CPG Brands See Better Engagement, Reach with Digital Video - eMarketer

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CPG Brands See Better Engagement, Reach with Digital Video

Consumer goods companies are increasing investments in the digital video space

April 10, 2014

Even as consumer packaged goods (CPG) brand managers talk about the need to rein in marketing budgets, they are increasing spending on the digital video channel. Media buyers and agencies, too, are pointing to increased efforts by CPG brands to put more digital video online, according to a new eMarketer report, “CPG and Digital Video: Beyond Repurposing the Television Campaign.”

US Digital Video Advertiser Share, by Industry, Q4 2013 (% of total ads served by Videology)

Early successes in the digital video realm are prompting consumer goods companies to pick up the pace in digital video campaigns. Video advertising platform Videology reported that its consumer goods clients in the US were ahead of other verticals in Q4 2013 in serving digital video ads.

Digital video is a way to extend reach, especially to more targeted demographics. A Forrester Consulting survey released in January 2014 noted that, among brand advertisers in North America, digital video’s ability to target specific consumers was one of its greatest advantages.

Leading Advantages of Digital Video Ads According to Video Advertising Decision-Makers in North America, Sep 2013 (% of respondents)

While repurposing campaigns from traditional television is a common way for brands to extend a campaign, more are beginning to create ones that begin and end in the digital space, taking advantage of the lean-forward quality of the internet to engage viewers in deeper storytelling.

FreeWheel, a company that works with media companies to manage content across digital devices, analyzed video ads served through its network in Q3 and Q4 2013 and found that US viewing of digital video advertising, especially among longer-form content, was increasing.

The payoff to longer-form digital video campaigns: engagement. Across the board, recall is better with online video ads vs. TV ads.

According to a report released in early 2013 by the Interactive Advertising Bureau, based on a study of more than a year’s worth of Nielsen data to determine how shifting budgets from TV-only to digital video and display could increase reach, 61% of respondents could recall a general idea about an online video ad in the food and beverage and health and beauty categories, compared with 46% of respondents who said the same about TV ads on broadcast and cable. When it came to brand recall, the difference between online and linear TV was even more pronounced. In the health and beauty category, 45% said they could recall the brand message, compared with just 19% of TV ads. Similar results were found in other verticals.

The full report, “CPG and Digital Video: Beyond Repurposing the Television Campaign,” also answers these key questions:

  • Why are brands increasing spending on digital video advertising?
  • How are brands leveraging linear TV campaigns for digital advertising?
  • What is the relationship between digital video and linear TV advertising? Does one benefit the other?
  • What brands are creating digital-only video campaigns? What are the benefits to these campaigns?

This report is available to eMarketer corporate subscription clients only. eMarketer clients, log in and view the report now.


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