Why TV Offers the Whole Package to CPG Marketers

Everyone can name a few consumer packaged goods that stir feelings of fierce loyalty the chip they serve at every Super Bowl party the laundry detergent that they swear works better than others or the brand of soup they39ve been eating since childhoodIn recent years the CPG industry has been met with numerous challenges Some such as the need to compete with twohour shipping windows are due to digital transformation ie using digital technology to solve problems Changing consumer behavior is also presenting challenges to the CPG industry Consider a recent study showing that more than half of all consumers surveyed in the US and UK had reduced the amount of disposable plastic they used in the previous year amp8212 a laundry detergent brand may find itself forced to rethink its packaging for example Home products brand Seventh Generation is one brand that uses blends of recycled cardboard and newspaper to produce its laundry detergent bottleBeyond sustainable materials millennials are almost four times more likely than baby boomers to avoid buying products from quotthe big food companiesquot according to McKinsey Thanks in large part to health concerns saltladen soup may no longer be the lunch of choice Add in the fact that new entrants are disrupting the traditional CPGcustomer relationship and it39s no wonder that 80 percent of leading CPGbrand chief executive officers are concerned that their business model may be at riskIn response many CPG companies are rethinking their portfolios tailoring new products with wellness and more sustainable packaging in mind and creating their own private labels Others are investing in ways to drive innovation including venture funds and incubatorsAlongside those smart moves they39re also rethinking their marketing strategy Television they may come to realize can provide a solution to many challenges they39re facingOutoftheBox CPG StrategyDespite loyalty from some consumers CPG brands have long been plagued by high market saturation levels and low consumer switching costs It39s easy to switch from one brand to another depending on price or availabilityThis makes it vital for a brand to prioritize topofmind awareness Datadriven TV advertising can be an instrumental part of that strategyBrands can use indexed linear television for instance to identify consumers more likely to be inmarket for a particular product And today39s indexed TV applies modern data sets to TV marketing By matching data such as purchasing habits or household income to viewing habits a CPG brand can reach its target audiences efficiently with a relevant messageFor a more targeted approach addressable TV advertising allows brands to home in on a receptive audience at a granular level It also follows the customer journey using purchase and behavioral data to target current buyers to increase market penetration boost customer loyalty identify purchasers of competing brands or products to promote switching and tap lapsed purchasers to help bridge gaps in purchase historyThe assumption may be that addressable TV advertising is worth the investment only for industries and brands seeking specific customers for costly products or services amp8212 middleage women seeking to upgrade the family car for example or golfers planning their next resort vacation Following that line of thinking makers of massmarket items that almost everyone uses eg tissues soap or sandwich bread need only to cast the widest possible net and reach the largest audience to prosperTargeting a more specific audience at the household level however can minimize waste while retaining an effective level of reach For instance one CPG brand used addressable to shift share from a competing brand resulting in a 21 percent increase in brand penetrationAdditionally both indexed TV campaigns and addressable TV campaigns offer valuable insights on what worked and what didn39t work with a campaign For indexed linear automated content recognition ACR data gives clarity on who watched and what they were exposed to After an addressable campaign marketers can measure incremental impact against their brand39s KPIsBottling the Power of TV amp160Marc Pritchard chief brand officer of Procter ampamp Gamble a company whose products are used by some 5 billion people globally each day amp8212 and one that has been widely celebrated for the success of its mass marketing amp8212 told attendees at an ANA gathering that there was a pressing need to reinvent traditional modes of advertising The ideal would be quotmass reach with onetoone precisionquot he explained That39s as good a definition of addressable TV as anyIndexing and addressable TV advertising two highly potent mediums offer both precision and the scale CPG marketers requireClick the social buttons to share this story with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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Why TV Offers the Whole Package to CPG Marketers

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