US CPG Bullish on Internet Advertising
Mitchell Fanning — November 27, 2007 — Marketing
References: emarketer
After relying on television and print advertising for decades, US consumer packaged goods (CPG) marketers are finally moving a larger proportion of their marketing budgets online.
This year, eMarketer projects that CPG companies will spend $920 million on all forms of Internet advertising, up 33% over 2006. By 2011, CPG advertising online will hit $1.8 billion, for a compound annual growth rate of 20.9%.
Lisa Phillips, eMarketer Senior Analyst and author of the new report CPG Online: Health & Beauty Go Interactive claims consumer behavior is the driving force behind the spending changes.
Consumers are going online to search for and research CPG products and then discussing them on blogs and social networks. But there not stopping there - they are buying customer product goods products online.
This year, eMarketer projects that CPG companies will spend $920 million on all forms of Internet advertising, up 33% over 2006. By 2011, CPG advertising online will hit $1.8 billion, for a compound annual growth rate of 20.9%.
Lisa Phillips, eMarketer Senior Analyst and author of the new report CPG Online: Health & Beauty Go Interactive claims consumer behavior is the driving force behind the spending changes.
Consumers are going online to search for and research CPG products and then discussing them on blogs and social networks. But there not stopping there - they are buying customer product goods products online.
Trend Themes
1. Increasing Online Advertising - The trend of US consumer packaged goods (CPG) marketers shifting their marketing budgets towards online advertising presents a disruptive innovation opportunity for digital marketing agencies and platforms.
2. Digital Consumer Behavior - The increasing consumer behavior of searching, researching, discussing, and purchasing CPG products online creates a disruptive innovation opportunity for e-commerce platforms and social media analytics companies to provide targeted advertising and personalized shopping experiences.
3. CPG E-commerce - The growing trend of consumers buying CPG products online opens up disruptive innovation opportunities for online retailers and delivery services to optimize convenience, customization, and last-mile delivery processes.
Industry Implications
1. Digital Marketing - The shift of CPG marketers towards online advertising presents a disruptive innovation opportunity for digital marketing agencies and platforms to provide targeted and interactive advertising solutions.
2. E-commerce Platforms - The increasing consumer behavior of purchasing CPG products online calls for disruptive innovation in e-commerce platforms to create personalized shopping experiences and optimize convenience.
3. Delivery Services - The growing trend of CPG products being bought online presents a disruptive innovation opportunity for delivery services to optimize logistics and last-mile delivery processes, ensuring speedy and reliable delivery.
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