Consumer goods makers increasing spend on digital marketing
Consumer packaged good (CPG) brands in the US are dedicating more ad spend to digital than traditional formats, according to strategists Cadent Consulting Group. Surveying 100 CPG manufacturers, 300 consumers and 200 retailers, the firm found traditional advertising represented 15.5% of marketing spend, as opposed to digital advertising's 15.9%. The group said brand marketing teams expected to spend 19.9% of total outlays on digital and only 13.2% on traditional. However, 65% of retailers rated traditional ads as effective for brands, as opposed to 60% who rated digital advertising. Only 14% of consumers were aware of brands’ digital advertising.

A survey from Cadent Consulting Group, conducted among 100 CPG manufacturers, 200 retailers and 300 consumers, has found that, for the first time, digital advertising made up a larger share of CPG marketing spend than traditional advertising in 2016.

While traditional advertising made up 15.5% of CPG marketing spend, digital accounted for 15.9%.

Furthermore, Cadent Consulting Group expects digital to widen its lead over traditional as this year as brand marketers are expecting to spend 19.9% of total marketing outlays on digital compared to just 13.2% on traditional.

While 60% of retailers said digital advertising works for brands, 65% rated traditional ads as more effective. Furthermore, of the 300 consumers who participated in the survey just 14% claimed to be aware of brand digital ads and 10% said those ads influenced them.