CPGs Focus on Social Relationships
NOVEMBER 17, 2009
Bringing people closer to their everyday brands
Consumer packaged goods (CPG) companies and social media are not an easy mix. Because CPG companies tend to focus on reaching a mass audience and have well-honed ways of measuring marketing effectiveness and sales, social media has been a less than perfect fit.
But rather than a hindrance, this can be an opportunity for CPG companies.
“By looking at social media as a way to listen to consumers, respond to their needs and create ongoing dialogue—instead of as another way to advertise to them—CPG companies can reinvigorate their marketing and create new bonds with consumers,” said Debra Aho Williamson, eMarketer senior analyst and author of the new report, “CPGs and Social Media: Much More Than Advertising.”
The CPG industry is turning its attention toward online advertising, but remains firmly committed to traditional media. And consumer products spending on social network advertising represents only a small fraction of the total dollars going to that channel, according to Nielsen AdRelevance. (Consumer goods includes CPG companies as well as apparel and jewelry, automotive supply, home and garden, print publishing, recreational gear, and toy and hobby products.)
Still, the Nielsen figures represent only image-based ad spending, and do not include any other social marketing outlays. Many CPG companies consider social media “earned” rather than paid, and invest in promotional interactions and blogger relations, for example, rather than CPM-based display ads.
“CPGs can use social media to humanize their brand and create loyalty simply by being available when consumers have a problem, question or compliment,” explained Ms. Williamson.
Still, metrics remain a hurdle. Measuring the link between social media engagement and sales is only made more difficult by the fact that many CPG products, such as cake mix and soda, are not typically purchased online. Even so, imperfect metrics are better than none at all.
The full report, “CPGs and Social Media: Much More Than Advertising” also answers these key questions:
- What are the opportunities for marketing via social media?
- How much are CPG companies spending on online advertising and social media advertising?
- What are the key social media venues for CPG companies?
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