digital customer journey is evolving towards more complex and fragmented experiences across multiple online environments, forcing FMCG brands to re-evaluate their media mix. The industry’s heavy reliance on social, with 31.2% of digital advertising budgets allocated to social, exposes brands to risks such as algorithm changes and potential regulatory changes. It is becoming increasingly necessary for brands to diversify their media mix, to reduce this reliance on a single channel and expand opportunities to engage consumers across multiple digital channels.
The FMCG industry’s reliance on social media advertising also overlooks the vast audience represented by the open web, where 59% of US consumers’ online time is spent, with 60% expecting to increase their usage. By capitalizing on the consideration moments of open web audiences, brands have the opportunity to generate new demand and drive more customers into their funnel. Additionally, data from Outbrain indicates a significant 28% increase in mobile click-through rates for the FMCG industry from 2022 to 2023, as well as an improvement in cost-per-click, highlighting the potential of the open web for advertisers to reach highly qualified, incremental audiences.
FMCG brands that adjust their strategies to reflect current shifts in consumer behavior and online spending habits can realize significant gains. By adopting Outbrain’s cross-funnel solutions, designed to maximize impact, brands can rethink how they influence and truly capture consumers’ attention at the most crucial moments.
Reinventing FMCG Marketing for Sustainable Growth in 2024
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