For CPG, Mobile Promotions Push Targets to Store - eMarketer

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For CPG, Mobile Promotions Push Targets to Store

CPG mobile ad campaigns drive $500,000 in in-store sales on average

June 10, 2015

The US consumer packaged goods (CPG) and consumer products industry will spend $2.33 billion on mobile advertising this year, representing 47.0% of digital ad spending in the industry, eMarketer estimates.

In-Store Sales Generated by US CPG Brand Mobile Ad Campaigns, 2015

Recent research by 4Info and Catalina examined how those dollars would affect in-store sales. The study looked at 83 mobile campaigns across a variety of CPG categories for 59 different brands; campaign durations ranged from four to 38 weeks, with 12 weeks on average. Overall, CPG brand mobile ad campaigns generated an average of half a million dollars in in-store sales, though the gap between the highest and lowest results observed was huge. In-store sales per thousand impressions were nearly $30 on average, with $76.33 the highest and $3.09 the lowest.

Performance Metrics for US CPG Brand Mobile Ad Campaigns, by Type, 2015

Marketers are boosting efforts to reach mobile coupon clippers, and eMarketer estimates that this year, 97.4 million US adult mobile users—43.2% penetration—will use their devices to redeem a coupon/code obtained via mobile for online or offline shopping. 4Info and Catalina found that such offers performed very well in-store for CPG. Out of mobile ad campaign types studied, those that included a promotion or coupon drove the highest in-store sales, with an average of $993,000—more than 2.5 times that of usage- and branding-focused campaigns. In-store sales per thousand impressions were nearly $40 for promotional campaigns, vs. $26.12 for brand equity and just over $20 for those focused on usage.

The study noted that geolocation targeting could help CPG brands boost the relevance of their mobile messaging when shoppers are in or near a store. However, January 2015 research by Econsultancy in association with Adobe found that just 18% of client-side marketers in the consumer goods industry worldwide were using geotargeting technology to deliver location-based notifications, and fewer than a fifth (18%) were planning to do so in 2015. Three in 10 weren’t even exploring the opportunity.


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