The CPG Digital Landscape

How & Why CPG Brands Should Play (More) Online

Inspired by Steal Like An Artist by Austin Kleon, Ive culled through all of the most relevant digital/social information from current articles, respected experts, trend forecasting and social innovators.

This presentation is a combination of research and my own experience in the CPG world of advertising.

Digital has become an increasingly important medium in coherent, integrated campaigns. Shifting 15% of TV spend to digital made campaigns far more efficient, boosting brand recall and reach significantly.

IAB, 20133

Digital spending is on the rise in certain industries. The CPG industry spends..63% less on digital than the Retail industry

33% less on digital than the Financial Services industry

Why arent CPG brands investing more in their digital marketing?

The CPG category trusts traditional, tried-and-true methods of advertising.

Historically, TV has proven successful.

Why fix it if it aint broke?

Because it is broke.

Well, not broke necessarily but its evolving.

Cable TV subscribers are dipping to a new low.

People are spending less time on their TV, more time on digital and mobile.

As the landscape changes, CPG brands have struggled to balance their budget between TV & Print and less traditional mediums.

The CPG categorys hesitancy to making serious creative investments in digital and social is not void of valid reasoning. Is my money working?

What content do we make?

How should we act?

9

1 // Is my money working?ROI on digital, and social, is proving increasingly more effective as consumer attention moves towards multiple screens versus just TV screens. The key benefit of digital is the big data that supports hyper-focused targeting.

Its really a matter of quality over quantity. Rather than determining ROI on the number of people who see the brand communication, consider the fact that targeted online content is reaching the right number.

Utilizing digital as a megaphone for products has proven unsuccessful and leads to lack of consumer engagement. Therefore, CPG companies are trying a bit of everything through experimentation and test & learn processes.2 // What content do we make?

Chia Pods

Kinds Bars

Chobani

Udis

CPG companies are slowly getting on board with a storytelling mentality, as well as becoming real threats to content publishing companies. They are starting to act like interactive social vehicles rather than broadcast vehicles.

5 Key Factors in Making Branded Content That Resonates with ConsumersApplicableGood content marketing should create currency, or a meaningful value exchange with your audience.

BreakthroughYour brand message is competing for attention, and you're not just competing with other brands. Create really breakthrough moments by surprising and intriguing consumers.

Cross-platformA content marketing strategy should work across channels to connect the dots and develop a cohesive brand voice and story. By working cross-platform, content can inspire cultural movements.

DiscoverableSearch marketing, paid social, traditional advertising, PR and influencers are important drivers of your content. You can't just build an architectural wonder for people to discover. More people will find it if you give them a map.

Ever-changingNo one can control the rapid shifts happening in technology and consumer behavior. Get experimental and tell great brand stories by rethinking how you organize, invest in, integrate and measure to get to great content marketing.3 // How should we act?

Source: AdAge & 360i

Applicable see Niveas print ad - the brand took the idea of protecting children at the beach to a new level. The innovative branded content campaign demonstrated Nivea not only offers protection from the sun's harmful rays, but the magazine-ad-turned-wristband could also be used by parents at the beach to keep their children within a safe distance using their mobile devices.Breakthrough see West Jets viral coverage of their experiential ideaCross-platform - Oreos #SnackHacks started as a consumer-inspired social media post showing how to dunk an Oreo with a fork. That post inspired the brand to build #SnackHacks into a robust content series about innovative ways to play with your food, including live events with celebrity chefs, fan hacks and more. Discoverable - YouTube is making its internet celebrities and content creators such as Bethany Mota and Michelle Phan more discoverable with a traditional advertising push that is raising the profile of these influencers through TV, print and OOH advertising.Ever-changing - The only constant thing in content marketing is change. Marketers can no longer afford to take a wait-and-see approach.12

Change is and requires experimentation and risk.

This often comes hand-in-hand with failure hence the scary part.

The good news? It also comes hand-in-hand with innovative success.

But before we insinuate that CPG brands should change their entire approach to marketing and advertising, let us point out that there is one big factor that remains consistent no matter the medium.

Storytelling through compelling content.

The expansion of advertising mediums has merely given us more ways to tell the story.

Cadburys evolution of Joy is a prime example of storytelling pre and post digital.

2007TV Spot

Integrated CampaignTV, Digital, Social, OOH, Experiential

2012-2014

This expansion of storytelling (and therefore advertising) is a positive and exciting time for advertisers and brands and its time for CPG to truly get in on the action.

Lets take a look at current digital best practices, trends and innovations from successful CPG brands playing online.

Real-Time Marketing

Consistent Social Best Practices

Up-and-Coming Social Best Practices

CPG Brand Hierarchy in Digital/Social

Context is King, Content is Queen.

The Importance of Publisher PartnershipsTOPICS TO DISCUSS

1 // REAL-TIME MARKETING

INDUSTRY SPARK: Oreos You can still dunk in the dark SuperBowl tweet.

MANY BRANDS FAIL BECAUSE ITS NOT ABOUT PLANNING AHEAD.

SPONTANEOUS WIT TAKES PRACTICE, NOT PLANNING. Scott Marty, Fords Global Head of Social

1 // REAL-TIME MARKETING

TRUSTRESPECTCLOSE RELATIONSHIPAGENCY + CLIENTTHE INTERNAL PROCESSShould take a few hours, not days or weeks.

Morning trend meetingIdeateDesignClient approval

Dont miss the conversation trend. Being late to the game is the same as not being in it.

2 // CONSISTENT SOCIAL BEST PRACTICES

Social Crowdsourcing

A Consistent, Distinct Voice

Consumer Outreach According to Channel

Stop. Doing. Surveys.

Self-Serving Posts 1-Way Conversation

SOCIAL CROWDSOURCING: include your consumerAn effective way to engage consumers is to make them a part of the social media campaign, such as idea-or story-sharing and innovation sourcing. See Oreo, Lacoste and Heineken for examples.

http://vimeo.com/61513661

https://www.youtube.com/watch?v=fqAsPU71UHM

HAVE A DISTINCT VOICE, AND STICK WITH ITThese pretty much say it all

CONSUMER OUTREACH, ACCORDING TO CHANNEL

Couponing may be more effective through targeted channels like email/direct mail.

Use of the advanced personalized offers engine on social media fanbook/Twitter pages is another option to drive targeted campaigns to different audience segments.

Know how and when to reach your audience, based on the human behavior on each channel.

NO MORE SURVEYS.80% of CPG brands failed to engage consumers through surveys.

Accenture, 2013

3 // UP-AND-COMING SOCIAL BEST PRACTICESAudio-Visual Content is on the Rise

Increased Spend on New Digital Innovations

Google+ Is No Longer the Weird Cousin

AUDIO-VISUAL CONTENT IS ON THE RISE

To see the full infographic, go to: http://goo.gl/Uk9ImO

http://www.adweek.com/news/technology/what-mcdonalds-doing-snapchat-and-why-other-brands-should-care-15598530

INCREASED SPEND ON NEW DIGITAL INNOVATIONSWith increased targeting and marketing opportunities, digital is becoming a gold mine of consumers.New Facebook AlgorithmGo here for more.Twitters IPOInstagram AdsPromoted Pinterest Pins

While Google+ might not seem like the most active audience for your brand, there are several reasons to be on it.

When you conduct a Google search, the top results are influenced by who you follow on Google+. The more people who follow your brand on Google+, the more likely your content is going to appear in their search results.

Google Helpouts are a place designed to find or provide help to anyone at anytime. You can receive guitar lessons, help with your home garden, or demonstrations on how to ride a bike. The possibilities are endless, and brands are beginning to take advantage. See Sephora or Rosetta Stone for examples!

Circles can categorize people into: leads, repeat customers, follow-ups, influencers, etc. Google+ includes an extremely useful search bar in which you can easily find individual people, pages, or topics that people are posting out. They even provide trending topics to make it easier to join the hottest conversations.

Be a leader! Getting ahead of what is already being done by your competitors makes the brand innovative and gives you a leg up.

GOOGLE+ IS NO LONGER THE WEIRD COUSIN

Source: Likeable.com

http://www.likeable.com/blog/2014/02/5-reasons-brands-should-be-using-google/32

4 // CPG BRAND HEIRARCHY ON DIGITAL/SOCIAL

Threats to traditional publishers and media outlets

Figuring it outEager but at a loss for how to proceedeveryone elseThe Key: Focused content on a specific core topic that their customers care deeply about and build publishing strategies around it.

RED BULL: THE MEDIA POWERHOUSE Determine what your audience wants and give it to them better than anyone else.Red Bull decided to create the vehicle through which its core customers consumer the things they love.

OREO: THE POP CULTURE KING1. Morning trend meeting

2. Ideate

3. DesignCreating internal processes and structures that can get content created & approved in 3 hours, not 3 months.Take a stand and stand by it.

COCA-COLA: THE MASTER STORYTELLERThe Three Step Process1. Create engaging brand stories to spark conversations.2. Listen to those conversations.3. Act & react to those conversations.

Harlem Shakegoes viralCoke Zero: Make It Possible Story with Knucklehead

The brand makes a dancers dreams come true.

DOVE: THE EMOTIONAL CONNECTORThe Real Beauty campaign has been a 10-year process that took years of focus, continued strategy. When it comes to content, no medium is untappable.

5 // CONTENT IS KING, CONTEXT IS QUEEN.SEO Becomes Focused on Consumer Behavior

FBX: Facebooks Ad Exchange

Pushes content based on browsing history, search history, interests, locations, demographics, behaviors and other key data points.

Twitters Tailored Ads

Will offer similar targeting as FBX.

#Hashtags have become the leading search tool.

6 // THE IMPORTANCE OF PUBLISHER PARTNERSHIPSThose who experienced branded content were 28% more likely to have a favorable view of the brand.

raised $30.4 million on the promise of their sponsored content.has built a $60 million a year business.

is 30% of the companys ad revenue.Being exposed to Hidden Valleys for Everythings sponsored posts on BuzzFeed resulted in 121.8% brand lift. When they exposed it via social sharing, the lift went up to 397.4%.

Opportunity:Sponsored content allows for consumer reach, experimentation & increased brand equity.

Lastly, click here for current up-and-coming CPG brands who are entertaining in the digital and social space.

To reach out, please contact Cristina Pansolini at:

cpansolini@gmail.com

Works Cited

55 Million Conversations over 55 Days, A research report analyzing effective social media tactics for consumer engagement Accenture

Consumer Packaged Content: How Storytelling is Transforming CPG Marketing Contently

GfK Media Efficiency, Cadbury Chocolate Charmer Campaign results GfK

5 Reasons Brands Should be Using Google+ Likeable Media